GS1 Report 2026 V15_KVC review_finalv1 by GS1HongKong

Growth Reimagined: Building Consumer Trust in the AI Era KPMG. Make the Difference.

kpmg.com/cn

November 2026 gs1hk.org Growth Reimagined: Building Consumer Trust in the AI Era l 1

Contents

Foreword

Methodology

Executive Summary

Trusted AI Builds Consumer Confidence

Value Beyond Price Wins Tomorrow's Consumer

Silver Shoppers’ Priorities Diverge across the GBA

Chinese Mainland brands need to earn trust

Leveraging Trust as a Hong Kong Advantage

Leading in the Future of Retail

Trusted AI Builds Consumer Confidence

Chinese Mainland brands need to earn trust

Value Beyond Price Wins Tomorrow's Consumers

Leveraging Trust as a Hong Kong Advantage

Contents 03

Foreword

Methodology

Executive Summary

Silver Shoppers’ Priorities diverge across the GBA

© 2026 KPMG, a Hong Kong SAR partnership and a member firm of the KPMG global organisation of independent member firms affiliated with KPMG International Limited, a private English company limited by guarantee. All rights reserved.

Leading in the future of retail

Growth Reimagined: Building Consumer Trust in the AI Era l 2

Contents

Foreword

Methodology

Executive Summary

Trusted AI Builds Consumer Confidence

Value Beyond Price Wins Tomorrow's Consumer

Silver Shoppers’ Priorities Diverge across the GBA

Chinese Mainland brands need to earn trust

Leveraging Trust as a Hong Kong Advantage

Leading in the Future of Retail

Foreword A new era of consumer growth is taking shape across Hong Kong and other Greater Bay Area (GBA) cities. Expectations of trust, value, age relevance and brand origin are being rewritten, creating opportunities for organisations prepared to lead with clarity and conviction. While consumers across the region share common fundamentals, their differences in technology readiness, spending behaviour and competitive dynamics make a single regional playbook increasingly risky. This report is for business leaders ready to turn market insight into advantage. It highlights where growth is most defensible, where trust will shape investment and where sharper market choices can unlock new momentum. The findings provide a practical basis for action across AI, customer propositions, product and service design, brand positioning, channels and resource allocation.

Alice Yip Head of Consumer & Retail, Hong Kong SAR, KPMG China

From the shared patterns and defining differences across both markets, five themes emerge as a roadmap for future growth: • Trusted AI builds consumer confidence: AI can accelerate personalisation and service, but privacy, accuracy and a human touch will determine adoption and reputational risk. • Value beyond price wins tomorrow's consumer: Price must be supported by quality, durability, and visible benefits. Success requires moving beyond discounts to sharpen propositions and loyalty design. • Silver Shoppers’ Priorities Diverge across the GBA: While Hong Kong's silver shoppers remain highly price-sensitive, their peers in other GBA cities are increasingly driven by brand reputation and engaging experiences. Brands must tailor their value propositions to local priorities.

Anna Lin Chief Executive GS1 Hong Kong

• Chinese Mainland retailers and brands need to earn trust: These brands successfully capture consumers in other GBA cities through strong value and trust. But they have to overcome a trust gap in Hong Kong. • Leveraging trust as a Hong Kong advantage: Safety, reliability, and quality remain valuable differentiators for Hong Kong brands, particularly in high-stakes categories like food and travel. These must be converted into credible proof and locally relevant execution. The opportunity is present today. Organisations that act with ambition will be well-positioned to build trust, influence demand, and drive the next wave of growth. The imperative to act is immediate.

Growth Reimagined: Building Consumer Trust in the AI Era l 3

Contents

Foreword

Methodology

Executive Summary

Trusted AI Builds Consumer Confidence

Value Beyond Price Wins Tomorrow's Consumer

Silver Shoppers’ Priorities Diverge across the GBA

Chinese Mainland brands need to earn trust

Methodology YouGov conducted an online consumer survey in August 2026 to examine shopping behaviour, spending intentions and attitudes towards AI in retail across Hong Kong* and other GBA** cities. The research included 1,004 respondents in Hong Kong and 825 in other GBA cities. Results were weighted to reflect key population characteristics, including marital status, employment status and household income, and percentages are rounded to the nearest whole number. Survey topics covered purchase drivers, shopping styles, category spending, trust in AI and data sharing, cybersecurity and payments, shopping challenges, brand origin and respondent demographics. The quantitative findings were complemented by interviews with 9 senior C-suite executives from leading retailers and FMCG industries. These discussions explored productivity, operational efficiency, resilience, workforce and supply-chain pressures, growth opportunities, changing customer behaviour, and technology adoption. * Hong Kong Island, Kowloon & New Territories ** Guangzhou, Shenzhen, Zhuhai, Foshan, Jiangmen, Zhaoqing, Huizhou, Dongguan, Zhongshan

Leveraging Trust as a Hong Kong Advantage

Leading in the Future of Retail

Age Groups

27%(37%) 1,004

aged below 35 – in Hong Kong (other GBA cities)

respondentsfromHongKong

40%(22%)

825 respondents from other GBA cities.

aged 35-54 – in Hong Kong (other GBA cities)

33%(41%) aged above 55 – in Hong Kong (other GBA cities) Generation Z: 14 to 29 years old Millennials: 30 to 45 years old Generation X: 46 to 61 years old Baby Boomers: 62 to 80 years old

• • • •

AS Watson & Co Ltd Canali Far East Limited Elevator Goods Ltd Guangxi Jiaojiu Network Technology Co., Ltd. (Jiu Xiao Er)

• istyle Retail (Hong Kong) Co., Limited (@cosme HK) • Lacoste S.A. • LionRock Capital Ltd (Li-Ning) • Maxim’s Caterers Ltd • Reckitt Benckiser HK Ltd

Growth Reimagined: Building Consumer Trust in the AI Era l 4

Contents

Foreword

Methodology

Executive Summary

Trusted AI Builds Consumer Confidence

Value Beyond Price Wins Tomorrow's Consumer

Silver Shoppers’ Priorities Diverge across the GBA

Chinese Mainland brands need to earn trust

Leveraging Trust as a Hong Kong Advantage

Leading in the Future of Retail

Executive Summary To win consumers in Hong Kong and other GBA cities, brands must combine trusted innovation and proven performance with a broader view of value, while tailoring experiences to different age groups and category-specific spending priorities.

ExecutiveSummary To win consumers in Hong Kong and other GBA cities, brands must combine trusted innovation and proven performance with a broader view of value, while tailoring experiences to different age groups and category-specific spending priorities.

Trusted AI Builds Consumer Confidence

Value Beyond Price Wins Tomorrow's Consumer

Silver Shoppers’ Priorities Diverge across the GBA

Chinese Retailers and Brands must Win Trust

Trust in AI is rising: from 28% to 48% in Hong Kong and from 59% to 76% in other GBA cities. Yet only 10% of Hong Kong consumers will share personal data and privacy tops concerns in both markets.

Self identified value shoppers, who prioritise price, are the largest consumer group across the GBA. In Hong Kong, 52% of consumers identify as value shoppers, compared with 35% in other GBA cities.

The growing cohort of silver consumers (aged above 55) represents a massive growth opportunity, but their priorities diverge sharply by market. While 57% of Hong Kong’s silver shoppers remain highly value-driven and prioritise the best price, their peers in other GBA cities are driven by brand reputation (37%) and shopping experience (27%).

Chinese Mainland brands perform strongly in other GBA cities on both value and trust, with consumers citing value for money (64%), safety and reliability (58%), and brand reputation (50%).

The path forward for business is to develop a privacy-bydesign roadmap with clear consent, options that require less personal data, and human escalation.

Retailers can make value easier to access and verify through transparent pricing, reliable product information, consistent brand messaging and dependable service across every channel.

The business implication is clear: Brands must tailor their propositions to local priorities, focusing on price competitiveness in Hong Kong, while building brand reputation and engaging experiences in other GBA cities.

However, in Hong Kong, value is the overwhelming driver (81%) for purchasing Chinese Mainland brands, but trust is missing with only 39% citing safety and 33% citing quality.

Leveraging Trust as a Hong Kong Advantage Trust remains a competitive advantage for Hong Kong brands, with consumers associating them with safety, reliability, authenticity and value for money. Brands can build on this confidence through clear certification, rigorous quality assurance and transparent sourcing. Combined with competitive pricing, these measures can strengthen loyalty across both markets.

Growth Reimagined: Building Consumer Trust in the AI Era l 5

Contents

Foreword

Executive Summary

Methodology

Trusted AI Builds Consumer Confidence

Value Beyond Price Wins Tomorrow's Consumer

Silver Shoppers’ Priorities Diverge across the GBA

Chinese Mainland brands need to earn trust

Leveraging Trust as a Hong Kong Advantage

Leading in the Future of Retail

KeyFindings Trust in AI is rising across the GBA Hong Kong

Other GBA cities

80 70 60 50 40 30 20 10 0

Trust in AI (%)

76% 59% 48%

28% 2025 *

2026

* Data from 2025’ KPMG x GS1 HK’s report: Beyond Retail in the Age of AI

73% 61%

Hong Kong

10% 38%

Trust in AI (Fully trust + somewhat trust)

Consumers aged above 55

65% 49%

45%

39%

37%

35%

22%

Price / Value for Money

Quality / Durability

AI trust is lowest among Hong Kong’s silver shoppers Trust in AI (Willingness to share data)

Trust in Chinese Mainland Brands for safety and reliability

Factors influencing purchasing decisions for all consumers

Comfort / Convenience (Pace)

Other GBA cities

Promotions

27%

Brand Reputation

Hong Kong

The Silver Divide: Price leads in Hong Kong, brand drives other GBA cities 76%

38%

57%

Hong Kong silver consumers identified as value shoppers

39%

58%

Hong Kong consumers

Consumers in other GBA cities

Safety and reliability ranks no.

as a purchase decision for Hong Kong Brands

Trust in High-Stakes Categories: Hong Kong consumers back local brands

78%

of Hong Kong consumers choose a local Hong Kong brand as their preferred airline

71%

of Hong Kong consumers choose a local Hong Kong brand as their preferred food & beverage brand

Silver consumers in the other GBA cities identified as: other GBA cities

32% 44%

Trust AI and are willing to share data Somewhat trust AI and share limited data

Consumers aged below 35

Other GBA Cities

77% 59%

Hong Kong

37%

27%

23%

Brand-led shoppers

Experience-led shoppers

Value shoppers

Growth Reimagined: Building Consumer Trust in the AI Era l 6 Growth Reimagined: Building Consumer Trust in the AI Era l 6

Trusted AI Builds Consumer Confidence

Growth Reimagined: Building Consumer Trust in the AI Era l 7

Contents

Foreword

Methodology

Executive Summary

Trusted AI Builds Consumer Confidence

Value Beyond Price Wins Tomorrow's Consumer

Silver Shoppers’ Priorities Diverge across the GBA

Chinese Mainland brands need to earn trust

Leveraging Trust as a Hong Kong Advantage

Leading in the Future of Retail

TrustedAIBuildsConsumerConfidence Consumers will embrace AI when they can trust it and that trust is what turns technological capability into retail confidence. Yet trust levels diverge sharply across markets. In other GBA cities, 76% of consumers trust AI at least somewhat, and 32% are willing to share personal data. In Hong Kong, the corresponding figures are just 48% and 10%. Despite this gap, privacy and misuse of personal information remain the leading concerns in both markets, underscoring that trust is not a technology issue, but a transparency issue. Encouragingly, progress is being made. Compared to last year’s survey*, trust in AI has improved: only 28% of Hong Kong consumers trusted AI previously, versus 59% in the other GBA cities. This upward trend signals that, with the right safeguards and clear communication, retailers can convert cautious acceptance into lasting confidence. * 2025, 1009 sample size

The findings highlight four main factors that shape consumer confidence, showing where the two markets are similar and where they differ in their readiness for AI. • Hong Kong’s more cautious consumers will require clear value before granting broader data access. • Privacy and control underpin trust in both markets: 57% worry about misuse of personal information, making data minimisation, purpose limitation and meaningful consent essential. • Trust extends beyond AI to the full retail journey. Problems with payments, product authenticity, returns or customer support can undermine confidence, even when AI tools work well. • Human-centred design remains essential: AI should simplify routine journeys while preserving rapid access to staff and maintaining accuracy and fairness.

Concerns about the use of AI 2026 Results 57% 54%

Privacy (e.g. in-store facial recognition without consent)

46% 41%

Accuracy of information

Lack of human interaction

Bias/discrimination Hong Kong

42% 34%

2025 Results 58% 62% 51% 42% 50% 34% 20% 27%

25% 30% Other GBA cities

AI is increasingly shaping how consumers discover and evaluate products, and it tends to recommend those backed by data it can readily interpret and trust. As a result, businesses that operate on trusted, standardised product data will be best positioned to earn consumer confidence and secure future purchase decisions.”

Anna Lin Chief Executive, GS1 Hong Kong

Growth Reimagined: Building Consumer Trust in the AI Era l 8

Contents

Foreword

Executive Summary

Methodology

Trusted AI Builds Consumer Confidence

Value Beyond Price Wins Tomorrow's Consumer

Silver Shoppers’ Priorities Diverge across the GBA

Chinese Mainland brands need to earn trust

Leveraging Trust as a Hong Kong Advantage

Leading in the Future of Retail

WhatTrustedAIMeans forRetailers Building consumer trust in AI-enabled retail is important in both markets, but different levels of AI readiness call for distinct strategies.

In other GBA cities, higher AI readiness allows retailers to offer greater personalisation while preserving consumer control. Retailers can deploy personalised recommendations, smart assistants and proactive services, with clear safeguards for data use, accuracy and fairness. Consumers should retain control over their data and preferences, while intuitive interfaces, local payment options and language choices can reduce cross-border friction.

In Hong Kong, where consumers are relatively cautious, retailers should build confidence through transparent, low-risk and optional uses of AI, such as product search, comparison, stock checks and service triage. Personal data should be requested progressively and only where needed, with a clear benefit to the consumer and plain-language explanations of what is collected, why it is needed, how long it is retained and how consumers can opt out.

Ultimately, transparency underpins both reassurance and personalisation. Consumers are more likely to embrace AI when they understand how it is used, how their data is handled and what control they have. By embedding these principles across AI touchpoints, retailers can turn AI capabilities into lasting consumer confidence.

Trust in AI should also be reinforced by confidence in the wider retail experience, including strong account protection, transaction alerts, verified sellers, authenticity checks and straightforward dispute resolution. Easy returns and refunds, together with seamless access to staff when human support is needed, can further strengthen consumer confidence.

Consumer concerns in Hong Kong and other GBA cities 57% 52% 46% 42%

Hong Kong

Other GBA cities

Hong Kong Privacy

54%

Misuse of personal information

52%

Accuracy Lack of human interaction

AI concerns

Other GBA cities Payment/account fraud

63%

56%

43%

Scams, fraud or counterfeit products

38%

41% 34%

50%

Complicated returns, exchanges or refunds

35%

Shopping challenges

Growth Reimagined: Building Consumer Trust in the AI Era l 9

Contents

Foreword

Methodology

Executive Summary

Turning Responsible AI into a Retail Advantage

Trusted AI Builds Consumer Confidence

Value Beyond Price Wins Tomorrow's Consumer

Silver Shoppers’ Priorities Diverge across the GBA

Chinese Mainland brands need to earn trust

Leveraging Trust as a Hong Kong Advantage

Leading in the Future of Retail

The success of AI depends less on technological sophistication and more on how reliably retailers earn and protect consumer trust. This is especially critical in Hong Kong, where trust in AI lags significantly behind the other GBA cities. Among consumers aged above 55, 38% in Hong Kong trust AI, compared with 76% in other GBA cities, making older Hong Kong consumers the least trusting cohort surveyed. 1. Privacy-by-design Minimise data collection. Provide easy-to-understand consent choices for older consumers who are protective of their personal information. 2. Make AI transparent Clearly identify AI interactions and explain the purpose in plain language. Show what data is collected and how it benefits the shopper. 3. Secure end-to-end journeys Protect accounts, authenticated product identity, payments, and personal information while strengthening fraud and counterfeit detection—a critical requirement for cautious silver shoppers. 4. Keep people in the loop Provide rapid human escalation for complex or disputed cases. Given some consumers still distrust AI, access to a real person is a critical safety net. 5. Measure trust Monitor consent rates, opt-outs, and complaint reasons. Track whether the above 55 demographic is actually adopting and using digital tools. 6. Localise deployment Use a reassurance-led model in Hong Kong. In other GBA cities, there is greater scope to offer personalised services. In both markets, AI deployment must prioritise transparency over speed.

Growth Reimagined: Building Consumer Trust in the AI Era l 10

Contents

Foreword

Methodology

Executive Summary

Trusted AI Builds Consumer Confidence

Value Beyond Price Wins Tomorrow's Consumer

Silver Shoppers’ Priorities Diverge across the GBA

Chinese Mainland brands need to earn trust

Leveraging Trust as a Hong Kong Advantage

Leading in the Future of Retail

Data-Driven Trust: Elevator Goods Ltd

Scaling AI without outsourcing trust

“

You cannot buy your way onto [an AI assistant’s product shortlist]. You get there with structured product data and other people vouching for you in public…”

Monish Sabnani Managing Partner, Elevator Goods Ltd

Product quality and accountable automation

Verifiable proof and customer reassurance

Elevator Goods’ AI-first model starts from a consumer truth: AI may help a brand move faster, but it cannot make an unreliable product credible. Headquartered in Hong Kong, the company sources locally and across the border while selling globally. Being within an hour of a factory floor means the team can resolve a quality issue in person in a day rather than over email in a month, making product reliability the first promise the brand must keep.

The same discipline carries into the evidence consumers see. Buyers increasingly look for reviews, comparisons and reassurance from people who already own the product, so Elevator Goods relies on real creator content and products used in real homes rather than AI-generated endorsement. Product pages anticipate common questions. For older customers, reassurance is easier to access when key information appears in larger, easier-to-read text, alongside demonstrations by creators of a similar age and a phone line answered by a person.

That operational proximity gives AI something credible to amplify, but trust also depends on how the automation operates. An internal product-seeding agent finds relevant creators, drafts and sends outreach, logs activity and triggers sample shipment in Shopify. At about US$19 per placement—versus a previous agency’s US$5,000 monthly base retainer plus sampling costs— it delivers measurable efficiency without becoming a black box: the workflow stays inside the business, activity is traceable, and errors can be reviewed and corrected by the team. Keeping the system in-house also keeps accountability with the people whose brand is at stake. Team members direct several agents and judge their output, while senior leaders build handson fluency rather than delegating responsibility to vendors. Automation can increase volume, but a trusted-AI model keeps people answerable for whether every message is accurate, appropriate and worthy of a customer’s confidence.

As discovery shifts towards LLMs such as ChatGPT, Claude and Gemini, this proof must be structured so the AI models helping consumers choose can interpret it accurately. These assistants are likely to narrow decisions to two or three products. A brand earns a place on that shortlist through structured product data, independent reviews and accurate answers—not by paying for an undisclosed recommendation—so consumers can see and verify why it was recommended. That trust must continue after purchase. More than 80% of customer service is automated, but customers can still reach a person when judgement or reassurance is needed. The result is a practical trusted-AI model: use automation for speed and consistency, anchor every claim in product quality and real-world proof, and keep people visibly responsible when the technology reaches its limits.

Growth Reimagined: Building Consumer Trust in the AI Era l 11

Contents

Foreword

Methodology

Executive Summary

Trusted AI Builds Consumer Confidence

Value Beyond Price Wins Tomorrow's Consumer

Silver Shoppers’ Priorities Diverge across the GBA

Chinese Mainland brands need to earn trust

Leveraging Trust as a Hong Kong Advantage

Leading in the Future of Retail

Empowering Trusted AI: @cosme

Real reviews power trusted AI

“

AI helps customers make sense of the evidence, but trust depends on explaining recommendations and keeping knowledgeable staff within reach.”

Yuki Yamamoto CEO & Managing Director, istyle Retail (Hong Kong) Co., Limited (@cosme HK), Hong Kong, GBA and Taiwan

Reviews and purchase data

AI, privacy and relevance

At @cosme, trust is built before purchase. Familiar to many as a beauty retailer, @cosme also operates a consumergenerated review platform and e-commerce business. Its physical stores and online channels contribute purchase and interaction data to build a proprietary database linking structured product information with candid reviews and user behaviour. Together, this shared database – not any single channel – helps @cosme understand what consumers buy and how they evaluate products, giving its AI-powered features, such as review summaries, a richer evidence base.

AI can then make that evidence easier to use without replacing the people who sustain trust. Review summaries reduce overload while preserving different experiences; KAORIUM and skin analysis narrow choice. In practice, customers should know when AI is involved, why a product surfaced, what data influenced it, how to control their preferences, and when they can reach staff for reassurance.

That foundation is especially valuable in Hong Kong, where consumers are cautious about AI and expect clear benefits before sharing data. More than 200,000 monthly active users—about 20% of women aged 20–39 in its target market—and the first overseas flagship provide richer insight into how customers discover, try, evaluate and buy products, while making Hong Kong a bridge into the GBA. As more reviews and interactions feed the database, the evidence must remain easy to interpret. The @cosme Best Cosmetics Awards combine ratings with recurring themes in positive and critical reviews, showing not only which products resonate, but also why—from efficacy and texture to value and fit. Collective experience becomes transparent proof rather than a brand claim, while informed staff add context where judgement matters.

For usefulness to scale, trust must extend across the journey. Standardised regional data can improve relevance and reduce irrelevant promotion, but privacy-by-design requires data minimisation, granular consent, separation of essential and optional data, and local governance. Tracking accuracy, opt-outs, complaints and cases requiring human escalation make trust measurable. @cosme is moving forward with plans to adapt personalisation to each market's pace of adoption without becoming an opaque sales tool. With those safeguards in place, the same evidence creates value for brands. Aggregated, privacy-conscious insights—not personal data—from searches, reviews, trial and purchase reveal shifting needs, product performance and unmet demand. Brands can respond with better products and engagement, while consumers receive more relevant choices, allowing @cosme’s database model to serve both sides of the market.

Growth Reimagined: Building Consumer Trust in the AI Era l 12

Value Beyond Price WinsTomorrow’s Consumers

Growth Reimagined: Building Consumer Trust in the AI Era l 13

Contents

Foreword

Methodology

Executive Summary

Trusted AI Builds Consumer Confidence

Value Beyond Price Wins Tomorrow's Consumer

Silver Shoppers’ Priorities Diverge across the GBA

Chinese Mainland brands need to earn trust

Leveraging Trust as a Hong Kong Advantage

Leading in the Future of Retail

How Retailers Can Better Serve Value Shoppers Value – defined as an emphasis on competitive prices and clear savings – is the most common way consumers describe their shopping style across the GBA. This preference is more prevalent in Hong Kong, where 52% identify as value shoppers, compared with 35% in other GBA cities. For retailers, these findings highlight the importance of understanding what consumers expect in return for their money. Service and convenience are important parts of that expectation. In Hong Kong, value shoppers place particular importance on quick, effective responses and easy, convenient interactions. Exclusive offers and loyalty rewards also matter significantly.

Where value shoppers expect more than price, and where retailers can stand out Quick, effective responses Hong Kong

In other GBA cities, value shoppers most commonly associate brands with lifestyle and identity, followed by loyalty and long-term engagement, then useful information and inspiration. Retailers should consider how helpful content and loyalty rewards can complement competitive prices and give shoppers more value for their money.

Consumers today expect more than product claims. They want credible, verifiable information at their fingertips. Like a digital passport for products, trusted and accessible data helps consumers validate quality, sustainability, and authenticity. When value is visible, trust grows, and trusted products are more likely to be chosen. ” Jack Lee Chief Operating Officer, GS1 Hong Kong

79%

Easy, convenient interactions

75%

Exclusive offers and loyalty rewards

73%

10%

30%

50%

Lifestyle or identity Other GBA cities

90%

70%

90%

42%

Loyalty and longterm engagement Useful content, knowledge, or inspiration 10%

70%

34% 28% 30%

50%

Growth Reimagined: Building Consumer Trust in the AI Era l 14

Contents

Foreword

Methodology

Executive Summary

Trusted AI Builds Consumer Confidence

Value Beyond Price Wins Tomorrow's Consumer

Silver Shoppers’ Priorities Diverge across the GBA

Chinese Mainland brands need to earn trust

Leveraging Trust as a Hong Kong Advantage

Leading in the Future of Retail

Making value visible: the three-step playbook Value shoppers prioritise competitive prices and clear savings, but what they expect beyond price differs across the GBA. Retailers that act on these differences can turn price-conscious shoppers into loyal customers. Three moves matter most.

Accessible, verifiable product information and storytelling

Customer insight that shapes the offer

Seamless service across channels

GBA consumers increasingly demand credible information to assess quality, sustainability and authenticity. Standardised product identities and linked information can provide a consistent reference across channels, with QR codes giving shoppers easy access. Retailers can connect this information to the product record and keep it accurate wherever consumers discover or buy the product.

Relative to shoppers overall, value shoppers place greater weight on superior products and services in Hong Kong, and useful knowledge or inspiration in other GBA cities. Combining purchase and loyalty data across channels can help retailers better understand these preferences and refine their product mix, with recommendations that reflect what individual customers value.

Slow support or a difficult return can undo a good price. Hong Kong value shoppers give extra weight to quick responses and seamless online and offline experiences. Retailers should ensure help is easy to reach and returns easy to complete.

Growth Reimagined: Building Consumer Trust in the AI Era l 15

Contents

Foreword

Methodology

Executive Summary

Trusted AI Builds Consumer Confidence

Value Beyond Price Wins Tomorrow's Consumer

Silver Shoppers’ Priorities Diverge across the GBA

Chinese Mainland brands need to earn trust

Leveraging Trust as a Hong Kong Advantage

Leading in the Future of Retail

Reassuring Consumers on Quality: Canali

Craft justifies the premium value

“

Be alert to market polarisation. Position yourself clearly, or you will struggle to survive it.”

Vincenzo Carrieri APAC Regional Director, Canali

Craftsmanship and operational control

Technology, growth and service

As luxury demand in Asia polarises, stronger domestic brands are capturing more value-conscious consumers while the top end becomes more conservative, loyal and focused on selfuse. Canali answers not with greater breadth, but with a clearer premium proposition: design, craftsmanship, fit, fabric and service, supported by production that remains 100% made in Italy. Together, these attributes make the price-tobenefit equation tangible and give customers a clear reason to pay more.

With that control in place, technology helps Canali deliver the premium promise consistently and measure what works. Shared AI tools improve data analysis, reporting and hiring, while targeted applications sharpen seasonal forecasting, clienteling, marketing and supply-chain decisions. The next step is to bring real-time client intelligence onto the sales floor, enabling associates to pair faster insight with the human judgement and service premium customers expect. Those capabilities focus growth where demand and trade-up potential are strongest. The Chinese Mainland remains a priority, supported by a large directly operated network and increasingly sophisticated consumers, while returning tourism reinforces Hong Kong’s commercial and financial role within the Greater Bay Area. Across both markets, a unified client view connects retail and e-commerce, while entry-point categories and digital storytelling help younger professionals make their first purchase without diluting the brand’s core. That clarity becomes more important as Hong Kong’s luxury market grows more contested. A broader mix of retail tenants may create space for distinctive operators, but lasting customer preference will still rest on visible, credible differentiation. Canali’s resilience therefore comes from holding a clear position, preserving scarce Italian know-how and using technology to strengthen—not automate away—the product quality and personal service that justify its premium.

Making that promise credible depends on vertical integration. With most production in its own Italian factories and a deliberately short supply chain, Canali controls quality, lead times and inventory flow; faster planning and replenishment then reduce markdowns and stock-outs. The resulting margin protection sustains investment in the brand and client relationship, so operational discipline directly reinforces what the customer experiences.

Growth Reimagined: Building Consumer Trust in the AI Era l 16

Contents

Foreword

Methodology

Executive Summary

Trusted AI Builds Consumer Confidence

Value Beyond Price Wins Tomorrow's Consumer

Silver Shoppers’ Priorities Diverge across the GBA

Chinese Mainland brands need to earn trust

Leveraging Trust as a Hong Kong Advantage

Leading in the Future of Retail

Building Value through Cultural Relevance and Experience: Lacoste

Brand heritage through experience

“

Customers see value when a brand’s heritage feels authentic and its experiences are relevant to their lives.”

Maxime Valat CEO Asia Pacific, Lacoste

Heritage and cultural relevance

Generations and digital discovery

As consumers become more selective, a brand’s value depends on how clearly customers can experience what makes it distinctive. Lacoste’s approach illustrates how authenticity and local relevance can give substance to that promise. For Maxime Valat, CEO Asia Pacific, and Alessandro Tomio, Managing Director, the starting point is the brand’s connection to tennis and founder René Lacoste. A new store concept, due to begin its global rollout in 2027, will place heritage storytelling at the centre of the experience, giving customers a clearer understanding of the identity behind the product. That identity becomes more relevant when customers can connect it to their own culture. In Hong Kong, Lacoste’s flagship in a traditional heritage building brings French savoir-faire together with local influences under the concept “When East Meets West”. Food-themed customisation patches follow an ordering ritual inspired by a traditional Hong Kong restaurant, while exclusive local artist capsules invite discovery. These details make the brand’s character something customers can participate in, showing how cultural familiarity and personalisation can make an international proposition more meaningful. The same principle extends to the role retail plays in customers’ lives. Lacoste’s planned 900-square-metre Seongsu store in Seoul centres on engagement without a transaction, using a café and artist collaborations to encourage people to spend time with the brand.

At W Bali, Club Lacoste, developed with Marriott, connects paddle tennis with dining and an experiential locker room. These concepts illustrate how sport and hospitality can make brand heritage tangible through activities people already value. Their relevance to leisure and wellness gives customers reasons to engage beyond conventional shopping. Relevance also requires a different invitation for different generations. While Lacoste serves older customers in mature markets such as Japan and Korea, collaborations with One Piece and Godzilla in Japan offer younger audiences a familiar route into the brand. This approach supports a broader retail principle: a consistent identity can accommodate different customer interests. With Asian domestic markets and travelling Asian consumers representing its fastest-growing revenue segment, Lacoste aims to capture attention through stronger windows and store concepts that make its distinctiveness immediately apparent. Making value easier to discover provides the digital counterpart to this physical experience. Lacoste uses AI for customer insights and content generation, alongside market research and early design support. Its investment priority in search and zero-click commerce through conversational AI agents anticipates changes in how consumers find products. The opportunity is to make relevant propositions easier to access, while hospitality and racket clubs deepen customers’ experience of the brand. Together, these directions show how visible value can combine a credible identity with experiences that fit customers’ interests.

Growth Reimagined: Building Consumer Trust in the AI Era l 17

Silver Shoppers’ Priorities Diverge across the GBA

Growth Reimagined: Building Consumer Trust in the AI Era l 18

Contents

Foreword

Methodology

Executive Summary

Trusted AI Builds Consumer Confidence

Value Beyond Price Wins Tomorrow's Consumer

Silver Shoppers’ Priorities Diverge across the GBA

The Silver Divide: Hong Kong prioritises Value, other GBA cities prefer Brand and Experience

Chinese Mainland brands need to earn trust

Silver consumers are defined in this report as consumers aged above 55. This ensures the inclusion of individuals approaching retirement, whose current habits will shape the future of retail. Capturing their preferences now allows brands to build trust and prepare before they fully transition into their ‘silver’ years.

While value is most prioritised among general consumers in Hong Kong (73%), consumers in other GBA cities lean most towards quality (61%). However, the silver shoppers (aged above 55) reveal a market divide: Hong Kong's silver shoppers remain steadfastly value-driven, with 57% identifying primarily as value shoppers who prioritise the best price. In contrast, silver consumers in other GBA cities diverge sharply from their general market. Their purchasing decisions are driven by brand reputation (37%) and shopping experience (27%). In fact, value-driven shopping drops to third place, cited by only 23% of respondents.

Leading in the Future of Retail

Top factors influencing purchase decision 73

Hong Kong’s silver economy is becoming too large to ignore. Expenditure by people aged 60 and above is projected to rise 47%, from around HK$340 billion in 2024 to nearly HK$500 billion by 2034, creating an opportunity that Financial Secretary Paul Chan Mo-po called a “promising blue ocean”.*

Leveraging Trust as a Hong Kong Advantage

65 49

20 Price / Value for Money

Quality / Durability

Comfort / Promotions Convenience (Pace)

Brand Reputation

Other GBA cities

Health Benefits

Hong Kong

The type of shopper which consumers see themselves as Shopping style

Silver consumers in other GBA cities

Silver consumers in Hong Kong

Value shopper

23%

57%

Convenience shopper

13%

16%

Brand-driven shopper

37%

12%

Experience-driven shopper

27%

12%

Not Sure

* Source: Financial Secretary Paul Chan Mo-po, remarks at the SCHSA 30th anniversary event. © 2026 KPMG, a Hong Kong SAR partnership and a member firm of the KPMG global organisation of independent member firms affiliated with KPMG International Limited, a private English company limited by guarantee. All rights reserved.

Growth Reimagined: Building Consumer Trust in the AI Era l 19

Contents

Foreword

Methodology

Executive Summary

Trusted AI Builds Consumer Confidence

Value Beyond Price Wins Tomorrow's Consumer

Capturing the Silver Shopper

Silver Shoppers’ Priorities Diverge across the GBA

Chinese Mainland brands need to earn trust

Leveraging Trust as a Hong Kong Advantage

Leading in the Future of Retail

The growth of the Silver economy demands a departure from broad, one-size-fits-all retail strategies. The data reveals a fundamental divergence in what drives purchasing decisions for consumers aged above 55 across the region, requiring brands to adopt highly localised approaches.

In Hong Kong: This same commitment to balancing quality, innovation, and accessibility is shaping Maxim’s response to the silver economy. The company already supplies premium soft meals under its Gentle Meal brand to selected elderly care facilities, while ongoing research with a leading food-science university in the Chinese Mainland is exploring alternatives to a leading thickener imported from Japan. This initiative aims to maintain the highest nutritional standards for soft meals while reducing costs, broadening accessibility, and supporting wider adoption — all without compromising the quality that defines the offering.” Roland Chong General Manager – Supply Chain, Manufacturing and Quality Management, Maxim’s

Strategy must be focused on price competitiveness. Retailers need to ensure their core offering delivers on clear, tangible value and deals to win the silver shopper.

In other GBA cities: Strategy must pivot toward building brand equity and experiential retail. Here, price is no longer the primary differentiator; brands must demonstrate reliability, prestige, and an engaging shopping environment.

Growth Reimagined: Building Consumer Trust in the AI Era l 20

Contents

Foreword

Methodology

Executive Summary

Trusted AI Builds Consumer Confidence

Value Beyond Price Wins Tomorrow's Consumer

Silver Shoppers’ Priorities Diverge across the GBA

Chinese Mainland brands need to earn trust

Leveraging Trust as a Hong Kong Advantage

Leading in the Future of Retail

Winning the Silver Shopper: Reckitt

Building Lasting Trust

“

Avoid the trap of excessive promotions. They may lift revenue in the short term, but over time they damage brand equity and the earnings model.”

Stella Chun General Manager, Reckitt Benckiser HK Ltd

Clinical evidence and local relevance

Reassurance and retail partnerships

Across Hong Kong and the other GBA cities, Reckitt’s growth strategy begins with the same need: health and hygiene products consumers can trust. What turns that trust into purchase, however, differs by market. Value-conscious Hong Kong shoppers need visible evidence of efficacy and value, while stronger brand trust in the other GBA cities creates room for premium, experience-led propositions; in both cases, clinical trust and relevance protect growth better than promotions that erode brand equity.

Together, reassurance and relevance become especially important in the silver economy. Older Hong Kong consumers invest in active living and mobility to preserve independence, but still need visible proof, familiar payment options and accessible human touches; in the other GBA cities, established brand trust creates room for useful content and richer experiences. At the same time, younger families, solo households and pet owners give brands opportunities to build loyalty earlier through daily-use hygiene and natural or sustainable propositions.

For Hong Kong shoppers comparing seemingly interchangeable offers, certifications, credible expert endorsements and product evidence make superior efficacy, safety and reliability visible. Dettol carries that science into everyday life with home- and petsafe protection and a body wash offering 12-hour odour control in the summer heat. Clear claims and dependable support then reduce risk and make the premium easier to justify.

Retailer partnerships then turn these principles into scalable growth by combining shopper insight, channel behaviour and retailer data in relevant offers and consistent cross-channel journeys. A co-created laundry campaign, for example, can move beyond washing powder to show how a clean machine improves the overall result, presenting a complete solution rather than a single product. Clear information and simpler post-purchase support further reduce friction and reinforce repeat purchase, building durable growth on clinically grounded innovation and market-specific relevance.

Once efficacy is established, relevance connects it to a pain point and carries it through the buying journey. Vanish has moved from high-frequency advertising to need-specific content, using AIgenerated short videos to identify a problem, demonstrate the solution and prompt purchase. The route to checkout also follows local behaviour: mobile-wallet-first checkout can serve shoppers in other GBA cities, while payment choice and easy escalation to a person preserve control in Hong Kong; across channels, products remain available wherever demand is generated.

Growth Reimagined: Building Consumer Trust in the AI Era l 21

Chinese Mainland Brands need to earn trust

Growth Reimagined: Building Consumer Trust in the AI Era l 22

Contents

Foreword

Methodology

Executive Summary

Trusted AI Builds Consumer Confidence

Value Beyond Price Wins Tomorrow's Consumer

Chinese Mainland Brands Lead on Value But Need More Trust in Hong Kong Chinese Mainland brands perform strongly in other GBA cities on both value and trust. Consumers there cite value for money (64%), safety and reliability (58%), and better brand reputation (50%) as key reasons for choosing them. In Hong Kong, however, value is the clear and dominant driver. While 81% of Hong Kong consumers choose Chinese Mainland brands for value for money, far fewer cite safety and reliability (39%), perceived higher quality (33%), or better brand reputation (31%). By contrast, Hong Kong brands are heavily favoured for their safety and reliability, which stands as the leading reason for choosing them among both Hong Kong consumers (74%) and consumers in other GBA cities (61%). This demonstrates that while Chinese Mainland brands have successfully captured the market through price and value, Hong Kong brands retain a significant competitive advantage by serving as the trusted benchmark for quality and safety.

Silver Shoppers’ Priorities Diverge across the GBA

Chinese Mainland brands need to earn trust

Leveraging Trust as a Hong Kong Advantage

Leading in the Future of Retail

Consumers in other GBA cities

Hong Kong Consumers

Value for Money

64%

81%

Trend / Popularity

42%

60%

Better Design / Style

47%

57%

Safety & Reliability

58%

39%

Better Brand Reputation

50%

31%

Perceived Higher Quality

39%

33%

Reason for Choosing Hong Kong Brands

Consumers in other GBA cities

Hong Kong Consumers

Safety & Reliability

61%

74%

Better Brand Reputation

55%

47%

Value for Money

49%

62%

Trend / Popularity

47%

27%

Better Design / Style

44%

32%

Perceived Higher Quality

44%

58%

Reason for Choosing Chinese Mainland Brands

Growth Reimagined: Building Consumer Trust in the AI Era l 23

Contents

Foreword

Methodology

Executive Summary

Trusted AI Builds Consumer Confidence

Chinese Mainland Brand Playbook Anson Bailey, Head of Consumer & Retail, Asia Pacific, KPMG China, says: “Any brand that still sees Chinese Mainland competitors as a low-cost threat is looking in the rear-view mirror. Chinese Mainland speed is now producing better products, sharper design and faster innovation at a scale few markets can match. The real shift is that Chinese Mainland brands are learning to build brand equity at the same pace as they have built scale through value and speed. This is increasingly influencing who can win – not only in the GBA, but in consumer markets worldwide”

Value Beyond Price Wins Tomorrow's Consumer

Silver Shoppers’ Priorities Diverge across the GBA

Chinese Mainland brands need to earn trust

Leveraging Trust as a Hong Kong Advantage

Leading in the Future of Retail

Price wins in the GBA, But Trust is the Missing Piece in Hong Kong

In the GBA: Reinforce the Winning Formula

In Hong Kong: Prove Quality

Mainland brands’ price appeal is stronger in Hong Kong, but consumer confidence is weaker. Value for money attracts 81% of Hong Kong consumers, compared with 64% in other GBA cities. Yet fewer cite safety and reliability (39% versus 58%) or brand reputation (31% versus 50%). The strategic opportunity is clear: the winning formula must adapt the most appealing factor in each market into confidence that lasts

Chinese Mainland brands have successfully established both value and trust in the GBA. With consumer trust already established, Mainland brands have room to compete beyond price. Design (47%), trend appeal (42%) and quality (39%) give brands compelling reasons to promote premium ranges and encourage higher-value purchases.

In Hong Kong, value for money is the dominant driver (81%). Brands now need to back that appeal with visible proof of quality: clear product specifications, credible certifications and authentic customer reviews. Reliable warranties and dependable after-sales support can also give consumers more confidence to buy. Price gets Chinese Mainland brands into the consideration set in Hong Kong, but such proof of quality is what will ultimately drive sales and build lasting brand confidence.

Growth Reimagined: Building Consumer Trust in the AI Era l 24

Contents

Foreword

Methodology

Executive Summary

Trusted AI Builds Consumer Confidence

Value Beyond Price Wins Tomorrow's Consumer

Silver Shoppers’ Priorities Diverge across the GBA

Chinese Mainland brands need to earn trust

Leveraging Trust as a Hong Kong Advantage

Leading in the Future of Retail

Overcoming the Trust Gap: LionRock Capital

From Global Recognition to Local Proof

“

Sustainable value comes from differentiated products, loyal customers and strong unit economics—not simply chasing topline growth through discounting.”

Karen Lai Managing Director, LionRock Capital Ltd

Global ambition and brand heritage

Local proof and profitable growth

As more Chinese Mainland companies move beyond their home market, their brands are gaining global reach, cultural relevance and pricing power. The advantage is no longer defined mainly by manufacturing or domestic scale; it now extends to acquiring heritage, attracting international talent and shaping consumer markets worldwide. LionRock Capital invests at the intersection of global brand heritage and Asian growth expertise, backing global lifestyle brands with limited reach in the Chinese Mainland and Asia; for example, Clarks and Haglöfs combine established heritage with Chinese Mainland capital, operating expertise and market access.

Yet recognition is only the starting point for premium growth in Hong Kong. Converting it into purchase requires visible proof through hero products, transparent specifications, credible warranties, authenticity guarantees and local after-sales service; demonstrations, reviews and clear returns make quality easier to assess. Physical stores can deepen customer relationships through experience, service and community, while CRM insights support retention and more relevant local assortments. Together, these signals reduce risk, turn global visibility into trust and give consumers a reason to trade up.

The deal involving Stephen Curry joining Li-Ning captures the scale of Chinese Mainland brands’ global ambition. The US$400 million, ten-year deal is a headline-making statement that Li-Ning can compete for sporting icons on the world stage. Curry’s iconic status and compelling personal story draw international attention to Li-Ning and introduce it to a much wider audience. Securing an athlete of his stature strengthens Li-Ning’s standing as a global sportswear contender and gives consumers a compelling reason to reassess the brand.

The priorities shift in the Chinese Mainland, where confidence in domestic brands has already raised expectations. Leadership increasingly rests on category-specific innovation, differentiated design and premiumisation rather than discounting, with assortments reflecting local preferences without diluting the heritage that gives a brand authority. For LionRock, sell-through, inventory turns and store-level profitability show whether attention is becoming durable brand equity, while Hong Kong connects international brands and capital with the Greater Bay Area’s technology, supply chains and speed to market.

Growth Reimagined: Building Consumer Trust in the AI Era l 25

Contents

Foreword

Methodology

Executive Summary

Trusted AI Builds Consumer Confidence

Value Beyond Price Wins Tomorrow's Consumer

Silver Shoppers’ Priorities Diverge across the GBA

Chinese Mainland brands need to earn trust

Leveraging Trust as a Hong Kong Advantage

Leading in the Future of Retail

Building the Trust: Jiu Xiao Er

Smart operations support fast, reliable fulfilment

“

The strongest results have come from AI adoption—especially demand forecasting, smart replenishment, and dispatch optimisation…”

Tyler Hu Deputy General Manager, International Supply Chain, Jiu Xiao Er

AI operations and reliable fulfilment

Assortment and disciplined expansion

At Jiu Xiao Er, innovation begins well before a customer places an order. AI demand forecasting and smart replenishment keep its front-warehouse network aligned with demand, while dispatch optimisation and dynamic staff scheduling help fulfil orders faster. By embedding technology in everyday operations, the alcohol retailer offers a concrete example of the innovation that can sustain domestic brands’ strong position in the other GBA cities. Its appeal rests on making authentic products readily available and delivering them reliably, giving customers reasons to return beyond competitive prices.

That foundation also supports a more varied offer. Customers continue to seek value in everyday drinking but show a greater willingness to spend on social and gifting occasions. Jiu Xiao Er responds with premium spirits and imported wine, alongside an expanded low-ABV range. Professional recommendations help customers choose products suited to the occasion, while the app and mini-programme make purchasing convenient. Membership programmes and direct engagement encourage repeat purchases. In this way, innovation extends beyond delivery into how the retailer shapes its assortment and customer relationships, supporting premiumisation through relevant products and dependable service.

Fewer stockouts, better inventory turnover and shorter delivery times show how these investments improve the shopping experience. Simpler picking and packing processes reinforce the gains, while training helps store managers and delivery teams put the technology to work. Guaranteed sourcing and cold-chain handling where required support product quality through fulfilment. Greater efficiency also protects unit economics, allowing service improvements to support the business as well as the customer. This link between operational capability and customer confidence gives brands a stronger basis for differentiation as expectations rise.

These capabilities underpin Jiu Xiao Er’s plans for 2027–2028 to deepen its presence in existing city clusters and expand selectively in the other GBA cities. Working capital discipline remains central in a tight-margin category, keeping expansion tied to the economics of serving customers well. The case brings the region’s wider brand narrative into focus: strong domestic consumer confidence provides a base for growth, while continued innovation gives customers reasons to stay. Better forecasting and fulfilment strengthen reliability, and a differentiated assortment opens opportunities for higher-value purchases without relying on ever-deeper discounts.

Growth Reimagined: Building Consumer Trust in the AI Era l 26

Leveraging Trust as a Hong Kong Advantage

Growth Reimagined: Building Consumer Trust in the AI Era l 27

Contents

Foreword

Methodology

Executive Summary

Trusted AI Builds Consumer Confidence

Value Beyond Price Wins Tomorrow's Consumer

Silver Shoppers’ Priorities Diverge across the GBA

Chinese Mainland brands need to earn trust

Leveraging Trust as a Hong Kong Advantage

Leading in the Future of Retail

Brand Hong Kong: Transparency x Reliability = Trust Hong Kong consumers favour Hong Kong origins most strongly in categories where reliability matters, such as airlines and food and beverages. These categories offer a foundation for building trust through transparency and reliability. Transparency makes product information and standards easy to verify. Reliability means consistently delivering the quality and service a brand promises. Category differences show the limits of local origin. Japan and Korea lead in beauty and personal care, electronics, apparel and health supplements. Hong Kong brands therefore need to give consumers concrete reasons to choose them, with evidence of product benefits and dependable service that strengthens their local credentials. In other GBA cities, Chinese Mainland origins lead in most categories. Hong Kong ranks second in airlines, food and beverages, and health supplements, which are promising areas for Hong Kong brands to build consumer confidence through clear standards and consistent performance. Brand Hong Kong can strengthen trust by making its promises verifiable and keeping them consistently. Transparency makes product information and standards easy to check. Reliability means delivering the quality and service customers expect, every time. Together, they can strengthen confidence beyond a brand’s place of origin.

Growth in the silver economy depends on recognising that shoppers’ priorities differ across markets. Hong Kong’s silver shoppers prioritise competitive prices, while those in other GBA cities place greater emphasis on brand reputation and shopping experiences. Capturing this opportunity involves understanding what matters locally and tailoring the retail offer accordingly, rather than treating the silver economy as one uniform market..” Alice Yip,

Consumers who prefer Hong Kong as the Brand Origin (by category) 80% 78% 71%

60% 55%

55%

52% 52% 48%

44%

40%

42% 38%

37%

39% 31% 31%

20%

Pet Products

Fresh Food, Beauty & Packaged Food & Personal Care Beverages

Hong Kong consumers

Apparel & Clothings

Electronics & Tech

Medicine/Health Supplements

Airlines

other GBA cities consumers

Head of Consumer & Retail, Hong Kong SAR, KPMG China

Growth Reimagined: Building Consumer Trust in the AI Era l 28

Contents

Foreword

Methodology

Executive Summary

Trusted AI Builds Consumer Confidence

Value Beyond Price Wins Tomorrow's Consumer

Silver Shoppers’ Priorities Diverge across the GBA

Chinese Mainland brands need to earn trust

Leveraging Trust as a Hong Kong Advantage

Leading in the Future of Retail

Hong Kong brands: Strengthen trust to compete withJapan/Korea Hong Kong brands have a promising foundation for building trust in apparel and health supplements, where preference trails Japan/Korea by just 14 and 8 percentage points. Beauty and personal care and electronics face larger shortfalls of 40 points each. Clear proof of quality and reliability, backed by consistent product performance and dependable after-sales support, could help brands earn trust and strengthen consumer confidence.

Hong Kong consumers’ preference for brand origin for each product category 90%

82%

80%

71%

70%

69%

60% 50%

33%

42% 31%

30% 12%

32%

Japan/Korea

32% 31%

Hong Kong

52%

48%

40%

20%

60%

55%

39%

Europe

27%

27% 13%

12%

17%

Chinese Mainland North America

10% 0% Beauty & personal care

Electronics

Apparel

Health supplements

Growth Reimagined: Building Consumer Trust in the AI Era l 29

Contents

Foreword

Methodology

Executive Summary

The Trust Equation in Practice: Turning Consumer Trust into Scalable Growth

Trusted AI Builds Consumer Confidence

Value Beyond Price Wins Tomorrow's Consumer

Silver Shoppers’ Priorities Diverge across the GBA

Chinese Mainland brands need to earn trust

Leveraging Trust as a Hong Kong Advantage

Leading in the Future of Retail

Strengthen Hong Kong’s trust advantage

Modernise the proposition to unlock growth.

Expand overseas around a clear proposition, not origin alone.

Pilot, prove, and scale.

Hong Kong retailers and brands should strengthen both sides of the trust equation: transparency means making sourcing and recognised standards clear, with straightforward pricing and guarantee terms. Reliability means maintaining consistent quality, honouring guarantees and providing easy returns and responsive service.

In Hong Kong, trust alone cannot win local consumers in beauty, electronics, apparel, and health supplements, where Japan/ Korea brands lead at 82%, 71%, 69% and 60% respectively*.

For overseas expansion, the trust equation should remain clear to provide an answer to why consumers should choose a Hong Kong brand.

Launch a focused assortment and scale only when conversion, repeat purchase, returns, reviews, and service economics meet agreed thresholds.

Together, transparency and reliability make trust tangible throughout the customer experience. Focus investment on categories where Hong Kong origin already appeals, including airlines, food and beverages, pet care and selected health products.

Innovation and contemporary design can strengthen product appeal, supported by distinctive storytelling and culturally relevant collaborations. Younger consumers offer a natural growth base, with strong preference for Hong Kong origins in airlines, health supplements, and pet products, offering a starting point for growth.

Prioritise markets where Hong Kong’s standards, authenticity, cross-border expertise, and East-meets-West relevance address a clear need. Enter through a small number of cities and channels, using partners that extend reach without compromising authenticity or customer experience.

Remove cross-border friction through transparent landed pricing, local-language content, authenticated channels, local returns, and regional service partners, directly addressing concerns over additional costs (46%), higher prices (39%), and difficult returns or warranties (35%).

* As shown in the graph ‘Hong Kong Consumer preference for brand origin for each product category’ on page 30 in this report © 2026 KPMG, a Hong Kong SAR partnership and a member firm of the KPMG global organisation of independent member firms affiliated with KPMG International Limited, a private English company limited by guarantee. All rights reserved.

Growth Reimagined: Building Consumer Trust in the AI Era l 30

Contents

Foreword

Methodology

Executive Summary

Trusted AI Builds Consumer Confidence

Value Beyond Price Wins Tomorrow's Consumer

Silver Shoppers’ Priorities Diverge across the GBA

Chinese Mainland brands need to earn trust

Leveraging Trust as a Hong Kong Advantage

Leading in the Future of Retail

Turning Trust into Growth: Maxim’s

Turning trust into scalable growth

“

For Maxim’s, consumer trust is not only earnt through our Hong Kong heritage, but on the discipline, quality and consistency we deliver at every stage of the operation. ” Roland Chong General Manager – Supply Chain, Manufacturing and Quality Management, Maxim’s

Hong Kong heritage and product quality

International growth and technology

For Maxim’s, Hong Kong’s trust advantage is not only rooted in heritage, but reinforced through operational excellence. By integrating supply chain, R&D, quality assurance, logistics, and manufacturing across Hong Kong, the Chinese Mainland, and Southeast Asia, the company has built a strong, agile platform that supports the continued expansion of its fast-moving consumer goods business. This integrated approach allows Maxim’s to scale with confidence while upholding the high standards that inspire consumer trust.

That discipline also underpins Maxim’s international growth ambitions. As the company expands overseas, it is translating the strength of the Hong Kong brand—and the trusted quality associated with “Made in Hong Kong”—into a scalable proposition built on authenticity, service, and consistent standards. Listings across local retail channels in Hong Kong, together with a new ecommerce channel, are creating more direct routes to customers. At the same time, more than a decade of operating experience across multiple Southeast Asian markets has strengthened Maxim’s regional capabilities and prepared the business to grow with discipline and confidence. Enhanced oversight across every channel enables Maxim’s to broaden its reach while preserving the trust that underpins customer relationships.

“Made in Hong Kong” represents far more than just a place of origin. As Roland Chong notes, it is widely associated with quality, safety, and reliability among local consumers. For Maxim’s, this reputation enhances the commercial value of its Hong Kong heritage, strengthening the brand’s connection with customers through a clear promise of care, consistency, and dependable standards. While operating in Hong Kong comes with higher costs, Maxim’s is well positioned to turn that into a competitive advantage by differentiating itself through trusted sourcing, rigorous quality control, and brand assurance that goes beyond price. This same commitment to balancing quality, innovation, and accessibility is shaping Maxim’s response to the silver economy. The company already supplies premium soft meals under its Gentle Meal brand to selected elderly care facilities, while ongoing research with a leading food-science university in the Chinese Mainland is exploring alternatives to a leading thickener imported from Japan. This initiative aims to maintain the highest nutritional standards for soft meals while reducing costs, broadening accessibility, and supporting wider adoption — all without compromising the quality that defines the offering.

Technology is playing an important role in supporting this growth. AI is being applied across logistics, warehouse planning, and factory energy management to improve efficiency and operational control. An internal AI community helps test and refine use cases before broader rollout, ensuring practical value and disciplined implementation. Collaboration with GS1 to combat counterfeit product labels further strengthens trust across both supplier and customer networks. Together, these efforts show how Maxim’s is using technology not only to improve performance, but also to reinforce transparency, resilience, and trust. By bringing its end-to-end operations together, Maxim’s is well placed to uphold the quality associated with “Made in Hong Kong” as its FMCG business grows. Its Hong Kong identity provides a powerful foundation of trust, while consistent execution gives customers every reason to deepen that trust in the Maxim’s brand. With AI-enabled operations supporting efficiency, scalability, and quality, Maxim’s is building a growth model that is both ambitious and dependable.

Growth Reimagined: Building Consumer Trust in the AI Era l 31

Contents

Foreword

Methodology

Executive Summary

Trusted AI Builds Consumer Confidence

Value Beyond Price Wins Tomorrow's Consumer

Silver Shoppers’ Priorities Diverge across the GBA

Chinese Mainland brands need to earn trust

Leveraging Trust as a Hong Kong Advantage

Leading in the Future of Retail

Reliability into Scale: AS Watson

Foundations for quality and reliability

“

Hong Kong serves as a gateway to international markets and a dynamic hub where customer insights, retail expertise, data and technology converge.”

Mandy Ng Chief Business Transformation Officer AS Watson Group

Data foundations and retail scale

Customer insight and partnerships

For AS Watson, brand quality is built on a long retail history and strengthened by the ability to keep modernising. The Group is celebrating 185 years in 2026 and continues to base its headquarters in Hong Kong. Drawing on its scalable data foundation and extensive O+O network, it connects retail capabilities and businesses across Asia and Europe, turning deep local expertise into internationally competitive operations.

Customer insight guides how that experience evolves. First-party data helps AS Watson tailor discovery, recommendations, offers, content and services, while signals such as brand affinity, purchase frequency, promotion sensitivity and replenishment timing inform personalisation. Technology sits mainly behind the experience, drawing on this customer understanding and retail expertise to remove friction and helping colleagues respond to customers more effectively rather than displacing their role.

This foundation shapes the use of data and AI. DataLab reached its 15th anniversary in 2025 and has grown into a community of more than 130 specialists across Asia and Europe. Its development from customer, CRM and first-party data foundations to advanced analytics reflects sustained capability-building. This established foundation gives AI the customer context, data and real-world retail environment needed to address customer and business needs. AI supports customer engagement, commercial decisions and everyday workflows where AS Watson sees measurable value, helping teams translate the Group’s established capabilities into practical retail applications. The scale of that network provides a strong environment in which to test AI applications in everyday retail operations and scale those that demonstrate value across markets. AS Watson says it connects more than 180 million loyalty members through over 17,000 offline + online (O+O) stores across 31 markets and serves around six billion shoppers annually. Linking stores and digital touchpoints allows the Group to apply what it learns across channels, making service more relevant and convenient while preserving the continuity and human interaction customers expect.

Hong Kong’s position within the Greater Bay Area reinforces this role. As Mandy Ng explains, the city is both a gateway to international markets and a hub where customer insight, retail expertise, data and technology converge. For AS Watson, this creates a practical base to develop innovations around customer needs, refine them with operating teams and partners, and scale what works across its international network. Partnerships extend that capability. AS Watson established its Technology Partnership Programme in 2017 and says it expanded the programme to 31 global strategic technology partners in 2026. Proven platforms bring scale, speed and specialist expertise; internally built capabilities combine customer understanding, retail expertise and business knowledge where differentiation matters. Together, these strengths allow AS Watson to test and refine innovation in Hong Kong, prove it across markets and scale successful ideas internationally. Brand quality and reliability are built on consistent delivery of customer promises, supported by the sophistication and reach of the Group’s operations.

Growth Reimagined: Building Consumer Trust in the AI Era l 32

Leading in the future of retail

Growth Reimagined: Building Consumer Trust in the AI Era l 33

Contents

Foreword

Methodology

Learnings from our case studies

Executive Summary

Trusted AI Builds Consumer Confidence

Value Beyond Price Wins Tomorrow's Consumer

Silver Shoppers’ Priorities Diverge across the GBA

Chinese Mainland brands need to earn trust

Leveraging Trust as a Hong Kong Advantage

Leading in the Future of Retail

Trust is operational and not a technology nice-to-have

Visible proof creates brand permission to justify a premium

Market understanding helps to connect with consumers

Scale follows reliable execution and speed

Elevator Goods and @cosme show how reliable products, authentic reviews and traceable data grow confidence in AI. Clear recommendations help consumers understand their choices.

Canali, Reckitt and LionRock Capital illustrate how brands justify premium prices with tangible evidence of quality. Craftsmanship and proven efficacy give consumers reasons to pay more, backed by authenticity, warranties and dependable service.

Lacoste, Reckitt and @cosme illustrate why brands need to adapt how they communicate their quality proof, content, payment options, and how they serve consumers.

Jiu Xiao Er, Maxim’s and AS Watson show that trust scales only when shopping experiences are enhanced through technology.

Automation should make evidence easier to use, with clear responsibility for accuracy and good service.

Retailers should keep a human touch readily accessible, monitor accuracy and opt-outs, and resolve complaints and escalations quickly.

Differentiation protects brand equity; blanket discounting weakens it.

Retailers should track conversions and margins alongside returns and feedback to assess whether product proof strengthens purchasing decisions.

Hong Kong demands visible value and control; stronger brand trust elsewhere in the GBA creates more room for premium, experience-led offers.

Accurate forecasting and integrated supply chains support replenishment and quality. Connected storeand-digital journeys make shopping more convenient while preserving a human touch.

Retailers should use insights from consented first-party data to tailor services for local needs, give customers clear control over how their data is used, and keep a human touch readily accessible.

Retailers should scale only initiatives that improve repeat purchase, inventory turnover, and service economics, while strengthening customer confidence as the business grows.

Growth Reimagined: Building Consumer Trust in the AI Era l 34

Contents

Foreword

Methodology

Executive Summary

Trusted AI Builds Consumer Confidence

Value Beyond Price Wins Tomorrow's Consumer

Silver Shoppers’ Priorities Diverge across the GBA

Chinese Mainland brands need to earn trust

Leveraging Trust as a Hong Kong Advantage

Leading in the Future of Retail

Key Takeaways 01 Consumer preferences across Hong Kong and other GBA cities are shaped by distinct expectations around value, trust, and experience. While value must be visibly proven through clear benefits and dependable quality, what drives purchase decisions differs meaningfully between the two markets. Hong Kong consumers lean towards reassurance and reliability, while consumers in other GBA cities show greater openness to digital personalisation and broader spending. Even within the silver economy, motivations diverge in ways that age alone cannot explain. These nuances carry a clear implication for brands: reputation must be backed by consistent delivery, and local relevance must be earned, not assumed.

AI trust is growing, but Hong Kong and other GBA cities require different approaches to enable retailers and brands Hong Kong consumers need to see a clear benefit before sharing personal data, alongside transparency and control over how it is used. Consumers in other GBA cities are more open to data-driven personalisation. Retailers need to tailor AI strategies to these different expectations.

03 04

Winning the GBA’s value shopper takes more than a competitive price In Hong Kong, value shoppers look beyond price to superior products, rapid support and seamless interactions. In other GBA cities, storytelling and long-term engagement matter more. Retailers need market-specific propositions rather than a single regional approach to value. The battle to win the silver economy segment warrants a separate targeted retail strategy Hong Kong’s silver shoppers put value first; those in other GBA cities favour brand reputation and shopping experiences. Winning their spending requires locally tailored offers, not a single strategy defined by age.

Chinese Mainland speed is changing the competitive equation Any competitor still treating Chinese Mainland brands as a low-cost alternative is missing the bigger shift. The challenge is no longer just price. It is the combination of quality, innovation, speed and growing brand equity. Brands need to compete against where these businesses are heading, not where they used to be.

Hong Kong’s trust advantage is valuable, but it is not a guarantee of future growth Safety and reliability underpin Hong Kong brands’ appeal, yet the majority of Hong Kong consumers prioritise value. With Chinese Mainland brands already recognised for value and increasingly for reliability, Hong Kong brands can no longer rely on reputation alone.

Growth Reimagined: Building Consumer Trust in the AI Era l 35

About GS1 Hong Kong GS1 Hong Kong is the local chapter of GS1®, a global, not-for-profit data standards organisation represented in over 120 countries. Through globally recognised standards such as GTIN (barcodes), we enable businesses to identify, capture and share trusted data across physical and digital supply chains, helping them accelerate digital transformation, access global markets, strengthen supply chain resilience and efficiency, and advance transparency, safety and sustainability. Building on GS1 standards, we provide solutions including ezTRADE for B2B data exchange, ezTRACK for supply chain traceability, and 1QR, powered by GS1 Digital Link, connecting 2D barcodes to rich product information such as certifications and sustainability data. Our trusted data infrastructure also supports emerging business needs, from trade finance to Scope 3 emissions reporting and ESG compliance. In an AIdriven economy, we provide the foundation for high-quality data that is accurate, visible, linkable, searchable, shareable and traceable. GS1 Hong Kong supports close to 8,000 corporate members across 20 sectors, including retail and consumer goods, food and beverage, healthcare, apparel and footwear, logistics and ICT. Website: www.gs1hk.org

Growth Reimagined: Reimagined: Building Building Consumer Consumer Trust Trust in in the the AI AI Era Era ll 36 36 Growth

About KPMG KPMG China has offices located in 31 cities with over 14,000 partners and staff, in Beijing, Changchun, Changsha, Chengdu, Chongqing, Dalian, Dongguan, Foshan, Fuzhou, Guangzhou, Haikou, Hangzhou, Hefei, Jinan, Nanjing, Nantong, Ningbo, Qingdao, Shanghai, Shenyang, Shenzhen, Suzhou, Taiyuan, Tianjin, Wuhan, Wuxi, Xiamen, Xi’an, Zhengzhou, Hong Kong SAR and Macau SAR. Working collaboratively across all these offices, KPMG China can deploy experienced professionals efficiently, wherever our client is located. KPMG is a global organization of independent professional services firms providing Audit, Tax and Advisory services. KPMG is the brand under which the member firms of KPMG International Limited (“KPMG International”) operate and provide professional services. “KPMG” is used to refer to individual member firms within the KPMG organisation or to one or more member firms collectively. KPMG firms operate in 138 countries and territories with more than 276,000 partners and employees working in member firms around the world. Each KPMG firm is a legally distinct and separate entity and describes itself as such. Each KPMG member firm is responsible for its own obligations and liabilities.

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GS1 Hong Kong

YouGov Hong Kong

Jeff Wu

Stanley Sum

Ryan Reynoldson

Anna Lin

Philippe Chan

Head of Consumer & Retail China K P MG China E: jeff.wu@kpmg.com

Head of Technology K P MG China E: Stanley.sum@kpmg.com

Head of Deal Advisory (Transactions), Hong Kong KPMG China E: ryan.reynoldson@kpmg.com

Chief Executive GS1 Hong Kong E: annalin@gs1hk.org

General Manager China & HK, YouGov Hong Kong E: philippe.chan@yougov.com

Anson Bailey

Brian Cheung

Jennifer Weng

Jack Lee

Iris Choi

Head of Consumer & Retail Asia Pacific K P MG China E: anson.bailey@kpmg.com

Head of Cybersecurity K P MG China E: brian.cheung@kpmg.com

Head of Tax for Consumer & Retail China K P MG China E: Jennifer.weng@kpmg.com

Chief Operating Officer GS1 Hong Kong E: jacklee@gs1hk.org

Senior Research Director YouGov Hong Kong E: iris.choi@yougov.com

Alice Yip

Irene Chu

Cyan Sze

Mignone Cheng

Dicky Li

Head of Consumer & Retail, Hong Kong SAR K P MG China E: alice.yip@kpmg.com

Head of ESG K P MG China E: irene.chu@kpmg.com

Partner, Deal Advisory, Corporate Finance KPMG China E: cyan.sze@kpmg.com

Chief Marketing Officer GS1 Hong Kong E: mignonecheng@gs1hk.org

Associate Research Manager YouGov Hong Kong E: dicky.li@yougov.com

Vivian Chang

Mohit Kumar

Maggie Lee

Lincoln Chan

Sector Executive of Consumer & Retail, Asia Pacific K P MG China E: Vivian.chang@kpmg.com

Director and Head of Cyber Incident Response Services KPMG China E: mohit.kumar@kpmg.com

Deputy Head of GBA Strategy and Development Office Head of Chinese Companies Business KPMG China E: maggie.lee@kpmg.com

Chief Membership Officer GS1 Hong Kong E: lincolnchan@gs1hk.org

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gs1hk.org kpmg.com/cn/socialmedia

For a list of KPMG China offices, please scan the QR code or visit our website: https://kpmg.com/cn/en/about/office-locations.html The information contained herein is of a general nature and is not intended to address the circumstances of any particular individual or entity. Although we endeavour to provide accurate and timely information, there can be no guarantee that such information is accurate as of the date it is received or that it will continue to be accurate in the future. No one should act upon such information without appropriate professional advice after a thorough examination of the particular situation. © 2026 KPMG, a Hong Kong SAR partnership and a member firm of the KPMG global organisation of independent member firms affiliated with KPMG International Limited, a private English company limited by guarantee. All rights reserved. Printed in Hong Kong SAR. The KPMG name and logo are trademarks used under license by the independent member firms of the KPMG global organisation. © 2026 GS1 Hong Kong is the local chapter of GS1, a non-profit, standards organization. GS1 is a registered trademark of GS1 AISBL. Publication number: 1793611935530 Publication date: November 2026 Growth Reimagined: Building Consumer Trust in the AI Era l 39