Survey: 75% of HK consumers shop on social media, make 7 monthly purchases

Over two-thirds (75%) of Hong Kong consumers relied on social media to shop over the past year, with an average of seven purchases per month, a survey finds.

Ayden's Retail Report 2024, which was commissioned by Adyen and conducted by Censuswide from 15 January 2024 to 1 February 2024, polled 38,000 consumers and 13,000 merchants globally, including 1,000 consumers and 500 merchants from Hong Kong. By combining consumer data across 26 markets, the survey aims to explore global and local trends impacting businesses around the world.

The survey revealed that 75% of consumers in Hong Kong used social media to buy in the last 12 months, significantly higher than the global average of 44%. This represents a significant increase from Adyen's previous report, which found that only 17% of surveyed Hong Kong consumers making purchases through social media or messaging platforms such as Facebook, Instagram, and WeChat in 2022.

Among the Hong Kong consumers that shopped on social media over the past year, 87% of them were baby boomers, followed by Gen Zs (74%), Millennials (70%) and Gen X (68%). Among baby boomer consumers who have shopped on social media in the past 12 months, 45% of them were first-time buyers.

Moreover, Hong Kong consumers made an average of seven purchases on social media per month, with an average spending of HK$4,154.75 per transaction. 62% also said they wanted to buy products after viewing them on social media, said the survey.

On the other hand, 78% of retailers in Hong Kong have reported revenue growth after enabling social commerce. 

Digital wallet usage among Hongkongers

In terms of digital wallet usage, the survey revealed that 38% of Hong Kong consumers preferred using digital wallets for payments, exceeding the global average of 28%. 68% of respondents said they will abandon a purchase if they can’t pay how they want, compared to the global average of 55%.

As citizens embrace digialisation, 59% of Hong Kong consumers don’t even carry wallets anymore, above the global average of 27, said the survey. Instead, they are relying on the ability to tap their phone to pay. QR code payments are also on the rise, with 29% of consumers in Hong Kong using it.

Given the speed of customer adoption, only 21% of businesses in Hong Kong accept digital wallets both online and in-store. This suggests that businesses need to continue playing catch-up to meet the growing customer demand for digital payment options.

Payment safety

Although digital payment offers convenience and efficiency, users also value payment safety. The survey found 21% of respondents said they feel more unsafe shopping today than they did 10 years ago because of payment fraud. 

Despite security concerns, Hong Kong customers still expect the buying process to be easy. 24% of respondents want to complete a transaction within a few clicks and by entering as little information as possible. 

While 71% of businesses in Hong Kong said that fraudulent transactions and chargebacks are a significant cost to their business, 74% are considering working with a payments provider that offers a chargeback liability guarantee. 

Adyen suggested that brands may optimise their risk setting by using smart tools and fraud trend data. In this way, it’s possible to spot and stop fraud before it occurs, while known customers can shop uninterrupted.

Kai Tang, head of Hong Kong, Ayden, told local media such as HKET and Ming Pao that, while electronic payments in Hong Kong are not lagging behind, especially after the experiencing the pandemic and electronic consumption vouchers, credit cards remain the dominant payment method. Meanwhile, other payment options such as PayMe and Apple Pay have seen steadily increasing usage rates, leading to an overall decline in cash usage.

Alex Rhodes, global head of unified commerce, Adyen, said: Retailers are challenged with connecting and integrating these channels while ensuring a consistent customer experience across each one. All this is within an increasingly global context with quickly evolving consumer demands."

Join us this coming 26 June for Content360 Hong Kong, a one-day-two-streams extravaganza under the theme of "Content that captivates". Get together with our fellow marketers to learn about AI in content creation, integration of content with commerce and cross-border targeting, and find the recipe for success within the content marketing world!

Related articles:

Study: 55% of businesses plan to increase their use of AI for social media
Study: 37 million social media users created in the last quarter
Study: Social media to become SG's preferred retail channel in 2024