Deep Dive delves into hot issues in Hong Kong and mainland China. Our easy-to-read articles provide context to grasp what’s happening, while our questions help you craft informed responses. Check sample answers at the end of the page.
News: Hongkongers look to save money amid rising cost of living
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Lower-income families have been especially affected by price increases in areas like food and transport
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Consumer Council finds widespread ‘shrinkflation’ issue in which costs stay stable but product sizes shrink
An online mothers’ support group has helped Hong Kong guide dog trainer Margaret To and her family navigate the rising cost of living.
Thanks to the Lakesilver Moms group chat, she has found free baby clothes, toys, furniture, and even home appliances. Most items were second-hand, some nearly new.
“This has kept our family’s monthly expenses under HK$5,000,” she said. “In return, I’ve donated unused items to the group.”
To, 36, and her husband, who works in online marketing, became more mindful of their spending after their daughter was born around two years ago. They manage their expenses carefully; half of their HK$60,000 monthly income goes toward their flat’s mortgage.
“Everything in Hong Kong is getting more expensive,” she said, noting that restaurant prices have risen by at least 20 per cent.
Administrative manager Winnie Cheng, 35, has found a different way to cut costs – shopping abroad. She frequently visits Shenzhen and other destinations like Japan, South Korea, the UK, and Singapore, bringing an empty suitcase to stock up on essentials.
Hong Kong’s tourism blueprint aims to bring billions to the economy
She takes short trips at least once a month, saving thousands of dollars by purchasing premium steak, organic fruit, and yogurt at lower prices. In Shenzhen, she shops at bulk-buy stores like Sam’s Club and Walmart.
“If you can get 10 croissants in Shenzhen for the price of one in Hong Kong, why not?” she said.
Like To and Cheng, many Hongkongers have adjusted to rising prices by exchanging second-hand goods, joining bulk-buy groups, or shopping and dining across the border, where costs are significantly lower.
Lower-income families have been especially affected by rising costs. Food and transport expenses make up a large portion of their budgets.
Last October, Hong Kong’s Consumer Council exposed widespread “shrinkflation”. They said that product sizes have been reduced by up to 30 per cent while prices remained unchanged. Some products even saw price increases of up to 26.2 per cent.
More Hongkongers are heading across the border to take advantage of cheaper prices on the mainland.
The impact is reflected in cross-border travel statistics. Hong Kong recorded a 48 per cent year-on-year surge in residents making trips to mainland China, reaching more than 93 million visits last year.
Staff writers
Question prompts
1. What strategies have Hongkongers used to cope with rising living costs?
(1) Purchasing only brand-new items to ensure their quality.
(2) Shopping abroad and bulk-buying essentials at lower prices.
(3) Joining groups to find second-hand goods.
(4) Relying solely on government subsidies for financial relief.
A. (1), (3) only
B. (2), (3) only
C. (3), (4) only
D. (2), (4) only
2. According to News, how has Margaret To kept her family’s monthly expenses under HK$5,000?
3. Why does Winnie Cheng frequently travel abroad to shop? Explain using News and Glossary.
Illustration
Question prompts
1. What does the graphic show? How does it relate to the information presented in News?
2. What are Hongkongers doing to save money while shopping? Explain using News and Glossary.
Photo
Question prompts
1. What type of store is this? Why might Hongkongers want to shop there?
2. Would this type of store be useful in Hong Kong? Explain using News, Issue and your own knowledge.
Issue: Hongkongers embrace second-hand shopping to counter rising costs
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Survey found that people reported an increase in their second-hand shopping habits
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Rising costs could hit small businesses in Hong Kong the hardest and put the city’s competitiveness at risk
More Hongkongers have turned to second-hand shopping to cope with economic challenges, especially after inflation peaked in 2022, said Peh Jing Zhi, regional head of goods at online resale platform Carousell.
According to the platform’s 2022 user survey, more than four-fifths of respondents reported an increase in second-hand purchases during that period of uncertainty. The trend has persisted, with shifts in the types of pre-owned items Hongkongers are buying.
Between 2022 and 2024, sales in categories such as furniture, home accessories, luxury goods, fashion, TVs, and home appliances experienced steady single-digit growth. Sales of sports equipment surged 30 per cent from 2022 to 2023 and again from 2023 to 2024.
Peh said it showed that rising costs in Hong Kong had “not only driven demand for essential items but also increased interest in lifestyle and hobby-related purchases”.
Aloysius Sng, founder and CEO of Singapore-based second-hand clothing chain Refash, said business had boomed since its first Hong Kong outlet opened last April. The chain expanded quickly, adding two more locations.
Refash primarily sells women’s clothing but introduced menswear in its third outlet. Items such as dresses, tops, bottoms, and activewear are priced affordably, ranging from HK$29 to HK$99.
Dresses and tops are its bestsellers, while winterwear saw a boost during the colder months. Sng said Hong Kong’s stores were outperforming similar-sized outlets in Singapore.
“This growth reflects increasing demand for quality, affordable, and sustainable fashion options in Hong Kong,” he said.
Supporting Hong Kong businesses as many head to mainland China to shop
However, rising costs put pressure on businesses and could put Hong Kong’s competitiveness at risk, warned Gary Ng Cheuk-yan, senior economist at Natixis Corporate and Investment Bank.
“It will deal a heavy blow to smaller firms, but we don’t have any solution to counter that,” he said.
Ng explained that local businesses struggle to compete with mainland Chinese firms on pricing. To survive, he suggested they focus on importing unique, high-value goods or capitalising on Hong Kong’s reputation for quality manufacturing.
He predicted inflation would rise to 2 per cent this year, making consumers more cautious with their spending.
University of Hong Kong economics lecturer Vera Yuen Wing-han was also concerned about the city’s small businesses, which were already burdened by high labour and rental costs.
She pointed to the increasing number of Hongkongers shopping on mainland e-commerce giant Taobao, where goods are 30 to 40 per cent cheaper.
“Small firms will struggle to stay afloat as consumers turn to more affordable mainland alternatives,” she said.
Still, she acknowledged the shift was understandable: “People need to tighten their belts to cope with rising costs.”
Question prompts
1. Which of the following facts about second-hand shopping is NOT true?
(1) More Hongkongers are purchasing used furniture to support green initiatives.
(2) The city has recorded a steady rise in the purchase of pre-owned clothing.
(3) More people are buying used sports equipment.
(4) Hongkongers remain reluctant to buy second-hand clothing.
A. (1), (3) only
B. (2), (3) only
C. (1), (4) only
D. (3), (4) only
2. List ONE reason why more Hongkongers have turned to second-hand shopping and ONE trend that has emerged in their purchasing habits.
3. What challenges do small businesses in Hong Kong face, and what strategies have been suggested for survival? Explain using Issue and Glossary.
Glossary
second-hand: pre-owned or used goods, often bought at lower prices or through exchanges
bulk-buy stores: retail stores that sell goods in large quantities at a lower price per item
Sam’s Club: a membership-based warehouse store that sells products in bulk at discounted prices. It is owned by Walmart.
shrinkflation: when the size or amount of a product is reduced while prices remain the same or even increase
inflation: a general increase in the prices of goods and services in an economy
luxury goods: items that are not necessary for living but deemed highly desirable within a culture or society
Answers
News
1. B
2. Margaret To has saved money by using a group chat for mothers to find free second-hand baby clothes, toys, furniture, and home appliances. In return, she donates unused items to the group.
3. Cheng visits destinations like Shenzhen, Japan, South Korea, the UK, and Singapore to purchase essentials at lower prices. She saves thousands of dollars on premium steak, organic fruit, and yoghurt by shopping at bulk-buy stores like Sam’s Club, Ole, and Walmart. These stores do not have locations in Hong Kong.
Illustration
1. The graphic depicts “shrinkflation”. The price of sushi remains the same at HK$28, but the portion sizes decrease from 2023 to 2025. This aligns with the Hong Kong Consumer Council’s findings about shrinkflation, which showed that product sizes have decreased by up to 30 per cent while prices have remained unchanged or even increased.
2. Hongkongers are responding to rising costs and shrinkflation by shopping in mainland China, bulk-buying at warehouse-style stores like Sam’s Club, and exchanging second-hand goods. Additionally, some individuals, like Winnie Cheng, travel abroad to purchase essentials at lower prices, helping them save money on food and household expenses.
Photo
1. This is a warehouse store in Shenzhen where Hongkongers can buy goods in bulk and save money. Since prices in mainland China are often lower, many Hongkongers prefer crossing the border to shop for essentials.
2. Warehouse-style stores in mainland China would likely attract Hongkongers. Local shoppers could save money by purchasing household items in bulk. However, it would be difficult for a store of this size to find the space, as they are generally very big. It would also be tough to transport goods home and store them in Hong Kong flats, which tend to be smaller than what you can find in mainland China. (accept all reasonable answers)
Issue
1. C
2. More Hongkongers have turned to second-hand shopping to cope with economic challenges, especially after inflation peaked in 2022. A trend that has emerged is that people are buying more hobby and lifestyle items second-hand. According to resale platform Carousell, between 2022 and 2024, sales of furniture, home accessories, luxury goods, fashion, TVs, sports equipment and home appliances increased. (accept all reasonable answers)
3. Small businesses in Hong Kong face rising costs, including high labour and rental expenses, and struggle to compete with mainland Chinese firms on pricing. Economist Gary Ng Cheuk-yan warned that Hong Kong’s competitiveness is at risk and suggested that local businesses focus on importing unique, high-value goods or leveraging Hong Kong’s reputation for quality manufacturing. Additionally, many consumers are turning to more affordable alternatives on mainland e-commerce platforms like Taobao, making it harder for small firms to stay afloat.
