Hong Kong Brands Command Premium in China's Trillion-Yuan Silver Economy, HKTDC Survey Reveals

The Hong Kong Trade Development Council has released a consumer survey report detailing the strong spending power of mainland China's affluent, middle-class senior consumers and the vast untapped potential of this demographic. With China now home to the world's largest number of seniors, the country's 15th Five-Year Plan calls for proactive measures to address the challenges of an increasingly ageing population, positioning the silver economy as a vital engine for the mainland's next wave of economic growth.

According to the survey findings, respondents' average monthly expenditure on daily consumer goods and services was approximately RMB7,000, rising to RMB8,000 for those in first-tier cities. The Chinese Mainland's silver economy is currently valued at about RMB7 trillion, representing some 6% of overall GDP, with projections indicating this will surge to RMB30 trillion by 2035. The survey showed that more than half of such consumers had purchased Hong Kong products or services, with 78% willing to pay a premium for Hong Kong-sourced products and 84% willing to do so for the city's services sector. Typically, respondents were willing to pay a 16.4% premium on products and 15.4% premium on services, with those in first-tier cities happy to pay an even higher percentage.

Hong Kong brands enjoy stellar reputation among mainland senior consumers, with the city's products celebrated for their quality and authenticity and its services for their professionalism and reliability. On the product front, 61% of respondents had purchased Hong Kong products in the past year, including health foods, luxury goods, and beauty and personal care products. Regarding the city's services, 54% of senior respondents said they had utilized Hong Kong services in the past year, including beauty and personal care services, travel to Hong Kong, Macao and Taiwan, and financial and wealth management services. Over the next 12 months, the most sought-after Hong Kong services were said to relate to health and wellness services, followed by beauty and personal care services.

When choosing products and services, happiness is the priority for Chinese Mainland seniors, closely followed by value for money. The survey found that 65% of respondents prioritized products or services that would enhance their leisure or bring them happiness, while 63% valued reasonable pricing and good value for money, and 62% focused more on the practicality and durability of the products or services on offer. This indicates that mainland seniors are particularly concerned about their health and quality of life while also valuing cost-effectiveness and functionality, marking them out as a notably mature and rational consumer group.

Despite the popularity of online shopping across the mainland, the survey showed that physical stores remain the primary consumption channel for the more elderly demographic. For such consumers, offline experiences, in-person consultations, and a sense of trust in products and services remain prime considerations. To help businesses capitalize on opportunities arising from the silver economy market, the HKTDC has incorporated various related elements into many of its exhibitions and forums, allowing relevant companies to showcase their products and technologies while exploring the latest industry developments. The complete survey report is available at https://research.hktdc.com/en/article/MjI2ODIyMDg0Nw, with additional research available through http://research.hktdc.com/en.