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Tag: Hong Kong

  • Fung and JD launch Hong Kong’s first AI checkout

    Fung and JD launch Hong Kong’s first AI checkout

    JD has partnered with Fung Retailing Group to unveil Hong Kong’s first AI checkout solution in a retail store environment.

    The AI-powered checkout technology is a result of a strategic deal between the firms signed last year. It represents the first AI checkout experience featuring image recognition technology in the territory. This technology is currently installed at the AI Retailing Zone in two Circle K stores in Hong Kong.

    Designed to make the checkout experience as easy and hassle-free as possible, customers can complete checkout using the AI-powered solution in just four seconds with three simple steps, including placing the products on the counter, scanning, and paying via Octopus card.

    The advanced AI algorithm enables the checkout counter to recognise up to five products within one second with an accuracy rate of more than 97 per cent, reducing the overall checkout time by 30 per cent.

    “This is an important milestone for Fung Retailing as the first in the industry to unveil the first AI-powered checkout pilot experience in a convenience store environment,” said group MD Sabrina Fung.

    “This underscores our ongoing commitment to experiment with new technologies like AI and to build partnerships like the one with JD to enhance the end-customer experience, further transforming the future of retail for Greater China.”

    “AI will continue to play a critical role in transforming the retail landscape,” said JD VP Dr Bowen Zhou.

    “Retailers who are able to capitalise on this trend, will have a competitive edge among their peers. Leveraging Fung Retailing’s offline retail expertise and JD’s leading retail technology, this pilot project represents a critical first step in collectively realising our vision for smarter and more convenient retail.”

  • Zoff Hong Kong eyewear chain boosting Convenience

    Zoff Hong Kong eyewear chain boosting Convenience

    Zoff Hong Kong may have only six stores for now, but the Japanese eyewear brand is proving a standout for local licensee Convenience Retail Asia.

    Victor Fung, chairman of the listed Fung Group affiliate, says Zoff Hong Kong has enjoyed “remarkable success” since CRA opened the first store in November 2017 at Cityplaza in Taikoo Shing. The five stores opened since are all in high-traffic locations popular with trendy young clientele, including one at Langham Place.

    Zoff’s business model is to offer customers a constantly refreshed range of frames to suit all styles, high quality frames at affordable prices and made onsite within a fast turnaround time. Fung says this is ideal for the new generation of consumers, always on the go.

    Zoff stores carry more than 2500 different frames and new items are introduced biweekly.

    The chain has also launched themed promotions, including a selection with popular actress and model Kiko Mizuhara and collections themed on Disney, Star Wars and Andy Warhol.

    CRA has invested heavily in brand advertising for the new chain, including outdoor advertising, prize promotions and joint marketing initiatives with other brands within the Fung Group.

    While CRA did not detail the chain’s financial performance, the company noted in its annual results that Zoff had contributed to both revenue and profit growth.

    “The group is proud to be the only licensee for the Zoff franchise in the world,” said Fung. “This fast-fashion eyewear chain, with its eye-catching blue-and-white branding, is highly regarded among Hong Kong’s young generation. Under the group’s guidance, Zoff has truly energised the Hong Kong eyewear market since entering in late 2017.”

    More Zoff stores are scheduled to open this calendar year.

    “The group remains bullish about the prospects for Zoff. Despite a number of competitors entering the market, our first-mover status and Hong Kongers’ affinity for the famous Zoff brand continue to drive healthy growth,” he said.

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  • Maxim’s waste cooking oil to fuel Hong Kong delivery trucks

    Maxim’s waste cooking oil to fuel Hong Kong delivery trucks

    Oil giant Shell has launched a pilot program with catering firm Maxim’s to use biodiesel made from its used cooking oil to power its fleet in Hong Kong.

    The first-of-its-kind program in the territory will support over 100 delivery trucks with annual consumption of 396,000 litres. Maxim’s is the first restaurant group in Hong Kong to join the program.

    “Shell is proud to announce this first-of-its-kind partnership with Maxim’s Group,” said Shell Hong Kong’s retail GM Anne Yu (pictured). “Together we take this important step towards a more sustainable energy future for Hong Kong. Biofuels are a smart solution because they reduce ‘well-to-wheel’ CO2 and upcycle domestic waste materials.

    “By transforming cooking oil into useable fuel, we can reduce both local waste and CO2 emissions, while providing energy security for Hong Kong. With over 30 years of experience in distributing biofuels globally, Shell is committed to the further development of bioenergy.”

    “Maxim’s Group is committed in environmental protection through various key initiatives since 2009, including our signature Surplus Bread Donation Program which enables volunteers to collect surplus bread from our cake shops across town and donate to the needy”, said Maxim’s Cakes & Bakery and Branded Products GM Patrick So.

    “Giving waste a second life has been extended to upcycling used cooking oil at Maxim’s restaurants to energy. We are happy to partner with Shell, and currently our 100-plus trucks from two food production plants are using Biodiesel as part of our sustainable development.”

    To produce biodiesel, Shell sources biocomponents (B100) to blend into petrodiesel whilst managing an end-to-end quality assurance process to achieve high-quality fuel. This is intended to improve Hong Kong’s energy security in using sustainably produced domestic raw materials.

    As the first and only biodiesel provider in Hong Kong through retail oil stations, Shell has been providing energy solutions for corporations to contribute to Hong Kong’s sustainability since 2016. It has recently made biodiesel available at Shell’s Tai Po Market station, the third station providing the fuel, expanding coverage to encourage biodiesel adoption among commercial fleet customers. The other two stations providing biodiesel are located at Tsing Yi and Hong Kong International Airport.

    “Shell is one of the first to invest in advanced biofuels to explore new sustainable fuels that contribute to the energy mix of the future,” concluded Yu. “We are pleased that Maxim’s Group believes in the value of sustainable fuel as we do and partnered with us to tackle the energy challenges together. We will continue to work with companies, customers and the society through different projects to make Hong Kong more sustainable.”

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  • The Ultimate La Mer Indulgence At T Galleria Beauty by DFS

    The Ultimate La Mer Indulgence At T Galleria Beauty by DFS

    The world’s largest Crème de la Mer jar will land in Hong Kong at T Galleria Beauty by DFS, Hong Kong, Causeway Bay on March 1. In partnership with DFS, the world’s leading luxury travel retailer, La Mer, is celebrating the iconic and transformative Crème de la Mer moisturizer with a larger-than-life installation of a Crème de la Mer jar measuring five-meters high at Hysan Place. Marking the stunning installation’s debut in Asia, customers will also have the chance to explore an immersive, behind-the-scenes look at the cult skincare brand through an exciting exhibition from March 1 – 10.

    At the heart of the La Mer story is its transformative moisturizer, Crème de la Mer, conceived after 12 years and 6,000 experiments by Dr. Max Huber, who suffered burns in an experiment gone awry. The secret of Crème de la Mer lies in the healing elixir of a cell-renewing Miracle Broth™.  The cream infuses skin with sea-sourced renewing energies, creating a natural, youthful glow.

    The multi-sensorial Crème de la Mer exhibition at T Galleria Beauty by DFS, Hong Kong, Causeway Bay begins as guests step into the giant jar, transporting them into an oceanic realm, the World of La Mer, through the sounds of the sea and soft glow of underwater lighting. Customers journey through the five moisture textures – Rich, Soft, Sheer, Balanced, Cool – each representing a unique moisturizer of La Mer conceptualized into dynamic installations for maximum sensory stimulation. On the other side of the exhibition, guests can discover the secrets of The Miracle Broth™ and marvel at the Crème de la Mer wall, the perfect backdrop for customers and influencers to capture unique, memorable moments. 

    La Mer’s Skincare Artistry Experts will also be on hand to provide bespoke consultations, introduce moisture rituals and share tips on how to “Arrive Hydrated” at your destination and keep skin looking healthy and luminous from take-off to touch down and beyond.  With a minimum purchase, customers will receive a complimentary La Mer luxury travel trunk case with the option of personalization by calligraphy services offered on site*. Other exclusive offers available only at the event.

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  • Mixed results for Giordano International

    Mixed results for Giordano International

    Hong Kong casual-apparel brand Giordano International has reported a small increase in sales for last year – and a dip in profit. Group-wide sales reached HK$5.509 billion last year, up 1.8 per cent, with same-store sales down a marginal 0.1 per cent. Profit attributable to shareholders fell 4 per cent to $480 million.

    In a stock exchange filing, Giordano International said sales from physical stores achieved a 1.7 per cent growth rate, while online sales – through its own sites and third-party platforms, grew by 1.3 per cent. Wholesale sales to its franchisees grew by 2.6 per cent.

    By category, its best-performing sectors were childrenswear and womenswear, where sales for both rose by 6.9 per cent.

    By geographical market, Giordano International delivered a mixture of results:

    Mainland China: Business was affected by the Sino-US trade dispute and stock-market volatility, which negatively impacted on domestic retail sales. Comp-store sales slipped by 0.9 per cent.

    Hong Kong and Macau: “Well-executed marketing programs, smart promotional activities and stringent cost control all helped achieve double-digit growth amidst complex macroeconomic conditions,” the company reported. “This market experienced a difficult retail landscape caused by an economic slowdown since the third quarter of the year. Severe typhoons and an abnormally warm winter also adversely affected its sales.”

    Taiwan: Sales here rebounded to allow an operating profit increase of 34.9 per cent in the first half of last year, however the full-year change was a mere 2 per cent, due to the uncertainty created by the Sino-US trade dispute.

    Vietnam: Giordano bought out its third-party retail operation in Vietnam and after improved sales and cost controls turned the business around. The market has grown to account for 5.6 per cent of Giordano international’s regional sales and operating profit rose.

    Thailand: Operating profit from Thailand grew by 11.1 per cent, thanks to stable sales growth and an improvement in gross-profit margin.

    Indonesia: In Southeast Asia, Indonesia stood out with a comp-store sales growth of 7 per cent for both Giordano and non-Giordano brands, and operating profit increased by 16 per cent.

    Singapore: Operating profit decreased by 6 per cent as the business was adversely affected by an overall stagnant economy and lower tourist traffic.

    Middle East: With consumers adapting to the newly introduced Value-Added Tax and changes in economic policies, comp-store sales fell by 7.3 per cent in the first quarter of last year. However, in the early weeks of this year, the company saw growth in comp-store sales of 4 per cent, prompting management to conclude that consumers have now adjusted to the tax changes and the retail industry there has stabilised.

    South Korea:  Net profit here increased by 6.7 per cent, attributable to better cost control, closure of non-performing stores and enhanced gross margin. Wholesale sales to South Korea increased by 10.5 per cent.

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  • MarketingPulse draws the world’s best marketers to Hong Kong

    MarketingPulse draws the world’s best marketers to Hong Kong

    Some of the world’s most inspiring marketing professionals will gather in Hong Kong later this month. MarketingPulse is an integrated branding and marketing conference for global marketers, brands, advertising agencies, media, enterprises and innovation professionals to gather and share the latest marketing trends, exchange best marketing practices and explore new collaborations in Asia.

    From defining new marketing strategies to reviewing events that connect and catalyse, MarketingPulse is not only a conference, but an inspiring annual rendezvous to explore new frontiers in marketing.
    The event will kickstart with a session journeying into a new era of branding, where leading chief marketing officers share tricks and tips on how they keep ahead of the pack with innovative campaigns embracing global trends, and reveal how future marketers should story tell and enhance brand experiences.

    Jonathan Mildenhall, one of the speakers in this session, previously held roles as chief marketing officer at Airbnb and VP of global advertising strategy and creative excellence at the Coca-Cola Company. Mildenhall joined Airbnb in June 2014 and made it his mission to help Airbnb transform the industry, converting a disruptive property-rental platform into a global superbrand.

    Just as he did at Airbnb, through TwentyFirstCenturyBrand, Mildenhall is partnering with some of Silicon Valley’s most influential founders and CEOs in order to drive transformational growth through purpose-driven marketing and world-class excellence in global brand stewardship.

    Michelle Cordeiro Grant, another speaker in the session, is the Founder and CEO of Lively. She has spent her career creating brands and products for some of the world’s largest retailers including Federated, VF Corporation, Limited Brands/ Victoria’s Secret and Thrillist Media Group.

    Grant is passionate about the entire process of creating and developing amazing brands and products – from concept to customer. Working with Victoria’s Secret inspired her to create a completely new experience for the lingerie category— a concept she calls Leisuree — and so Lively was born. Grant believes that “customer conversations should be the heart of your market and help you build a cohesive brand and community”.

    MarketingPulse will be held on March 20 at the Hong Kong Convention and Exhibition Centre.

  • Alipay Hong Kong promotes Smart Mobility to enable Boundless Living

    Alipay Hong Kong promotes Smart Mobility to enable Boundless Living

    As a fast emerging TechFin brand, AlipayHK has led and driven the adoption of the e-wallet in application in Hong Kong. Since the formation of Alipay Payment Services (HK) Limited (“APSHK”), the joint venture between CK Hutchison Holdings Limited (“CK Hutchison”) and Ant Financial Services Group (“Ant Financial”) in March 2018, the company’s flagship product AlipayHK has extended its coverage to 50,000 merchants and more than two million users. This year AlipayHK will focus on widening the e-wallets adoption across public transportation providers and expand its cross-border payment services by strengthening collaboration among merchants. Its overarching goal is for people in Hong Kong to enjoy the benefits of smart mobility and the convenience that comes with using its e-wallet.

    AlipayHK revealed the e-wallet’s new features, EasyGo, at the Smart Mobility, Boundless Living exhibition which marked the first anniversary of the company. Guests were amazed by the speed and convenience of using EasyGo to pass through tickets gates and AlipayHK for cross-border payments. By simply scanning a QR code users could also enjoy special currency exchange rates and the additional perk of a HK$20 Guangdong-Hong Kong- Macao Greater Bay Area discount on cross-border purchases during the promotion period.

    Special guests who officiated the ceremony included: Mr. Canning Fok, Group Co-Managing Director of CK Hutchison and Chairman of APSHK, Mr. Eric Jing, Chairman and CEO of Ant Financial, Mr. Howard Lee, Deputy Chief Executive of Hong Kong Monetary Authority and Ms. Jennifer Tan, CEO of APSHK.

    Smart Mobility expands local coverage and goes global

    Smart Mobility is an important initiative of AlipayHK to drive the development of Smart Cities. As part of this, AlipayHK is widening the adoption of smart mobility solutions to a range of public transport providers. For example, in January it launched EasyGo on a minibus line and AlipayHK will now be extending this service to other minibus routes and transportation providers.

    Smart Travel is another major initiative for AlipayHK as part of its strategy to offer Hong Kong people a premium consumption experience when they travel overseas. Last month, AlipayHK launched its innovative connection service across the Greater Bay Area which covered popular shopping destinations, as well as essential services such as medical and education and provided a more convenient experience for people living in and traveling to the Greater Bay Area. When travelling to Japan, a popular destination for Hong Kong travelers, AlipayHK users can now use their e-wallets in the Daimaru Tenjin store in Fukuoka and the service will soon expand to the whole country. AlipayHK aims increase the coverage of this service to other retailers around the world so Hong Kong people can enjoy the convenience they experience from their e-wallets at home, and also when they travel overseas.

    Mr. Canning Fok said, “It is encouraging to see such a growth in the number of AlipayHK users in only a year. AlipayHK was the first e-wallet to become an official partner of the MTR Corporation and this disrupted the traditional payment methods for public transportation. As the Greater Bay Area develops, AlipayHK is poised to capture the opportunities from cross-border payment services among the nine cities within its cluster with the aim extending our coverage to the whole country. I hope the continuous development of AlipayHK will bring more innovative retail experiences to users as we broaden its application and user base across the globe.” Mr. Eric Jing said, “Hong Kong is a key market for Alipay’s globalization. We will continue to support AlipayHK by bringing the best products and technology know-how to Hong Kong, in order to create unique value for users and merchants. In the future, we will also connect e-wallets from other regions around the world with merchants in Hong Kong, enabling them to benefit from mobile payment.”

    Ms. Jennifer Tan said, “As an e-wallet provider in Hong Kong, AlipayHK always aims to pioneer positive change for Hong Kong citizens in order to make their lives easier. We would like to thank people in Hong Kong for their support. Without it, we would not have achieved such an impressive growth in users and merchants. We will continue to further develop solutions for public transportation service and cross-border payment to enable smart mobility and living.”

  • Sogo department stores see strong sales growth

    Sogo department stores see strong sales growth

    Sogo department stores parent Lifestyle International has reported a 50 per cent drop in net profit for last year, despite increased sales.

    While turnover rose 16 per cent to HK$4.36 billion (US$555 million), net profit fell to $1.69 billion ($215 million).

    However, the company explained the fall was largely due to comparison with 2017 when the company received a one-off gain from the sale of a majority stake in its subsidiary, netting $420.8 million. On a trading basis, the department stores it operates posted solid results.

    Sales at its Sogo Causeway Bay flagship store rose by 10.5 per cent last year, and mainland tourists underpinned a 30.3 per cent increase in sales at the Sogo Tsim Sha Tsui store.

    CFO Terry Poon Fuk-chuen said the improved turnover was due to the company enhancing the shopping experience at its stores.

    Lifestyle International executive director Kam Shim Lau predicts this year will be challenging for retail as declining wage growth and weakening asset values may dent consumer sentiment.

    “Looking ahead, the group predicts a single digit growth in the first half of 2019 and adopts a cautious approach for 2019,” he said.

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  • Abysmal start Zero Pay pilot in South Korean

    Abysmal start Zero Pay pilot in South Korean

    The Seoul city government’s smartphone-based payment-program pilot posted an abysmal track record in its first full month of service, data showed Wednesday.

    In a bid to help relieve small merchants of burdensome credit card fees, the municipality began the trial run of the “Zero Pay” service in late December, enabling users to pay for purchases card-free and receive tax benefits.

    About 8600 purchases totalling 199 million won (US$177,000) were settled via the Zero Pay system in January, according to the data provided to Rep. Kim Jong-seok of the main opposition Liberty Korea Party by the Financial Supervisory Service.

    The number of settlements came to a mere 0.0006 per cent of the 1.56 billion purchases made using credit, debit and prepaid cards, with the value reaching only 0.0003 per cent of the total 58.1 trillion won.

    As of the end of January, slightly over 46,600 small shops and businesses were taking part in the pilot payment service.

    Watchers attributed Zero Pay’s poor record to the small number of participating merchants and customers’ unwillingness to change their payment habits.

    Eleven commercial banks, including all major lenders, joined the test service, which the Seoul city government plans to formally launch after this month.

    Nine more banks are slated to take part in the Zero Pay system, and the municipality will recruit convenience stores and other franchise stores to join.

    Under the system, money is transferred from a consumer account to that of a merchant when the consumer scans the merchant’s QR code with a smartphone using the existing apps of commercial banks or online payment platforms.

    Following its formal launch, the central government plans to gradually expand the service to other parts of the country by offering tax breaks and eliminating related regulations.

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  • HKT Payment adds marketplace to mobile wallet

    HKT Payment adds marketplace to mobile wallet

    HKT Payment has launched a new virtual store within its Tap & Go mobile wallet to allow customers to purchase online game virtual gift cards.

    The new Tap & Go Marketplace will offer a wide range of gift cards including Google Pay Gift Codes, PlayStation Network, Xbox and hvmod cards.

    Once payment is complete, a PIN will be instantly installed within the Tap & Go marketplace that can be easily redeemed on the respective online marketplace.

    “We are excited to launch the Tap & Go Marketplace and extend the service to better meet the needs of the game-savvy segment,” HKT Financial Services head Monita Leung said.

    “Not only does online purchase via Tap & Go Marketplace give customers full control over their spending and peace of mind with secure payments, but it also offers gamers greater convenience and a seamless experience.”

    The launch follows the introduction of the Faster Payment System in September that allows customers to instantly top up their mobile wallet.

    Leung said HKT Payment plans to continuously expand the gift card categories available over Marketplace to cover music, videos and software.

    HKT Payment secured Hong Kong’s second ever stored value facilities license in 2016.

  • January surge for Hong Kong retail sales

    January surge for Hong Kong retail sales

    Hong Kong retail sales surged 7.1 per cent in January – but the Census and Statistics Department (C&SD) warns they could be affected by the timing of Lunar New Year.

    “Retail sales tend to show greater volatility in the first two months of a year due to the timing of the Lunar New Year,” said a C&SD spokesman. “Local consumer spending normally attains a seasonal high before the festival. As the Lunar New Year fell on February 5 this year but on February 16 last year, the year-on-year comparison of the figures for January … might have been affected by this factor.”

    After netting out the effect of price changes year on year, the volume of retail sales increased by 6.9 per cent.

    However, for the three months to January, Hong Kong retail sales declined by 2 per cent compared with the preceding quarter, and by 2.1 per cent compared with the same period a year earlier.

    Revised estimates for December showed a growth of 0.1 per cent in both value and volume.

    Sales of watches and jewellery rose by 4.7 per cent, while medicine and cosmetic sales rose 12.9 per cent and apparel by 2.4 per cent. Sales of goods in department stores surged 15.1 per cent, of food, liquor and tobacco by 13 per cent and of supermarket goods by 8.6 per cent.

    Categories to show a decline in sales were electrical goods and other consumer durable items, but 11 per cent.

    The C&SD spokesman said besides the LUnar New Year affect, retail sales were in part boosted by a surge in visitor arrivals in that month.

    “Yet, given the distortion by the difference in timing of the Lunar New Year, it would therefore be more meaningful to examine the retail sales figures for January and February combined, when available, to ascertain the underlying trend.”

    The spokesman said the outlook for retail sales in the near term is still uncertain.

    “While the full-employment situation in the local labour market and the sustained expansion in inbound tourism should provide support, consumption sentiment will still be affected by the unsteady external environment.”

  • Hong Kong’s Hui Lau Shan launching in Philippines

    Hong Kong’s Hui Lau Shan launching in Philippines

    Hong Kong dessert chain Hui Lau Shan will launch in the Philippines in February. The franchise, best known for its mango-based treats,will open at SM Megamall in Mandaluyong City with a range of desserts that are expected to draw on local fruits.

    Mango desserts have proven popular in the region recently, with prominent social media coverage of long queues for mango floats.

    Hui Lau Shan is a heritage brand originating from a herbal tea & tea trolley that traded in Hong Kong’s Yuen Long back in the 1960s.

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  • Sportswear brands Merrell and Saucony heading to China

    Sportswear brands Merrell and Saucony heading to China

    Chinese sportswear retailer Xtep has signed a deal with Wolverine World Wide to distribute Merrell and Saucony products in Mainland China, Hong Kong and Macau.

    The joint venture plans to start operating in the second half of this year.

    “We are delighted to have Wolverine, a global company with a portfolio of premium brands, as our partner,” said Ding Shui Po, Xtep chairman and CEO. “We look forward to working shoulder-to-shoulder with them to seize the numerous business opportunities we see in these key Asian markets.”

    New stores will trade under the Merrell and Saucony banners, with the majority slated for shopping malls in China’s larger cities. Xtep plans an expanded presence for both brands in Hong Kong and Macau.

    “Wolverine is extremely pleased to partner with Xtep to accelerate the growth of two of our best-known global brands – Saucony and Merrell – in the critical markets of mainland China, Hong Kong and Macau,” added Blake W. Krueger, chairman, CEO and president of Wolverine.

    “We have seen incredible sportswear growth in these markets, and our brands are now poised to excel as we engage Xtep’s significant retail presence and regional expertise to tap into the booming running and outdoor sectors.”

  • Axys Consulting Asia names new chief

    Axys Consulting Asia names new chief

    Axys Consultants (Paris) and Axys Asia (Hong Kong) have named Alexandre Viale-Berthelier as new partner and head of Asia.

    This follows the recent announcement of Axys’s expansion in Northern America (through Axbility Consulting), and two years of business development in Hong Kong.

    Paul Strippe, Axys Consultants group CEO, said the appointment demonstrates the company’s commitment to support its growing portfolio of international clients and to expand the reach of its services in Asia.

    “Alexandre’s mission will be to build a diverse and inclusive team and I trust his ability to help our team and our clients to reach their full potential.”

    Viale-Berthelier has been appointed from within the firm’s digital, marketing & commerce division. Based in Hong Kong since 2011, he previously worked at EY where he served as an advisory director for many of the consultancy’s largest accounts in retail and luxury, transportation, banking and wealth management.

    Viale-Berthelier said Axys has taken a strong international direction, supported by talented consultants. “I am excited to build on this strong foundation and deliver our performance improvement services to a larger set of local and international clients.”

    Founded in 1987 in France, Axys Consultants focuses on procurement, finance & performance management, Digital, marketing and commerce, data, and change management.

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  • Convenience drives Chinese smart-home market

    Convenience drives Chinese smart-home market

    New research from market intelligence agency Mintel has suggested that convenience will drive the future of the Chinese smart-home market. However, affordability is the biggest barrier to purchasing, in an environment where today’s Chinese consumers are growing increasingly familiar with smart home devices. According to Mintel, as many as 68 per cent of urban Chinese consumers who have purchased or are interested in smart-home devices say that convenience is a primary reason for their interest. Meanwhile, 60 per cent attribute their interest in smart-home devices to trying new technology and half because smart home devices make them feel more relaxed at home.

    “Chinese consumers are now increasingly knowledgeable about how smart-home appliances can help to simplify daily lives,” said Mintel China research analyst Kaye Huang. “Convenience as well as an interest in trying new technology are big reasons for Chinese consumers to purchase smart-home devices. Parents are showing more interest in smart-home devices than those without children; which is likely to be attributed to how the devices can help parents save time and effort. On the flip side, price, more so than privacy, is what is keeping Chinese consumers from purchasing these devices. This indicates that companies in the smart-home market need to put more effort into communicating why these products are value for money.”

    Meanwhile, Mintel research reveals that automatic adjustment to environmental changes is a big opportunity for players in the smart home devices market; more than half of urban Chinese consumers think that this function is a necessity.

    “What will stand out in the smart-home market is the ‘automatic adjustment of parameters’ which enables smart-home devices to automatically respond to environmental changes, such as temperature and humidity. Today’s Chinese consumers have higher expectations on their living conditions and automation is an important part of making the living environment ‘smarter’,” said Huang.

    “Voice control has been a popular area of development in recent years especially since the industry believes that it could be the next generation of user interaction,” continued Huang. “Yet, our research finds that voice control, while widely-known, is a less-used smart home function. While playing music and asking for general information are two main functions that Chinese consumers are using for voice control, in reality this only counts for a handful of consumers, suggesting consumers’ habit of using voice control is far from being firmly established. In the future, brands can look at rolling out strategies and initiatives to instil the habit of using voice control among consumers in China.”