Christmas holidays are usually the peak consumption season for both tourists and local residents, but this year retailers are expecting a grimmer picture amid the economic downturn affected by the slowdown in China and strong local currency.
A study shows that Hong Kong people are cutting their Christmas budget to tackle the difficult economic environment this year, with 64 per cent people saying they won’t spend more than HK$1,000 on Christmas shopping and 52 per cent saying they won’t buy any Christmas gifts this year.
The survey, conducted by Hong Kong Research Association, found Hong Kong citizens are rather cautious about this year’s Christmas consumption, as only 16 per cent of 1,084 interviewees expect spending more money than last year, while 23 per cent said they would reduce spending .
Adding to the problem, it seems that even if Hongkongers do plan to go shopping for Christmas, they prefer to buy overseas.
“Even local people wouldn’t buy stuff in Hong Kong ,” said Mariana Kou, retail analyst at brokerage CLSA, adding consumer products are much cheaper in Japan and Korea, as they benefited from weaker local currencies.
She expected the poor consumption this year will further dampen sales during Christmas, the traditional shopping season, which has already been challenged by the declining tourist arrivals in last six months.
“The Christmas sales this year will decline for sure” she said, adding the luxury sector would be the one suffering the most.
Even though most Hong Kong people are cutting their Christmas shopping lists to save money for rainy days, the enthusiasm for shopping is still running high among top earners in the city.
The same research showed that the wealthiest social class was the only one among the four that has responded with growing budgets for shopping this Christmas, with 13 per cent more interviewees planning to increase Christmas consumption this year than those who plan to reduce spending.
“Despite the volatilities in the financial and property markets, rich people still have a decent wealth base.” said Wyman Ng, research officer at Hong Kong Research Association, adding “ their behaviour is less affected”.
Meanwhile, holiday shoppers in Causeway Bay who looked up yesterday would have seen seven people climbing above the huge screen in Times Square to make a statement against the fashion of wasteful consumption during holiday seasons.
The Greenpeace activists unfurled a huge banner across a big television screen at the iconic shopping mall, featuring the message “Buy Smart Buy Less”.
The group said Hongkongers trash garments at an alarming speed, which has put a heavy burden on the environment. It urged shoppers to step up and break the cycle of overconsumption
The Census and Statistics Department also revealed yesterday that the Consumer Price Index (CPI) figures for November rose by 2.4% over the same month a year earlier, the same as that in October 2015.