New research reveals that mainland Chinese brands are moving beyond low-cost perceptions to drive rapid innovation and reshape consumer confidence.
Mainland Chinese brands are challenging Hong Kong retailers, new survey shows
Article by:
PUBLISHED:
As regional competition intensifies, mainland Chinese brands are rapidly emerging as a formidable force driven by innovation and speed. According to recent findings by KPMG China and GS1 Hong Kong, consumer perceptions in Greater Bay Area cities outside Hong Kong already reflect this progress. In those markets, 64 percent of consumers choose mainland Chinese brands for value for money, 58 percent cite safety and reliability, and 50 percent value their brand reputation.
In contrast, consumers in Hong Kong still tend to view mainland Chinese brands primarily through the traditional lens of affordability. Whilst 81 percent of Hong Kong shoppers select them for value for money, considerably fewer acknowledge their safety and reliability at 39 percent, higher quality at 33 percent, or brand reputation at 31 percent. Transforming this perception represents a major upcoming opportunity for mainland Chinese brands as they work to convert rapid development and rising quality into enduring brand confidence.
[See more: Visa approved to launch domestic clearing business in China]
Meanwhile, Hong Kong brands maintain a distinct advantage in consumer trust. Across the region, 74 percent of Hong Kong consumers and 61 percent of those in other Greater Bay Area cities identify safety and reliability as the primary reason for choosing Hong Kong names. This preference is particularly pronounced within specific sectors, reaching 78 percent for airlines and 71 percent for food and beverages.
How mainland Chinese brands are reshaping consumer confidence
However, market analysts warn that this trust cannot be taken for granted. As mainland Chinese brands continue to bolster their safety credentials, Hong Kong competitors will need to pair their established reliability with enhanced innovation, sharper value propositions, and faster execution.
[See more: China’s job market set for further support under new plan]
Anson Bailey, head of consumer and retail for Asia Pacific at KPMG China, noted that any business still dismissing mainland Chinese brands as mere low-cost threats is failing to recognise modern market realities. He emphasised that accelerated development is now delivering superior products and rapid innovation at an unprecedented scale, allowing mainland Chinese brands to build brand equity just as effectively as they previously established scale.
