The Hong Kong Trade Development Council has released a consumer survey report detailing the strong spending power of mainland China's affluent senior consumers and the vast untapped potential of this sector. With securing happiness and ensuring quality as their spending priorities, the survey shows such consumers regard Hong Kong-made products as guaranteed to be authentic, while the city's services sector is seen as professional and reliable. As a result, many pronounce a willingness to pay a Hong Kong premium.
To gain a more in-depth understanding, HKTDC surveyed more than 2,000 middle-class and affluent senior consumers in various mainland cities last year. According to the findings, respondents' average monthly expenditure on daily consumer goods and services was approximately RMB7,000, rising to RMB8,000 for those in first-tier cities. HKTDC Deputy Director of Research Wing Chu, who led the study, stated that currently, the Chinese Mainland's silver economy is valued at about RMB7 trillion, some 6% of overall GDP. This is projected to surge to RMB30 trillion by 2035, indicating the segment's huge development potential. The full report is available at https://research.hktdc.com/en/article/MjI2ODIyMDg0Nw.
The survey also showed that more than half of such consumers had purchased Hong Kong products or services, holding Hong Kong brands in particularly high regard. Notably, 78% of respondents were willing to pay a premium for Hong Kong-sourced products, while 84% were willing to do so for the city's services sector. Typically, respondents were willing to pay a 16.4% premium on products and 15.4% premium on services, with those in first-tier cities happy to pay an even higher percentage. On the product front, 61% of respondents had purchased Hong Kong products in the past year, including health foods, luxury goods, and beauty and personal care products. Regarding services, 54% of senior respondents said they had utilised Hong Kong services in the past year, including beauty and personal care services, travel to Hong Kong, Macao and Taiwan, and financial and wealth management services.
HKTDC Economist Eric Chu noted that when choosing products and services, happiness is the priority for Chinese Mainland seniors, closely followed by value for money. With this in mind, Hong Kong businesses can leverage the silver economy by capitalising on the strong reputation and professional advantages of the city's brands. The survey indicated that 65% of respondents prioritised products or services that would enhance their leisure or bring them happiness, while 63% valued reasonable pricing and good value for money, and 62% focused more on practicality and durability. This marks them out as a notably mature and rational consumer group.
Despite the popularity of online shopping, the survey showed that physical stores remain the primary consumption channel for the more elderly demographic, with offline experiences, in-person consultations and a sense of trust remaining prime considerations. To help businesses capitalise, the HKTDC has incorporated various related elements into many of its exhibitions and forums. This includes a thematic seminar on healthy ageing at the Asia Summit on Global Health, a Rehabilitation and Elderly Care zone at the Hong Kong International Medical and Healthcare Fair, and a new Happy Ageing label introduced at the Hong Kong Toys & Games Fair. More information on HKTDC research can be found at http://research.hktdc.com/en.
HKTDC Director of Research Bruce Pang linked the opportunity to national policy, saying that among other priorities, the 15th Five-Year Plan focuses on boosting domestic demand as a means of driving economic growth. Inevitably, this will create opportunities for Hong Kong companies looking to expand into the Chinese Mainland market. He added that by gaining a deeper understanding of the consumption patterns of mainland seniors, particularly those in the higher-spending middle-class and affluent segments, Hong Kong businesses will be able to effectively penetrate the domestic market. Looking ahead, the HKTDC will continue to provide comprehensive support to the business sector to explore opportunities in this growing market.
