Financial crisis realigns spending priorities

SYNOVATE   RESEARCH  DOWNTURN

Hong Kong – If you thought the financial crisis was a bad thing, you might be alone. A post-analysis of the global financial crisis has shown that local consumers were largely glad it happened.

Although consumers in Hong Kong were not dramatically impacted by the economic crisis, many have indicated changes to their attitude towards money.

Fifty-six percent said respondents to a Synovate survey said the economic crisis has permanently changed their attitudes about the importance of saving money, while 59% are doing their best to not go back to spending what they used to before the downturn.

Close to 80% of people said they recognise that increasing their savings is more important than reducing debt.

Results from Synovate's global money and finance survey, shows Hong Kong consumers as one of the top groups globally (68% in Hong Kong vs. 41% globally) who felt glad that the economic crisis had happened.

Synovate surveyed around 11,400 people from 16 markets across the world to find out what had changed about their money management style and attitudes in the year since the global financial crisis hit.

Brendan Shair, managing director for Synovate Hong Kong, said the study clearly shows how mindsets and habits have shifted.

"This is a very important time for companies to study and figure out the current priorities for consumers. Marketers should realise it is a continuous drive for their products and services, instead of decreasing their marketing and ad spend during the downturn," he said.

Interestingly, the report shows major events were not affected by the downturn. Results show the majority of consumers did not postpone or spend significantly less on major life events such as having a wedding (98% did not postpone or spend less), having a baby (98%), and purchasing (97%) or renovating a home (95%).

Hong Kong consumers also continued spending on new TVs, computers, and other large appliances (86% did not postpone or spend less), and going on holiday overseas (84%) in the past six months.

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