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CUHK Master of Science Programme in Marketing Announces Survey Results“The Greatest Local Brand in Mind”
Rapid economic and social development in Hong Kong over the years has helped enhance the education and knowledge level of Hong Kong people. This also gives rise to a mature consumption culture in the city. Nowadays, consumers have higher and higher expectation on the quality of products, and a good “Brand Name” has become one of the major factors in determining consumers’ behaviour. The HKSAR government also reckons that building up of great local brands is the key to the continuous growth of Hong Kong’s competitiveness and further economic development.
Past brand surveys conducted in Hong Kong seldom paid great emphasis on detailed analysis of local brands. In order to deepen the understanding on the establishment and subsequent development of local brands, Prof. Leo Sin, Director of Master of Science Programme in Marketing, CUHK and Dr Susanna Kwok, Instructor of Department of Marketing, CUHK, have conducted a consumer survey between 1 July and 25 July 2007. The survey has successfully interviewed 1,023 consumers from Hong Kong Island, Kowloon and the New Territories through quota sampling. The main focus of the survey is to analyze Hong Kong people’s recognition, preference, consumption and expectation on local brands. It is hoped that the survey could help facilitate local companies in their brand building and provide a feasible direction for the future development of Hong Kong’s local brands.
Survey Results
1. The most popular brand names mentioned by local consumers:
|
Rank |
The Most Popular Local Brand |
|
1st |
Park'n Shop |
|
2nd |
Giordano |
|
3rd |
Vita |
|
4th |
Cafe de Coral |
|
5th |
Wellcome |
2. Consumers' mentioning, preference and consumption of local brands:
|
Nature of Business |
Rank |
Most frequently mentioned |
Most preferred |
Most popular in terms of consumption |
|
Banking & Financial services |
1st |
Hang Seng Bank |
Hang Seng Bank |
Hang Seng Bank |
|
2nd |
The Bank of East Asia |
The Bank of East Asia |
The Bank of East Asia |
|
|
3rd |
Chong Hing Bank |
Chong Hing Bank |
Chong Hing Bank |
|
|
Telecommunications |
1st |
PCCW |
PCCW |
PCCW |
|
2nd |
3 HK |
3 HK |
3 HK |
|
|
3rd |
Hutchison Global |
Peoples / Smartone |
Peoples |
|
|
Public Utilities |
1st |
KMB |
MTR |
MTR |
|
2nd |
MTR |
KMB |
KMB |
|
|
3rd |
KCR |
KCR |
KCR |
|
|
Apparel, Shoes & Accessories |
1st |
Giordano |
Giordano |
Giordano |
|
2nd |
Bossini |
I.T. |
G2000 |
|
|
3rd |
G2000 |
G2000 |
I.T. |
|
|
Retail |
1st |
Park'n Shop |
Park'n Shop |
Park'n Shop |
|
2nd |
Wellcome |
Wellcome |
Wellcome |
|
|
3rd |
Mannings |
Mannings |
Mannings |
|
|
Jewellery / Watches |
1st |
Chow Sang Sang |
Chow Sang Sang |
Chow Sang Sang |
|
2nd |
Chow Tai Fook |
Chow Tai Fook |
Chow Tai Fook |
|
|
3rd |
TSL |
Ma Belle |
Ma Belle |
|
|
Food |
1st |
Garden |
Maxim's Cake Shop |
Maxim's Cake Shop |
|
2nd |
Maxim's Cake Shop |
Garden |
Garden |
|
|
3rd |
Lee Kum Kee |
Lee Kum Kee |
Lee Kum Kee |
|
|
Catering |
1st |
Cafe de Coral |
Cafe de Coral |
Cafe de Coral |
|
2nd |
Fairwood / Maxim's Fast Food |
Maxim's Fast Food |
Maxim's Fast Food |
|
|
3rd |
— |
Fairwood |
Fairwood |
|
|
Airlines, Traveling & Hotel |
1st |
Hong Thai Travel |
Hong Thai Travel |
Hong Thai Travel |
|
2nd |
Wing On Travel |
OceanPark |
OceanPark |
|
|
3rd |
OceanPark |
Wing On Travel |
Wing On Travel |
|
|
Entertainment |
1st |
TVB |
TVB |
TVB |
|
2nd |
ATV |
Cable TV |
Cable TV |
|
|
3rd |
Cable TV |
Neway Karaoke |
Neway Karaoke |
|
|
Personal Care |
1st |
Sau San Tong |
Sau San Tong |
Sa Sa |
|
2nd |
Be a Lady |
Physical |
Bonjour Cosmetics / Physical |
|
|
3rd |
Physical |
California/ Sa Sa |
— |
|
|
Real Estate / Property Management |
1st |
Centaline |
Centaline |
Centaline |
|
2nd |
Midland |
Sun Hung Kai |
Sun Hung Kai |
|
|
3rd |
Sun Hung Kai |
Midland |
Midland |
|
|
Pharmacy / Chemical Industry |
1st |
2036 G. Spore |
Coltalin |
Coltalin |
|
2nd |
Coltalin |
2036 G. Spore |
2036 G. Spore |
|
|
3rd |
Wai Yuen Tong |
Sea Horse / Wai Yuen Tong |
Wai Yuen Tong |
3. Criteria for a good brand name from consumers' perspectives
|
|
Criteria for a good brand name |
|
1st |
Good Quality (92.4%) |
|
2nd |
Good Service (51.2%) |
|
3rd |
Good Design (31.8%) |
|
4th |
Popular (in terms of consumption) (29.3%) |
|
5th |
Public Awareness (20.0%) |
4. Market share of local brands
a. Some markets are dominated by several major brands, with limited opportunities for new comers
|
Nature of Business |
Most Preferred* |
Most Popular* (in terms of consumption) |
|
Public Utilities |
76.9% |
79.4% |
|
Entertainment |
72.8% |
78.1% |
|
Catering |
65.1% |
73.8% |
|
Retailing |
63.1% |
70.2% |
* Market share of the top three local brands which are most preferred or most popular among consumers.
b. In some markets, market share of most popular brand is low, therefore more opportunities for new comers
|
Nature of Business |
Most Preferred* |
Most Popular* (in terms of consumption) |
|
Personal Care (Beauty Shop, Fitness Club, etc.) |
20.3% |
15.7% |
|
Pharmacy / Chemical Industry |
14.6% |
15.4% |
* Market share of the top three local brands which are most preferred or most popular among consumers.
5. Difference in brand preference / consumption between different generations?
a. Younger generation has a lower recognition and preference for some “Old” Brands
|
Nature of Business |
Most Preferred |
Most Popular* (in terms of consumption) |
||
|
|
Age 30 or below |
Age 31 or above |
Age 30 or below |
Age 31 or above |
|
Telecommunications |
3 HK |
PCCW |
3 HK |
PCCW |
|
Apparel / Shoes / Accessories |
I.T. |
Giordano |
I.T. |
Giordano |
|
Food |
Maxim's Cake Shop / Garden |
Lee Kum Kee |
Maxim's Cake Shop / Garden |
Lee Kum Kee |
b. Products / services with potential crisis
|
Nature of Business |
Most Preferred |
Most Popular* (in terms of consumption) |
||
|
|
Age 30 or below |
Age 31 or above |
Age 30 or below |
Age 31 or above |
|
Jewellery / Watches |
Chow Sang Sang |
Chow Sang Sang |
Chow Sang Sang |
Chow Sang Sang |
|
Ma Belle |
Chow Tai Fook |
Ma Belle / City Chain |
Chow Tai Fook |
|
|
Entertainment |
TVB |
TVB |
TVB |
TVB |
|
Neway Karaoke |
Cable TV / ATV* |
Neway Karaoke / Cable TV |
Cable TV / ATV* / RTHK* |
|
* ATV & RTHK are the choices of consumer group aged 50 or above.
Recommendations:
|
|
Survey Finding |
Recommendation |
|
1. |
In "Banking and Financial Services", "Airlines/Traveling/Hotel" and "Pharmacy / Chemical Industry" categories, Hong Kong consumers relatively preferred foreign brands. |
Local brands should adopt a systematic and strategic approach to project a professional image for tailor-made service for the local community. |
|
2. |
Hong Kongconsumers believe that a good brand should be able to provide high quality product and service. |
Local brands should introduce robust system to assure product quality and seek for continuous improvement, mobilize resource for people development and encourage creativity. "Trustworthiness" will be one of the key factors for brand building in Hong Kong. |
|
3. |
For some industries such as "Pharmacy / Chemical Industry", market share of existing brands is low, therefore, there are ample opportunities for new comers. |
"Pharmacy / Chemical Industry" requires heavy investment in R&D, the government may consider providing some tangible subsidies or grants. Another possible way to go is to encourage academic institutions to conduct relevant research and studies. |
|
4. |
Younger generation has a low recognition and preference for some "Old" brands. |
Local brand should continue updating their products and encourage creativity. Regular market research will be helpful for understanding changes of consumers' interest, and thereby help formulating new policy and direction for meeting the changing market needs. |
Conclusion:
To develop Hong Kong into a “City of Distinguished Brands” requires concerted efforts among the government, the business community as well as the academics.
Prof. Leo Sin (left) and Dr. Susanna Kwok from Faculty of Business Administration, CUHK
