New Research Signals The Rise Of A Growing Aspirational Consumer Class In Hong Kong, Increasingly Dominated By Millennials, According To New Research By IAB SEA+INDIA And Carousell Media Group
According to a new report published by Carousell Media Group (CMG) and IAB Southeast Asia and India (IAB SEA+India), income levels and purchasing patterns in Hong Kong signalled towards a growing aspirational consumer class. 64% of Hong Kongers noted that their household income was in the top 50% income tier.
The report on the Millennial Motivations and Buying Behaviours Online across Southeast Asia and Hong Kong, conducted across five Carousell Group’s markets – Singapore, Hong Kong, Philippines, Malaysia (for both Carousell and Mudah.my platforms) and Vietnam (Cho Tot) with over 3,500 of its respondents, also uncovered that the global trend of recommerce – or the buying and selling of pre-owned items – is accelerating in this part of the world.
“This research captures a highly engaged millennial audience who are in the browsing and buying mindset, motivated by a great deal, variety of options, and by their belief that purchasing pre-owned is more sustainable. In addition, when we took a closer look at the Luxury Category, we found that half of all respondents bought luxury items in the past 12 months. Overall, Singapore, Carousell Malaysia and Hong Kong are above the purchasing average; despite being in the midst of a global economic slowdown. This signals the rise of a growing aspirational consumer class, dominated primarily by under 35s.” JJ Eastwood, Managing Director, CMG shared.
This regional research establishes the audience profile in each market then explores income and spending habits, how the audience spends their time online, and offline, motivations to use buy-and-sell marketplaces, as well as attitudes towards sustainability in relation to their purchasing habits.
Key findings include:
- 93% of Millennials in Hong Kong felt that purchasing pre-owned items is more sustainable
- 62% of respondents in Hong Kong bought a luxury item in the past 12 months, with over 50% buying Bags & Wallets from brands like Gucci, etc. Luxury accessories and belts are significantly more popular in Millennials vs over 35s.
- Millennials were more likely to save to buy luxury items vs over 35s. We see that most of the Millennial household income goes towards savings (27%), which is higher than the regional average. However, over 35s are significantly more motivated by promotions and sales when it comes to purchasing a luxury item.
- Millennials overall, also cared more about social issues such as sustainability, social responsibility and climate change in comparison to over 35s.
- In the majority of markets, both those under 35 and over 35 are equally motivated to use the platform as the environmental impact is lesser when purchasing a pre-owned item.
- Gaming, Mobile, Gadgets or Accessories is the top category in Electronic Items, followed by Computer Accessories and Home & Kitchen Appliances; these are all categories that facilitate entertainment, communication, virtual working and cooking as respondents spent more time at home due to COVID-19.
- Asian platforms dominate the competitor landscape against similar Western platforms such as Amazon
“Across all the local market research, what was consistently obvious is that we are witnessing the explosive growth of recommerce as it feeds two key needs of consumers today; the demand for sustainability and the hunt for a good deal. This juncture of ethics and eCommerce creates fertile ground for retail media because of the interplay among customer data, closed-loop reporting, and real-world results that generate more and better data.” Miranda Dimopoulos, Regional CEO, IAB SEA+India said.
“Recommerce has become synonymous with sustainability and this research demonstrates how important this has become to young people across the region. As we see users spending more on high-value products like luxury, and cars, we also see them being increasingly conscious of where they spend their money. This presents a unique opportunity for brands to win the hearts and minds of this core consumer segment around issues they care deeply about,” said JJ Eastwood.
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