Hong Kong – Retailers in Hong Kong and other cities across the Greater Bay Area (GBA) face differing consumer expectations around artificial intelligence (AI), value for money and brand trust, according to research by KPMG China and GS1 Hong Kong.
The findings point to three priorities for retailers: building consumer confidence in AI, adapting to the growing silver economy and strengthening brand reputation across the region.
AI trust rises, but concerns over data sharing remain
Consumer trust in AI has increased across Hong Kong and other GBA cities. In Hong Kong, 48 per cent of consumers now trust AI at least somewhat, up from 28 per cent previously. In other GBA cities, the figure rose from 59 per cent to 76 per cent.
However, greater confidence has not necessarily translated into willingness to share personal information. Only 10 per cent of Hong Kong consumers who trust AI are comfortable sharing their data, compared with 32 per cent in other GBA cities.
The difference is more pronounced among consumers aged above 55. In this group, 38 per cent of Hong Kong consumers trust AI, compared with 76 per cent in other GBA cities.
The findings suggest retailers in Hong Kong need to demonstrate clear value before requesting personal data, while providing greater transparency and control over how information is used. Maintaining accuracy, fairness and access to human support will also be important as AI becomes more integrated into the retail journey.
“AI is increasingly shaping how consumers discover and evaluate products, and it tends to recommend those backed by data it can readily interpret and trust,” said Anna Lin, Chief Executive of GS1 Hong Kong.
“Businesses with trusted, standardised product data that is structured for machines to understand and use and traceable to an identifiable source will be best positioned to earn consumer confidence and influence future purchasing decisions,” Lin continued.
Silver consumers have different priorities across markets
Value for money remains a key consideration for 73 per cent of consumers in Hong Kong, compared with 45 per cent in other GBA cities.
The differences are also reflected among older shoppers. In Hong Kong, 57 per cent of consumers aged above 55 primarily identify as value shoppers. In other GBA cities, only 23 per cent share this preference, with brand reputation (37 per cent) and shopping experience (27 per cent) ranking as their leading considerations.
The findings indicate that retailers cannot treat older consumers as a single market segment. Instead, businesses will need to account for differences in purchasing priorities across locations when developing products and customer experiences.
“Growth in the silver economy depends on recognising that shoppers’ priorities differ across markets. Hong Kong’s silver shoppers prioritise competitive prices, while those in other GBA cities place greater emphasis on brand reputation and shopping experiences,” said Alice Yip, Partner, Head of Consumer & Retail, Hong Kong SAR at KPMG China.
“Capturing this opportunity involves understanding what matters locally and tailoring the retail offer accordingly, rather than treating the silver economy as one uniform market,” Yip continued.
Chinese Mainland brands gain ground on quality and innovation
Chinese Mainland brands are also strengthening their position in the region, with consumers in other GBA cities increasingly recognising their value, safety and reliability.
In these markets, 64 per cent of consumers choose Chinese Mainland brands for value for money, while 58 per cent cite safety and reliability and 50 per cent point to brand reputation.
In Hong Kong, perceptions remain more heavily focused on affordability. While 81 per cent of consumers choose Chinese Mainland brands for value for money, fewer cite safety and reliability (39 per cent), higher quality (33 per cent) or brand reputation (31 per cent).
Hong Kong brands, meanwhile, continue to benefit from established consumer trust. Safety and reliability are the leading reasons for choosing these brands among 74 per cent of Hong Kong consumers and 61 per cent of consumers in other GBA cities. In Hong Kong, preference for local brands is particularly strong in the airline (78 per cent) and food and beverage (71 per cent) sectors.
However, as Chinese Mainland brands improve their standing in areas such as quality and reliability, Hong Kong brands may need to combine their existing reputation with stronger innovation, competitive pricing and faster execution.
“Any brand that still sees Chinese Mainland competitors as a low-cost threat is looking in the rear-view mirror. Chinese Mainland speed is now producing better products, sharper design and faster innovation at a scale few markets can match,” said Anson Bailey, Head of Consumer & Retail, Asia Pacific at KPMG China.
“The real shift is that Chinese Mainland brands are learning to build brand equity at the same pace as they have built scale through value and speed. This is increasingly influencing who can win – not only in the GBA, but in consumer markets worldwide,” Bailey continued.
