21 June 2006

CUHK MSc Programme in Marketing Survey on Hong Kong Shopping Malls
Investigates whether Aspirations of Hong Kong Shoppers and PRC Tourists are Satisfied

Along with the economic development and the change in consumer culture, shopping malls in Hong Kong have gradually replaced the traditional department stores and retail outlets and become the major venues for shoppers. Since the 21st century, shopping malls in Hong Kong have undergone two significant transformations, which are: 1) change of target visitors from mainly Hong Kong people to both Hong Kong residents and PRC tourists; 2) more new and trendy shopping malls emerge resulting in a keener competition in the market.

In order to learn more about the consumption patterns of both local and PRC shoppers in Hong Kong shopping malls, the Master of Science Programme in Marketing at the CUHK had conducted a comprehensive survey during the Golden Week from 1-10 May 2006. A total of 506 respondents, made up of 305 Hong Kong residents and 201 PRC tourists were interviewed. The survey aim to examine the consumption patterns of Hong Kong residents and PRC tourists in Hong Kong shopping malls with a view to gauge their satisfaction with the shopping experience, service and environment in Hong Kong. Based on these research findings, the research team will propose recommendations to the Hong Kong Government, the tourist industry and the retailing sector on the future development of shopping malls. The research is conducted by Professor Sin Yat Ming, Director of the MSc Programme in Marketing and Dr. Kwok Wai Yee, Instructor of the Department of Marketing at CUHK.

Major Research Findings

1. Consumption patterns of Hong Kong residents in HK shopping malls:

• Criteria in selecting shopping malls are “convenient transportation” (74.4%), “wide variety of product categories” (34.4%), “wide variety of shops” (34.1%) and “large shopping area” (33.4%).
• Major criticisms on shopping malls include “too many people” (51.5%), “not enough resting places” (24.6%), “retail stores have no uniqueness” (23.9%), “not enough washrooms” (23.6%) and “unfresh air” (23.3%)
• Motives of visiting shopping malls are “to learn new products” (92.5%), “purchase daily goods” (92.1%), “killing time” (88.5%), “to be trendy” (84.3%) and “taste delicious cuisine” (83.6%).
• Expected new attractions include “food courts with multi-country cuisine” (41.6%), “mini concert hall” (28.5%) and “mega book place” (27.6%).

2. Consumption patterns of PRC tourists in HK shopping malls:

• About 40% spent HK$5,001- 20,000 at shopping malls during their stays in Hong Kong .
• Commodities they purchase at the shopping malls are “clothing” (63.7%), “cosmetics/ perfumes” (41.3%), “mobile phones” (35.3%). Female tourists tend to purchase “cosmetics/perfumes” more while male tourists purchase “mobile phones”, “home electrical appliances/ AV equipments” and “clock/watches”.
• Criteria in selecting shopping malls include “convenient transportation” (67.7%), “wide variety of product categories” (53.7%) and “large shopping area” (41.8%).
• Major criticisms on shopping malls are “too many people” (30.8%), “not enough resting places” (29.9%), “the air-con is too cold” (24.4%), “not enough washrooms” (21.9%) and “unfresh air” (17.4%).
• The most popular brands among tourists are “Chow Sang Sang” (25.4%), “SaSa” (24.5%), “Bossini” (11.9%) and “Chow Tai Fook” (10.4%).
• Evaluations on HK shopping malls:
  Positive comments:

  • Safe and secure (98.5%)
  • can buy goods from different countries (97.5%)
  • trendy products (95%)
  • faked products will not be sold (92.5%)

  Negative comments:
  

  • goods are expensive (73.1%)
  • lack of indigenous product (57.7%)
  • deceive tourists (20.4%)

3. Comparisons on Hong Kong residents and PRC tourists:

• Most of the PRC tourists prefer to have a “wide variety of product categories” whereas Hong Kong residents like the malls in which “their favorite restaurants are located” and with “shops and facilities suitable for whole family”.
• More Hong Kong residents criticize HK shopping malls are “too crowded” and the shops are “lack of uniqueness”; while more PRC tourists complain for “not enough resting places” and the “air-con is too cold”.
• Regarding new attractions, Hong Kong residents prefer to have “large scale rides”, “large scale home furnishing place”, “large scale recreational facilities for children” and “educational centre”.

Recommendations

1st Finding:
Shopping Malls have become the major venues for Hong Kong residents and PRC tourists.
Recommendation:
In order for Hong Kong to sustain its reputation as a shopping paradise, the Hong Kong Government should have a substantive and strategic direction in town planning. The retailing industry should also consider shopping mall as a crucial factor for future development.

2nd Finding:
Shopping malls in Hong Kong are all very similar in the eyes of both Hong Kong residents and PRC tourists. They are always very crowded with unfresh air and lack of resting place and washrooms.
Recommendation:
- To bring in new foreign brands and stores to offer a novel experience and choice for shoppers.
- To provide more resting place when designing the malls. In addition, the proportion of male and female restrooms should be adjusted.
- Shopping mall owners should always make sure a clean air conditioning system is provided in order to improve the air quality. The government should also enhance relevant regulations and to examine the air quality in malls regularly. It should also enforce the law to ban smoking in malls.

3rd Finding:
PRC tourists think that some stores in the malls deceive tourists.
Recommendation:
- Hong Kong Government: enhance law enforcement and penalty.
- Hong Kong Tourism Board: strengthen promotion and education.
- Retailing sector: to be more self-discipline.
- Shopping mall management: strengthen the selection process of shops and terminate rental agreement with those shops which violate the law and regulation.

4th Finding
Shoppers aspirate for education and new knowledge.
Recommendation:
Shopping malls should bring in more shops with cultural and educational aspects such as large-scale book place and education centre.

5th Finding:
PRC tourists and Hong Kong residents have different consumption patterns and mall preference.
Recommendation:
Shopping malls should establish a clear positioning against competitors and maintain a wide variety of retail stores.

6th Finding:
Both Hong Kong residents and PRC tourists criticize that cuisines available in shopping malls are limited.
Recommendation:
Shopping malls should bring in more multi-country cuisines.

Professor Sin Yat Ming, Director of the MSc Programme in Marketing (right) and
Dr. Kwok Wai Yee, Instructor of the Department of Marketing at CUHK (left).