Revenge spending? Not in Hong Kong as most consumers keep a tight rein on spending, Citibank survey says
- Hongkongers cut spending during the pandemic by 13 per cent last year vs 2019
- Exceptions to the retail gloom include e-commerce and furniture firms
Most Hong Kong consumers are unlikely to go on a shopping spree after the coronavirus pandemic recedes and expect to keep a tight rein on expenses due to the uncertain economic outlook, according to a recent survey.
No overseas travel and work-from-home restrictions lowered almost half of Hong Kong residents’ expenses by 13 per cent last year to HK$10,700 a month, the survey of over 1,202 Hong Kong residents aged 21 to 60 who earned over HK$12,000 per month showed.
The survey results dash the hopes of retailers and restaurateurs of a boom in business off the back of a wave of so-called “revenge spending”, which refers to consumers’ spending more than usual to make up for the limited opportunities to browse and shop during the past year.
Only 22 per cent of respondents believe they will relax curbs on spending on unnecessary items after the pandemic, according to the survey conducted between March 15 and March 23.
“The pandemic has had a major impact on the general public’s consumption patterns,” said Lawrence Li Koon-hong, head of cards and unsecured lending at Citibank Hong Kong in an online briefing. “Overall, the younger generation is more willing to spend after the pandemic while those with children or middle-class customers are more cautious.”