Hong Kong's status threatened by poor customer service, survey says

Luxury consumption is predicted to stabilise next year but if Hong Kong wants to retain its place as a high-end global shopping hub in the long run, it should improve the level of its customer services, according to the latest China Luxury Forecast by Ruder Finn and Ipsos.

After a decline in luxury consumption last year, mainland consumers said they would maintain their spending levels on watches, bags, jewellery and shoes in the coming year and spend even more on apparel and beauty. Hong Kong consumers said they would maintain the same spending on all products.

The joint study surveyed over 1,800 people - 300 from Hong Kong and the rest from the mainland across tier-1 to tier-3 cities - about their past and expected luxury spending habits for the coming year. Average annual household income of Hong Kong respondents was HK$970,000, and 290,000 yuan (HK$366,000) for mainland respondents.

"A large percentage of customers are exceedingly unhappy with the services. Consumption is not really growing. It's kind of flat but the brands are not doing themselves a favour," Ipsos executive director Simon Tye said.

Although price was a factor, mainland customers primarily attributed their decision to shop overseas to poor customer service and staff competence in their home country. Ninety-two per cent of mainland consumers were unhappy with services in China

Forty-five per cent felt that service advisers were not knowledgeable while 40 per cent complained about customer services and said matters were not resolved in a satisfactory manner.