• Consumption upgrade in the Chinese Mainland offers new opportunities for Hong Kong businesses: Consumption patterns are changing on the Chinese Mainland, shifting from focusing on cost-effectiveness to prioritising quality, experience and personalised needs. This provides immense business prospects for Hong Kong companies looking to tap into the Mainland market. Renowned for “guaranteed authenticity” and “quality service”, Hong Kong brands enjoy a stellar reputation. This unique advantage helps Hong Kong businesses stand out in highly competitive markets.
• Continued expansion of opening-up under the 15th Five-Year Plan is favourable for Hong Kong companies looking to tap into the Mainland market: During the 15th Five-Year Plan period, the Chinese Mainland will continue to actively expand imports, build high-level open platforms and implement trade facilitation measures, bringing more development opportunities for Hong Kong enterprises.

China’s 15th Five‑Year Plan explicitly upholds the expansion of domestic demand and the vigorous boosting of consumption while identifying high‑level opening up as a major development direction. It encourages imports, including rationally adjusting import tariff rates and upgrading the functions of trade promotion platforms, creating greater space for enterprises to expand into the Mainland's domestic market. For Hong Kong companies, this not only helps lower the threshold but also provides a crucial opportunity to tap into the Chinese Mainland consumer market using the “Hong Kong brand”. This is an opportunity well worth seizing. As Chinese Mainland consumer trends shift from price‑driven to focusing on quality, experience and personalisation, Hong Kong businesses should understand regional differences and formulate targeted market strategies based on a deep understanding of regional differences, so as to better capitalise on domestic sales opportunities during the 15th Five‑Year Plan period.

Capturing Business Opportunities in the World’s Second-Largest Import Market

The Chinese Mainland’s sustained efforts to actively expand imports and build a “Big Market for All” have created broad prospects for high‑quality products and services from around the world. In fact, its total import value has been steadily rising for years. China’s imports reached RMB18.5 trillion in 2025, ranking as the world's second‑largest import market for many years. [1] Moreover, the Chinese Mainland has launched multiple key platforms and facilitation measures to lower market entry barriers, allowing enterprises to enter the market more conveniently.

The China International Import Expo (CIIE), held annually in Shanghai, is the world’s first national‑level expo themed on imports. For brands with distinct regional characteristics – such as food, health supplements, and specialty home goods – this serves as a crucial platform for promoting local culture and enhancing brand visibility. Since its inaugural edition in 2018, the CIIE has attracted more than 180 countries, regions and international organisations. Over the years, the cumulative intended transaction value has exceeded US$500 billion. [2]

At last year’s CIIE, the Hong Kong Trade Development Council (HKTDC) showcased local expertise by setting up specialised pavilions for food and services, promoting high‑quality products and professional expertise to global and Mainland buyers through extensive business matching. Hong Kong businesses can actively participate to fully leverage the spillover effects of the CIIE and enhance their brand visibility in the Mainland market.

In addition to leveraging the CIIE, Hong Kong enterprises should closely monitor various import‑encouraging measures introduced by the central government. This will help unlock business opportunities in expanding the import of premium goods – such as food and beverages, household products, and health supplements – enabling them to tap into the Mainland market through multiple channels.

In February this year, the Ministry of Commerce said it would host more than 100 “Export to China” events [3], arranging a wide variety of import promotion sessions that include matchmaking events and the creation of consumer scenarios. Hong Kong enterprises should actively engage in an O2O (Online‑to‑Offline) approach to establish direct connections with Mainland buyers, retail platforms and distribution channels, thereby securing a firm foothold in the Mainland consumer market.

Meanwhile, the central government has continued to optimise the import business environment, introducing favourable policies such as further reducing tariffs on certain commodities, streamlining customs clearance procedures and expanding the positive list for cross‑border e‑commerce retail imports. Hong Kong businesses should make the most of these policy dividends of such policies and leverage the strong reputation of “Hong Kong brands” to build their corporate image and further tap into the vast business opportunities in the Mainland consumer market.

(For more information on the latest development of e‑commerce in the Chinese Mainland, please read Cross‑border E‑commerce Expansion: Unlocking Opportunities Between China and ASEAN)

New Forms of Business in the Mainland Consumer Market

China’s overall consumption structure has been undergoing a transition in recent years, with significant changes emerging in consumers’ mindsets, demands and habits. Hong Kong businesses looking to tap into the domestic market must thoroughly understand the latest consumption patterns of Mainland consumers and flexibly apply “down‑to‑earth” business strategies to stand out from the competition.

• Online shopping is popular

E‑commerce is a booming industry in the Chinese Mainland. China’s online retail sales of physical goods reached RMB13.1 trillion in 2025, according to National Bureau of Statistics figures. Consumers’ online shopping behaviour is becoming increasingly personalised, and shopping through diversified channels such as livestreaming e‑commerce, instant retail and social commerce has become the mainstream consumption modes. They generally have cross‑platform shopping experience. For example, browsing Xiaohongshu for reviews from KOLs and real users to gather extensive product information. Consumers are also accustomed to sharing their daily lives on WeChat Moments, where they recommend recently purchased products to each other. If resources permit, enterprises should leverage the unique features and advantages of various e‑commerce platforms to more comprehensively and deeply engage the vast consumer base in the Chinese Mainland. [4]

• Rational consumption

Mainland consumers have adopted a more prudent and rational approach to consumption in recent years. They no longer blindly chase after brands or follow trends, but instead place a greater emphasis on the actual quality and functionality of products, showing a strong preference for high cost‑performance offerings. They shop mainly to satisfy their actual needs rather than for status or to impress others. For everything from daily items and electronic gadgets to clothing and accessories, they compare the products and study the product specifications, genuine customer feedback and warranty policies to make sure every penny is well spent. In view of this, enterprises should flexibly adjust their pricing strategies and offer premium, reasonably priced products to cater to the cost‑conscious spending habits of Mainland consumers.

• Seek new experience

With economic growth and upgraded consumption, Mainland consumers are increasingly seeking immersive and emotionally engaging experiences beyond mere product purchases. They are increasingly attracted to sensory consumption modes that combine storytelling with social sharing, such as brand‑name pop‑up stores, live‑streaming e‑commerce and online‑merge‑offline (OMO) “new retailing” scenarios. To capture market share, enterprises must actively transform and upgrade, shifting from mere product sales to delivering high‑quality consumer experiences such as creating immersive experiential scenarios that enable online‑to‑offline (O2O) consumer interaction. Mainland enterprises should also strengthen storytelling and emotional connections to boost social sharing and resonance, thereby satisfying consumers’ pursuit of “experiences”.

Unlocking Massive Consumption Potential

The national 15th Five‑Year Plan explicitly stipulates that the country must build a robust domestic market, accelerate the establishment of a new development paradigm, and adhere to the strategy of expanding domestic demand as a strategic priority. In fact, the central government has been making vigorous efforts to boost consumption, including optimising the consumption environment and increasing people’s propensity to buy to expand domestic demand in all respects. Local governments have also been actively promoting the upgrading and development of the consumer market and encouraging citizens to unleash their consumption potential, making domestic demand a new driving force for economic growth. [5]

Overall, the Mainland consumer market has experienced rapid growth for years, with total retail sales of consumer goods increasing from RMB39.2 trillion in 2020 to RMB50.1 trillion in 2025, marking a cumulative growth of 27.9%. In 2025, retail sales of different types of consumer goods all rose, with the food/beverage/tobacco/alcohol category increasing 8.4% year‑on‑year to reach RMB3.4 trillion. Under the central government’s policy to promote the trade‑ins of consumer goods, retail sales of durable goods performed exceptionally well. Retail sales of home appliances reached RMB1.2 trillion, a year‑on‑year increase of 11.0%, while retail sales of communication equipment reached RMB 1 trillion, surging by up to 20.9% year‑on‑year to become one of the fastest‑growing categories.

It is worth noting that the income levels of Mainland residents have been steadily rising, with purchasing power continuously going up. The per‑capita consumption expenditure of Mainland residents reached RMB29,476 in 2025, according to the National Bureau of Statistics. Economically developed regions such as Shanghai, Beijing, Zhejiang and Guangdong have consumer expenditures above the national average, demonstrating considerable potential. Rather than merely seeking low prices, highly affluent residents in these regions have strong demand for premium consumption experiences and are willing to pay more for high‑quality products and services. However, these markets are also more mature and saturated with established businesses and brands, resulting in intense competition.

Although lower‑tier markets such as Hunan, Guangxi and Guizhou lag behind first‑tier regions/cities in consumption expenditure, they offer substantial purchasing power with significantly less competition. This makes them ideal launchpads for companies looking to break into the domestic market. Consumers in these regions generally place a higher emphasis on cost‑performance and practical value. They respond better to pragmatic products and various promotional offers, making them equally worthy of attention for businesses.

To summarise, enterprises can formulate tailored strategies based on regional characteristics and their products. Places with higher consumption levels can attract local consumers with premium products, good service and shopping experiences and excellent brand image. Lower‑purchasing‑power regions can focus on products that are great value for money and offer steep discounts during promotional events such as “Double 11” (“11.11 Mega Sale”) to attract local consumers, thereby boosting sales and market penetration.

[1] Source: Statistical Communiqué on 2025 National Economic and Social Development

[2] Source: State Council Information Office

[3] Source: Information Office of the Ministry of Commerce

[4] For more information, please read “Explore A Multi-Platform Strategy – Chinese Mainland’s E-commerce Retail Market: A Closer Look”

[5] Examples include “Cross-Provincial Departure Tax Refund Arrangement Introduced” and “China Introduces Zero Tariff Policy on Imported Goods for Hainan Residents”.