Consumer Lifestyles in Hong Kong China PDF

CONSUMER LIFESTYLES IN
HONG KONG, CHINA

Euromonitor International
December 2013
CONSUMER LIFESTYLES IN HONG KONG, CHINA
LIST OF CONTENTS AND TABLES

Top Five Consumer Trends .......................................................................................................... 1
Income Disparity ....................................................................................................................... 1
Virtual But Always Real Escapism ............................................................................................ 1
Localisation and the Blossoming of Post-consumerism ............................................................ 2
the Online Social Consumer Movement ................................................................................... 2
Hong Kong Identity Versus Chinese Identity ............................................................................ 2
Consumer Segmentation .............................................................................................................. 3
Babies and Infants .................................................................................................................... 3
Chinese Dragon Babies ............................................................................................................ 4
Educated in Diapers ................................................................................................................. 4
Kids........................................................................................................................................... 4
High-tech Students ................................................................................................................... 6
Trendy Kids .............................................................................................................................. 6
Tweenagers .............................................................................................................................. 7
Camps for All Tastes ................................................................................................................ 8
Globalised Tweens ................................................................................................................... 8
Teens........................................................................................................................................ 9
Mobile Internets New Masters ................................................................................................. 9
Vanity and Narcissism Amongst the New Youth ..................................................................... 10
Young Adults .......................................................................................................................... 10
Middle Youth ........................................................................................................................... 13
Mid-lifers ................................................................................................................................. 14
Late-lifers ................................................................................................................................ 16
Table 1
Chart 1
Consumer Segmentation and Population Data 2000, 2005, 2010,

2011, 2012, 2015 ....................................................................................... 17
Population Aged 15-64 Compared with Old-Age Dependency Ratio
2000-2020 .................................................................................................. 18
Housing and Households ........................................................................................................... 19

Home Ownership .................................................................................................................... 19
Household Profiles.................................................................................................................. 20
Running Costs ........................................................................................................................ 22
Table 2
Chart 2
Housing and Households Data 2000, 2005, 2010, 2011, 2012, 2015 ........ 23
Number of Households by Disposable Income Bracket 2005, 2010,
2015 ........................................................................................................... 25
Money and Savings .................................................................................................................... 25

Attitudes Toward Payment Methods ....................................................................................... 26
Savings ................................................................................................................................... 26
Loans and Mortgages ............................................................................................................. 27
Table 3
Chart 3
Money and Savings Data 2000, 2005, 2010, 2011, 2012, 2015 ................. 28
Consumer Lending Compared with Annual Savings and Savings
Ratio 2000-2015......................................................................................... 29
Eating and Drinking .................................................................................................................... 29

Eating Habits .......................................................................................................................... 29
Drinking Habits ....................................................................................................................... 31
Table 4
Eating and Drinking Data 2000, 2005, 2010, 2011, 2012, 2015 ................. 32
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Chart 4
Real Growth in Consumer Expenditure Compared with Real Growth

in Consumer Expenditure on Food and Alcoholic Drinks 2000-2015 ......... 33
Grooming and Fashion ............................................................................................................... 33

Perceptions of Beauty............................................................................................................. 33
Female Grooming ................................................................................................................... 34
Male Grooming ....................................................................................................................... 35
Fashion Trends ....................................................................................................................... 36
Table 5
Chart 5
Grooming and Fashion Data 2000, 2005, 2010, 2011, 2012, 2015 ............ 38
in Consumer Expenditure on Clothing, Footwear and Personal Care
2000-2015 .................................................................................................. 38
Health and Wellness .................................................................................................................. 39

Attitudes To Health and Well-being ........................................................................................ 39
Obesity ................................................................................................................................... 40
Attitudes To Smoking.............................................................................................................. 41
Table 6
Chart 6
Health and Wellness Data 2000, 2005, 2010, 2011, 2012, 2015 ............... 42
Real Growth in Public and Private Expenditure on Health Compared
with Healthy Life Expectancy at Birth 2000-2015 ....................................... 43
Shopping Habits ......................................................................................................................... 44

Main Household Shop ............................................................................................................ 44
Shopping for Big-ticket Items .................................................................................................. 45
Personal Shopping ................................................................................................................. 45
Shopping Online ..................................................................................................................... 46
Table 7
Chart 7
Shopping Data 2000, 2005, 2010, 2011, 2012, 2015 ................................. 48

Index of Retail Sales Compared with Real Growth in Retail Sales
through Supermarkets and Internet Retailing 2000-2015........................... 48
Leisure and Recreation .............................................................................................................. 49

Staying in ................................................................................................................................ 49
Going Out ............................................................................................................................... 50
Sport and Fitness.................................................................................................................... 50
Vacations ................................................................................................................................ 52
Public Holidays, Celebrations and Gift-giving ......................................................................... 53
Table 8
Chart 8
Leisure and Recreation Data 2000, 2005, 2010, 2011, 2012, 2015 ........... 55
Percentage of Households in Possession of Cable TV; Satellite TV
System; Internet Enabled Computer; Mobile Telephone; Video
Games Console 2000-2015 ....................................................................... 57
Getting Around ........................................................................................................................... 57

Private Transport .................................................................................................................... 57
Public Transport...................................................................................................................... 58
Commuting ............................................................................................................................. 59
Air Travel ................................................................................................................................ 59
Table 9
Chart 9
Transport Data: 2000, 2005, 2010, 2011, 2012, 2015 ................................ 60

in Consumer Expenditure on Transport Services and Purchase of
Cars, Motorcycles and other Vehicles 2000-2015 ...................................... 61
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II
CONSUMER LIFESTYLES IN HONG

KONG, CHINA
TOP FIVE CONSUMER TRENDS
Income Disparity
The rise in income disparity in Hong Kong has been the key concern amongst analysts and
the general population alike over recent years. Escalating house prices have squeezed out
many lower-middle classes from the mainstream economy. Hong Kongs vastly more populous,
and socially unstable neighbour to the north is placing demands on the territorys economy.
Over the coming years, there seems no other direction for Hong Kong to go except towards
greater income disparity. Essentially, it is access to Hong Kongs education, healthcare, and
relative social and political freedoms that mainland Chinese consumers are buying. This
somewhat forced mass entry is the cause of the cleavages that are emerging today within Hong
Kong society.
Within every age bracket, across genders and districts, there is a growing split between the
haves and the have-nots. The economy must cater to both groups. Tens of thousands of Hong
Kong residents protested on the 1st of July, the anniversary of Hong Kongs return to China, as
the number of millionaires has risen greatly, whilst poverty reached 19.6% of the population.
The Gini co-efficient, the global measure of income inequality, rose to an all-time high of 0.537
in June 2011. Luxury consumption is rising in Hong Kong, while at the same time demand at the
bottom of the scale among marginalised citizens is increasing. This is already causing obvious
social stability issues. In addition, there are growing costs associated with the running of an
economy so dependent on high earners and so heavily populated by segments of society that
will require increased levels of social support over the coming years in terms of housing,
income, education, and medical care, amongst others.
Virtual But Always Real Escapism

The very stressful rat race that characterises modern life in Hong Kong leads many citizens to
search for alternative lifestyle options to fit into any gap in the daily commute, spare minute over
lunch, or long weekend. From pocket gaming, via tablet or smartphone, to extended city breaks
in Singapore, Hong Kong residents are increasingly searching for escape from the daily grind.
Major trends within this meta-trend include the rise of the online gaming generation. Online
games are providing escapism and socialisation, with recent franchises, such as The Elder
Scrolls and Grand Theft Auto, often claiming hours, if not days, of young peoples lives, as they
temporarily swap their daily realities for virtual ones. Multiple lives can now be lived, owing to
cheap and efficient high-speed internet connectivity and processing power.
The increased interaction between various modes of social networking, including Twitter,
Instagram, Weibo, Facebook, WeChat, Line, YouTube, as well as personalised blogs, online
shopping portals, and group chat sites, all of which can be linked to any other website of interest
through the click of a link-to tab, has created a virtual world that can pervade every aspect of
real life and, at the same time, provide an escape route from it.
Travel, a more traditional mode of escapism, has diversified to include far more options in
Hong Kongs backyard, such as the many nature reserves and geological parks in the
northernmost territories. Lantau Island, as well as minor outer lying islands, and nearby Macau
also provide a welcome break for those wishing to travel often but not very far. Moreover, the
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rise of low-cost airlines has led to new destinations in the blossoming tourist hotspots of SouthEast Asia, India, Japan, Korea, and China amongst others.
Localisation and the Blossoming of Post-consumerism

There is a trend among Hong Kong consumers to buy Brand Asia. This is not exclusive to
younger segments of the population, but it is delivered by them to the wider marketplace. Young
Hong Kong consumers, usually in their teens and twenties, are keen to support local products
and actively encourage others to do so. Supporting local artists, restaurants, and designers and
actively seeking them out and sharing experiences through social media is almost becoming a
trend within itself. Local brands are also better placed to cater to the particular demands of local
populations and measure and react to the zeitgeist, which in todays interconnected society is
extremely dynamic and sensitive to change.
This localisation trend has expanded to include regional products and services, as increasing
numbers of people feel that there is greater mutual respect and attachment among people in
similarly developed regional economies. This is done through shared social media platforms
linking like-minded, globalised, middle-class and elite youth sharing an Asian identity. South
Korean cosmetics, consumer electronics and automotive manufacturing firms have been very
successful in Hong Kong. Soft culture, through television, music, and cinema, has also made a
massive impression on young Hong Kong consumers.
The increased awareness of the wider regions less developed economies through online
interaction, research and holidays has further increased this regional appeal among young Hong
Kong citizens, at an age when finding an identity is particularly important. This has led to new
consumer habits reflecting empathy and concern for sustainable development. This highlights
an emerging post-consumerism trend, as already seen in the slightly more developed consumer
markets of Japan.
the Online Social Consumer Movement

Consumers are becoming increasingly vocal about issues. Social media has acted as the
instigator and the enabler for a wider trend of socialising concerns, recommendations, likes, and
tweets. Generations born in the 1980s and 1990s especially have been particularly quick to
make use of social media to bring to the fore social and economic concerns and organise social
movements around these concerns.
Always-on and high-speed mobile internet connectivity has allowed for this trend to become
supremely dynamic in a relatively short space of time. Corporate social responsibility has been a
central concern for many involved in this new form of connected social movement. Major brands
themselves have a massive online presence in the modern online marketplace and often
connect directly to the same social networks as these blossoming social groups. Regional
ecological concerns; recycling initiatives in Hong Kong; worker labour rights, particularly
highlighting the abuse of Indonesian and Filipino domestic workers; and groups set up to inform
consumers on organic goods and the provenance of their grocery purchases are all recent
examples of the young online social movements that are affecting consumer behaviour.
Hong Kong Identity Versus Chinese Identity

Chinese influence in Hong Kong grows stronger everyday. There are few industries and
markets that are not affected by the rise of China. At the very basic level, Chinese tourist
consumption is pushing consumer expenditure into another stratosphere in Hong Kong,
cementing the territory as the premier shopping destination on earth. But deeper than this,
Chinese investment in housing and migratory patterns from the mainland are also greatly and
fundamentally changing the social and economic DNA of the island territory. Many of these
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changes are unwelcome, and the tensions they cause give rise to more nuanced trends in
social, political, and consumer behaviour.
A yearly survey by the University of Hong Kongs Popular Opinion programme found that the
percentage of Hong Kong consumers identifying themselves as Chinese hit the lowest levels
for 14 years in mid-2013. The poll saw a full 38% identify themselves as being Hong Kong
citizens, whilst only 23% claimed loyalty to a unified Chinese identity. Polls conducted since last
years 15-year anniversary of the handover of Hong Kong from British to Chinese rule have
highlighted a strong preference for British rule over Chinese rule among todays population. A
poll by the South China Morning Post found that 90% of respondents actually wanted a return to
British rule. These polls cannot be taken at face value, but they do highlight the growing
disillusionment with Beijings current administration. Factors include the continuous delays in the
return to democracy for the territory, promised several years ago and now scheduled for 2017,
and the rise in income disparity across the territory which is ascribed to irresponsible and
negligent Beijing-led economic and social policy. This has caused major concern in Beijing, as
growing social unrest in the territory is seen as a potentially destabilising risk for the mainland,
too. As investment in Hong Kong continues and mainland Chinese take an increasingly larger
share in the machinery of Hong Kongs new wealth creation, trends within the territory are
increasingly instigated by mainland Chinese.
CONSUMER SEGMENTATION
Babies and Infants
The babies and infants segment has enjoyed high growth over recent years but remains
extremely small compared to the overall population. The birth rate, recorded at 13.5 per 1,000
heads in 2011 further declined to reach 12.8 in 2012. They are forecast to further decline to 7.9
in 2015. Half of all babies born in Hong Kong are actually born to mainland Chinese mothers,
according to the Census and Statistics Departments 2013 figures. Government intervention with
regards to mainland Chinese pregnancies will contribute to the decline, as well as the general
trend towards more westernised lifestyles among young Hong Kong citizens.
The reasons for the declining birth rate in Hong Kong are linked to wider social changes.
These changes are most acutely felt amongst young educated women, who are numerous in
Hong Kong. Professional career commitments and the desire for personal development and
experience before settling down have driven young Hong Kong citizens to stay single and
childless for longer.
Kindergartens are an integral part of Hong Kong infants lives as often both parents work for
at least a portion of infants early years. Moreover, kindergarten is seen as an important first
step in a childs education and in the socialising process to help with the transition into formal
and compulsory education. Kindergartens are all privately run but are overseen by both the
Education Bureau and the Social Welfare Department to ensure that standards are observed
with regards to care and the curriculum. Being private, kindergartens in Hong Kong are diverse
in terms of size and quality.
Aside from kindergartens, some grandparents and increasingly live-in nannies, mainly from
Indonesia and the Philippines, care for babies and infants needs when parents are not
available, and often even when they are. The relative affluence of the Hong Kong citizens who
are able to raise a child in the territory has created a trend among young parents to hire help
within the home. This is especially necessary as todays parents are considerably older than in
the past, and some have elderly parents who are often too old to baby sit on a full-time basis.
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Chinese Dragon Babies

The Chinese year of the dragon, considered the most auspicious of all the zodiac signs, fell in
2012 and has been a main factor in the sudden and sharp rise in the number of babies born in
Hong Kong. These dragon babies have caused a surge in spending, initially in postnatal care
and hospital maternity services, but, over the course of 2013 and over the coming years, in
clothing, food, education, and childcare services.
The recent spike in birth rates in Hong Kong has been met by a similar surge across the
border in China. Yet, given Chinas population of perhaps one and a half billion, the Chinese
surge in birth rates has dwarfed that found in Hong Kong. Chinese demand for Hong Kong
products has grown exponentially. Factors include the recent food safety scares across China,
the general demand for Hong Kongs higher quality goods and services, and the vastly more
consumer friendly tax rates on luxury goods. Everything from infant milk formula to education is
in huge demand. This has caused some antagonism between Hong Kong citizens and
mainlanders, the latter being eyed by the former increasingly as locusts swooping in and
consuming goods and services meant for local Hong Kong folks. Mainland Chinese
consumerism in Hong Kong and the deep social differences and culture clashes that this brings
have been a long standing bugbear for citizens of the territory. The dragon babies of China have
highlighted a real issue associated with the unrelenting demand from China in certain sectors.
This is testing the territorys ability to balance the needs of its own consumers with economic
growth and the wider consumption demands made by less developed regional neighbours.
Educated in Diapers
Demand for preschool education is enjoying a healthy level of growth, especially as couples
are choosing to wait longer before having their first child and so find themselves in a better
position financially and can afford a higher level of preschool education. In a 2013 study
commissioned by Citibank, half the 1,000 adults in their thirties stated that they would not
consider having a child, or another child, mainly due to the financial costs of raising a child in
Hong Kong today. One of the key costs, aside from housing costs, is the cost of putting a child
through compulsory education. This climate of low birth rates, longer life expectancy and doting
grandparents, combined with the relative financial stability of new parents, is leading to the
demand for qualitative change in preschool education.
By the end of the 2011/12 academic year, all kindergarten teachers were required to meet
basic teaching standards and obtain the now compulsory Certificate in Early Childhood
Education before being contracted for the 2012/13 academic year. Kindergarten principals are
also now encouraged to obtain a bachelors degree in Education, showing that quality is
recognised and demanded by government and parents at this early stage of education. Parents
in Hong Kong are taking quality assurances very seriously, with enhanced performance
indicators and reviews carried out by the Education Bureau since 2012. Wealthy parents pay
handsomely for a place at Hong Kongs top kindergartens, or at institutions with particular
curriculums and specific modern teaching methods. Elite kindergartens offering Western-style
free play and creativity-enhancing activities are young parents current favourites. Language
skills, including Spanish and Mandarin, on top of the traditional English and Cantonese are also
being introduced at this early stage.
Kids
Numbers in this age bracket of 3-8 year-olds have increased steadily to reach 301,000 in
2012, after a heavy decline in the last decade. Still, the number of kids in Hong Kong is small
compared to the overall population7.15 million.This group will continue to grow over the
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coming years, but this will have a negligible effect on consumer behaviour as numbers will
remain proportionally low over the short term, at least.
Parents and close friends heavily influence this consumer group both in their exposure to
consumer markets and their faculty to actually exercise control over purchases and consumer
choices. Kids, particularly towards the pre-tween years, force their parents hands more often as
marketing and social peer pressure begin to influence their lives. Yet, for the most part, parental
control amongst Hong Kong parents is relatively firm and pushes kids toward healthier food
choices, educational toys and games, as well as more conservative modes of dress and
personal style. Leisure activities revolve around day trips with parents and guardians. Hong
Kong is blessed with a vast array of activities suitable for kids, and so youngsters are never
short of inspiration. Away from parents, schools have been extremely active in promoting extracurricular clubs and class trips, although for this age group these are mainly limited to day trips
around Hong Kong. Private after-school clubs, especially those helping young kids explore their
creative sides, have flourished recently. Mandarin-language schools, language retreats, and
summer schools have started to gain momentum, too. These schools take their place alongside
already well-developed after-school learning clubs and summer schools.
Compulsory education begins at primary school level at one of the 569 state, subsidised, or
private primary schools in Hong Kong. Children aged between five and six begin primary
education and continue until they are 11 or 12 years of age and move on to junior high school.
The education system is transitioning from a system largely based on a British model to a more
Chinese, or American-influenced, model of education. This means extra focus on the Chinese
language, history and culture, as well as political philosophy. The changing curriculum is hotly
debated across Hong Kong, especially following the introduction of the moral and national
education compulsory class, widely regarded as brainwashing propaganda and anti-Western
smear. Recently, the Beijing governments wish to set a full-on Chinese curriculum has been
defeated in the face of widespread disapproval from Hong Kong parents, teachers, academics
and social commentators.
Children at primary-school age tend to be dependent on parents and guardians to ferry them
to and from school. As many children across the territory are only-children, parents,
grandparents, or nannies drop off and pick up younger kids at the school gates. The public
transportation system in Hong Kong is extremely efficient and considered safe for the more
independent and older kids to make at least part of the journey without chaperones, particularly
when travelling in prearranged groups.
Uniforms vary according to the institution. Private schools, often linked to a particular
expatriate group living in the city, take pride in more traditional and formal attires. Among private
primary schools, shorts, blazers, neckties, and sometimes school caps, are worn. Girls uniforms
include knee-length dresses over a shirt or blouse and the obligatory school tie. Colours are
mainly conservative, with school crests sewn into the uniform at various focal points. Public
schools tend to offer students a more relaxed uniform, today commonly mirroring that favoured
across the mainland of China. This includes a more relaxed set of clothes that can be worn
throughout the day for light physical and classroom activities. It also offers comfort in Hong
Kongs subtropical climate. Each institution designates suppliers and tailors before term begins
ensuring that all students turn up on day one looking the part. School bags, stationery, and
electronic equipment for use in the class are almost always the responsibility of the parent. The
sheer diversity of primary schools in Hong Kong makes it difficult to give a general overview of
necessary or provided equipment. Elite institutions are well endowed when it comes to books
and learning aides but also tend to require more specific equipment in the classroom.
Primary schools usually provide sports equipment, as children tend to partake in general
sporting activities without the need to concentrate on one discipline. Specialised clothing is often
one-size-fits-all at this age group, so private expenditure by parents is usually at their and their
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kids own discretion. Physical education classes are part of most schools weekly timetable, and
at primary level, schools are increasingly using physical education slots to instil a sense of
teamwork and encourage creative expression. Given the heavy academic workload at primary
school and important examinations occurring before childrens tenth birthday, physical education
has always taken a backseat.
Lunch is taken at school cafeterias and is either brought from home or purchased at the
canteen. Pre-packaged boxed lunches are the norm in Hong Kong canteens, with local
companies filling orders for delivery before lunch. As portion sizes and the environmental
damage apportioned to these pre-packaged lunches come under scrutiny, more schools have
started to prepare food on-site. Currently the cost of a school lunch in pre-packaged form is
around HK$15, with costs slightly higher for on-site prepared food. Hong Kongs Environment
and Construction fund has earmarked money for the development of on-site food preparation
facilities in schools, as boxed lunches in Hong Kongs primary and secondary schools are
estimated to be responsible for 100 tonnes of unnecessary waste daily. The Education Bureau
and the Department of Health have also begun reforms in state-run schools to provide kids with
healthier meal options, this also linked to on-site preparation. The rise of obesity among kids is a
major health concern in Hong Kong.
High-tech Students
Basic equipment for academic study is usually recommended by the institution and, at primary
level, is rather rudimentary. Schools provide core textbooks and peripheral or secondary
textbooks. Beyond this, Hong Kong kids have carte blanche for stationery and high-tech school
equipment. High demands are placed upon young school kids these days; entry exams for
junior secondary school are seen as vitally important and students must undergo this quite
stressful ordeal at the tender age of just ten years. Parents are only too keen to ensure that their
kids are not left wanting when it comes to after-school tuition and vital technology at school and
at home. The kindergarten trend is a precursor to all this, as parents have begun readying their
kids for a race towards academic excellence often before they are even able to walk.
Technology is regarded as a key instrument to gain competitive advantage within the classroom,
and with Hong Kongs mass societal acceptance of technology across all aspects of modern life,
the kids of Hong Kong are sent to school well equipped.
Calculators for maths and translators for English, Spanish, Japanese, German, and the now
all-important Mandarin are being replaced by the tablet. This device is seen as a perfect
instrument for classroom use, as it can replace hardcopy books, desktop computers, and
electronic devices through a simple app download. Kids in Hong Kong are already familiar with
smartphones and operating systems, such as Windows, Android, and iOS, by the time they
reach primary school. The majority of kids have access to a smartphone, tablet, laptop, or
desktop at home, if not their own. The i learn @ home Internet Learning Support Programme,
launched by the government before the academic year began in 2011, is one example of private
and public initiatives to allow for the easy transition from pencil and paper to digital learning
amongst younger school kids. Financial support is provided to families in order to make
purchases. Social and educational support is also given to enable kids to use computer
equipment, and specifically the web, proficiently within the home and the classroom.
Trendy Kids
Modern Hong Kong parents are highly fashion and trend conscious, and this is reflected in
younger kids fashion. Vast amounts of disposable income are spent on kids clothing and other
items by financially-rich and time-poor parents. Designer kids clothing is available at nearly
every branded designer store today. As precious shop-floor space in bricks and mortar stores
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has often been difficult to allocate away from adult ranges, the trend has expanded online. Major
brands and emerging mid-priced high-fashion brands have found it difficult to showcase full
ranges for kids in Hong Kong. However, as the market begins to demand change, there are
kids versions of popular branded stores, as well as boutique childrens specific stores catering
to the luxury market.
Other associated recent trends include a massive rise in hairstyling, often to imitate one of
their parents. This trend has been especially strong among males. It is up for debate whether
the trend for humanisation in the pet world has been the driving force behind the trend for
exuberance in the kids market, often even the animalisation of kids. One of the more recent
kids fashion trends in Hong Kong is the onesie, especially stylised as an animal or favourite
cartoon character, also often an animal.
Tweenagers
The number of tweens is continually falling in line with the general decline in youth population
figures. Numbers have fallen greatly since 2000, and forecasters predict further falls over the
coming years. The falls are directly related to social changes among young Hong Kong citizens
who have a different attitude to marriage and children. The average age of women at first
marriage is now 28.7, against 28.3 in 2007, and the average number of children is declining.
Young adults are prioritising personal and individualistic ambitions and needs. The rise of the
career woman in Hong Kong has been a major example of the myriad of modern societal trends
that have impacted substantially on the number of children in Hong Kong.
Tweens lives are centred round their school schedules. It is at this age that Hong Kong
citizens first experience the stresses of modern life through the need to perform for junior high
school entrance exams and the subsequent workload hike. At this age, youngsters are also fastbecoming social animals, and this is perhaps truer today than it has been in the past.
Independence, though, is still uncommon among tween groups, and parental control over
consumer choices and freedom of movement is very much the norm. A culture of relative
conformity, both at school and at home, ensures that tweens are extremely focused on concerns
laid out by their parents, more often than not academic concerns and extra-curricular activities.
Sports and exercise and general recreation, apart from family-orientated trips, are not high on
most parents agendas for their tweens. Instead, more cultured pastimes are encouraged in
addition to extra tuition and structured playtime.
Tween culture, then, revolves around a relatively tethered familial centre. Trends have tended
to follow mass global trends, especially as this group is increasingly interconnected to a wider
global society of tweens and teens. Popular music icons reflect this, with Justin Bieber, One
Direction, and Miley Cyrus all at the top of the list of Hong Kong tween icons alongside local
Cantopop icons, such as G.E.M. Korean music stars are trailblazing currently, and a general
love affair with Korea is in full swing as regional culture begins to flex its muscles in the face of
longstanding Western pop-culture domination. Nevertheless, Western pop culture is still
emulated by regional pretenders, and Western movies and sporting stars from the NBA and
major European football leagues sit comfortably in the hearts of most tweens in Hong Kong.
A typical school day begins with a light breakfast and then a commute to school. This
commute is usually at least partially chaperoned, as almost all Hong Kong citizens use the
public transport system daily and so familiarity begins relatively early. Classes begin at 8am and
lunch is taken at midday with a short break separating morning lectures. The same formula is
repeated after a lunch break of one and a half to two hours, with official classes finishing no later
than 3:30pm. By the age of nine, entrance exams begin to weigh in, as parents ensure that their
children are given every advantage in order to perform well and gain entry into a top school.
This includes obligatory after-school homework sessions and most probably a certain amount of
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extra tuition. Even as school ends in the late afternoon, it is not unusual for after-school clubs,
study sessions, and private tuition to last well into the early evening.
Required school equipment includes uniforms, core textbooks, stationery and basic school
supplies. Specific and personal sports and gym equipment becomes more important as children
progress through the school years, but no major spending is required. Children wear trainers
and sportswear for most activities. Specific sports jerseys in school colours are bought
alongside general school uniforms from designated suppliers and tailors. Again, given Hong
Kongs highly stratified school system, the various international, private, religious, subsidised
and public schools have diverse requirements for school dress.
Camps for All Tastes

Summer camps are all the rage amongst parents looking to help their young charges attain
that next step in development across a wide range of academic, sporting, musical, and social
skills. These specific-focus summer camps have enjoyed rapid growth in demand recently,
especially since so-called fat camps became popular following the trend popularised in the
USA. Childhood obesity has become a major problem in Hong Kong and summer camps are
seen as one method of combating bad habits through a month-long, or sometimes longer,
detoxification process. Owing to the relative success of these health-camps and the huge
amount of publicity they received from local media, their blueprint has been adopted in a wide
range of areas across the compulsory education system.
Today in Hong Kong parents are able to send their tweens away to special Montessori
accredited camps where children follow the Montessori curriculum of creative activities and
learning. This includes summer dance schools, where ballet, jazz, modern, and other dance
styles are taught; sports camps run by professionals in the field, and often accredited or at least
associated with a famous sports club or team, personality, or organisation; and a host of other
summer camps and clubs. One especially strong trend is the language camp, and in particular
the Mandarin language camps that have been sprouting all over the territory over recent years.
Learning Mandarin at this early age and in such immersive surroundings is seen as a way to
command the language successfully later in life.
Globalised Tweens
Tweenagers are maturing faster than expected in terms of consumer behaviour and have
begun to exhibit characteristics more commonly associated with teenagers. It is thought that the
socialisation process is occurring far earlier in a childs life than in the recent past, largely due to
the social aspects of modern technology now available to tweens. This has led to a massive
trend amongst tweens, especially older tweens, towards much greater brand awareness,
education on markets of most interest to them, and germination of brand loyalty. This is
especially true among female tweens.
Current consumer behaviour is limited through tweens lack of financial independence. Yet,
there is a definite trend toward homogenisation within the tween and teen marketplace in Hong
Kong. Today global trends are common across all age brackets, but amongst tweens and teens,
these trends are almost instantaneous in their appropriation. This is perhaps a direct result of
modern (especially urban) tweenagers relationship with global digital media and deterritorialised
social networking. Hong Kong residents advanced grasp of the English language also has a
part to play in the rise of the globalised Hong Kong tween segment above other similarly
developed tween markets across Asia. Meta consumer behavioural trends of importance
amongst tweens in Hong Kong are post-consumer and eco-friendly trends. Specific trends in
sports consumption and media, especially music and video games, exhibit far more globalised
characteristics than over recent years.
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Teens
Teen numbers are falling. Again, this is due largely to long-term social and lifestyle factors
impacting heavily on birth rates. Although numbers are set to continue to fall, the relative
consumer power enjoyed by this age bracket is on the rise. Teens today are far more
independent than in the past, including financially.
Although still under the auspices of their parents, teens in Hong Kong are influenced by
traditional marketing and highly connected to direct marketing via the online medium. Today the
dividing lines between the age-segmented markets are blurring. Grown-up consumer habits are
being adopted more readily by younger consumers in much the same way as more youthorientated consumer habits are now favoured by those in their twenties and thirties. This trend
has been particularly strong in the markets linked with identity building and outward personal
style. Status symbols, including designer clothes, accessories and must-have electronic items,
such as high-end smartphones and tablets, are important. Considerable attention is also paid to
health and wellness, as well as body image. According to the latest figures from the Leisure and
Culture Services Department, 85% of teenagers actively participate in organised sports and
fitness, against just 67% of people in their twenties and thirties.
The other major concerns apart from outward image and personal development are family
pressures, career and studies. These latter concerns are usually related and form much of the
universe in which young people in Hong Kong live. Senior high school examinations and
university entrance exams are some of the most important tests young people will face during
their formative years, and the pressures are considerable. Consumption patterns are dictated by
parents, and much is spent on education goods and services.
A typical school day for teenagers begins with breakfast either taken at home or on the move.
People in this age bracket, even the younger ones, are given much more freedom in terms of
movement and financial independence. They are trusted to commute to school on their own or
with friends. Although substantial pocket money for mid-level purchases is uncommon, teens
are usually given a weekly allowance to pay for travel, food, and the occasional treat. In this
regard, they remain relatively independent on a day-to-day basis, at least. School begins at
around 8am and largely follows the same pattern as in primary education, with a short break
between the start of class and lunch. Lunch lasts one and a half to two hours and, depending on
the institution, students have numerous options for lunch. Due to the lack of on-site kitchen
space, it is still uncommon for lunch preparation to occur at school. Although this is changing as
a healthy-eating drive spreads across schools, albeit largely in primary schools for the moment.
Pre-packaged boxed lunches are available to students, usually retailing at between HK$15
and HK$18, as well as hot and cold beverages. Students can bring in their own lunches from
home and the vast majority of schools allow students to eat at local restaurants or even at
home. After-school sports clubs and academic clubs are common and becoming more so still.
Given this age groups relative financial independence, snacks or meals are often consumed
between school and the next destination if this is not home. Deep-fried traditional street snack
and fast-food vendors, although still very popular with this age bracket, are having to amend
their menus to factor in the growing health and wellness trend, as teens dietary awareness has
increased drastically over recent years. This has been especially true amongst females and
older teens.
Mobile Internets New Masters

Teenagers are the new driving force for mobile consumerism as the segment evolves. They
are taking over the reigns from the pioneers of online retail in their twenties who made use of
the first developments in online retail when a credit card was a prerequisite. As online retail and
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marketing have evolved to include new activities and monetisation protocols, including social
networking, subscription services, marketing and data collection, not to mention app-based
consumption and in-app consumption, teens have taken full advantage of the medium. Prepaid
cards, direct debit facilities, and monetisation via social networking and blogging sites have
allowed more teens, most of whom have 24-hour access to mobile internet, to indulge in their
natural urge to socialise and realise their identities. In fact, teens today are almost under
pressure to maintain their online social identities and to network in order to feel accepted by
their peers. This is creating an extremely strong bond between consumers and their online
social networks and identity, especially as separate online identities associated with specific
sites and apps are beginning to meld into one identity through increased cross-communication
and the rise of the share.
Young start-ups and big-name institutions and brands are developing apps, online games,
social networks, and all the entailed marketing. It is now almost obligatory for any business to
have official Twitter, Line, and Facebook accounts amongst others. People in this age group
enjoy some financial independence from their parents, and many are on the verge of entering
the working world or higher education. Brands are looking to forge strong relationships with
them hoping for potential, if not immediate, consumption.
Vanity and Narcissism Amongst the New Youth

Over the past decade, the typical composition of a young family has changed: the age of firsttime parents has increased; the number of children has fallen and there are more only-children;
spending has grown and more people use nannies and domestic helpers at home. Parents are
also more often taking extreme parental roles, including the so-called helicopter and monster
roles. Helicopter parents take an overbearing role in their childrens lives, driven by extremely
high expectations of them academically. Monster parents are simply extremely strict on their
children, but often these two types overlap or exist together to form a monstrous helicopter.
Monstrous helicopters, besides sounding like something from a bad Godzilla movie, are seen as
having a very pronounced effect on young Hong Kong teens today. An early childhood suffering
extreme pressure to succeed academically and a sense of privilege at home have helped
engineer an army of teens with world-beating levels of vanity and narcissism to sit alongside
their high academic credentials. Annis Fung Lai-chu of the City University of Hong Kong carried
out a survey involving students across Hong Kong following similar surveys in developed
Western nations. Hong Kong children ranked highest, beating the levels of narcissism and
vanity found in peers from Australia, the UK, and the USA by as much as 80%. Fung stated that
modern Hong Kong children feel that they are important, powerful, and dominant within their
social group, deserving of anything they want. The study revealed that vanity increases with
levels of wealth, with children from families receiving Comprehensive Social Security Assistance
achieving results in line with the global average. This study has underlined a very visible trend
amongst teens in Hong Kong today; that of a heightened sense of self importance often
translating into more solitary pursuits out of school and a dependence on high consumption on
self-image, beautification, perceived self-improvement, and status building. Consumption
preferences and trends in this group of teens focus almost exclusively on high-end and statussignifying purchases across all categories. The demands for perfectionism from an early age in
the classroom later manifest themselves into personal consumer choices.
Young Adults
The number of young adults, those aged 18-29, has remained relatively steady over recent
years although proportionally small. A slight dip in numbers is expected over the coming years,
following the long-term trend of falling birth rates in Hong Kong. This group consists of university
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students, many in postgraduate study, as well as young people who went straight into work after
completing compulsory education, and recent university leavers. Another emerging group
includes those who are planning to travel before enrolling in further education; they are not job
hunting, or if so, only for temporary or part-time work. This is a diverse group, and so consumer
patterns are not easily generalised. There are emerging trends within each group, as well as
general trends affecting all segments. Moreover, by the mid-twenties, a significant population of
couples with children emerges. Single parents are extremely rare in Hong Kong. Even as hard
attitudes toward single parenthood, especially when children are born out of wedlock, soften, the
topic is still taboo across most segments of the population.
Many young people in Hong Kong go on to higher education, and many study abroad owing
to Hong Kongs excellent reputation for primary and secondary education. According to official
government statistics, 26.8% of Hong Kong citizens obtain higher-education qualifications. Yet,
many education experts feel that more should be done to help poorer students enter higher
education as only 13,000 places exist in the fully-funded public university system. The
remainder must seek expensive private university admission in Hong Kong or abroad. Higher
education in Hong Kong is expensive and suffers from a certain level of institutionalised elitism.
Hong Kong boasts 30 institutions offering post-secondary education, 17 of which are degreeoffering institutions. Student enrolment in these institutions has seen continuous growth over
recent years. Roughly 295,000 students enrolled during the 2011/12 academic year and
320,000 enrolled this academic year. A new four-year course of study has been introduced
since the 2012/13 academic year in line with mainland China; the most popular courses are
under the banners of Business & Management and Science & Technology. Education and
Social Sciences have also remained popular, ranking as the third and fourth most popular
choices, respectively, in 2012/13.
Foreign applications to Hong Kong universities have also seen a massive increase over the
past two years, according to a New York Times report. The number of applicants has shot up by
42% for the 2012/13 academic year, compared to 2011/12. This follows recent moves to anoint
Hong Kong as a regional education hub, increasing foreign application quotas and easing visa
restrictions for students. Mainland Chinese applications are increasing at an even greater pace,
with a 53% increase in applications over the same period. Incoming students follow many of the
same spending habits as domestic students.
Expenditure trends amongst students in Hong Kong largely follow the patterns seen in student
populations in developed countries. Surprisingly for such a small territory, Hong Kong students
favour living on campus. Campus dormitories are the traditional mode of living away from home,
but these have increasingly been replaced by more modern en-suite facilities, both on campus
and in surrounding developments. The relative wealth of Hong Kong students colours their
consumer habits, as many are fully funded by parents who spare no expense. After all, it has
been a long battle from kindergarten to get them this far. Students follow usual teenagers and
early twenty-somethings desires for socialisation and identity-based consumption in clothing,
accessories and general style. Sporting goods, as well as sports membership and gym fees are
a rising trend. On-trade food and drink is a major expense for many students, as most traditional
university dormitories do not have kitchen facilities. Students also spend on electronic
entertainment, laptops and other educational devices, as well as stationery.
Education is seen as key to financial security in Hong Kong, and so most young people do
their utmost to attain a place in higher education. Currently, over 50% of secondary-school
leavers take a place at an institution of higher education in Hong Kong. Amongst those who do
not make it into higher education, prospects in Hong Kongs increasingly stratified labour market
are limited, but by no means obscure. Unemployment levels are highest among those leaving
secondary education. They are especially problematic amongst those in their twenties who have
not completed at least vocational training courses and amongst male immigrant labourers from
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the mainland of China. Unemployment amongst school leavers reaches 15.8%; it drops to 8.4%
for those aged 20-25, compared to 3.3% for the entire population, according to the
governments latest figures in August 2013.
After completing their higher education, young people can take advantage of excellent
employment opportunities within a growing economy. Although the recent financial crises are
not forgotten, an air of confidence and positivity reigns in Hong Kong. The housing situation
aside, graduates are able to indulge comfortably in most of their consumer desires.
Unemployment levels are extremely low by global standards and consumer confidence relatively
high. As part of a generation connected to a global online network, educated professional
twenty-somethings aspire to Western lifestyles. They desire all manner of goods and services
now marketed to a subsection of globally connected and relatively affluent consumers.
Young families are a growing segment in this age bracket in volume terms. Growth, though, is
small, and young parents are waiting longer to bring children into the world. According to the
2011 population census, there were 26.6 and 63.6 live births per 1,000 women in the 20-24 and
25-29 age ranges, respectively. Teenage births are rare in Hong Kong, with the highest
proportion found among the growing population of mainland Chinese wives making their way
into Hong Kong. Consumer trends among couples with children diverge significantly from the
rest of this group in that they revolve around setting up house and home and include significant
spending on childcare, education, and general in-home and off-trade expenditure.
The new international set
Gap years and grand tours are now regarded as the ultimate consumer purchase by young
adults in Hong Kong looking to attain a greater level of understanding of the outside world or
themselves, or simply to take plenty of photographs and Instagram their friends.
Young people already have a well-developed association with the international through Hong
Kongs cosmopolitan nature. They also have the ability to connect readily to the global village as
they are the first generation to be fully versed in online social networking. Consequently, young
adults increasingly have the means and motives to venture out into the world. They are well
aware of the tradition for independent tours and gap years in the West, as many young people
from Hong Kong attend international schools, especially international schools following
European curriculums. Independent holidaying in itself is a massive trend amongst this age
group, as the ability to research, prepare, and share travel plans is seemingly what the world
wide web was made for.
Intelligent design very okay
People in this segment make up the new pioneers of Hong Kong and Asia. The
democratisation of technology and cutting-edge consumerism is gathering momentum as hightechnology goods and services become affordable. The industry is also exploiting new online
retail channels and marketing avenues. As a result, this once financially prohibitive market is
now open to a much younger consumer base. In addition, late teens and twenty-somethings are
far more liquid than in the past and more able and willing to spend their disposable income on
lifestyle goods.
Given the naturally curious nature of younger people, pioneering technology has a youth
focus. An example is the smart technology found in household appliances, such as internetenabled fridges and televisions and the remote connectivity to these devices via smartphones.
Other examples include sporting equipment that can measure your heart rate, automatically
change music depending on exertion or mood, or auto-cool or heat when required by your body,
as well as smart goggles and eyewear, such as Google Glass and Oakleys GPS ski goggles. In
addition, a whole raft of apps for tablets and smartphones make use of high-speed wireless
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connectivity, live virtual worlds and shop fronts created through QR codes and tablets and
phones internal cameras. All these developments appeal to this consumer group.
Middle Youth
A period of stability has followed the sharp rise in numbers immediately after the turn of the
millennium. The mid-youth bracket establishes itself as the second most populous segment of
the population after mid-lifers. Unsurprisingly, this segment is becoming heavy at the senior end
of the age bracket as the population ages and inward migration takes place.
Mid-youth are a diverse group of individuals. Many traditional mid-lifers comprise young
families. Yet, more middle youth, especially those in their early- and mid-thirties, are singles or
childless couples; their number is substantial today, as the average age at the birth of the first
child is now into the very late twenties, and even later amongst educated professionals. Most
families choosing to have children in Hong Kong today tend to have only one child, with more
than two children quite rare.
This group can be more easily analysed if split between singles and childless couples and
couples with children. Lifestyle consumer choices are better understood through the major
concerns in a persons life, such as education, marriage, children, or the care of elderly parents.
Consumer choices in the group of singles and childless couples are heavily influenced by the
popular trends among twenty-somethings. High-end consumer goods and services are
demanded by this group, as their relative wealth is considerably higher. Yet, people in this age
bracket tend not to favour luxury and expensive items across all product ranges. They exhibit
higher levels of consumption in clothing, personal care, cosmetics, health, and in big-ticket
items, such as private vehicles and expensive holidays. Furthermore, people in this age group,
particularly those in their mid- to late-thirties, are keen to indulge in their single and childless
status before making the plunge into married life and raising a family.
Expenditure on experience-led travel is particularly popular, as are car purchases and vanity
purchases, such as high-end clothing, watches, jewellery, and cosmetics. For couples with
children, expenditure is concentrated on the needs of the child or children, with leisure and
lifestyle expenses suffering the brunt of the cuts. Certain big-ticket items, though, are still
popular as they are seen as family purchases. Travel, household furnishing, electronics and
home entertainment all take on a more family-orientated twist but remain as important to young
families as they are to singletons and childless couples.
Hong Kong has a strong culture of entrepreneurship, which is still more evident amongst
younger middle-youth than in other age brackets, but the trend is towards younger
entrepreneurs. There has been a rise in self-employment following a fall in numbers after the
most difficult periods of the financial crisis in 2009 and 2010. Many who went into regular
employment following the worsening of the crisis are now finding their way back into selfemployment, with some 222,700 residents currently officially self-employed. Employment in
general is healthy, and prospects for well-educated people are particularly good. Unemployment
is currently sitting at around 2.5% for this age bracket, in an economy boasting very low levels of
unemployment generally.
Stressing out of here
People in middle-youth are the workhorses of the Hong Kong economy. They are at the
forefront of the labour market and often fill the top-ranking positions, work the longest hours, and
subsequently suffer the most stress. The dense population, often claustrophobic living
conditions and the high levels of noise and air pollution in the city add to the work-related stress.
In a 2012 survey by flexible workspace provider Regus, 55% of Hong Kong citizens claimed that
their levels of stress had increased over the course of the year, this figure a full seven
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percentage points higher than the global average. Work was identified as the biggest contributor
to the increased stress load.
People are turning to a variety of different practices to deal with this stress, many of which
involve some form of escapism. Traditional stress relievers, such as physical exercise, leisure
pursuits and hobbies, are all increasingly popular amongst middle-youth today. Sports
participation is taken seriously by the middle-youth in Hong Kong, as a way of combating stress,
keeping healthy, and reducing the signs of premature ageing. Various sports-related initiatives,
by government departments and many more by private enterprise, have helped heighten this
trend. Many consumer markets are able to profit from extra gym memberships, healthy eating
trends, and rising sports equipment demands, to name just a few.
In addition, demand for escapism through short city breaks away from Hong Kong and also
into the various out-of-town tourist areas of the territory itself is growing. Hong Kongs domestic
tourism has placed special emphasis on its own great outdoors in recent years, and domestic
demand has responded. Weekend adventure activities, such as abseiling, hiking and cycling, as
well as more relaxed spa trips and simple picnics or photography excursions are all popular
amongst the stress-loaded middle-youth.
More than fetishised nostalgia
Retro trends have been evident for some time, especially across younger consumer groups in
their twenties and thirties. Yet, amongst the high-earning and relatively unattached middle-youth
in Hong Kong today, the retro trend has blossomed into a massive consumer market. It
permeates many and varied separate industries. Todays retro trends are aimed at consumer
groups that are looking at goods and services at the very top end of the market, but with
characteristics that speak of heritage, quality, and personality. The brands that kick started
mass and popular global consumer trends during the 1980s and 1990s are particularly popular
today. This applies to retro clothing, especially sportswear and trainers; videogame and movie
remakes and re-imaginings; comic books and graphic novels in hardcopy and e-book forms.
Other examples include snacks, drinks, and even restaurants borrowing and re-launching
popular food and beverage items; and all manner of collectibles and accessories of the highest
standard, re-imagined to function in modern surroundings and to facilitate modern living.
Mid-lifers
The mid-lifer bracket is the most populous of all age segments in Hong Kong and will remain
so in the future in the short-term. Numbers in this group have been growing for a while as life
expectancy continues to rise in the territory.
Family-based expenditure is high, with adult children going through the more costly stages of
development, especially higher education costs and larger purchases, such as expensive
hobbies, clothing, personal computers, cars, and independent holidays. On top of this, young
adults in Hong Kong are increasingly finding that they depend on their parents financially even
post-graduation, often for funding a home. Home ownership is seen in traditional culture as a
pre-requisite to marriage, and marriage is another major expense that lands squarely at the feet
of mid-lifers in Hong Kong. Elderly family members also require substantial help, especially as
many of the elderly in Hong Kong are by no means wealthy, having missed the boom years.
Expenditure on healthcare and financial help to provide comfortable living for an elderly relative
is normal for many in this sandwich generation of middle agers caught between junior and
senior dependents.
Aside from spending on family members, mid-lifers in their fifties are keen on self-indulgent
leisure and lifestyle spending. For the first time in decades many feel free of the shackles of
immediate family responsibilities and still have considerable earning power. Hong Kongs social
safety net and excellent healthcare facilities allow mid-lifers a relative sense of ease regarding
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their steady march toward retirement. This has meant that demand amongst mid-lifers in Hong
Kong is relatively high compared to regional neighbours. Many mid-lifers, unlike older
compatriots, have lived and worked through an era of prosperity and have amassed savings, as
a result of decades of more traditional attitudes towards money. What might have been
considered audacious purchases just a few years ago become reasonable consumer choices
for many at this age.
Five-star foreign travel is popular, including luxury getaways and experience-led holidays,
such as safaris and grand tours. Spending on key pieces of jewellery, luxury watches, and
expensive items of clothing is also popular with some mid-lifers. High-end cosmetic products
also have appeal as people in this age group seek to feel and look younger in order to enjoy
their relative freedom. Financial services come to the fore amongst mid-lifers, especially wealth
management services and investment opportunities. This has floundered somewhat due to the
incredible rates of growth in the property market, but, as wealth continues to polarise in Hong
Kong, the demand for high-end financial services products is developing rapidly. Starting a new
business or self-employment, at least at the very hands-on development stages, is seen
increasingly as a young mans game in Hong Kong. The rate of change in most markets and the
rapid development of completely new ones have caused mid-lifers to re-evaluate direct
involvement in new business ventures. Instead, they expand their financial portfolios to include
domestic and regional opportunities, as well as on the mainland and further afield.
Holistic self-beautification
Self-beautification trends have developed considerably over a short space of time in Hong
Kong. High consumption of the latest beauty serums and creams is still very much in evidence
across the territory. Yet, a new trend is emerging amongst the more educated and, usually in
Hong Kong, the wealthiest: a more holistic notion of beauty. Health and fitness, involving
natural, sustainable, and organic elements, and self-beautification are part of this trend. Antiageing seems to be at the heart of this trend among middle-aged consumers. Personal care
products offering anti-ageing properties are increasingly containing organic and natural
ingredients. Fitness aimed at the acquisition of a healthy, more youthful body or better posture is
in heavy demand for similar age-defying reasons.
Today physical exercise is considered part of beauty regimes, just as organic ingredients in
face washes and on dinner plates are seen as integral to any health and fitness regime.
Vitamins, supplements, and spiritual healthcare all contribute to the larger holistic health and
wellbeing trend. The aim for holistic self-beautification is spearheaded by mid-lifers desire to
look and feel younger after a lifetime of real or perceived stress and toil in Hong Kongs rat-race.
Prevention beats cure
Mid-lifers are increasingly demanding preventative medicine, such as regular check-ups and
screenings. Traditionally, healthcare in this group consisted mainly of general health-related
visits spread over decades and specific doctor visits if and when a health issue arose. People
are now more aware of the healthcare issues affecting mid-lifers. Governmental and nongovernmental programmes and initiatives are in place to spot the early signs of problems.
Consequently, mid-lifers are far more comfortable about approaching health experts from a
position of confidence and targeted knowledge of various ailments considering their own lifestyle
habits and genetic disposition. Increased health literacy, driven by online resources, is having a
strong effect on screenings for various cancers, heart disease, and psychological issues.
Mental health issues are taboo across Hong Kong. It is only very recently that people are
beginning to feel comfortable discussing these issues openly with their families and taking the
necessary steps to get qualified medical help. Waiting times in hospitals has been a key
concern over recent years, and mental health clinics in particular suffer from a major lack of
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resources leading to waiting times reaching months. An expanded Integrated Mental Health
Programme was instigated in 2012 to combat mild mental health issues in the community.
Late-lifers
Hong Kongs population has been experiencing a long period of ageing. The territory is now
home to one of the densest populations of elderly residents on Earth. Owing to demographic
trends towards further declines in birth rates, delayed marriages and increasing life expectancy,
the proportions of late-lifers are forecast to increase even further.
The elderly in Hong Kong are amongst the poorest in the developed world. About 33% of
those aged 65 and over are classified as being poor, according to 2013 figures from the Hong
Kong Council of Social Service. Their number has grown by 10,000 since 2011, showing both
an alarming trend amongst the elderly population and a larger trend towards greater polarity of
wealth in Hong Kong. The number of poor families, 80% of which had at least one member of
the household in a full-time job, jumped by 6,000 over the same period. Government provision
has been called into question. Finding the required contributory funds amongst a shrinking
workforce to support the growing retired population is extremely difficult, especially as the cost
of living is rising.
The current pension system offers three types of support: the Comprehensive Social Security
Allowance (CSSA); the Old-Age Allowance; and the Mandatory Provident Fund. The most
important of these is the CSSA, but many pensionable people do not actively seek it out, even if
they struggle to make ends meet. Individuals living with family members who have a salary are
not eligible for the CSSA scheme, and those who live alone require a bad son/daughter form to
be signed by their offspring to signal that they are not willing to support their elderly parents.
This is embarrassing for all parties concerned and so, in Hong Kongs culture of face, it is often
disregarded as an option.
A trend amongst elderly people with inadequate savings, poor and struggling children, or
those without access to pensionable funds, is to continue working well into old age, usually in
low-paid unskilled jobs, such as janitorial roles, foodservice, or security. The Old-Age Allowance
is a minimal payment of a little over HK$1,000 monthly, which cannot be taken if one is already
getting the CSSA. This money is barely enough to live on. The Mandatory Provident Fund is a
workplace contributions-based pension. It does not apply to housewives and is difficult to collect
for many other workers, especially irregular workers and the self-employed. In addition, the fund
cannot support adequately formerly low-paid workers.
Affluent senior citizens, of which there are many within Hong Kongs increasingly stratified
older age-bracket, have completely different consumption habits. Having supported their own
elderly parents as well as their offspring, people in this group now have substantial savings and
can make almost exclusively self-indulgent purchases. Yet, old habits die hard amongst many
old-lifers. They usually spend their accrued savings on a few minor upgrades at home and on
new hobbies or active leisure pursuits. The majority of their spending is in fact focused on
grandchildren, again highlighting the importance of the traditional amongst many of Hong
Kongs older citizens. Subsidising family holidays and larger purchases and investments, such
as private property, vehicles, and education, is also important to this group.
Spending on healthcare, preventative medicine and on living aides for around the home in
order to increase independence and quality of life is important, too. As people are increasingly
career and self-focused, elderly people in Hong Kong must look after themselves more than in
the past. This is becoming easier as technology in health provision increases, both for the home
and in hospitals and clinics. Even though currently it is still traditional for elderly parents to live
with their adult children, it is increasingly not the case. Care homes are becoming big business
in Hong Kong and are fast taking on the housing and care needs of the elderly when their own
families can no longer adequately do so.
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Independent, but with a little help

A major trend affecting the elderly in Hong Kong is the hiring of long-term, full-time, and even
live-in, care helpers. As independent living away from the traditional extended family home is
becoming more common and life expectancy continues to rise, the demand for carers is rising.
This is especially true amongst older late-lifers who require extra attention and perhaps roundthe-clock care, which busy children in modern households are finding difficult to provide. This
trend is bolstered further by many peoples unwillingness to live in care homes. They prefer to
remain independent and close to their extended family for as long as possible. Care homes are
definitely seen as the last option, but they are enjoying massive growth as Hong Kong struggles
to come up with a quick solution to the growing housing issue that concerns many of its less
wealthy elderly citizens.
The trend for in-home carers follows the trend in Hong Kong to employ extra help to care for
dependents. Traditionally, this has involved low-paid help from the mainland of China,
Indonesia, the Philippines, and Thailand to care for babies, infants, and young children.
Increasingly, this help is now employed in the growing elderly care industry. Indonesian help has
been favoured over all others in the elderly care market due to the relative ease with which
Indonesian domestic helpers, who are almost exclusively women, have been able to pick up the
Cantonese language. This is thought to be largely a result of their relative weakness in English,
compared to other nationalities. Plans to restrict emigration from Indonesia by the Indonesian
government are looming. In 2012, Indonesias Manpower and Transmigration Minister,
Muhaimin Iskandar, announced that Indonesia would stop sending domestic help abroad by
2017. This has prompted a search for domestic helpers by human resource agencies in Hong
Kong, with Bangladesh and the mainland eyed as potential sources for the burgeoning need.
The need to earn money continues
Hong Kong has one of the lowest rates of retirement financial planning consumption in the
developed world, according to a 2012 HSBC report. Given the massive polarisation in this
population with regards to income and accrued wealth, there has been a massive jump in the
demand for late-in-life private pensions, life assurance, financial investment opportunities and
wealth management services. The financial sector has had to diversify to cater for this
blossoming late demand by a growing and increasingly powerful segment of people who are
living and earning for longer. Older people are increasingly taking on full- and part-time work
past retirement age to support their needs, often in the form of consulting roles or in lesser paid
jobs in completely different industries.
The retirement age in Hong Kong is open for discussion between employees and employers
and can be amended mid-contract should this be deemed necessary and agreeable. This
flexible situation has been healthy, taking into account the huge changes in numbers at the very
top end of the population pyramid. As a general rule, 60 years is the designated retirement age
for many businesses across the territory. According to the latest figures from the official annual
digest of labour statistics, the proportion of workers continuing in employment over the age of 60
has increased to over 50% of the entire over-60 population. Since 2008, the number of male
over-65s still in work has seen incremental increases up from 9% to 10.5% in 2011. The growth
in the number of female over-65s still in work is even greater, although overall numbers are
smaller, growing from 5.2% to 6.2% over the same period.
Table 1
Consumer Segmentation and Population Data 2000, 2005, 2010, 2011, 2012,
2015
2000
2005
2010
2011
2012
2015
17
Babies/infants (aged 02) ('000)

Kids (aged 3-8) ('000)
Tweens (aged 9-12) ('000)
Teens (aged 13-17) ('000)
Young adults (aged 1829) ('000)
Middle youth (aged 3044) ('000)
Mid-lifers (aged 45-59)
('000)
Later-lifers (aged 60+)
('000)
Population: National
estimates at January
1st ('000)
- Population aged 0-14:
January 1st ('000)
- Population aged 1564: January 1st ('000)
- Population aged 65+:
January 1st ('000)
- Male population:
January 1st ('000)
- Female population:
January 1st ('000)
- Urban population ('000)
- Rural population
Birth rates (per '000
population)
Death rates (per '000
population)
Marriage rates (per
'000 population)
Divorce rates (per '000
population)
Source:
Chart 1
Passport
155
122
144
150
171
195
462
340
443
1,187
354
324
432
1,129
288
252
412
1,164
292
233
396
1,161
301
224
378
1,160
363
202
313
1,141
1,934
1,837
1,690
1,685
1,695
1,722
1,158
1,546
1,782
1,803
1,816
1,826
987
1,070
1,294
1,351
1,410
1,591
6,665
6,813
7,024
7,072
7,155
7,352
1,128
969
844
824
829
874
4,808
5,010
5,262
5,307
5,345
5,362
729
835
919
941
981
1,116
3,277
3,264
3,294
3,303
3,327
3,380
3,389
3,549
3,730
3,769
3,827
3,973
6,665
8.1
6,813
8.4
7,024
12.6
7,072
13.5
7,155
12.8
7,352
7.9
5.1
5.7
6.0
6.0
6.0
6.3
4.6
6.3
7.5
7.5
7.5
7.5
2.0
2.4
2.5
2.5
2.6
2.6
National statistics, Euromonitor International
Population Aged 15-64 Compared with Old-Age Dependency Ratio 20002020
18
Source:
Euromonitor Internaitonal
HOUSING AND HOUSEHOLDS

Home Ownership
Hong Kong has very limited geographic space, and the topography does not lend itself well to
wide-spanning construction projects due to the dense forests and the mountainous nature of
much of the territory. Hong Kong is synonymous with a sky-scraping skyline, and the majority of
Hong Kongs residents live in high-rises, with only the super rich living in detached homes with
private grounds. Newly-built residential zones in the New Territories allow for more detached
and private living, but these are expensive and not typical for average middle-class people.
It is common to rent homes in Hong Kong, as people tend not to build strong roots in any one
area, preferring to move as circumstances change. As the city is compact, moving between
districts or neighbouring residential zones is common and does not entail major changes in
lifestyle. There has been substantial growth in mortgaged households recently, though, and the
gap between owned and rented homes is beginning to close. Between 2000 and 2012, the
number of mortgaged homes jumped from just under half a million to 785,000. The number of
households in Hong Kong has increased considerably over recent years, partly due to growing
mainland Chinese demand, which has also inflated the property bubble across the territory. The
number of households swelled from 2.40 million to 2.43 million between 2011 and 2012.
The number of five- and six-person households has fallen greatly over the past decade as
deep social changes have taken root allowing for greater acknowledgment of individual choices
amongst younger members of society, particularly women. A rush for Hong Kong to have an
educated, highly-skilled and high-tech labour market, running an already well-oiled financial
powerhouse in Asia, has led to flourishing career opportunities over the past few decades. The
result today, after a generation of change, is a highly Westernised attitude to marriage, children,
and care for elderly relatives. Younger family members move out on their own earlier than in
many other similarly developed Asian cities, although high property prices in Hong Kong today
are adding a new dimension to this trend. The most common households comprise between two
and three persons, with one-person households showing a high rate of growth.
Although house prices are forecast to fall owing to interest rate hikes, higher supply,
government pressure on second-home buyers and measures to slow down the buy-to-rent
market, property prices in Hong Kong are amongst the highest in the world and will remain that
way for the foreseeable future. Vincent Cheung, Director of Valuation at Cushman and
Wakefield, an international property developer, explained the situation in a 2013 interview for
China Daily. He stated that, as interest rates are expected to rise from 2014, it will put pressure
on property prices; there will be a substantial increase in the supply of homes, but developers
are expected to adjust the supply by postponing the launch of new properties. The ever growing
economic ties between Hong Kong and the mainland of China will ensure demand for property
as the territory continues to act as a regional beacon for speculative investment outside of China
and is perceived as offering far greater quality of life than in any Chinese city.
Making space in shrinking apartments
Innovative methods for creating space in Hong Kongs apartments are becoming important as
the territorys supply of new homes struggles to keep pace with the demand, especially
considering the huge demand for luxury builds that are out of reach for middle- and low-income
consumers. People in Hong Kong make use of the latest technology in order to maximise the
space available and reduce clutter, particularly in the kitchen. Local companies, such as
German Pool, have combined various appliances into space-saving wholes, such as their
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popular halogen cooking plate, which offers steaming, baking, boiling, and frying options. Other
space savers, such as foldaway and multi-use furniture, are also in high demand. Entertainment
centres and washing facilities have also become multi functional. For those able to afford it,
usually professional singles and childless couples, completely transformable living spaces are
the new mode. Through the use of sliding walls, ultra hi-tech appliances and home
entertainment, the next stage in space saving in modern Hong Kong sees one open space
function as a completely adjustable space. It can serve as a bedroom, office space, utility room,
living room, kitchen, or bathroom at different times of day depending on need and with very little
physical exertion.
Another related trend is the growth of the shoe-box or tiny apartment. Given spiralling
property costs, even the smallest one-bedroom apartments are out of the price range of many
low-income singles and families. Apartments are divided into smaller units, usually one
apartment is split into two, but more often recently into four. Official estimates mention 67,000
such apartments, with 171,000 occupants, but these figures are thought to be conservative.
Recent news reports indicate that these figures are underestimating the problem by at least
25%. In any case, the number of shoebox apartments has doubled since 2011, with living
situations worsening as apartments shrink further in size through increased subdivision. These
apartments are seen as a health hazard by the government as they often do not comply with fire
safety and hygiene laws due to their limited space, access, ventilation, and shared use of
electricity and water supplies. Promises of affordable new builds have been made, but the
demand for apartments at the lower end of the price range is unfavoured by developers keen to
meet the rising demand for luxury units. The shoebox apartment trend is not likely to disappear
in the near future, especially as income polarisation intensifies across the territory.
Living in the city
Public spaces are increasingly being utilised as proxy gardens, locations for artistic projects,
spaces for physical exercise and other social endeavours. Space within the home is at an alltime premium. People desire a better quality of life; they have a thirst for more natural and
fundamental pleasures and pastimes and self-expression. As a result, there has been an
explosion in public-living trends in recent years.
Dining and drinking outdoors with friends and colleagues is an integral part of Hong Kong
social life. Public socialising has seen Hong Kong give life to some of the largest al fresco dining
zones in any city in Asia. Outdoor gyms have been found in public spaces for decades. They
are evolving to fit the needs of space-poor younger urbanites. Minor parks are being redesigned
with cycle paths and running lanes and spaces for sheltered workouts, such as yoga and tai-chi.
Another noticeable trend is the explosion of public gardening spaces. These public spaces
are often derelict and unused areas, which are reclaimed without government permission.
Rooftop gardens make up a large part of this trend, whereby apartment blocks allow residents to
have gardens to both improve the view and grow fruit and vegetables.
Household Profiles
Typical household profiles in Hong Kong are exhibiting greater levels of independence and
further fragmentation in family living habits. A major contributing factor has been increased
gender equality. It has allowed half the population to have financial and social independence,
against a backdrop of conservative and traditionalist Chinese cultural influences. Single
householders and childless couple households are the two fastest growing segments in 2013.
Single-parent households, although still small in number, are fast on the rise and the once taboo
subject of single parenthood is now openly discussed and largely accepted. The majority of
single parents are mothers, the ratio sitting currently at 1:3.6.
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20
Rearing children is traditionally seen as the main purpose of marriage, with very real and
distinct duties to be fulfilled by both partners. Birth rates are falling; between 2011 and 2012, the
birth rate fell by 5.2%. Nearly half the childbirths in Hong Kong are to mainland Chinese
mothers, up from roughly one quarter in 2004, according to the Hong Kong Council of Social
Service. The number of marriages is increasing, but this in line with population increases. Also,
re-marriage is making up a much larger proportion of overall marriage statistics in recent years:
31% according to official government statistics for 2011. Divorce is on the rise across Hong
Kong; it is often instigated through initial accusations of infidelity and negligence on the part of
the husband.
The greying population of Hong Kong is also leading to many more single-person households,
as adult children no longer feel obliged to care for elderly parents in their own homes.
Independence is rising amongst the elderly, thanks to increased healthcare facilities for use in
the home. Increased life expectancy is another factor. Nevertheless, people in Hong Kong are
still far keener than their Western counterparts to have their elderly parents move in with them.
In addition, child rearing is ascribed to grandparents more than in Western societies. In many
lower- and mid-income families, it is still more common to share a home with parents. This is
especially true following recent government initiatives that bring the issue of elderly care into the
public arena.
Hong Kong is a pet-loving territory, and dogs are the most popular pets. There were 258,700
dogs and 176,100 cats in 2012. The government and animal welfare organisations have
stepped up their efforts recently to curtail the growth in the large dogs industry. Experts believe
that the growing demand for larger breeds, largely used as status symbols, is unhealthy, as
these dogs are often completely unsuited to Hong Kongs subtropical climate and cramped living
environments. Cats are the fastest growing pet segment largely because they are less costly
and require less space.
However, small dogs continue to be the must-haves of the pet world, with ownership of
fashionable breeds largely following wider regional and global trends. The trend for dogs as
fashion accessories is picking up traction lately through semi-legal importers based in
Shenzhen. Dogs to order services are especially popular following major motion picture
releases involving a particular breed; Chihuahua, Husky, and Dalmatian breeds have all been
victims of this trade in recent years. Again, the government and animal welfare organisations
are working hard to combat this trade through education on animal rights, risks of disease, and
poor breeding conditions in China.
Consumer spending on pet-care products is relatively high, as Hong Kongs pet owners are
often upper-middle class and elite. Pet grooming facilities are amongst the most innovative in
the world. Premium pet foods are the fastest-growing sector of the pet food market, and pet
accessorising and wider humanising trends have all led to high consumer spending.
Younger pet owners with long-term ambitons
Pet owners are becoming younger and far more focused on their pets as integrated members
of the household. People in their late teens and early twenties are becoming the main decision
makers when it comes to pets. Although initially often through their parents, younger household
members are making the decisions and taking ultimate responsibility for pets. Ownership of
more than one pet is decreasing, as many new consumers have urban and busy city lifestyles.
Companionship is one aspect of pet ownership. Yet, today, pets are offered much higher
respect in the household than during the initial baby-boomer generation of pet ownership
following the first Westernising trends in Hong Kong. New pet owners tend to spend lavishly on
their pets; they are the main drivers of the humanising trends that have affected the market over
recent years. What begins as a fashionable purchase often becomes a real obsession among
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twenty-something professionals. Most of the growth in the overall consumption of pet-related

products and services remains centred on young professional female consumers.
The majority of pet owners today are in their late twenties and thirties. They have a relatively
high disposable income, as many are still childless couples or singles. The pet as a child
replacement phenomenon is still strong in Hong Kong, as people wait longer to marry and have
children. As more women have professional roles, relationships and family responsibilities have
changed to allow more flexibility. Pets have been able to fill some voids left by the inadequacies
of modern working life. Although this is observed more among women today, pet ownership
among men is growing, as men and women increasingly lead similar lives.
Me, myself and I
Singles and childless couples have contributed to lifestyle changes in Hong Kong that are
influencing consumer spending habits. Today the population of thirty somethings and middle
aged persons is far more diverse in their consumer habits as many are newly single through
divorce or have chosen not to marry or raise a family.
These consumers are far more intent on enjoying life and are the main buyers of selfindulgent and high-end entertainment goods, such as consumer electronics, sports, health and
wellness, including cosmetics and personal care. They also spend on entertainment and food
and drinks out of the home, luxury clothes and jewellery, private vehicles, weekend breaks and
holidays abroad. Online shopping as a recreational activity is particularly important to people in
this group as an extension of recreational shopping habits.
Running Costs
In Hong Kong, energy costs have not rocketed in recent years as they have elsewhere.
Supplies are linked to the mainland of China, and the increasingly high global costs of energy
have been largely subsidised by the government in order to keep Chinas industrial growth as
unaffected as possible. The Pearl Delta region is seen as a key industrial hub in China, and so
every effort has been made to ensure that businesses there are not affected by fluctuations in
global energy markets. This has meant that households have seen rises in the cost of electricity,
gas, and other fuels of around 4.5%. Water bills and general running costs are similarly steady.
Only an estimated 14% of household waste in Hong Kong is recycled. The government is
currently in a panic because the landfill capacity in the territory is close to being completely
depleted. Disposal areas have been set up close to major rail transport links for the proper
disposal of batteries and electronic items, as well as glass and plastics. Since 2005, the
government has put an ordinance in place for the Source Separation of Domestic Waste, which
is a call for property management companies to assist tenants in recycling through centrally
located recycling bins. This programme has been better enforced recently, as the looming
problems associated with high density urban living and years of inefficient waste management
have caught up with Hong Kongs policy makers. Private enterprises, such as HK Recycles,
have also looked at recycling and proper waste management recently. Public awareness is at a
high, and younger citizens, in particular, are keen to make a special effort to solve the very
visible problems associated with pollution and waste in their daily lives. Energy-saving devices,
which come at a premium, are mainly bought by middle-class and educated people in their
twenties and thirties. Young families are eager to go green in their consumer choices, reflecting
wider global trends among young and informed demographics.
People in Hong Kong usually hire local handymen for repair and maintenance work. These
workers are generally associated with apartment blocks and can be asked to carry out simple
tasks, such as rewiring plugs or attaching wall mounts for paintings, clocks, or shelves. The DIY
lifestyle is not a good fit for most people in Hong Kong, and it has been extremely difficult to
build a culture of DIY in the territory. Firstly, households have very little space to conduct
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22
medium to large DIY operations, and so investing in even basic tools is hardly worth the
expenditure. Secondly, unskilled and semi-skilled labourers are still extremely cheap to hire,
especially recently due to the influx of workers from the mainland. Finally, many people in Hong
Kong lack free time and choose to spend their limited free time indulging only in the most
relaxing pastimes. A weekend of DIY after a 48-hour working week is not on the cards.
The independent and elderly
The elderly population in Hong Kong is experiencing one of the fastest growths in the world.
Given that Hong Kong has the worlds highest population density, it is now home to the most
concentrated elderly population on earth. Hong Kongs elderly people are not wealthy. Wealth is
found, as in neighbouring China, amongst younger segments of the population who have
flourished in line with the growth of Hong Kong as a modern financial capital.
As traditional family ties give way to more independent living among the young, elderly people
are increasingly finding that they have to remain independent for longer. Rates of
institutionalisation in Hong Kong dwarf those of the UK and the USA, despite the fact that filial
piety is held in high regard in the culture. According to the Social Welfare Department of Hong
Kong, large numbers of elderly persons still live with younger family members, but roughly 8% is
currently living in residential care homes, against around half this figure in the UK. Elderly
people in Hong Kong much prefer to remain in familiar surroundings and close to family
members whenever possible. Increasingly, greater independent living and the breakdown of
traditional family-centric lifestyles have led to the demand for the renovation of current homes to
allow elderly people to live more comfortably and independently. There has been a shift away
from institutionalisation wherever possible. Homes and apartment complexes are being refitted
to allow aged people to live independently, both within private residences and in public spaces
attached to residential complexes. Local authorities and the government have to find money to
subsidise a portion of this work owing to the limited funds available to many elderly citizens. The
private sector is taking a lead from government initiatives and education programmes
highlighting the need for great compassion and care for elderly citizens, especially from their
own children. Due to limited space and the costs of providing care homes with the necessary
equipment and staff to function efficiently and safely, the private sector will have to pick up the
slack in the elderly care market, where demand promises to grow. Stair lifts, bathroom railings,
emergency alarms, safety measures in cooking spaces, access points for wheelchairs and
automated lighting are a few of the changes that have to be made.
Sustainability starts at home
A commitment to sustainable living is evident among late teens and young professionals.
Twenty-somethings are particularly keen to make sustainable consumer choices. They demand
that industries take environmentalism, sustainability and corporate social responsibility
seriously. Recycling at home is at the core of the sustainable living movement. Energy-saving
home appliances have been very popular. Given the lack of official enforcement of recycling
laws, habits have been difficult to forge. Yet, various initiatives are cropping up to further
promote sustainability awareness amongst all segments of society.
Conserve Our Resources When Young, a community-led recycling project by the Hong Kong
Federation of Womens Centres, and the Green Dot Home initiative that seeks out used
furniture and homeware for recycling are examples of the recent sustainability movement.
Beyond grassroots movements, sustainability funds have been set up by academic institutions,
NGOs and government departments. Corporations are also promoting sustainability amongst
workers in and outside the office environment.
Table 2
Housing and Households Data 2000, 2005, 2010, 2011, 2012, 2015
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23
Total number of
households ('000)
Households by tenure
- Home owner ('000)
-- Home owner without
mortgage ('000)
-- Home owner with
mortgage ('000)
- Rented ('000)
Households by number of
persons
- 1 ('000)
- 2 ('000)
- 3 ('000)
- 4 ('000)
- 5 ('000)
- 6+ ('000)
Households by number of
rooms
- 1 ('000)
- 2 ('000)
- 3 ('000)
- 4 ('000)
- 5+ ('000)
Households by sex of
head of household
- Male ('000)
- Female ('000)
Households by type
- Single person ('000)
- Couple without
children ('000)
- Couple with children
('000)
- Single-parent family
('000)
- Other ('000)
Housing stock ('000)
Housing completions
('000)
House price index (2010
= 100)
Pet population (animals
per household)
Ownership of household
durables by type
- Dishwasher (% of
households)
- Freezer (% of
households)
- Microwave oven (% of
households)
- Refrigerator (% of
households)
- Telephone (% of
households)
- Tumble drier (% of
Passport
2000
2005
2010
2011
2012
2015
2,021
2,191
2,365
2,398
2,431
2,528
1,033
538
1,253
610
1,300
568
1,328
568
1,354
569
1,430
580
495
643
732
760
785
850
909
843
974
980
986
1,005
315
433
424
475
248
126
359
520
498
499
221
93
395
585
571
531
204
79
403
597
582
537
203
77
410
609
591
542
202
77
433
645
615
557
202
76
259
286
776
406
294
240
291
881
478
301
224
295
991
552
303
223
297
1,010
564
305
222
299
1,028
576
307
223
306
1,078
607
314
1,451
570
1,502
689
1,565
800
1,578
821
1,590
842
1,622
906
315
293
359
330
395
375
403
383
410
391
433
412
793
832
857
863
870
892
57
61
64
65
66
68
563
2,149
85
608
2,431
42
673
2,561
21
685
2,593
27
695
2,599
20
724
2,656
16
59.4
61.0
100.0
120.6
136.6
n/a
0.3
0.2
0.3
0.3
0.3
0.3
7.7
14.5
21.1
21.7
22.2
23.1
25.9
34.2
37.9
38.4
38.7
39.4
58.5
72.9
78.9
79.5
79.8
80.4
96.0
98.1
99.8
99.9
99.9
100.0
97.8
98.0
98.1
98.1
98.1
98.1
29.3
23.5
17.7
16.5
15.4
12.5
24
households)
- Vacuum cleaner (% of
households)
- Washing machine (% of
households)
Average household
expenditure on running
costs (HK$ per household
at constant prices)
- Maintenance and
repair of dwellings
- Water and
miscellaneous domestic
services
- Electricity, gas and
other fuels
- Hardware and DIY
goods
- Household and
domestic services
Source:
Chart 2
Source:
Passport
64.2
78.0
87.0
88.5
89.9
93.4
92.0
94.0
95.3
95.5
95.7
96.3
6,030.2
6,028.8
6,601.7
7,209.5
7,532.8
8,660.2
3,265.2
3,475.8
4,153.0
4,561.5
4,786.4
5,586.2
7,615.9
8,972.3
8,787.6
9,213.1
9,323.5
9,975.0
4,063.8
3,125.2
2,455.6
2,427.4
2,345.5
2,365.8
7,011.4
8,594.6
11,482.7
11,944.2
12,174.3
13,493.5
Number of Households by Disposable Income Bracket 2005, 2010, 2015
MONEY AND SAVINGS
25
Attitudes Toward Payment Methods

Hong Kong remains cash friendly, as ATMs are found at all transport hubs and in
supermarkets and shopping malls. The convenience of cash transactions factors heavily in
consumer habits. Large denomination bills allow for relatively large purchases to be made with
cash. Most transactions are conducted using cash in Hong Kong, from topping up an Octopus
Card for use on the MTR to buying a designer handbag. ATMs tend to be used primarily for
cash withdrawals, but multi-function machines, usually found on banks own premises, allow
customers to make bill payments and transfers. Most young people favour online banking over
multi-function ATMs, but these machines are becoming more popular with older people.
Plastic transactions are increasingly common. New technology allows for greater security and
convenience through contactless payments. The key determinant of popularity in the payments
market is convenience. The rise of online shopping has meant that debit and credit cards have
become an integral part of most consumers lives, especially among twenty- and thirtysomethings for whom online shopping is fast becoming the norm. Credit cards are enjoying the
greatest levels of growth, recently becoming more numerous than debit or basic ATM
withdrawal cards. The growth in credit cards will continue to outpace all other plastics over the
coming years, as co-branded cards, exclusive VIP cards, and promotional and points-based
cards all begin to gain momentum. Hong Kong consumers are beginning to demonstrate
increasingly Western attitudes to borrowing money. Consumer borrowing, including borrowing
on credit cards, is rising as people spend more on their cards and pay back less and later.
Contactless payment methods, which involve swiping and do not need PIN verification or
signatures, are beginning to make inroads in various retail markets. The popularity of the
Octopus card, as a means to access and use public transport links, which almost the entire
population uses, has placed Hong Kong in a unique position to develop the payment system
across the entire territory. Already Octopus cards are routinely used to pay for groceries and
smaller items at food kiosks and 7-Elevens across the territory. Increasing numbers of vendors,
including clothing retailers and restaurants, are beginning to accept the Octopus card as a mode
of payment. The acceptance of new technology and long-standing pioneering attitude amongst
the population is allowing contactless payments to become more widespread. Mobile
smartphone technology is set to grow; it is a logical step forward in contactless payments.
Savings
Hong Kong residents are traditionally considered to be healthy savers, but recent trends show
that attitudes towards saving are changing, especially among the younger generations. A slow
deterioration in savings ratios over the past few years illustrates a changing mentality that is
influenced by the West. Currently just over a quarter of disposable income is saved in Hong
Kong, which, compared to the USAs 9%, is high by global standards. Whilst savings are high
amongst middle-aged and older people in Hong Kong, people in their thirties and younger are
saving much less.
Saving to gain a foothold on the property ladder has largely been futile for many young Hong
Kong residents in recent years. Property prices are currently the highest in the world, and priceeasing measures by the government have so far failed to make an impact in the face of
continued demand for housing from mainland Chinese investors. Home ownership is
traditionally seen as the first step in a perceived lifetime of saving for family responsibilities.
Given the over-priced housing market and current social and lifestyle choices, the differences
between the older and the younger generations are very pronounced.
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26
Loans and Mortgages

Taking out loans has traditionally been seen as secondary; items are more usually purchased
through savings. This is increasingly no longer the case, especially among young professionals
who are far more willing to use the rapidly expanding financial services products available.
Credit cards and loans have enjoyed record growth in recent years, and borrowing has pushed
household debt to new heights. So far in 2013, household debt has risen to a record 61% of
GDP, according to the Hong Kong Monetary Authority. The growth in Hong Kongs consumption
and personal debt has consistently outpaced overall economic growth. This has been a major
concern recently, as the economy is susceptible to outside fluctuations.
Credit cards are used for everyday purchases, illustrating how borrowing has rapidly
permeated the Hong Kong consumer society. Credit cards are relied upon for borrowing over
and beyond the interest-free period to purchase mid- to high-end consumer durables, such as
electronics, expensive clothing, jewellery and holidays. Loans are usually taken out for more
sizeable purchases, such as household renovations, moving costs, private vehicles, or
education. People tend not to take out loans for anything they can comfortably live without.
Leung Chun-ying, Hong Kongs Chief Executive, was elected into office on a promise of
narrowing income disparity and tackling the expanding property bubble, but so far he has failed
to live up to these promises. Hong Kongs 7.1 million citizens have yet to escape the financial
crisis. Owing to record-low rates of interest and continued mainland Chinese property
purchases, property prices have doubled since 2009, pricing out Hong Kongs young and lowincome families. The provision of cheaper housing is becoming a greater priority, as this is seen
as a stabiliser for the wider economy, including the financial services sector. The Hong Kong
Monetary Authority warned in early 2013: An increasing risk of an asset price bubble may
undermine the stability of the banking system. Prices began to cool in early 2013, especially in
the luxury housing market that is coveted by mainland investors. Thomas Lam, from Knight
Frank Realty, mentioned in a 2013 interview that, with various cooling measures remaining in
place, the residential market is expected to stay quiet and sales are likely to fall in 2013. Mass
residential prices are expected to drop by around 10%, while prices in the more resilient luxury
sector will fall by 5%.
Save or spend
The savings rate amongst older people is high. Yet, the young have very little savings,
resulting in skyrocketing household debt among the segments of the population that are least
able to liquidise assets effectively, if at all. Polarisation is at the heart of todays consumer
financial trends. Different age groups have almost completely divergent attitudes towards
lifestyle, family and career. In addition, Hong Kong has record levels of income disparity; its Gini
co-efficient is similar to Chinas. A segment of society is inclined to save and invest using all
manner of financial and wealth management services, and another segment of increasingly
marginalised under classes is struggling to find space to live, let alone save or have access to
rudimentary banking facilities. The numerous consumers caught between these two extremes
are pulled increasingly toward one pole or the other.
For these reasons, statistics on Hong Kongs savings rates and average disposable incomes
fail to properly address the intricate trends in consumer finance today. There remains a huge
market for wealth and asset management, property investment, bonds, stocks and shares, and
all manner of high-end consultancy regarding smart investments. However, Hong Kong is also
becoming home to a growing high-interest and short-term loans market, heavy borrowing on
credit cards by some segments, and an illegal grey loan market, so far centred around lowskilled immigrant workers.
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A tale of two currencies

Hong Kongs financial institutions introduced Chinese Renminbi financial products in 2004.
Renminbi currency accounts, with associated remittance, currency exchange and debit and
credit card services were aimed at high-spending Chinese investors looking to do business in
Hong Kong. Dual currencies were necessary due to relatively stringent and complicated rules on
outbound money transfers from China. Currently, dual-currency accounts offer more services to
include complex wealth management and cross-border investment opportunities. Almost every
bank and financial institution offering Hong Kong Dollar accounts also caters to the growing
demand for Renminbi accounts and dual-currency accounts from both Hong Kong citizens and
mainland Chinese.
At the mass consumer level, online shopping and greater interaction between Hong Kong and
the mainland have led to increased demand for dual-currency financial products. Major online
retailers in Hong Kong and China are increasingly finding that B2C and C2C businesses are fast
becoming borderless. In 2012, Bank of China opened its first Renminbi currency ATM machine
in Hong Kong, and plans to introduce dual-currency contactless cards are already at an
advanced stage. This could see Hong Kongs ubiquitous Octopus Card, already used in retail
environments aside from public transport, find its way into the mainlands commercial sectors
via Shenzhen. Contactless payments are seen as the perfect medium through which dualcurrency payments could flourish in the region.
Table 3
Money and Savings Data 2000, 2005, 2010, 2011, 2012, 2015
Financial cards in
circulation
- ATM cards (mn cards)
- Debit cards (mn cards)
- Credit cards (mn cards)
- Charge cards (mn cards)
Financial cards'
transactions
- ATM cards (HK$ mn, at
constant prices)
- Debit cards (HK$ mn,
at constant prices)
- Credit cards (HK$ mn,
at constant prices)
- Charge cards (HK$ mn,
at constant prices)
Cash transactions (HK$
mn, at constant prices)
Other paper
transactions (HK$ mn,
at constant prices)
Annual savings (HK$ mn,
at constant prices)
Savings ratio (% of
disposable income)
Annual lending rate (%)
Consumer lending
- Consumer credit
(outstanding balance)
(HK$ mn)
- Mortgages/housing
(outstanding balance)
2000
2005
2010
2011
2012
2015
10.7
8.7
6.7
0.4
14.2
12.6
11.9
0.4
15.8
15.6
15.6
0.5
16.4
16.1
16.6
0.5
16.7
16.6
17.5
0.5
17.5
17.7
20.2
0.6
49,592
69,959
99,965
103,469
105,151
108,337
98,817
146,340
199,869
218,313
219,769
240,125
157,311
337,070
413,092
460,796
489,487
622,242
12,572
17,368
19,162
19,267
19,468
20,297
269,257
121,342
181,208
197,527
188,592
143,831
10,237
11,164
10,077
9,762
9,313
8,900
365,341
404,258
407,557
418,605
423,180
429,367
30.5
30.5
26.6
25.8
25.6
23.7
9.5
7.8
5.0
5.0
5.0
n/a
257,572
279,771
337,373
351,100
367,720
428,370
598,214
655,931
812,699
741,034
685,588
635,427
28
(HK$ mn)
Source:
Chart 3
Source:
Consumer Lending Compared with Annual Savings and Savings Ratio 20002015
EATING AND DRINKING

Eating Habits
Hong Kong proudly boasts a fine culinary tradition, including various Southern Chinese
cooking styles, such as Fujianese, Hokkien, and Cantonese, as well as imports from its colonial
history. As they live in a modern and cosmopolitan city, Hong Kong residents are very open to
experimentation and reinterpretations of global cuisine. Food trendsetting is a growing part of
the modern culinary environment in Hong Kong. Fusion restaurants, cutting-edge preparation
methods, health food trends, and new ingredients all find home in Hong Kong, alongside the
long-standing traditional dim-sum and Cantonese restaurants.
The most popular cuisine in Hong Kong in terms of volume consumed is traditional Cantonese
food, including dim-sum and traditional local snacks and pasties. Cantonese cuisine is
traditionally lighter than other Chinese styles; it involves short cooking times and shallow frying
or steaming. Seafood is integral to most Hong Kong cuisines and the freshness of seafood and
other ingredients is paramount. Young people, particularly young families who lack the time to
prepare meals from scratch, are increasingly accepting processed and frozen foods.
A cultural norm found throughout the immediate region is the popularity of eating out, and in
this respect Hong Kong residents are no different. Given that the average Hong Kong home is
small, it is becoming more popular to order food in as opposed to cooking at home. Street food
is part of the culture. Alongside the traditional favourites, such as takoyaki, fried tofu or chicken
feet, healthy street snacks are now available. Many cafs and bistros specialise in organic and
vegetarian snacks for convenience-driven Hong Kong foodies. Salads, healthy smoothies and
juices have been particularly popular more recently. Organic and provenance trends are now
popular with Hong Kong foodies, especially those in their twenties and thirties.
Vegetarian restaurants are cropping up all over Hong Kong, and traditionally-popular pizza
outlets and burger bars are ceding commercial space as a result. Japanese food, such as
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ramen, sushi and sashimi, South and South-East Asian cuisine, as well as lighter local cuisines,
are increasingly appealing to younger people. Detoxifying smoothie and shake bars, fortifiedjuice bars, and herbal teahouses are taking advantage of the health movement. Local and
regional foods and drinks are re-interpreted; the focus is away from Western cuisine. Hong
Kong has always found strength in its diversity and cosmopolitan outlook. The shift in eating
patterns, owing to health trends, has shown that people in Hong Kong are particularly creative.
Fast food has mammoth competition in Hong Kong, as the local snack culture has a history
preceding anything we would consider today as commercial fast food. In order to survive in
Hong Kong, fast food restaurants have had to cater for local tastes and, with the shift towards
healthier eating options, have added to their menus. As a very densely populated place, Hong
Kong boasts levels of custom unachievable in other markets. Fast food remains extremely
popular, owing to the sheer number of potential customers in each area and the strong desire
for convenience. Supermarkets and convenience stores are also providing fast food options in
the form of traditional snacks, sandwiches, and like-for-like competition with fried chicken and
burger bars. Consumers can also go to their local supermarkets to take advantage of the
offerings of sushi, ramen, and dim-sum, as ready-prepared food, to eat on the go or to take
home.
Good for you and the environment too
Recent government initiatives have encouraged restaurants and supermarkets to offer healthy
menus and products. The Department of Healths EatSmart campaign offers food and drink
retailers the chance to be officially recognised as health-conscious retailers through regular
assessments by the Food and Environmental Hygiene Department. Organic and functional
foods and drinks, as well as high fruit- and vegetable-content options are key elements in the
successful achievement of EatSmart status.
Further to this, environmentally-conscious consumers are beginning to demand changes in
the food market. Environmental and ecological concerns are becoming part of young
consumers decisions. Recyclable packaging materials, less packaging in general, energyefficient retail spaces, reusable table napkins, as opposed to wasteful paper napkins, are a few
examples of the emerging demand for sustainability. Firms have to illustrate and prove their
credentials, especially as social media and high-speed free-flowing information can lead to
positive or negative customer reviews with important consequences. Marketing is now always
on, and retailers in the food market know only too well how important health and food safety are
to the general public in Hong Kong.
Hi-tech and the internet affect food consumption
From interactive iPad menus to interactive marketing and social media retailing, high
technology is making its way to retail spaces, and ultimately to homes and kitchens in Hong
Kong. Many recent trends in the food market have been directly linked to the growing use of
technology in everyday lives, and it is expected to continue over the coming years. As
information is shared across platforms, such as food blogs and online messenger groups, and
companies use customer feedback instantaneously, great change is expected in health,
sustainability, provenance, corporate social responsibility and the organic market.
Deeper socialisation amongst diners and food retailers through online marketing and social
networking has given rise to the private kitchen, whereby a private household serves meals to
limited tables in exchange for donations or gifts. Not strictly-speaking a business, this trend has
given people a new experience, which relies on social media and the new digital word-ofmouth. As a result, many legitimate food retailers and restaurants have followed the lead set by
private kitchens and offer more intimate and private dining experiences.
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Another trend related to technology is the rise in home deliveries of organic, luxury, imported,
or exclusive food products. As consumers pay much more attention to the quality and
provenance of food, some companies are sourcing products that are in high demand and not
supplied by convenience stores and supermarkets and delivering them to customers homes.
Mobile and e-commerce sites have been integral to the growth of these opportunities.
Drinking Habits
Hong Kong boasts some of the most well-established drinking venues in Asia. Given the
extremely relaxed licensing laws, even the street vendors of Mong Kok sell bottled and canned
beer at the very least. Drinking outdoors is the norm, meaning outside the home and also freely
in public spaces. Drinking as part of a meal has been a tradition, and Hong Kongs restaurants
are popular for social drinking.
Drinking is closely associated with socialising and especially with eating, both seldom carried
out at home. The lack of private space at home and the tropical climate have led to the creation
of outdoor drinking zones, comprising pedestrianised areas with bars and restaurants on either
side. Customers are free to roam in these drinking areas; many of these areas have regional or
even global acclaim, such as Lan Kwai Fong and Wan Chai. A smoking ban has been effective
since 2007, but the consumption of alcohol and wider drinking culture has not been affected.
The year-round good weather, open terraces, and pedestrianised nightspots make Hong Kong
more smoker-friendly than other major cities. Closing times are flexible and largely depend on
consumer demand. Many bars close at 2am, clubs a little later, and dedicated 24-hour venues
are also found across the city.
Supermarkets and convenience stores sell alcoholic beverages to cater for everyday tastes,
but specialist stores are favoured for more expensive and luxury drinks used at home for special
occasions, or as gifts. However, supermarkets are adding to their lines to follow the demand for
more premium brands. Consumers want a much wider variety of beverages than was available
a few years ago before import duties were cut. Product knowledge and consumers readiness to
research global trends and heritage labels has grown at the high end of the alcoholic drinks
market and in niche segments.
Non-alcoholic drinks are enjoying a renaissance in Hong Kong, due to health awareness and
localisation. The two trends have become inextricably linked with regards to food and drink
products. Consumers are searching for local ingredients and returning to traditional favourites
that offer a health benefit (over imported coffee and alcoholic drinks) and cater for the growing
demand for provenance. Fortified soft drinks, especially non carbonates, juices, and RTD teas
are all enjoying a brisk trade, as residents demand more for their money in a market that is
highly competitive owing to Hong Kongs tropical climate and urban density.
Crafting a new beer trend
Western pubs and bars have become used to seeing local brews, as well as renowned
regional or even global microbrews, at their local tap. With such a long tradition of general
alcohol consumption, it is surprising to hear that brewing is a very recent phenomenon in Hong
Kong. Since 2010, craft beers have exploded in popularity across Hong Kong. The lifting of
heavy import duties on alcohol in 2008 set the stage for the introduction of a much wider variety
of beers. Carlsberg and Heineken are now pitted against smaller brewers with higher regard for
technique, a brewing heritage and often greater pedigree and respect among consumers. The
trend for craft beers has also allowed for wider acceptance of new types of wheat beers, fruit
beers, pale ales, ciders and other imports.
Beer festivals, online distributors of craft beers, and craft-beer specific bars, pubs, and
eateries are springing up all over Hong Kong in order to quench the new thirst for a better, or at
least a more exclusive, brew. Currently Hong Kongs own Typhoon Brewery reigns supreme as
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the domestic microbrewer of choice. Australian, Belgian, British and American craft beers are
the most popular imports among the natives. American craft beers, in particular, have been
trendy recently, following the Belgian invasion in the past few years.
The great water debate
Bottled water versus tap water is the latest debate raging among consumers, drink
manufacturers, the government, environmentalists, and health experts. With food and drink
scandals barely leaving the news headlines over recent years, the issue of the worlds number
one beverage is central in consumers minds. In Hong Kong, 1.3 million bottles of water are
consumed per day by its population of seven million. According to industry experts, Hong
Kongs consumption of bottled water is amongst the highest globally, but the World Health
Organisation cites Hong Kong as having one of the safest tap waters in the world. Similar
scenarios are seen across developed nations, whereby consumers see bottled water as a
necessity and as being superior to tap water, which in many cases is a fallacy.
Lisa Christensen of Dopper, a company promoting tap water consumption around the world,
says of Hong Kong: The awareness levels are generally lower here in terms of environmental
protection. She states that the marketing surrounding the major bottled water brands is akin to
brainwashing. Yet, Hong Kong residents are increasingly aware of environmental concerns,
given the unsightly landfill sites and the garbage piles on Hong Kongs beaches. According to
GoGreen Hong Kong, an environmentally-focused lifestyle guide for the territory, less than 4%
of the 1 million plus bottles of water consumed daily in Hong Kong are recycled.
Consumers are beginning to be aware of the environmental degradation caused by
unnecessary packaging. Bottled water is essentially 99 cents of packaging for every dollar
spent. The trend to avoid bottled water from geographically distant nations is also on the
increase, with carbon footprint awareness campaigns influencing many younger consumers.
Filtration systems for the home and office, as well as reusable water bottles, are becoming
popular. Fortifying agents, from teas and traditional herbs all the way up to laboratory-concocted
additives and flavours to be used in tap water, are popular with consumers who are keen to
avoid paying unnecessarily and wish to fight the growing environmental problems associated
with bottled water.
Table 4
Eating and Drinking Data 2000, 2005, 2010, 2011, 2012, 2015
HK$ per capita, at constant prices
Food consumer
expenditure
- Bread and cereals
consumer expenditure
- Meat consumer
expenditure
- Fish and seafood
- Milk, cheese and eggs
- Oils and fats
- Fruit consumer
expenditure
- Vegetables consumer
expenditure
- Sugar and
confectionery consumer
2000
14,650
2005
16,943
2010
22,417
2011
23,635
2012
23,752
2015
24,844
1,824
2,433
3,817
4,111
4,207
4,569
3,734
4,398
5,155
5,321
5,246
5,285
3,074
3,430
4,601
4,859
4,890
5,128
790
1,037
1,578
1,691
1,722
1,871
230
239
335
352
354
377
1,264
1,376
1,808
1,904
1,911
1,994
1,443
1,845
2,870
3,084
3,148
3,395
280
389
619
670
691
781
32
expenditure
Coffee, tea and cocoa
Mineral waters, soft
drinks, fruit and
vegetable juices
Alcoholic drinks
- Beer consumer
expenditure
capita, at constant
prices)
- Spirits consumer
expenditure
- Wine consumer
expenditure
Catering consumer
expenditure
Source:
Chart 4
Source:
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96
132
138
138
143
631
752
1,027
1,098
1,116
1,204
429
557
889
905
893
944
255
296
450
455
447
465
63
92
135
136
132
136
111
169
305
314
314
343
4,870
7,621
11,543
12,973
13,353
15,172
Real Growth in Consumer Expenditure Compared with Real Growth in

Consumer Expenditure on Food and Alcoholic Drinks 2000-2015
GROOMING AND FASHION

Perceptions of Beauty
The essential elements of female beauty in Hong Kong are a tall and slight stature, fair and
clear skin, larger than average eyes, and an elongated and thin nose. As in most Asian
societies, matured beauty is shunned in favour of a younger and cute version. The recent
trends towards more athletic and well-built male bodies have quickly evolved towards a
preference for well-toned male torsos, as opposed to just muscle mass. Much more feminine
33
facial features are becoming the ideal in Hong Kong male beauty. This trend is heavily
influenced by similar trends in Japan and Korea over the past few years.
The media has a strong hold over the perceptions of beauty in Hong Kong. In addition, in
recent years, digital media has played a key role. The celebrity industry in Hong Kong follows an
Asian pattern; it is more fluid than in the West. Each celebrity routinely flirts with various artistic
genres, such as music, movies, television, and modelling, and celebrity endorsements for
marketing purposes are unashamedly pounced upon. Celebrity exists as an industry in itself in
Hong Kong, with many Hong Kong celebrities gaining regional fame, especially in China,
Taiwan, and heavily populated Chinese diaspora communities in South-East Asia. Notions of
beauty are monopolised in Hong Kong by a tight-knit group of marketing agencies and a handful
of top celebrities. Western media still has a strong grip on the perceptions of beauty in Hong
Kong; pin ups from Hollywood, the Spanish football league, and the runways of Paris, Milan,
New York and London are all still at the top of most Hong Kong consumers beauty ideals.
Younger consumers are now influenced by the marketing of beauty through social media and
wider tween and teen segment-specific marketing drives. This has allowed for a more
international perception of ideal beauty to take root among vast numbers of young people in
Hong Kong. This has also meant that the preoccupation with youthful beauty is at a high.
International perceptions of beauty are far more diverse than in the past, and internationally
famous celebrities from the sporting world, television, cinema, and the music industry are all
affecting younger peoples views of beauty. Beyonc Knowles, Taylor Lautner, and Kobe Bryant
are examples of the more ethnically diverse celebrities that have become increasingly influential
in global mainstream culture recently.
Female Grooming
The female grooming market in Hong Kong is well developed, as standards of hygiene and
personal cleanliness remain high. Being beautiful and making use of all the available products to
heighten ones looks has long being associated with social status, but more recently it has
become an imperative for professional success. The core grooming product range has
expanded in recent years, especially among young professionals and wealthy middle-aged
females who make up the biggest spending segment in the female personal care and cosmetics
market. The bare essentials include deodorants, toothpastes, soaps, shower gels, shampoos
and conditioners. Yet, facial washes, moisturising creams and essences, face masks, UV
protection creams, eye creams and makeup removers are becoming daily must-haves amongst
females. Cosmetics, such as lip gloss, eye shadow, pencil and mascara, BB cream, foundation
and nail polish, are also used daily by many young consumers. Functionality and price are key
determinants in todays consumer habits. Mass-marketing hype is increasingly ineffectual as
consumers are well educated on grooming, often using the internet to research and seek
products when they wish.
Skincare has fast become central to most peoples grooming regimen, with cosmetics taking a
backseat. By global standards, the use of all skincare products is exceptionally high in Hong
Kong. Cosmetics increasingly have to offer a secondary skincare function, with many citing
naturally-sourced ingredients and protective functionality on top of superficial benefits. Blemish
creams, commonly known as BB creams, are an example of this trend in colour cosmetics. In
high demand recently, these creams offer skin rejuvenation, skin whitening and UV protection,
in addition to their primary function as an easy-to-apply concealer and foundation.
Sun care has been a late bloomer in Hong Kong, as skin lightening and the avoidance of
direct sunlight still prevail across all ages. Yet, heightened education on the health risks
associated with prolonged exposure to the sun, especially high-profile cases of skin cancer, has
altered the perception of sun care in recent years. Proper UV protection is now heralded as a
must-have by many younger people, as more people take foreign holidays to exotic tropical
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locations in South and South-East Asia. Japanese giant Shiseido has been the quickest in
marketing UV protection sun care products. Over the summer 2013, sun care marketing used
flash mobs and educational editorial pieces. The trend for multi-functional products has also
affected sun care. Many protective sun creams offer skin-whitening features for those not keen
on tanned skin. These creams have been immensely popular in Hong Kong, as darker skin and
what is referred to as yellowing regionally is still seen negatively by many. However, a trend,
mimicking the ganguro trend in Japan, for visibly darker olive and orange skin is noticeable
amongst a particular set of fashion-conscious and socially progressive younger consumers.
Like many aspects of the fashion scene, hair styling is heavily influenced by trends from the
West and from regional style capitals in Japan and Korea. Women in Hong Kong have been
more inclined to experiment with shorter hair recently, reflecting the styles of Hollywood
celebrities, such as Anne Hathaway and, more recently, the singer Beyonc Knowles. Colour
has been more popular in 2013, with bright oranges, yellows, metallic colours, including
platinum blonde, steel and hues of blue creating much of a buzz. These colour trends are
copied from Osaka and Tokyo street fashion and proliferate across the region at unprecedented
speed due to web blogs and trend sites, such as Trendy Style and The Look Book.
Cosmetic surgery is on the rise in Asia, including Hong Kong. The driving force has been the
demand for Western features among females. Breast enlargement procedures are among the
most popular, but rhinoplasty and eyelid reconstruction surgery procedures set the territory
apart in terms of comparative numbers of procedures. The aim to appear more Western or
resemble the modern East Asian ideal of beauty, as influenced by Western media, has seen the
numbers of procedures to shape and reconstruct facial features increase substantially. Chin, jaw
and cheek reconstructive surgery procedures aiming to elongate the face are increasingly
popular among Hong Kong residents and visiting cosmetic surgery tourists from the mainland.
Male Grooming
Males in Hong Kong are cosmopolitan and progressive, and their country has close links with
South Korea, the regional male grooming powerhouse. The negative social connotations that
can be associated with male grooming in the West are not evident in Hong Kong. Young men
see daily grooming routines as a necessity of which they are proud. Essential products for many
male pioneers now include moisturisers, cleansers, toners and facial scrubs, as well as shaving
creams and hair products. Most young men in Hong Kong use a facial scrub at the very least.
Male cosmetics are also beginning to appeal to males in their twenties and thirties, again
following a Korean lead. Concealing creams and easy-application foundations, such as BB
creams, are now marketed across Hong Kong with some success. Yves Saint Laurent and Lab
Series have launched lines specifically targeted at men under the guise of grooming aids. Whilst
demand remains small, and relatively high end, certain products that bridge skin care and
cosmetics are poised for exponential growth amongst men interested in maintaining a certain
look.
Hong Kongs culture of celebrity endorsement is as important in the male cosmetics market as
it is anywhere else. Celebrities known for their masculinity act as perfect conduits in a market
more often associated with femininity. Sports celebrities have been hugely influential in recent
years, particularly footballers, such as ubiquitous style guru David Beckham and La Liga poster
boy Cristiano Ronaldo.
Hair trends amongst men in Hong Kong generally follow an international lead. Shaven heads,
including fades and Mohawk variants, as well as 1920s and 1930s style haircuts popularised by
television are very much in. The very latest hair trend is the undercut, again signalling Hong
Kongs global awareness of fashion and style. Men are much more willing to take risks with their
hair styles. Competition to stand out has risen considerably as male grooming has blossomed
from niche to mainstream. Many men in Hong Kong do not easily acquire facial hair, as
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biologically facial hair growth tends to be sparse and comes later in life. This has not stopped
men from experimenting with their facial hair following wider trends to experiment with hair
styles. The recent trend for bright blue and purple hair colouring is testament to this.
For greying hair, traditionally consumers use hair dye to achieve a more youthful look. Some
men are now choosing to remain grey and proud. The salt and pepper look, made famous by
George Clooney, is evident in Hong Kong like never before. More natural colours are used to
hide grey hair for those who wish to do so.
Korean cosmetics invasion
The rise of Korea as a regional cultural and economic power has pushed the competition in
numerous industries, such as media and entertainment, heavy industry, electronics and more
recently cosmetics, which had been dominated by the big European and Japanese brands.
Skincare products and cosmetics from Korea are now regarded as the most innovative and
appealing. Major Korean brands, such as Missha, Etude House, Innisfree, and Skin Food, have
exploded in Hong Kong recently, especially amongst younger consumers and newcomers in the
burgeoning makeup and skincare market.
New consumers to the skincare market are more concerned with natural ingredients than in
the past. All-natural brands, such as Skin Food and Innisfree, have jumped on this opportunity
by supplying relatively cheap skincare products with all natural ingredients wrapped in simple
packaging, designed to appeal to the new breed of holistic cosmetics and skincare consumers.
These brands follow the Korean cosmetics brand Sulwhasoos model of employing all-natural
ingredients with a particular focus on regionally-sourced and rare ingredients. The newcomers
have found that the low- to mid-priced segments of the market have been the ripest for
exploitation. The heavyweight brands have struggled to compete with the recent Korean
onslaught. Consumers see the new brands as separate from the dominant French and
Japanese brands that marketed themselves extensively using celebrities and scientific,
chemical breakthroughs.
Chinese demands outweigh native demands
Hong Kong has become for many Chinese little more than a gigantic tax-free shopping mall.
Mainland Chinese tax laws and import levies seem a long way from falling in line with the
autonomous region of Hong Kong. Indeed, the territory enjoys relative freedom; it has a more
liberal free market economy, at least in terms of its consumer culture. Hong Kongs domestic
consumer demand contributes two thirds of its GDP, with non-resident spending accounting for
a third of retail consumption, according to 2013 Ministry of Finance figures. Between 2008 and
2012, mainland Chinese tourists increased their spending in Hong Kong from HK$43 billion to
HK$119 billion, according to government census data. This demand from the mainland has
enabled Hong Kongs economy to continue to grow amidst weakening export demand.
The top items on Chinese customers Hong Kong shopping lists comprise cosmetics, clothing
and accessories, as well as consumer electronics, particularly smartphones. Mainland
consumers are having a massive effect on the domestic market for cosmetics and fashion.
Many Hong Kong retailers are now following trends on the mainland. Mainland Chinese are
influencing the Hong Kong market, through high volume demand. Hong Kong, though, is
shaping mainlanders trends by acting as the more cultured partner of the two. Hong Kong
portrays the aspirational fashion and style future of consumers across Chinas mainland.
Fashion Trends
Hong Kong is very particularly placed in the world of fashion, being almost directly between
the major poles of global fashion owing to its geography and history. With cultural ties to
England and the wider West, the style trends of Europe, predominantly emanating from London
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and Paris, share space with trends born in the other rising fashion hotspots of the world in
Tokyo, Osaka, and Seoul. Hong Kong, more than any other city in the region with a colonial
legacy, thrives creatively on its dual heritage identity.
Given Hong Kongs tropical climate and heavily built up air-conditioned residential and
commercial spaces, residents have to use layers to safely navigate between the two
temperature poles. Being a coastal territory, humidity also factors into peoples choice of
clothing. Shorts, both for men and women, layers of shirts on top of t-shirts, cardigans and
jumpers are year-round attire in Hong Kong.
Casual attire is popular with the vast majority of people across all age groups. American
casual brands and sportswear are popular amongst teens, tweens and middle-aged people.
High-end casualwear, usually from Japanese or European fashion houses, is preferred by the
fashion-conscious set in their later teens, twenties, and thirties. A keen eye for the smart-casual
look, though, is forming across a much wider age demographic. High-street retailers are offering
garments influenced by designer and luxury brands at competitive prices. Uniqlo and H&M are
the frontrunners in this trend, but over recent years the attention placed upon design has
jumped considerably across the whole market.
Formal wear is reserved for major celebrations, such as weddings. Many consumers prefer
casual clothing for most leisure activities. Hong Kong has a developed nightlife, but the norm is
for smart-casual largely owing to the tropical climate and outdoor drinking culture. Women are
more prone to embrace high-end formal clothing when enjoying Hong Kongs many bars, clubs
and restaurants. Labels are still prominent amongst both sexes for casual and formal attire in
the evening.
Hong Kongs workforce is largely employed in professional and service-based industries, so
office wear is the norm during working hours. The regional culture of conservative office dress is
still evident amongst middle-aged and older Hong Kong office workers. Yet, younger
professionals take their cues from European trends; accenting colours, accessories and tailored
garments are popular in Hong Kong today. Comfort is also key for many office workers who are
willing to pay a premium for smarter clothing and footwear offering functional qualities. This
includes wicking for day-long dryness, thinner and lighter materials for comfortable layering and
shoes with air circulation and shock-absorbing technology. With long working hours, as well as
after-office socialising a weekly occurrence for most people, clothing must remain comfortable
and hygienic throughout the day.
Accessories have become an integral part of overall styles in Hong Kong. High-street retailers
offer the latest trends at rock bottom prices, often changing several times in one season. Throwaway jewellery and other accessories have allowed more consumers to create individual looks
and refresh existing ones. Retailers are keen to meet the demand for cheaper sunglasses, belts,
earrings, bracelets, scarves, and a host of accessories. Again, it is the designer-orientated midrange high-street retailers, such as H&M and Top Shop, which have set the trend. Hong Kongs
demand for luxury goods is kept relatively high through its status as a regional shopping
destination and domestic demand from a fashion-conscious elite. Nevertheless, mainland
Chinese are increasingly looking to Hong Kong for bargains. The South China Morning Post
reports that luxury consumption in Hong Kong has remained flat.
The OL
The influence of dramas, such as Boardwalk Empire and Mad Men, has matured into a trend
amongst twenty- and thirty-something professionals who now dress up for work. Commonly
referred to as OL fashion, OL being an acronym for office lady, this trend is particularly prevalent
among females with an existing interest in fashion and popular global culture. Given the high
proficiency in English in Hong Kong, popular Western media influences its fashion scene more
than elsewhere in Asia. This trend does not necessarily entail wearing any particular genre of
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clothing and accessories. Instead, an appreciation of fashion and creativity is seen at work, as
well as a move away from uniform office looks long popular in Hong Kongs conservative
workspaces.
Collaborative efforts
As a result of the trend for high-street chic fashion, mid-range clothes producers and
sportswear manufacturers have collaborated with highly respected designers. Examples include
the late Alexander McQueens collaboration with Puma and Yohji Yamamotos Y3 line for
Adidas. This trend has recently exploded to the point where celebrities from screen and sports
are also being roped into designing lines for high-street retailers, including Isabel Marant and
David Beckham for H&M. As brands themselves become celebrities in their own right, it is little
wonder that mass-market high-street brands are effectively using their huge marketing budgets
to become cool by association.
Heritage brands are looking to gain a piece of this lucrative market, with collaborations of their
own. Top celebrities and niche independent designers, often from an urban streetwear or
alternative fashion background, have been given artistic license to co-design lines with top
luxury names, from Louis Vuitton to Barbour. These collaborations are almost entirely limited
edition, usually lasting only a season before being pulled from shelves. It is this exclusivity
partnered with brazen creativity that makes these items irresistible to the cultured and extremely
well-educated fashion consumers of Hong Kong.
Table 5
Grooming and Fashion Data 2000, 2005, 2010, 2011, 2012, 2015
Personal care consumer

expenditure
Colour cosmetics retail
sales
Fragrances retail sales
Hair care retail sales
Oral care retail sales
Men's grooming retail
sales
Skin care retail sales
Sun care retail sales
Clothing consumer
expenditure
- Clothing materials
- Garments consumer
expenditure
- Other clothing
- Clothing cleaning,
repair and hire
Footwear consumer
expenditure
Source:
Chart 5
2000
2005
2010
2011
2012
2015
1,833.6
3,029.4
5,654.5
5,865.0
6,066.7
6,675.3
178.1
221.8
246.9
248.8
249.0
252.9
99.8
181.8
121.7
43.3
113.3
217.7
143.7
53.2
105.1
226.9
139.6
54.8
105.7
225.1
135.5
54.0
106.5
222.8
131.9
53.5
114.0
225.4
129.3
53.9
615.0
16.4
14,348.5
747.3
19.7
13,449.3
833.9
20.3
17,189.5
842.2
21.0
17,932.9
850.6
21.5
17,772.4
878.3
22.8
18,180.2
92.8
102.5
157.9
167.3
167.8
174.7
13,309.0
12,506.2
16,052.6
16,753.5
16,608.6
16,997.4
612.5
533.1
594.8
612.0
600.2
604.1
334.1
307.5
384.2
400.1
395.8
404.0
3,786.7
3,505.8
4,365.9
4,542.0
4,491.5
4,577.9

Consumer Expenditure on Clothing, Footwear and Personal Care 2000-2015
38
Source:
HEALTH AND WELLNESS

Attitudes To Health and Well-being
Hong Kong boasts one of the most developed healthcare systems on earth comprising both
public- and private-sector services and covering the entire population. The public-sector safety
net is under more pressure, owing to the increasing cost of healthcare and a rapidly ageing
population. The public sector is run by the Hospital Authority; it comprises hospitals, clinics,
specialist consultations and treatments, rehabilitation and outpatient services, community
outreach programmes, as well as Chinese herbal and traditional medicine departments.
Although public-sector treatment is not free, it is heavily subsidised, up to 95% of total cost in
many cases. This has encouraged hypochondria amongst a population that is already culturally
prone to hospital and clinic visits at the slightest sign of illness. In turn, this has added to the
financial pressures on the Hospital Authority. The very poor, as well as those on state benefits,
are eligible to receive free treatment.
Hong Kongs dual-track system has been at the centre of government initiatives to influence
the way residents see and make use of the healthcare system. The growth of the private sector
has outpaced that of the public sector, and it is hoped that more citizens will make use of the
developing private sector in the future. Expenditure on private healthcare, as a percentage of
total expenditure on healthcare, has crept from 48.6% in 2010 to 49.3% in 2012. It is hoped that
the balance will tip in the coming year to lessen the burden on the government. People are
increasingly making use of the private sector for minor ailments and general health checks, with
major operations still being carried out through the world-class public sector.
Mainland health tourism is another pressure; in particular, mainland Chinese come to Hong
Kong to give birth. Over 3,500 pregnant mainland women were barred from entering Hong Kong
in 2012, a jump of over 80% from the year before, according to official Immigration Department
figures. Illegal births are an issue, punishable with heavy fines and even imprisonment. The
costs of maternal care have skyrocketed by as much as 50% over the past few years as a result
of overstretched facilities. The authorities have amended the law in 2013 to state that only
foreigners with valid working visas or married to local residents will be permitted to give birth on
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the territory. More measures by the Department of Health to protect Hong Kong citizens firstrate public health system are expected over the coming years.
OTC medicines, along with traditional Chinese medicines, are growing in demand, particularly
amongst the rapidly ageing population. Young people are more than happy to remain relatively
independent of the healthcare system by keeping basic Western medicines, vitamins, and
supplements in the house year-round. However, later-lifers tend to opt for monthly consultations
with GPs, traditional Chinese herbalists and medical practitioners. Independent pharmacies,
which are found all over Hong Kong, offer free advice and consultation. Often the source of
much of Hong Kongs over-prescription culture, these pharmacies are favoured by older citizens
and often have elements of Chinese herbal medicine or full-blown herbalists working in house.
Over-prescription is a problem, particularly as many people are adamant on receiving
prescriptions as a matter of course. Subsidisation means that most prescriptions set consumers
back by only HK$20- HK$50, a relatively small outlay.
Obesity
Steady increases in the percentage of obese and overweight members of society make for
grim reading. The increases mirror trends across economically developed and developing cities,
causing official concern, especially in the areas of health, labour, and education. Between 2011
and 2012, the proportion of overweight and obese persons in the population jumped from 21.4%
to 24.8%. The highest rates are found in the 45-54 age range, 51.1% of whom are overweight or
obese, according to 2013 Department of Health figures. It is forecast that the proportion of
overweight and obese persons will reach a third of the population by 2015, including 7.2% in the
obese category. The level of obesity amongst men and women is much higher in Hong Kong
than in other developed Asian countries.
Obesity is regarded as a primary health concern in Hong Kong today, especially due to the
growing prevalence of overweight and obese children in recent years. According to the
Department of Health, the percentage of overweight school students stands at 20.9% for 2013,
falling from 21.4% in 2011. Yet, the proportion of obese school children has not changed over
the same period. The President of the Federation of Medical Societies in Hong Kong, Raymond
Lo, states in a 2013 interview: Obesity-related disorders are an emerging epidemic. The
diseases linked to obesity are becoming the fastest killers in Hong Kong today, and failure to
tackle obesity amongst children is detrimental to long-term health. By effectively targeting
obesity in children, it is hoped that adult diabetes, hypertension, high blood cholesterol, resulting
heart diseases and strokes can be avoided later in life.
Many factors have led to the current situation regarding overweight children in Hong Kong,
most of which are rooted in the new social environment. Hong Kongs obsession with
convenience has encouraged a lifestyle often completely at odds with the healthy development
of children. Convenience foods out of the home and within, the rise in the popularity of the
Western pattern diet, the subsequent fall in the amount of fresh fruit and vegetables consumed,
and sedentary lives all contribute to obesity. Education on the ill effects of childhood obesity is
not optimum, and the authorities are keen to address this issue amongst parents and children. A
cultural shift in attitudes is perhaps necessary in Hong Kong, as plump children are considered
healthy by many older people. This is compounded by the fact that a considerable share, often
the majority, of the day-to-day care of children is conducted by grandparents.
Schools currently have only about 1.5 hours of required exercise in their weekly timetables,
which is deemed inadequate. There are moves to increase this, but cutting into classroom time
has proven unpopular amongst parents who see academic excellence as the primary concern of
school life. The EatSmart campaign aimed at educating primary-school children on healthy
eating habits and reshaping the menus in primary schools has continued since 2007. A similar
StartSmart campaign has been introduced since 2011 targeting pre-primary school children.
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Snack culture is now cited as a major contributor to obesity amongst children and adults. Cutting
out fatty and sugary snacks, both local and imported, has been seen as key to controlling
obesity in Hong Kong, where the affinity for street foods and snack culture is huge. Healthy
snacks are beginning to proliferate, as well as convenient on-the-go packaged fruit, vegetables
and natural juices.
Residents responses to the growing obesity scare have been varied, but overall positive and
promising. Education and awareness initiatives have largely hit home recently, and the result
has been the increased appreciation of healthy eating and regular exercise.
Attitudes To Smoking
Smoking still pervades in Hong Kong, after years of government and NGO initiatives,
including a full ban on public smoking enforced by the Smoking Ordinance Act of 2007. A fixed
penalty of HK$1,500 has been in place since 2009. Smoking cessation policy is taken very
seriously; various government initiatives have been introduced over the past decade to tackle
the problem. The Department of Health boasts its own cessation services offering online and
telephone counselling, as well as drop-in clinics and nicotine-dependency testing. The Hospital
Authority of Hong Kong provides similar services; pharmacists and nurses offer therapies and
counsel for those wishing to kick the habit. The University of Hong Kong offers specialist help for
females and young smokers looking to quit, and various community-based institutions near
universities and hospitals have been set up to tackle the problem in specific districts.
Roughly one fifth of men in Hong Kong are regular smokers, against only 2% of women.
Smoker numbers are falling among men and women, but the number of young female smokers
is of particular concern to anti-smoking campaigners as it is swelling. This trend mirrors a wider
regional trend, which is a direct result of the empowerment of women in society and the
acceptance of social behaviours previously monopolised by men. Countering the uptake of
smoking amongst young men and women is the primary concern of policy makers and health
experts. Hong Kong has shown to be particularly driven in this regard and is well on the path to
realising its goal of being smoke free.
In addition to traditional anti-smoking campaigners in health and lifestyle enterprises, NGO
and governmental organs, increasingly, private enterprises are encouraging their employees to
quit smoking. The Hong Kong Council on Health and Smoking offers help through consultation
to firms looking to push smoke-free environments at work. The first Hong Kong Smoke-free
Leading Company Awards ceremony was held in 2013; it highlights a trend towards publicised
corporate social responsibility amongst businesses today.
There has been a rise in hardened smokers. Professor Sophia Chan, discussing the rise of
so-called hardcore smokers: I think in places where smoke-free policies are successful, the
smoking population are bound to be hardening, and the more successful we are, the more we
will see this group emerging. Hardcore smokers are defined as people aged over 26 with no
intention to quit smoking, who smoke at least 11 cigarettes daily and have been smoking for
over six years. The number of hardcore smokers is on the rise, while the overall number of
smokers declines. Worryingly, the increase in hardcore smokers is strongest amongst the
younger population, according to a 2011 Ministry of Health report.
Whats app, Doc?
Social digital media is transforming the way in which the healthcare industry operates and
communicates with consumers. At a basic level, e-government has grown to include the
Department of Health and subsidiary bodies. Private healthcare providers, health and wellness
NGOs and charities are all pushing for greater web presence. In addition, GPs, hospitals, and
government departments are building a stronger and more personalised presence on popular
social media sites, such as Facebook, Weibo, and Twitter.
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Beyond this, Hong Kong is acting as a pioneer in the online healthcare industry. Healthcare
apps for smartphones are fast becoming standard. The Department of Health has launched
several apps, including Primary Care Directory, Quit Smoking, and Snack Wizard. Yet, it is in
the private sector where health and wellness and medical apps really perform. The top health
apps include nutritional aids, gym and exercise, self-prescription and diagnosis, meditation, and
sleep aid. Unlike many top-selling gaming and social apps, usually a premium must be paid for
these healthcare applications. Online retail, specifically in-app purchases, is the chosen mode of
monetisation among the more developed segments of the smartphone and tablet app market,
such as gaming and social media. It is the free-in and expenditure only for the use of premium
services that has led to the massive growth in these more developed segments. It is expected
that in-app purchases will increasingly become part of the healthcare app segment too and
demand is expected to rise significantly.
Hookah smoking finds perfect breeding ground
The ban on smoking in public places has been in force for a number of years. Given
comparatively high levels of enforcement compared to other major regional centres, there has
been a vacuum in social smoking. Socialising for many in Hong Kong has routinely centred
round eating, smoking, and drinking together. An alternative to the cigarette has been sought
since the 2007 blue sky ban.
Hookah, or Shisha, is a water-based flavoured tobacco inhalant from classical Persia and
India. Since the noughties it has enjoyed a resurgent success in European urban centres. The
trend has finally spread to Hong Kong and may have found a perfect breeding ground. Owing to
subtropical temperatures, an indoor smoking ban, a strong nightlife and social culture, as well as
an extremely diverse and international population, Hong Kong is home to a blossoming trade in
the hookah business. Businesses are opening with hookah smoking in mind, and restaurants
are designating hookah zones inside their restaurants or offering it as a table service. Whether
you head to Vibes or Al Pasha in Tsim Sha Tsui or Sahara in Central, there is today an
abundance of shisha bars and restaurants across Hong Kong.
Most hookah smokers are young professionals or students, but the demand among older
consumers is growing as venues become more apt at marketing the pipe to divergent tastes.
The gender balance among hookah smokers is even. A major factor is the perception that
hookah smoking is far less detrimental to ones health due to the softening of the tobacco
inhalants via the water base. The ability to personalise the experience through flavoured
tobaccos and milk/water combinations to thicken the smoke also adds to its mass appeal.
Table 6
Health and Wellness Data 2000, 2005, 2010, 2011, 2012, 2015
Total health
expenditure (US$ per
capita)
Share of total health
expenditure in GDP (%
of total GDP)
- Public health
expenditure's share of
total health
expenditure (% of total
health expenditure)
- Private health
expenditure's share of
total health
2000
2005
2010
2011
2012
2015
1,294.1
1,277.2
1,301.9
1,305.7
1,308.9
n/a
5.0
4.8
4.0
3.7
3.6
n/a
55.7
54.6
51.4
50.9
50.7
n/a
44.3
45.4
48.6
49.1
49.3
n/a
42
expenditure (% of total
health expenditure)
Healthy life expectancy
at birth: total
population (years)
at birth: males (years)
at birth: females (years)
Average supply of food
calories per day
(calories per capita)
Average supply of
protein per day (grams
per capita)
Average supply of fat
per day (grams per
capita)
Obese population (BMI
30 kg/sq m or more) (%
of population aged 15+)
Overweight population
(BMI 25-30 kg/sq m or
more) (% of population
aged 15+)
Tobacco consumer
expenditure (HK$ per
capita, at constant
prices)
Smoking prevalence
amongst adult
population (% of total
adult population)
Smoking prevalence
amongst adult male
population (% of male
adult population)
Smoking prevalence
amongst adult female
population (% of female
adult population)
Source:
Chart 6
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73.1
74.3
76.0
76.3
76.6
77.3
70.8
72.0
73.5
73.8
74.0
74.4
75.4
76.4
78.1
78.6
78.9
79.6
3,388.3
3,458.3
3,522.8
3,524.3
3,531.1
3,560.7
112.1
115.5
120.3
120.5
121.0
123.1
138.1
138.2
135.2
134.6
134.1
131.8
3.0
2.8
3.2
3.7
4.3
7.2
12.3
16.8
18.0
17.7
20.5
26.7
477.1
534.4
914.6
930.2
916.9
969.1
11.8
11.8
10.7
10.4
10.2
10.0
20.6
20.6
19.7
19.5
19.4
19.4
3.5
4.0
3.1
2.8
2.6
2.5
Real Growth in Public and Private Expenditure on Health Compared with

Healthy Life Expectancy at Birth 2000-2015
43
Source:
SHOPPING HABITS
Main Household Shop
Food and non-food consumables are purchased almost daily in Hong Kong, as convenience
stores and larger supermarkets are located within a short walk of most residences. If food is to
be prepared at home, freshness is key, especially for older people and families. Home
refrigeration is becoming increasingly popular amongst busy households, especially young
professionals and families where both parents work full time. Shopping after work is the norm,
with weekly and fortnightly shopping conducted over the weekend.
Semi-prepared and pre-prepared foods sold by supermarkets and convenience stores fit into
the heavy snack and street food culture. They are popular with health-conscious consumers.
International delis are found in supermarkets; promotional weeks featuring particular trends and
national delicacies are increasingly common. Cosmopolitan foods are popular, as younger
shoppers replace the traditional matriarchal dominance in the aisles. Organic foods have also
been in demand, after an immediate post-2008 decline in volume sales. Yet, signs are that they
will remain popular only amongst the rich elite if prices do not fall in the next few years. Much of
the population is still priced out of the market and ignores organic foods completely.
Supermarkets have sought to increase their dominant share of the grocery market by
developing in-store mini-markets to compete directly with the traditional wet-markets. Improved
convenience, cleanliness, and air-conditioned spaces have ensured that supermarkets are
making inroads into the subsectors of the traditional grocery retail environment. Supermarkets
account for about half of all food sales in Hong Kong today. Convenience stores are a highly
visible part of the landscape; they are part of many residents shopping routine. Over 1,300
convenience stores are found in the city; their prices are only slightly less competitive than
larger supermarkets and hypermarkets, and for some goods actually cheaper.
Internet-based food shopping is yet to take off in Hong Kong. Yet, specialised organic and
imported luxury food retailers are in high demand amongst the elite, as attention is paid to
healthy living through diet and to the food scares in China. Companies such as Epicure Direct
and Health Gate cater to the demand for high-quality imported meats, organic and health foods.
Polarisation is increasingly visible in this segment, as knowledge of organic food, the importance
of provenance, and foreign culinary traditions matter only to a limited section of society.
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Shopping for Big-ticket Items

Branded specialists and own-brand stores are swallowing up traditionally independent
shopping neighbourhoods. Specialist streets and neighbourhoods with their distinct characters,
sounds, and even smells, full of independent stores and local chains all selling a particular type
of good or service are no longer commercially viable in the face of increased competition from
multinationals and big brand stores. Hong Kongs chaotic street-level retail zones that came
alive when the sun went down, as local snacks were consumed in between stepping in and out
of small stores and haggling matches, are fast being sanitised by modern retail complexes that
need, in Hong Kongs limited centralised retail spaces, to build anew and vertically.
Demand for retail is massive, partly due to visiting consumers looking for a piece of the worldfamous Hong Kong retail experience. In the market for big-ticket items, this demand is perhaps
even stronger as the territory is famous for competitive prices, quality, exclusivity, and ultra high
technology. The 40% luxury tax rate on the mainland of China contributes to the healthy flow of
shoppers. Consumers vary according to age and income, but general patterns can be defined.
Hong Kong consumers see quality and cutting-edge functionality as the most important factors
in big-ticket item purchase decisions. Price is also important, but, given Hong Kongs highly
competitive retail environment and consumers concern for quality, the focus is mainly on topend ranges across all markets. Gimmicks and short-term fads do not easily sway consumers
looking to make big-ticket purchases. Consumers are informed and concentrate on more solid
factors, such as energy saving for white goods and electronics and the corporate social
responsibility credentials of manufacturers, as well as key features that suit their needs.
The territory has a well-developed consumer market. Individuals have good knowledge of
most markets and are well informed on global trends, technology, styles and brands. They rely
on friends, colleagues and advice in shops. Consumers in their late twenties and thirties are
very familiar with online retail, web-based search engines and social networks. Online shopping
plays a key role in Hong Kong, especially for high-end items. Overall, residents ensure that they
are perhaps the most informed shoppers in the world.
Today, big-ticket items are usually purchased in the many high-end malls in central Hong
Kongs Island and Kowloon districts. Yet, development is taking place across the whole territory
to meet the huge demand, as the city expands and wealth is spread. Local specialist
neighbourhood markets have given way to mega malls in areas such as Mong Kok and
Causeway Bay. These huge commercial districts, usually home to a number of malls adjoined
by transport hubs, metro links and walkways, have begun to specialise to differentiate
themselves and mimic the old districts specialised zones. There are specific luxury clothing
malls and high-tech arcades, as well as multi-platform retail zones with specific sectors and
zones for particular types of retailers. Shopping is convenient in Hong Kong, and being made
more so by these air-conditioned and facility-heavy shopping malls offering food, cinemas,
parks, and ample photo and marketing opportunities for consumers and retailers, respectively.
Shopping for big-ticket items is a leisure-time activity. The experience of actually making a
purchase in a store, after weeks, months, perhaps years of online research, discussions with
friends, and good old-fashioned window-shopping is always happily savoured by consumers.
Personal Shopping
Clothing and footwear retail channels have become ever more segmented, as consumer
segmentation, based on income and age, continues apace. The segmentation in clothing retail
sales has been driven by two major trends over recent years, which are converging. Firstly, midto high-end fashionable brands increasingly look to have their own brand-owned stores and
choice-exclusive concessions. The second trend is the democratisation of fashion and brand:
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design-led clothing is not only available in specialist fashion retailers, branded stores and
department stores, but also now in supermarkets and online stores. High-street retail giants,
such as Topshop and H&M, influenced by the fashion trends emanating from London, Paris,
Tokyo, or New York, propel low-cost but high-fashion items into the global marketplace.
Growing income disparity has led to segmentation, as the demand for quality and global
trends among Hong Kongs fashion-conscious consumers is strong regardless of income. Lowpriced clothing is increasingly sold through supermarkets and even convenience stores, with 7Eleven offering basic ranges. Mid-ranged clothing illustrates the general pattern in Hong Kong
today, where department stores, specialist clothing retailers and branded stores share the
market. Younger consumers prefer branded stores, many of which are experimenting with
modern online marketing, in-store exclusives and customisation. Department stores traditional
middle-aged and older consumers are fast switching to supermarkets and mid-ranged global
clothing retail giants.
Sports clothing is almost exclusively sold through sports specialists, many of which are local
chains, as well as a few global chains. Sports specialists are losing market share to branded
sports retail outlets as the market for sports clothing and footwear expands. Various avenues
have opened up for sportswear brands over recent years. Major global brands have increasingly
entered the growing casual and leisurewear market, sporting team merchandising market, and
specialist sports clothing, football and related equipment market.
Demand for beauty and personal care items is affected by income polarisation and the
demand from mainland Chinese. Low-end personal goods stores selling mass-market basic
colour cosmetics and low- to mid-ranged personal goods are particularly popular with mainland
visitors and young consumers. Retailer SaSa is almost a tourist must-see destination for visiting
mainland shoppers looking for Korean and Japanese personal care goods. Brand-owned stores
are popular in the personal care market, too. They meet the consumer need for hands-on
experience and consultancy in a shop environment. The traditional retail outlet for mid- to highend personal goods and cosmetics, the department store, has lost ground to branded stores.
The latter have largely taken root in the same locations as the top department stores,
proliferating in the high-end malls and central commercial districts.
Shopping Online
Internet-based retailing in Hong Kong has had the ordeal of dealing with perhaps the
strongest brick-and-mortar retail operation in the developed world. However, the high rate of
internet penetration, especially high-speed broadband and mobile internet, has fostered a slow
but rapidly growing online shopping culture as online retailing evolves. The appeal of online
shopping felt in many countries had little initial impact in Hong Kong, where the art of convenient
shopping has long been mastered by localised commercial zones and a world-beating central
commercial zone never more than a short MTR journey away.
Lifestyle choices and property shortages are pushing residents into more secluded parts of
the territory, away from the urban density of Hong Kong Island and Kowloon. New living spaces
are constructed with digital connectivity in mind, as the shift is felt towards flexible working hours
and increased hours working from home. Online shopping has a massive future in Hong Kong.
More residents (87.4%) shopped online during the first three months of 2012 than during the
same period in 2011 (79.4%), according to a 2013 MasterCard survey.
Although consumers cite convenience as the key determinant in choosing to shop online,
longer-term online shoppers regard online shopping as a leisure activity. Researching and selfeducating on products, brands, and trends has a long history in Hong Kong, in which the
internet played a key role even before the rise of online retail. The 2013 MasterCard survey
shows that 66.6% of respondents regarded online shopping as a pastime, in line with the fact
that shopping is perhaps the number one pastime in Hong Kong. The rise of high-speed internet
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penetration allowing at-home and mobile browsing of elaborate and content-heavy marketing
and retail sites has been integral to this exponential rise in online shopping. Addressing the
legitimate security concerns surrounding online payment has also been key. Over recent years,
online retailing has met Hong Kong consumers expectations of the retail experience, including
convenience, exclusivity and choice, security, and most of all social and entertainment value.
The social aspect of online shopping is clearly illustrated through the popularity of consumerorientated web-blogs, social groups, and group-discounting sites.
The markets that are best served by in-depth research and convenience not properly
supported by traditional brick-and-mortar channels are the best performers in online retail. This
includes the booking of movie tickets and buying insurance and other financial services. Travel
agencies and booking agents have also been successful online. Niche and imported goods,
especially collectibles, exclusives and high-end design-led goods for which demand usually far
outpaces supply among some consumer groups are also finding growth online. Hobby
enthusiasts and fashionistas are particular examples. The cosmetics market is another
favourite, again the internet enables in-depth research and consultancy, although not face-toface. It is this demand for face-to-face and hands-on experience that has transformed many
brick-and-mortar retailers of high-value products, such as electronics, clothing and cosmetics.
They have re-imagined their shop floors as exhibition and marketing spaces that support the
online retail trade, as well as acting as point of sale themselves. The Apple brand has perhaps
best realised this change through their Apple Stores, but cosmetics brands, such as Kiehls,
have run with the idea of an experience-led shop front for the modern consumer, especially to
attract the newly emerging male consumer of cosmetics and personal products.
Spreading upwards and outwards
The shopping landscape has had to expand vertically as the supply of new commercial retail
space is drying up. Multi-storey retail spaces have recently started to specialise. Malls have
begun to self-brand; whole malls specialise in household goods, consumer electrical goods,
cosmetics and fashion. Subsectors of particularly large markets, such as designer clothing for
young females, are also commanding their own specialist branded malls. In addition, inner-city
malls are now competing with one another. They use customer experience and facilities as an
advantage, such as phone and tablet charging stations, infant and baby facilities, and
increasingly diverse restaurant and entertainment options.
Since luxury brands cater to the influx of mainland Chinese consumers in Hong Kong, many
of the central retail zones are saturated with established top-end and designer brands.
Newcomers have to settle for new suburban malls and retail zones if they wish to break into the
market. Younger consumers with a greater interest in cutting-edge and newly established
brands over heritage and luxury brands are beginning to set a trend towards suburban
shopping. The retail spaces away from the congested, polluted and increasingly charmless
Central District are seen as fresh and dynamic. They offer more retail space and often have
excellent transportation links and day-trip appeal.
Brand stores with personalised appeal
Hong Kongs uniquely tourist-driven commercial sector, full of department stores and
specialist retail outlets, is particularly vulnerable to brand unawareness, particularly among
incoming mainland Chinese consumers. Even famous Hong Kong retailers are often unheard of
amongst Chinese and other non-native consumers.
A more personal experience, with brand image sewn directly into this experience, has been a
key trend among branded stores over recent years. Branded stores offer consumers exclusive
items that are not available through other retail channels. Customisation of goods bought in the
store is an evolution that is monopolised by the branded stores.
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This trend also builds upon consumers increasing need to take ownership of the goods and
services that they use. Technology is pushing further the limits of what is possible in terms of
the dissemination of marketing, knowledge and information. Handheld or desktop applications
are giving consumers the tools for designing, instant sharing and purchasing. As a result, the
relationship between producers and consumers has changed. The new Ralph Lauren flagship
store has built upon the foundations set down by the now globally famous NIKEiD service. It
allows customers, either online or in-store, to design their own garments from a choice of cuts,
colours, materials, and linings, and also to add monograms.
Table 7
Shopping Data 2000, 2005, 2010, 2011, 2012, 2015
HK$ per household, at constant prices
Grocery retailers'
- Modern grocery
retailers'
-- Convenience stores'
-- Forecourt retailers'
-- Supermarkets'
Traditional grocery
retailers'
-- Food/drink/tobacco
specialists'
-- Independent small
grocers'
-- Other grocery
retailers'
Apparel specialist
retailers'
Electronics and
appliance specialist
retailers'
Health and beauty
specialist retailers'
Home and garden
specialist retailers'
Leisure and personal
goods specialist
retailers'
Mixed retailers'
Other non-grocery
retailers'
Internet retailing
Source:
Chart 7
2000
27,676.9
14,806.1
2005
27,931.6
15,741.9
2010
30,797.9
18,984.4
2011
30,789.5
18,940.0
2012
31,060.0
19,239.1
2015
31,446.2
19,692.6
2,327.5
258.6
12,220.1
12,870.8
3,325.5
281.9
12,134.5
12,189.7
4,172.2
244.6
14,567.7
11,813.5
4,025.0
222.9
14,692.1
11,849.4
3,949.4
206.2
15,083.5
11,820.9
3,901.7
169.8
15,621.1
11,753.6
8,595.7
8,423.4
9,021.1
9,167.2
9,250.5
9,589.7
3,602.8
3,129.3
2,280.6
2,169.4
2,054.3
1,640.7
672.3
637.0
511.8
512.9
516.1
523.1
13,943.8
15,410.6
20,201.2
22,788.7
24,676.9
29,062.9
11,354.5
10,772.0
15,090.2
17,028.6
18,135.3
21,963.2
11,689.8
12,955.2
14,416.8
15,186.2
15,674.3
17,697.7
5,872.5
6,719.3
7,024.7
7,050.7
7,000.8
7,402.4
29,303.0
29,387.1
40,050.2
48,528.3
51,080.3
59,694.5
8,166.6
1,514.8
8,612.0
1,445.3
12,728.1
1,158.3
14,103.9
1,128.2
15,170.2
1,129.9
18,345.8
1,181.6
155.7
1,405.6
2,699.3
2,843.2
3,043.5
3,535.6
Index of Retail Sales Compared with Real Growth in Retail Sales through
Supermarkets and Internet Retailing 2000-2015
48
Source:
LEISURE AND RECREATION

Staying in
Hong Kong residents much prefer to socialise outdoors, as space at home is often limited.
Nevertheless, older people are more comfortable at home and tend to socialise in small groups
at a designated apartment for a game of mahjong or a simple chat. Young families also spend
proportionally more time at home in the evening and at the weekend; their homes are usually
equipped with the latest entertainment gadgetry, including HD televisions, games consoles and
desktop computers. Tweens and teens are increasingly happy to spend time at desktop
computers and games systems, as online socialising begins to replace face-to-face contact.
This trend is particularly strong in the tween and teen segments, but it is proliferating quickly up
the age brackets. It is not unusual for young professionals in their thirties to spend entire
evenings indoors, connected via broadband to a social network. According to a 2013 report on
the usage of PCs and internet services, released by the Social Surveys section of the
governments statistical department, 18.9% of the population spends over 50 hours per week on
the internet. The same survey shows that 49.1% of people aged 45 or over use the internet
regularly. All age brackets under 45 show much higher levels of usage, with 91.6% of 35-44
year olds and all groups in their early thirties and younger almost hitting the 100% mark.
Searching for information and general web browsing tops the polls in terms of time spent
online, but increasingly people are involved in online shopping, socialising and online digital
entertainment, including games, television series and movies. The number of people using the
internet for direct online entertainment purposes has jumped over the last few years. The online
medium has become much more nuanced over recent years, with many formerly independent
modes of entertainment now overlapping. Social gaming, live and interactive television, multifaceted web-browsing, marketing, and online shopping are all examples of this.
Reading, television, movies and in-home fitness are all popular, but these traditional pastimes
are becoming available digitally. Tablets and readers, downloadable and streamed television
and fitness applications for smartphones and consoles are influencing the way people spend
their time at home. Innovations include processing centres at home connected directly to cloud
data banks, these acting as hubs for a variety of core in-home entertainment and recreational
needs. Through wireless home-wide internet connectivity, downloadable television and movie
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content, music and video games and related entertainment reaches tablets, smartphones,
desktops and laptops.
Going Out
People in Hong Kong love to go out. The city is blessed with dramatic scenery, excellent
weather and exceptionally well-developed leisure facilities. The latter include major theme
parks, beaches, hiking and cycling routes, secluded islands, world-famous restaurants and
shopping, and an excellent nightlife scene of bars, clubs, and the regional favourite: karaoke.
Hong Kongs cultural output is substantial, too. The city has theatres, museums, art districts,
exhibitions and cinemas, which hold internationally famous events throughout the year.
A major trend is the move away from mass-market music, movies, and other media towards
independent cultural output from grassroots producers and developers on limited budgets.
Young professionals in Hong Kong have spearheaded this movement, and today independent
artists are drawn to Hong Kongs many festivals and exhibitions. The most prominent single
festival is, perhaps unsurprisingly in a city with a proud movie tradition, the film festival.
The nightlife in Hong Kong is centred round socialising while having dinner and drinks. This is
a regional trait, owing to the subtropical climate, long working hours and limited private spaces
for entertaining indoors. Hong Kong is perhaps the regional leader in outdoor weekday
recreational activities. Bars and restaurants are among the most frequented in the world. In
addition, the city has concerts, cinemas, museums, exhibitions and other cultural recreational
activities. With a high proportion of elderly consumers, Hong Kong caters well to their tastes
through ample opera and theatre shows and small public gardens, parks and outdoor
gymnasiums. Younger consumers are blessed to live in a tourist hotspot. They make use of all
the amenities available, including a Disneyland, various concert halls and international art and
cultural exhibitions, including the Hong Kong Film Festival and International Arts Festival. Hong
Kong residents are culturally rich and avid consumers of local, regional and global culture. Being
perhaps one of the most cosmopolitan cities on the planet, Hong Kong is also heavily and
rapidly influenced by even small trends in other regions. Recently, this has included a love affair
with Korean music and popular culture.
Hong Kongs outdoor leisure facilities are in high demand, with figures showing increased
attendance across nearly all types of facilities over the last few years. Hong Kongs growing
importance as a tourist hub plays a part, but the locals are also keen to enjoy the facilities that
are offered. These facilities are increasingly looked upon with great pride by the local
population, especially younger consumers. The number of people using Hong Kongs 41
beaches jumped from 10.4 million in 2011 to 11.4 million in 2012; the number of people
admitted to the Hong Kong History Museum rose from 614,000 to 655,000, and the Hong Kong
Heritage Museum exactly doubled its 398,000 visitors to 796,000 over the same period. The
Hong Kong Cultural Centre increased overall attendances by nearly 50,000, and the Hong Kong
International Arts Festival enjoyed record turnout in 2012.
Sport and Fitness

Hong Kong has not forgotten its colonial legacy in terms of sports. Horse racing, golf, polo,
badminton, rugby, football, tennis and snooker were all introduced by the British. People in
Hong Kong still enjoy these sports today both as spectators and participants. Famous
institutions and competitions highlight Hong Kongs heritage in sports, with the Hong Kong
Jockey Club and the international Rugby Sevens competition lending weight to the territorys
rich sporting tradition. Modern adventure sports are also exceptionally well followed, including
mountain biking, cycling, sailing, surfing and various motor sports.
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The most popular participatory sports among younger people are basketball and football.
Basketball has seen huge growth in popularity, spurred on most recently by the rise of
Taiwanese-American Jeremy Lin in the USs NBA. Hong Kong is still perhaps the English
Premier Leagues most solid base in Asia, as most young people in Hong Kong have grown up
watching the game and following a major English team since childhood. Badminton and other
racket sports are more popular among people in their forties and fifties, who also like cycling for
recreation. Older people are still keen on traditional exercises in outdoor gyms, parks and public
squares. Resurgent participation in slow-moving and meditative martial arts, such as tai chi and
qigong, is noticeable among elderly people, in particular females. The health and wellness
benefits of these early morning routines have been a major influence in their rising popularity.
In terms of spectator sports, Hong Kong hosts major international tournaments in golf, tennis,
motorsport, and rugby amongst others. Off-season tours by major teams, such as Manchester
United and Real Madrid, are regular events in Hong Kong. Horse racing is Hong Kongs most
popular spectator sport in terms of volume. The two racecourses offer residents a chance to
place bets, the only opportunity in the territory, as any other form of gambling is illegal. The
social aspect of horseracing ties in with residents love for outdoor drinking.
Sporting facilities are abundant in Hong Kong, including state-of-the-art gyms, swimming
pools, racket courts, sports pitches, athletics tracks, basketball courts and bowling greens. Many
upper-middle class and wealthy people are members of sports and country clubs, as a social
status symbol and a means of keeping active whilst socialising. The health and wellness trend
has led to increases in membership to clubs and gyms, and in casual sports and exercise.
Gender imbalances in sports and exercise participation have been addressed in recent years
by the growing health and wellness trend. Female participation in sports has shown favourable
growth, and more women are watching sports. The family-orientated atmosphere at most
sporting venues is conducive to the inclusion of women. In addition to traditionally popular
participatory sports and exercises, such as yoga and racket sports, gym participation has grown,
as well as the uptake of rugby, golf, football, water-based sports and running.
Themed obstacle courses are a big trend in 2013, from copy-cat military drill cross-country
courses to zombie-themed events in which participants are chased around. Many of these
events follow mass pop culture trends, especially those rooted in major television series and
movies, such as The Hunger Games and The Walking Dead. Competition in many of these
events is taken very seriously, with professional and semi-professional triathlon competitors
participating alongside sports and fitness enthusiasts.
Evolution in social gaming
Hong Kong is a pioneer in terms of technological trends. The digital games industry, via
desktops, tablets, smartphones, or games consoles, is going through a transformation owing to
huge leaps in games development and processing technology and to the rise of always-on and
superfast internet connectivity. Gaming has now attached itself to social online media. It is not
only linked to existing channels, such as Facebook and Instagram, but also creating its own
online spaces. Social gaming platforms are big in Hong Kong. Industry expert GameSpots 2013
research into the future of gaming shows that roughly a third of all players today are female, and
this segment is growing rapidly. Furthermore, the age range where to find hardcore gamers has
expanded. The original gaming boom of the 1980s and 1990s has left a legacy of gamers, now
in their 30s and 40s, with deeper pockets than previous games consumers.
Games are now turning to digital distribution and constant updated content delivery, paid or
free. In-game advertising, in-game purchases and cross-marketing are all now standard across
mobile- and tablet-based gaming platforms. Integration between home gaming and mobile
gaming is expected to gain momentum as mobile developers rapidly close various technological
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gaps. The top selling apps on the Android, Windows Phone, and iOS platforms are all games,
the vast majority of which are social games requiring internet connectivity.
Eco-friendly recreation
Healthy lifestyles and eco-friendly choices are influencing consumers recreational decisions
out of the home. Hong Kong has a reputation as an urban sprawl of high-rises. Yet, the territory
is made up of vast tracts of unspoilt national parkland, including green belt areas and newly
developed eco-parks, such as the Hong Kong Wetland Park, Mai Po Marshes, and the Hong
Kong Global Geopark.
The locals are realising how blessed they are in terms of natural resources, topography and
coastline. The various islands on the territory offer exceptional hiking trails, as well as ample
space for burgeoning adventure recreation activities, such as zorbing, abseiling and hang
gliding. Lantau Island, famous for its monumental sitting Buddha statue, is currently enjoying a
renaissance in domestic tourism. People in their twenties and thirties are particularly drawn to
the secluded nature of much of the island and the chance to escape the city for the evening or
weekend. Water sports are also readily available and becoming popular amongst younger
people. Diving, sailing, canoeing and surfing appeal to young people, who can develop their
skills at home and refine them while on holiday in Thailand or Malaysia.
Vacations
Vacation time is limited for most people; the territorys financial district has some of the
longest working hours among major cities. In a survey of 72 global cities by Swiss financial
services experts UBS, Hong Kong ranked fifth in terms of the number of hours worked, behind
Bangkok, Seoul, Cairo, and Mexico City. The 2012 annual corporate citizenship survey by
Community Business found that office workers main gripe was their bosses inflexibility about
time off and leave. About 70% of the people surveyed wanted more paid leave than the current
allowance of a minimum of seven days up to a maximum of 14 annually. An average working
week of 49 hours leaves little time to socialise after work beyond the obligatory Hong Kong
dinner and drinks culture. In the Community Business survey, office workers gave their worklife balance a six out of a possible ten, but young professionals are starting to demand more.
Hong Kong residents tend to travel during the main holiday periods: the two Golden Weeks,
which occur during the Spring and Mid-Autumn Festivals. Summer vacation is also a popular
time to travel, owing to school leave and fewer family obligations, which are associated with the
traditional Chinese festival periods. Given the limited annual leave, the main holidays tend to
last ten days at most, and usually less. A maximum 14 days per year has to be spread thinly.
Many young professionals ask for more leave when they sign their employment contract.
Foreign companies operating in Hong Kong have a 21-day unofficial standard, and local firms
are beginning to see the advantage, not least to entice the best prospective employees, but also
to create a happier and ultimately more productive workplace.
Today, the types of holidays people take are stratified by age more than income or social
class. Different responsibilities, amounts of time off from work or study, and vastly divergent
inclinations and expectations have become apparent in recent years. Young people in their
teens tend to travel with their parents. Some late teens travel without their parents, but within
Hong Kong, in Macau, Taiwan, or across the border into neighbouring China. It is later in life
that people have the independence to allow for real travel, and when they do have this chance,
they expect much more than previous generations. The old favourite, the package holiday, is
rebuffed in favour of independent travel. Old favourites, such as Phuket, Bangkok, Taipei, or
Sanya Island, are falling out of favour. Young people in their twenties are much more prone to
choose up-and-coming travel destinations, which they have researched thoroughly online. They
opt for ski, diving, photography, foodie, or adventure and discovery holidays.
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Older travellers are more likely to travel in tour groups with people of similar age when
heading somewhere exotic or travelling for the first time. Generally, older people are
conservative and opt for favourites, such as Macao, Taiwan, Thailand and more recently
neighbouring China. In this group, there is a substantial segment of relatively wealthy
consumers, with a healthy appetite for cultural holidays and for visiting family abroad. Trips to
European capitals and the USA are also popular among wealthier people in this group.
Relaxation and local culture are paramount to this group. These holidaymakers tend to have a
check-list mentality when travelling abroad.
Public Holidays, Celebrations and Gift-giving

Hong Kong has a love affair with celebrations. The long working hours, the rat race and the
heavily urbanised and often claustrophobic landscape encourage a culture of living-for-theweekend and letting loose. People are never in need of an excuse to party, and the many and
varied festivals and celebratory occasions are always welcomed. Birthdays, leaving parties,
graduations parties, weddings and anniversaries are celebrated with gusto. Events
management and catering, venues and entertainment are highly developed industries. Giftgiving is popular at major festivals and for special occasions. Card giving still falls behind the
traditional Chinese red envelope, and it is usually only a habit among residents of foreign origin
or those studying in international schools.
Hong Kongs rich cultural diversity means that many of the worlds major festivals and
religious holidays are celebrated, from the ancient and religious, such as Diwali, to the modern
and largely secular, such as Thanksgiving. Hong Kong follows both the Chinese lunar calendar
and the Western calendar. The Chinese New Year and the Gregorian New Year are celebrated
in Hong Kong; the day itself is a public holiday, and, in the case of the Chinese New Year, the
three days following New Years Day. The Chinese New Year falls between the end of January
and mid-February. The Chinese New Year celebrations are the most important festive period in
the lunar calendar, and most workers take a full week or two off from work to celebrate with
family and close friends. Expat workers, who are numerous in Hong Kong, favour holidays
between Christmas and New Years Day, in accordance with global holiday traditions.
Easter is also celebrated in Hong Kong during an extended weekend. Good Friday, the day
following Good Friday, and Easter Monday are all public holidays. Hong Kongs Christian
communities tend not to be overly religious, and celebrations at this time of the year follow a
British lead. Families congregate for subdued celebrations. Generally, most non-expat and nonChristian communities in Hong Kong partake in little else than eating chocolate eggs during the
Easter period. The same applies to younger expats and non-practicing Christians.
The Ching Ming Festival immediately follows Easter and celebrates ancestors. It is particularly
important amongst southern Chinese cultures. The celebrations are subdued; they revolve
around cleaning family tombs and making offerings to ancestors. Traditionally, this has involved
the burning of fake money, but recently it has included the burning of fake luxury goods, such as
watches, handbags, and even luxury cars. The Festival involves a mass exodus from the city to
the hillsides where most of the territorys graveyards are located.
In the summer, four main festivals highlight different aspects of Hong Kongs cultural heritage.
Firstly, there is the distinctly modern Labour Day on the 1st of May, which is celebrated for the
same reasons it is celebrated anywhere else in the industrialised world. Secondly, there is the
celebration of the birth of Buddha, which falls on the 17th of May. Buddhism, imported from
India, is by far the dominant religion in southern China, and its influence is felt across many
aspects of daily life in Hong Kong. Thirdly, there is the traditional Chinese Tuen Ng Festival, or
the Dragon Boat Festival. The origins of this Festival are somewhat cloudy. The accepted story
is that it commemorates an Imperial Chinese poet and statesman by the name of Qu Yuan
whose sound advice was ignored by the then emperor and who was sent into exile accused of
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treason. The wrongly accused wise Qu Yuan committed suicide by drowning himself in the local
river as the empire crumbled around him. This modern Festival, which fell on the 12th of June in
2013, is celebrated on the fifth day of the fifth lunar month. It honours the patriotism and tragedy
of Qu Yuan. Races are held involving Dragon Boats, which are symbols of the futile attempts to
rescue the doomed sage. Traditional meat-filled rice cakes wrapped in bamboo leaves are
consumed almost as ferociously as moon cakes during the Mid-Autumn Festival. Finally, the
summer ends with the Hong Kong Special Administrative Region Establishment Day, held every
1st of July to celebrate everything its title alludes to.
Autumn brings the second most important festival in the lunar calendar: the Mid-Autumn
Festival, known as the Moon Cake Festival among expats because of its association with the
indomitable moon cake. This Festival is celebrated on the 16th day of the 8th moon, usually at
the end of September or early October. In 2013, this was on the 19th of September, and the
following day was a public holiday. Like the Spring Festival and the Chinese New Year, this
Festival usually includes a week of celebrations with extended time off school and work, which
often begins a full week after the actual day. This Festival is essentially a harvest festival,
traditionally honouring the heavens in order to ensure a successful harvest prior to the long
winter ahead. Today, this festival is most commonly associated with the giving and receiving of
moon cakes among family members, friends, and colleagues who wish to foster good social or
professional relationships with each other over the course of the year.
The 1st of October heralds the beginning of the Mid-Autumn Golden Week of celebrations
and is kicked off by National Day. Moon cakes are still given and received; general eating and
drinking is the norm during the week. Golden week also involves pre-Winter sales at most retail
venues and so shopping during this period is popular. Hong Kong is busy at the tills due to the
influx of diaspora and mainland Chinese who come to the territory on vacation.
The Chung Yeung Festival, or Lantern Festival, is celebrated on the ninth day of the ninth
moon, with a national holiday on the following day. In 2013, this fell on the 13th of October. The
worship of ancestors is the focus, and residents again head to the hills for a family day out and
the common modern Chung Yeung practice of picnicking.
The final official holiday of the year is Christmas Day and what is referred to in the UK as
Boxing Day. Christmas is celebrated in much the same fashion as it is in much of the modern
Western world, including copious amounts of shopping, drinking, eating, and general merriment
with friends, colleagues, and family. The annual Christmas KFC dinner is still popular in Hong
Kong, but more people are trying to cook a traditional Christmas dinner in their own homes.
Some people go to one of the many restaurants and hotels that will do this for you. Celebratory
patterns diverge substantially across the population, not just for Christmas but for all major
holidays and festivals. Yet, given Hong Kongs colonial legacy and the popularity of Western
media, Christmas is a major holiday for many ethnic Chinese Hong Kong residents and second,
third, and fourth generation expats.
Mooncakes go into orbit
Moon cakes are synonymous with Hong Kongs second most important lunar calendar
celebratory period, the Mid-Autumn Festival. Yet, moon cakes have become caught up in a
trend for networking in recent years. Many consumers use this traditional gift-giving period to
cement relationships at work.
The moon cake industry is less about the consumption of the cakes, although this is
considerable in volume terms, but more about the perceived monetary value and exclusivity of
the moon cakes. This can be associated with the manufacturer or the box itself. Golden moon
cakes, literally made from gold, are the latest fad amongst the super rich. The more lavish the
packaging, the more face or respect you are showing, and, as a result, receiving from the gift.
Ornamental boxes made from plastic, wood, and metal are home to smaller boxes, pull-out
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trays, and even more plastic and paper wrapping, all adding up to monumental wastage. Costs
can vary from several thousand Hong Kong dollars for moon cakes made with lard, sugar, and
flour to millions of dollars for the precious metal variety. There has been a response to this
wastage in recent years. The government has tried to dissuade the public from making such
unnecessarily lavish purchases. Guidelines on packaging restrictions are slowly coming into
force. The most famous is that the packaging must not amount to more than 25% of the cost of
the actual contents, which has heightened the gaudiness of the whole exercise and given rise to
the golden moon cake trend.
Young eco-conscious consumers are taking heed of the growing insanity surrounding the
moon cake culture. Corporate social responsibility and brand perception are making firms take
alternative marketing angles into consideration. For younger consumers, moon cakes now have
to become far more modern and palatable. International brands, such as Starbucks and
Hagen-Dazs, sell their own unique moon cakes with ice-cream, chocolate, and coffee fillings.
These moon cakes appeal to consumers in their twenties and thirties hoping to offer their friends
and colleagues a refreshing change from the dour moon cakes sold by traditional bakeries.
Moon cake landfills have become a major concern over recent years as more elaborate
packaging and the sheer number of moon cakes (linked to perceived adequate amounts of
networking) have led to massive wastage. According to Green Power, a local environmental
research firm, over two million moon cakes were thrown out in 2012.
A renaissance for traditional culture alongside Western culture and online shopping
Western holidays and celebratory festivals are fully integrated into Hong Kong society, more
so perhaps than in any other Asian city. Some holidays have become important amongst
younger generations more influenced by Western media. Aside from Christmas, which is
already popular, secondary holidays, such as Halloween and Valentines Day, have captured
the imagination, with major events held every year. Hong Kongs favourite theme park, Ocean
Park, has held Halloween parties since the mid-noughties. The 2012 event, Hip-Halloween,
showcased costumes designed by leading Hong Kong fashion designer Wyman Wong.
Valentines Day events include mass weddings, singles parties and themed club nights.
Taking this love for celebration forward and tying it to the increasingly influential traditional
Chinese culture, young consumers have begun to celebrate imported holidays from the
mainland of China that have an informal and fun social aspect. These imports are almost
reinvented by young people who have no real concept or memories of the original festivals.
They localise the festivals to accommodate their love for celebration and socialisation.
Examples include Singles Day and the Seven Sisters Festival, which illustrate the modern and
traditional faces of Chinese holidays. Increased consumerism around these holidays is in
evidence. Singles Day in particular, celebrated on the 11th day of the 11th month, is
synonymous not only with finding love, but with online shopping. Singles Day is comparable to
Cyber Monday in the USA. On Singles Day, online retailers offer massive discounts; in 2012,
Singles Day actually outperformed the USs Cyber Monday at the cash tills.
Table 8
Leisure and Recreation Data 2000, 2005, 2010, 2011, 2012, 2015
Ownership of household
durables by type
- Colour TV set (% of
households)
- Cable TV (% of
households)
- Satellite TV system
2000
2005
2010
2011
2012
2015
99.2
99.5
99.6
99.6
99.6
99.6
25.7
57.0
92.0
93.2
93.9
95.5
0.1
0.1
0.1
0.1
0.1
0.1
55
(% of households)
- Internet enabled
computer (% of
households)
- Mobile telephone (%
of households)
- Video games console
(% of households)
Consumer expenditure on
leisure and recreation
(HK$
per capita, at constant
prices)
- Audio-Visual,
photographic and
information processing
equipment
- Other major durables
for recreation and
culture
- Other recreational
items and equipment,
gardens and pets
- Recreational and
cultural services
- Newspapers,
magazines, books and
stationery
- Package holidays
Domestic tourism
receipts and expenditure
- Accommodation
- Entertainment
- Excursions
- Food,
- Shopping
- Travel within the
country
Outgoing tourism
receipts and expenditure
- Accommodation
- Entertainment
- Excursions
- Food
- Shopping
- Travel within the
country
- Other outgoing
tourist expenditure
Departures by mode of
transport
- Air ('000)
- Land ('000)
- Rail ('000)
- Sea ('000)
Demand factors
- Annual leave
entitlement (days)
Source:
Passport
36.4
64.6
76.4
79.6
82.1
86.4
66.0
95.0
99.4
99.5
99.6
99.7
23.3
24.0
24.3
24.4
24.5
24.7
1,890.4
1,920.3
1,982.6
2,088.2
2,101.8
2,233.6
392.8
813.1
1,548.8
1,712.3
1,793.7
2,072.9
397.8
828.0
1,537.8
1,648.8
1,685.6
1,875.5
2,034.3
1,812.7
1,671.7
1,689.4
1,639.4
1,624.6
1,717.1
2,044.0
2,425.5
2,549.3
2,562.5
2,736.9
1,394.8
1,879.9
2,546.4
2,723.2
2,777.8
3,058.2
10.7
0.5
0.7
1.3
0.1
0.3
17.9
0.6
1.6
2.3
0.1
0.5
22.4
0.9
2.4
3.5
0.2
0.7
22.9
0.9
2.5
3.6
0.2
0.7
23.4
0.9
2.5
3.7
0.2
0.7
25.0
1.0
2.7
4.0
0.2
0.8
1,401.7
948.6
463.2
568.1
700.8
373.8
1,892.4
1,299.0
634.4
743.4
968.5
519.6
2,195.9
1,613.1
718.2
857.3
1,203.2
635.4
2,125.5
1,549.2
684.3
818.5
1,157.9
608.5
2,108.3
1,541.8
673.9
805.2
1,141.3
586.9
2,138.9
1,553.4
679.7
814.5
1,168.2
584.9
233.6
305.3
297.0
285.4
276.8
278.0
4,808.1
15,801.6
122.4
2,118.6
5,390.7
19,987.7
186.3
2,028.0
6,620.6
22,697.9
201.0
3,152.4
6,933.7
22,934.4
200.0
3,266.8
7,173.8
23,255.3
204.0
3,365.9
7,732.8
23,620.3
210.9
3,585.2
24
24
24
24
n/a
56
Chart 8
Source:
Percentage of Households in Possession of Cable TV; Satellite TV System;

Internet Enabled Computer; Mobile Telephone; Video Games Console 20002015
GETTING AROUND
Private Transport
Hong Kongs public transport usage is perhaps the highest in the world due to its efficiency
and relative cost compared to private transportation. The developed centres of Kowloon and
Hong Kong Island are choked by overground congestion at all times of day, and the lack of
parking prohibits driving in the city. It is cheaper to take a taxi than to pay the road tax, first-time
registration tax, fuel costs, and parking fees. Yet, developments in the emerging New Territories
are allowing consumers to consider private vehicle ownership, if only for recreational purposes.
Car ownership is comparatively low across Hong Kong, with new car registrations a third of the
level in Taiwan, and half the level of Singapore. Just over half a million cars are registered in
Hong Kong, with 22.2% of households owning a private car in 2012, up from 21.6% in 2011.
Motorcycle ownership sits at almost identical levels and boasts similar growth, at 21.1% in 2012,
up from 20.9% the year before.
Consumers who are willing to pay for car ownership today fall into one of two main categories.
The first category is the economical purchase; the second is the prestige buy. The economical
car consumer is generally looking to make use of tax breaks and maximise fuel efficiency by
buying a car with a small engine, perhaps a hatchback or compact. The prestige consumer
wishes to make a statement and is not concerned by the heavy registration fees and fuel costs
associated with prestige car brands. Across both categories, cutting-edge technology is a must,
and eco-friendly credentials are increasingly important even amongst prestige buyers. Only topof-the-line vehicles are usually of interest to consumers as the comparative cost of ownership
over and above the initial cost of the car itself is exceptionally high by international standards.
As of July 2013, the top selling passenger car was the BMW 5 Series, followed by the VW Golf,
and Mercedess C- and E-Classes. The Toyota Noah and the BMW 1 Series have also been
hugely popular since launch, illustrating the trend towards smaller eco-friendly cars. The top four
Passport
57
passenger cars are all German, mainly luxury brands. It shows that consumers desire quality
and at least a minimum amount of prestige.
Compared to cars, scooters and motorbikes are relatively popular in Hong Kong. The
registration and road taxes are a fraction of what they would be for cars, and parking and fuel
fees are more economical. The average engine size of motorbikes in Hong Kong is 250cc, with
600cc bikes seen as the maximum necessary in order to achieve fuel efficiency and maximise
ride quality. A trend towards recreational riding is growing, particularly amongst late-twenties,
thirties, and middle-aged upper-middle class men who have access to the less congested New
Territories and more remote islands. This is part of a growing trend towards recreational pursuits
involving Hong Kongs increasingly appreciated parks and greenbelt zones. As residential
development has moved out of the dense centre, residents have been fast to adopt a more
ecologically friendly attitude. Cycling and hiking, as well as more adventurous outdoor activities,
have been embraced by people who are keen to increase their quality of life beyond the hustle
and bustle of the city life. Cycling is enjoying growth but only as a recreational activity. The
government has not developed the necessary infrastructure, and people have not been keen to
cycle through polluted, congested, and almost year-round humid urban streetscapes.
Public Transport
Public transport is beloved across Hong Kong and used daily by virtually the entire population.
Over 90% of all journeys made in Hong Kong are via public transport. This includes the
comprehensive underground MTR network, the overground bus and rail lines, as well as the
famous red taxis, the antiquated but fully functioning tram network and the ferries. Hong Kong
acts almost as a shrine to public transport through the ages. Over HK$100 million in
transactions is registered daily on the public transportation network via the contactless Octopus
card payment system.
The jewel in the crown of Hong Kongs public transportation network is the MTR system. It
stretches over virtually the entirety of Hong Kongs territory, linking it with the mainland through
Shenzhen. The MTR is the most frequently used transportation service in Hong Kong, boasting
125 million individual journeys per month. Taxis are also extremely popular with locals and
visitors, and roughly 30 million individual journeys are racked up in a typical month. Despite a
recent facelift, including an ultra modern and designer paint job, the trams are popular only with
the elderly and occasional tourists. They represent the cheapest mode of public transportation,
costing just HK$2.30 for a flat fare, compared to roughly HK$10.00 for a typical MTR or taxi fare.
The trams have a limited route compared to the more modern overground bus and minibus
routes but serve certain neighbourhoods extremely well.
People in Hong Kong do not like to be out for too long in the direct sunlight and subtropical
humidity. Most transport links are connected directly to other transport links or to commercial
retail or leisure buildings, which in turn are linked to residential spaces. A typical day out for a
person in Hong Kong could involve shopping in a high-rise mall on Hong Kong Island, dinner
and drinks in the Mongkok District, and finally returning home to Kowloon after picking up the
weekly shopping at the local supermarket - all without having ventured outdoors. Hong Kong
has developed a unique mode of transportation referred to as the escalators. Commercial
zones are connected via a series of outdoor escalators and horizontally moving pavements.
These moving pavements are a direct response to the need for convenient and effective
travel across an unforgiving topography. Older people are especially averse to having to tackle
the searing temperatures and cruel gradients unaided. The 800-metre horizontal and 135-metre
vertical displacement Mid-Levels escalator is a well-known example.
Passport
58
Commuting
Commuting times are low, owing to the relatively small size of the territory and its excellent
transport links. The average commute lasts just 30 minutes; the maximum stands at under an
hour, which would entail a commute into Central from the New Territories or Clearwater Bay.
Compared to an average of 60 minutes in London and 70 minutes in New York, the commute in
Hong Kong is noticeably shorter. According to the 2011 census, just under 40% of residents
work in a fixed location in the city. The rest includes people who do not work in a fixed location
and those who work at home, or even outside of Hong Kong, notably Shenzhen. This illustrates
the strong decentralisation trend among the labour force, as the economy diversifies and hightechnology developments and modern working methods are adopted. Nevertheless, the urban
density in Hong Kong is the highest in the world, and commuting has to be faced at some point
in peoples working week.
Mass transit, in particular the underground MTR network, is responsible for the lions share of
commuter traffic, a substantial 70.1% according to official figures. With a maximum one-minutewait policy during peak hours, compared to two to three minutes in Singapore, the MTR service
is considered the most efficient in the world. Private cars and taxis account for 10.5% of
commutes, and 8.4% chooses to walk. Mass transit costs are relatively low. Octopus
contactless payment cards are the norm across commuter types, from office workers to
students. The latter are offered discounts, as are pensioners. Single journeys rarely cost more
than HK$10.00 at the usual rate. Taxi fares cost on average HK$10.00.
Cycle paths and walkways are not as developed as other transport infrastructures. The sheer
amount of traffic, coupled with the congested urban environment, is not conducive to safe and
comfortable travel via non-motorised means. The heat in the city also contributes to the
preference for underground and air-conditioned means of transport. Currently, cycle paths follow
only scenic routes and are not tied into the main thoroughfares used by commuters. The
government has offered little encouragement; the Secretary for Transport and Housing stated in
2013 that he would look into promoting cycling in Hong Kongs new development zones only.
Air Travel
Passenger numbers increase every year, partly due to more visitors to and from the mainland
of China. During the first seven months of 2013, passenger numbers reached 34.3 million. It is
expected that over 60 million passengers will fly through Hong Kong International Airport before
the end of 2013, up from 56.5 million in 2012. Mainland Chinese make up the vast majority of
incoming travellers, roughly a quarter of incoming flight passengers in recent years, according to
official statistics. Taiwanese, Korean, and Japanese nationals are also major incoming
travellers. The largest long-haul group comes from the USA despite small declines in numbers
in recent years. Russia has shown the highest rates of growth, due to visa-free arrangements
and expanded flight capacity, boasting a 41.8% growth between 2011 and 2012.
Outbound travel is increasingly concentrated on regional destinations. Traditionally popular
destinations, such as Taiwan and Thailand, are losing ground recently to Korea, Malaysia and
Singapore although Japan remains a popular destination. The mainland of China is increasingly
thought of as a travel destination owing to more direct flights to provincial capitals and places of
historical interest. Seniors are more likely to venture to the mainland in order to visit ancestral
homes, extended family, and historical or spiritual sites.
Okinawa, in Japans tropical south, and Jeju Island, in Korea, are examples of newly popular
destinations. They illustrate the growing independent streak among Hong Kong travellers and
the shift away from package and group holidays. City breaks are also becoming far more
popular, especially as low-cost flights allow for affordable extended weekend breaks. The
popularity of Singapore and Seoul over recent years is a clear sign of this trend. Low-cost
Passport
59
Passport
airlines have been busily transforming Hong Kongs air travel industry. The domestic demand for
regional air travel has grown. In addition, Hong Kong has become a more popular destination in
the region. Hong Kong has been integrated into a region-wide flight network. The city is acting
as a launch pad to further travel across Asia, particularly to the burgeoning tourist markets of
South-East Asia and China. Yet, the majority of outbound flights are no longer made by Hong
Kong nationals. The rise in the prominence of destinations such as Macao and Bangkok, in
particular, stems from the demand from mainland Chinese for cheaper and more diverse
regional flights, not yet offered from airports within China.
Integrated and seamless transport: from under the ground to above the clouds
Hong Kong already boasts exceptionally well-integrated transport links, including underground
and overground rail connections, as well as links to neighbouring islands via high-speed ferries,
bridges, and a direct link via the MTR to the mainland of China. Hong Kong wishes to connect
farther into neighbouring Macao and China through the Hong Kong-Zhuhai-Macao Bridge
project, which is set for completion in 2015. By 2016, The Guangzhou-Shenzhen-Hong Kong
Express Rail Link will connect the mainland to Hong Kong, uniting what is to become the largest
mega-region on earth: the Pearl River Delta Megacity. Hong Kong is gearing up for a burst of
growth stemming from the rapid growth across the border in Guangdong and wider China.
Greater spending and different consumer habits are expected from the wave of non-residents
that will make up the majority of the consumer base over the coming years.
Hong Kong International Airport is at the heart of the move towards seamless connectivity
between the various modes of transportation. Speedy check-in and convenient transfers from
trains, metro, and highway links directly to boarding gates is seen as the next phase in the
development of Hong Kong International. Already the SkyPier service offers upstream check-in
at five ports including one at the Macao Ferry Terminal and two in mainland Shenzhen, with
plans for further expansion in 2014.
Customisation to perfection
The demand for exceptional leisure experiences is at an all-time high. Given the very limited
annual leave and the plethora of celebrations and festivals on the territory, many residents
demand that when they take time off, it is the best time off.
A 2012 survey by Travel Leaders shows that consumers are willing to spend more if it means
that the whole travel experience will be more enjoyable, exclusive and personalised. Consumers
are willing to pay marginally more for particular aspects of the holiday that are important to them
as individuals. Extra baggage allowance for the return leg and the inclusion of breakfast are
examples. Yet, consumers are not willing to pay for things they do not need. The rise of the
internet has ignited this trend more recently. Although it is younger people who are driving this
trend, all segments are benefitting as booking agents, airports, hotels, airlines, tourist councils
and visa application centres are improving the travel experience through extensive options. Any
major airline, tourist board, or airport has an official Weibo account, Facebook page, Twitter
account, a Weixin or Line account, and most likely an official app. This is offering consumers
constant communication before, during, and after the travel experience. A commentator for
Travel + Leisure, A US-based travel guide, mentioned in a 2012 report that the internets
influence on travel will cut both ways. More people are turned off by biased reviews on some
travel websites, and they will be mining their social networks for travel tips. It will also be easier
than ever to log-in, as people travel with fewer but more powerful gadgets.
Table 9
Transport Data: 2000, 2005, 2010, 2011, 2012, 2015

2000
2005
2010
2011
2012
2015
60
Consumer expenditure on
transport services
- Consumer expenditure
on rail travel
on buses, coaches and
taxis
on air travel
on other travel
Possession of bicycle
(% of households)
Possession of
motorcycle (% of
households)
Possession of passenger
car (% of households)
Km travelled by road
(km per capita)
Km travelled by air (km
per capita)
Passenger cars in use
('000)
Scheduled airlines:
Passengers carried ('000)
Source:
Chart 9
Source:
Passport
9,553.4
9,220.5
9,032.9
9,367.1
9,305.9
9,788.7
1,436.1
1,527.3
1,720.7
1,807.3
1,818.1
1,972.9
3,086.2
2,967.2
2,889.7
2,994.5
2,967.9
3,085.6
570.6
668.5
765.7
808.3
815.0
881.6
570.6
406.3
281.9
279.4
267.3
263.0
66.5
70.5
73.6
74.2
74.7
76.0
19.1
19.7
20.5
20.9
21.1
21.8
16.5
18.5
21.0
21.6
22.2
23.4
976.1
864.4
922.3
925.5
930.7
n/a
7,539.1
10,362.6
14,994.9
15,877.4
15,506.5
n/a
392
406
468
494
520
n/a
14,378
20,230
28,367
30,065
29,410

Consumer Expenditure on Transport Services and Purchase of Cars,
Motorcycles and other Vehicles 2000-2015
61

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CONSUMER LIFESTYLES IN

HONG KONG, CHINA

CONSUMER LIFESTYLES IN HONG KONG, CHINA

LIST OF CONTENTS AND TABLES

Consumer Segmentation and Population Data 2000, 2005, 2010,

Housing and Households ........................................................................................................... 19

Money and Savings .................................................................................................................... 25

Eating and Drinking .................................................................................................................... 29

CONSUMER LIFESTYLES IN HONG KONG, CHINA

Real Growth in Consumer Expenditure Compared with Real Growth

Grooming and Fashion ............................................................................................................... 33

Health and Wellness .................................................................................................................. 39

Shopping Habits ......................................................................................................................... 44

Shopping Data 2000, 2005, 2010, 2011, 2012, 2015 ................................. 48

Leisure and Recreation .............................................................................................................. 49

Getting Around ........................................................................................................................... 57

Transport Data: 2000, 2005, 2010, 2011, 2012, 2015 ................................ 60

CONSUMER LIFESTYLES IN HONG KONG, CHINA

CONSUMER LIFESTYLES IN HONG

Virtual But Always Real Escapism

CONSUMER LIFESTYLES IN HONG KONG, CHINA

Localisation and the Blossoming of Post-consumerism

the Online Social Consumer Movement

Hong Kong Identity Versus Chinese Identity

CONSUMER LIFESTYLES IN HONG KONG, CHINA

CONSUMER LIFESTYLES IN HONG KONG, CHINA

Chinese Dragon Babies

CONSUMER LIFESTYLES IN HONG KONG, CHINA

CONSUMER LIFESTYLES IN HONG KONG, CHINA

CONSUMER LIFESTYLES IN HONG KONG, CHINA

CONSUMER LIFESTYLES IN HONG KONG, CHINA

Camps for All Tastes

CONSUMER LIFESTYLES IN HONG KONG, CHINA

Mobile Internets New Masters

CONSUMER LIFESTYLES IN HONG KONG, CHINA

Vanity and Narcissism Amongst the New Youth

CONSUMER LIFESTYLES IN HONG KONG, CHINA

CONSUMER LIFESTYLES IN HONG KONG, CHINA

CONSUMER LIFESTYLES IN HONG KONG, CHINA

CONSUMER LIFESTYLES IN HONG KONG, CHINA

CONSUMER LIFESTYLES IN HONG KONG, CHINA

CONSUMER LIFESTYLES IN HONG KONG, CHINA

CONSUMER LIFESTYLES IN HONG KONG, CHINA

Independent, but with a little help

CONSUMER LIFESTYLES IN HONG KONG, CHINA

Babies/infants (aged 02) ('000)

National statistics, Euromonitor International

Population Aged 15-64 Compared with Old-Age Dependency Ratio 20002020

CONSUMER LIFESTYLES IN HONG KONG, CHINA

HOUSING AND HOUSEHOLDS

CONSUMER LIFESTYLES IN HONG KONG, CHINA

CONSUMER LIFESTYLES IN HONG KONG, CHINA

CONSUMER LIFESTYLES IN HONG KONG, CHINA

twenty-something professionals. Most of the growth in the overall consumption of pet-related

CONSUMER LIFESTYLES IN HONG KONG, CHINA

CONSUMER LIFESTYLES IN HONG KONG, CHINA

CONSUMER LIFESTYLES IN HONG KONG, CHINA

National statistics, Euromonitor International

Number of Households by Disposable Income Bracket 2005, 2010, 2015

MONEY AND SAVINGS

CONSUMER LIFESTYLES IN HONG KONG, CHINA

Attitudes Toward Payment Methods