Engagement is key despite confidence slump

Hong Kong - Consumer confidence in Hong Kong has fallen to an all time low amidst the economic turmoil, with Nielsen's consumer confidence index down to 88 from 118 in 2007.

With falling confidence levels, 70% of Hong Kong people are also skeptical about the local job prospects and do not consider the next 12 months a good time to spend.

However, consumers in Hong Kong remain passionate about creating wealth in an economic downturn with 46% (the world's second highest after India) claim to be investing in shares, stocks and mutual funds if they have spare cash.

Survey findings reveal despite a more cautious spending sentiment, there are opportunities for companies in the leisure, retail and entertainment sectors with Hong Kong people wanting to spend on holidays, vacations, out of home entertainment and buying new clothes when they have spare cash.

Angel Young (pictured), executive director, retail measurement for The Nielsen Company Hong Kong said even during economic slowdowns there are opportunities for companies.

They need to remain focused on their brand building, above the line campaigns and investment in their products to raise top of mind awareness to drive and secure brand loyalty for better days ahead.

In this challenging times, differentiation is key to capture consumer spending and enhancing relevance to consumers such as timeliness in offering more attractive and value for money deals for consumers adjusting their lifestyles to cope with the slowdown.  

"Companies that stay constantly engaged with their target customers will come out of this downturn as winners. Consumers will remember the companies and products which best understand their changing needs and demands during a slowdown," Young said.

The Nielsen global consumer confidence survey is a twice-yearly study that polled more than 26,000 consumers in 52 markets between 22 September to 6 October about their confidence levels and economic outlook.