Chapter 1: Where we shop and how we pay
48% of Gen Z choose retailers that let them shop on social media
The main goal for retailers is simple: turn browsers into buyers. And delivering the experiences customers expect is key to making that happen. While online channels, especially social media, are popular among younger shoppers, physical stores remain the preferred choice for many. What matters most is connecting every channel to create a seamless, cross-channel journey. And when it comes to closing a sale, it often comes down to one thing: letting customers pay how they want. Hong Kong is emblematic of this shift. Retailers here are leaning into hyper-localisation - adapting not just language or inventory, but also payment methods and social commerce strategies to meet specific consumer expectations. This localisation is critical, especially in a market where seamless cross-channel journeys are now table stakes.
Finding 01
Gen Z scrolls, Boomers stroll
Shoppers today have more ways to buy than ever, whether through TikTok, the Metaverse, or traditional online stores. Despite this, physical stores remain popular and outperform ecommerce overall. However, a significant proportion of shoppers value both channels equally. And, if you’re selling to people under 40, don’t overlook social, which seems to be a bit of a retail blind spot.
Finding 02
Consumers crave connected commerce
The ubiquity of the smartphone means shoppers have a digital sales channel in their pocket at all times. They can check in-store stock before leaving the house, browse and read reviews on the way to the shop, and try on the sweater in blue - then order it in red via the app. And they expect retailers to be just as fluid as they are. They want to be able to return online purchases in store, buy directly from their TikTok feed, and access your entire inventory from the shop floor.
Finding 03
Payment methods can make or break a sale
The payment is one of the most critical moments in the buyer journey. Get it right, and you close the sale; get it wrong, and you risk losing the customer – possibly forever. Nowhere is this more true than in Hong Kong, where consumers are some of the most impatient globally. Shoppers here won’t tolerate friction: it ranks among the highest for consumers who say they’ll walk out or abandon their cart if payment takes too long. It’s also the global leader in digital wallet adoption, with 56% of consumers having used one in the past year. As new, more streamlined payment methods appear, consumers are becoming increasingly less tolerant of outdated, clunky experiences. Retailers are taking note. In Hong Kong, 37% say they plan to increase revenue in 2025 by implementing low-cost payment methods, while 33% aim to do so by offering new payment methods online. These priorities reflect a growing recognition that payment strategy isn't just a cost centre - it’s a revenue lever. Payment technology is evolving fast – and retailers need to keep up.
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