Retail sales continue their slide
Retail sales figures continued to slide in May, while a survey showed Hong Kong shoppers are the keenest bargain hunters in Asia and among the most pessimistic about their financial future.
Latest figures from the Census and Statistics Department show retail sales fell 6.2 per cent by value in May, from the same period last year, to HK$21.6 billion, with shoppers continuing to cut spending on luxury items such as vehicles and jewellery.
After adjusting for price changes during the period, the volume of retail sales dropped 6.4 per cent year on year in May, after falls of 5.4 per cent in April and 9.2 per cent in March.
The sales volume of motor vehicles and parts led the decline in retail sales, falling by 32.2 per cent compared to May last year, followed by jewellery, watches and clocks and valuable gifts, which fell nearly 11 per cent.
'Consumers were still cautious on spending on such big-ticket items as motor vehicles and jewellery, yet retail sales of some other consumer goods held stable or showed some relative improvement,' a government spokesman said.
Meanwhile, a regional survey found that two-thirds of Hong Kong shoppers are now more motivated by discounts and special offers, the highest among Asian countries.
The Eye on Asia study, commissioned by international marketing communications company Grey Group Asia Pacific, also found Hongkongers are the third most pessimistic about their financial future, behind Japan and Australia.
The survey also showed that fewer people expected their future to be better - 65 per cent compared to 80 per cent a year ago. They were also second only to Taiwan in discontent about their current situation. 'The finding shows that the financial turmoil has hit Hong Kong people's confidence,' Grey Hong Kong general manager Desmond Chan said.
The survey found Hong Kong consumers' decisions were highly affected by price and discount offers. Two-thirds of respondents said promotional events such as private sales or mid-year sales were 'important', the highest in Asia.
The survey also showed that 95 per cent of Hong Kong shoppers prefer to buy products made by well-established companies, the second highest in Asia next to the mainland. Eighty-four per cent said they would consult friends or family members before making a buying decision, second to Taiwan.
Hong Kong shoppers were found to be second in the region in the preference for foreign brands, and ranked fourth in the preference for category leaders.
The 2009 Eye on Asia is the fourth such survey conducted by the Grey Group. A total of 8,000 consumers aged between 18 and 65 from 16 Asian countries or territories were surveyed between November last year and March this year.
About 500 Hong Kong people were interviewed.
