HONG KONG–(BUSINESS WIRE)–The key issues driving Hong Kong shoppers to choose one grocery store over another were revealed today, with the release of the latest study from dunnhumby’s international research program – the Retailer Preference Index series ( RPI).
Since 2018, dunnhumby – the global leader in customer data science – has published numerous RPI studies covering countries like Japan, Australia, Thailand and Singapore. This latest study, which focuses specifically on Hong Kong, provides an in-depth analysis of the factors influencing the preferences of the market’s top performing grocery shoppers and retailers.
Wellcome and PARKnSHOP are at the top of the rankings for Hong Kong, mainly thanks to the best scores in the market in terms of wallet share and market share. Emotional connection, a secondary metric that helps inform overall rankings, gauges how respondents feel about retailers in a market. Japanese retailer Donki is the undisputed leader in this field, with Wellcome and PARKnSHOP ranking 10and and 11and respectively.
The top-ranked Hong Kong retailers in this inaugural study are Wellcome (1st), PARKnSHOP (2n/a), HKTV Shopping Center (3rd), Aeon and 759 Store (seal 4and).
“Hong Kong has always been a fiercely competitive market for food retailers, and one in which customers have a wealth of choice as to where they shop,” said Margaret Siew, Regional Business Development Manager for dunnhumby APAC. “What the RPI results show is that when retailers go out of their way to craft a value proposition that truly meets shoppers’ needs, they typically experience significantly greater sales success as well.”
As well as exploring the market’s top performers, the first RPI for Hong Kong also offers insight into five key “preference pillars” – broad themes that customers say play the biggest role in helping them choose where do their shopping. In order of their influence on buyer preferences, these pillars are:
- In-store experiencewhich includes factors such as payment speed and cleanliness of the store environment.
- Communicationwhich deals with issues of loyalty, inspiration and the quality of a merchant’s digital tools.
- Own/private labelwhere shoppers look for variety, price and quality when it comes to private label items.
- Quality & Variety, which relates to a retailer’s overall assortment. Ready-to-eat and organic foods play a key role here.
- Pricewhich Hong Kong buyers define as a combination of everyday low prices, plus discounts and special offers.
While stores vary in their ability to meet customer expectations in these areas, major banners perform relatively well across all five, demonstrating the importance of a nuanced and consistent value proposition.
“It’s not enough for a retailer to be the best in one area,” continues Siew. “Hong Kong shoppers have a very sophisticated view of what they want from their grocery experiences today, and retailers need to meet those needs in several areas. A strong – and well-balanced – offering goes a long way .
Elsewhere, the study shows that:
- Online Grocery Penetrationin Hong Kong remains significantly higher than in many markets, but lower than in neighboring territories such as Thailand and Singapore.
that of Hong Kong pureplay retailers dominate onlinewith more than half of shoppers purchasing from HKTV Mall only.
That of the region loyalty cards don’t seem to work as well as they should, creating little connection between holders and stores.
The full report is available for download now at dunnhumby.com.
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