Mainland Chinese consumers are increasingly crossing borders to purchase luxury brands. However, a large influx of tourists to a given destination has the potential to impact the quality of life of local residents. In this research, the influx of Mainland Chinese visitors (particularly those purchasing luxury products) to Hong Kong was investigated using a case study approach. How Hong Kong residents perceive this phenomenon and how it affects Hong Kong as a whole were topics of particular interest. The case study involved observations of Mainland consumers purchasing in Hong Kong shopping malls, in-depth interviews, and a focus group with Hong Kong residents, and compiling data from documents and video sources. The results are categorized into three themes: the economy, the environment, and attitudes. While the purchases boost Hong Kong’s economy and generate profits for luxury goods retailers, Hong Kong people were found to have negative perceptions of the Mainland consumers’ activity. This is because of the negative effects on daily life in Hong Kong. The Mainland consumers were found to be unintended endorsers of luxury brands, which negatively impacted their image among Hong Kong people. Based on the findings, theoretical implications are built up. In addition, the implications of these findings for public policymakers and luxury brands both in Hong Kong and elsewhere are discussed and recommendations for further research are made.
Scopus Subject Areas
- Management Information Systems
- case studies
- Hong Kong
- mass market luxury goods