Month: November 2012

The Cimigo Pan-Asian travel survey is out now

Posted on by Cimigo

Asians set their sights on Australia but their wallets on Hong Kong: Cimigo Asian Travel Survey

SHANGHAI – Hong Kong was the most popular travel destination for Asians in 2011, while Australia was ranked number one in terms of relaxation and sightseeing, according to a new survey by marketing and brand research specialist, Cimigo.

Cimigo General Manager China, Ms Daisy Sam, said the Cimigo Asian Travel Survey reaffirmed the Asian consumer’s love for travel, with travellers in every country surveyed showing a strong sentiment for future holiday plans.

“When asked whether they expected to increase, decrease or maintain their travel spending for the coming year, 61% of Asians surveyed said they plan to increase their travel, compared to just 33% who planned to maintain the same spending and only 6% who said they will decrease,” Ms Sam said.

“With consumers in India (81%), Indonesia (66%) and China (65%) all indicating that their travel budgets will increase in the coming year, Asian travellers are likely to be seen in greater numbers across the globe in the future.”

Cimigo surveyed 1,034 travel consumers from China, Hong Kong, India, Singapore and Indonesia about their international travel habits in July 2012. Consumers had to be 18 years or older and must have made at least one overseas leisure trip in 2011 and 2012.

Desired destinations

The Cimigo Asian Travel Survey asked consumers the overseas destinations they visited in 2011, as well as their preferred destinations for their next leisure trip for shopping, sightseeing and relaxation.
Hong Kong was the most popular destination overall for travellers from Asia in 2011, with 31% of Asian travel consumers visiting the city that year, according to the survey. Singapore (26%) and Malaysia (25%) were the second and third most popular destinations, with China coming in fourth at 23%.

Hong Kong is also still the number one shopping destination for Asian travellers, with 40% of respondents naming the city as their preferred shopping destination for their next leisure trip.

Singapore and Japan are the second most popular shopping destinations, with 26% of respondents naming these countries as their preference, while Thailand (21%) came in third.

For sightseeing, 31% of Asian consumers name Australia as their preferred destination for their next leisure trip, making it the number one destination, closely followed by Japan (30%) and New Zealand (29%). Other popular destinations across all respondents for sightseeing include France (23%), Italy (22%) and the US (22%).

When it comes to relaxation, Australia and New Zealand are again the most popular spots for Asian consumers with 28% of travellers from all countries naming Australia, 26% of consumers naming New Zealand and 24% preferring Thailand.

Cimigo General Manager China, Ms Daisy Sam, said the results show that for sightseeing and relaxation, natural beauty is the most important consideration for Asian travel consumers.

“The Cimigo Asian Travel Survey shows that most Asian consumers tend to stay closer to home when it comes to shopping and want to visit places where they trust the quality of the products, like Hong Kong, Singapore and Japan, or where they believe they will get a good deal, like Dubai for Indians,” said Ms Sam.

“However, for sightseeing and relaxation, places further afield with abundant natural beauty like Australia, New Zealand, Thailand and Japan are definitely the winners. These places also tend to offer unique sights and culture that can’t be found elsewhere, increasing their attraction.”

The informed Asian traveller

Cimigo asked consumers in Hong Kong, Singapore, China, India and Indonesia where they usually search for information when planning an overseas leisure trip.
The Internet is the most popular source of information for Asian consumers when researching their travels, with 85% of all respondents overall naming online travel sites as their usual place to search for information, and every individual country naming it as their number one choice.

However, word of mouth still remains important for travel advice with close to two thirds of all Asian travel consumers (64%) naming recommendations from friends or relatives as where they usually search for travel information.

Countries who invest in their own online travel information can also be rewarded, with the official website of tourist boards popular as an information source among 62% of all consumers surveyed.

“The Cimigo Asian Travel Survey demonstrates the importance of a good, easily accessible internet site for all travel providers who want to attract Asian travellers,” said Ms Sam.

“However, a physical presence cannot be discounted, as a travel agent was the fourth most popular source of information across all countries. In densely populated cities like Hong Kong and those in India, physical travel agents were very popular channels for actual travel purchases, demonstrating the need for convenient offices and well-informed staff.”

About the Cimigo 2012 Travel Survey

The Cimigo 2012 Travel Survey was conducted in partnership with GMI and includes information on the travel habits and preferences of consumers aged 18 and above from China, Hong Kong, India, Singapore and Indonesia.
The information includes preferred destinations by purpose, class of travel, hotel and airline brand awareness, booking channels, loyalty program membership and budget and spending information. The survey was conducted using GMI’s online panel from July 21 to July 27 2012. Cimigo interviewed 1,034 respondents, who had made at least one leisure trip to an overseas destination in 2011 and 2012. The survey lasted approximately 15 minutes.

Banking survey: only 34% of ‘silvers’ believe they have enough capital for retirement

Posted on by Cimigo

Only one third of Hong Kong investors feel financially prepared for retirement: Cimigo banking survey

HONG KONG – Only one third of Hong Kong’s investors aged 55 and older feel they have adequate capital for retirement, according to a new survey by marketing and brand research specialist, Cimigo.

The annual Cimigo banking survey examines the investment attitudes, perceptions and banking behaviour of the ‘silver hair’ segment, Hong Kong investors aged 55 and above. The survey also asked more than 400 general Hong Kong investors aged 25 and above a range of questions about their confidence in the Hong Kong banking sector, their RMB investment and their use of mobile banking services.

When asked whether they perceive themselves as having adequate capital for retirement, close to half of all silver hair respondents (48%) said no, 18% said they were not sure and only 34% of respondents said yes.

Cimigo Managing Director Hong Kong, Ms Winnie Yeung, said the survey results demonstrate the level of financial stress older Hong Kong consumers feel about their retirement.

“With only 34% of silver hair investors believing that they have enough capital for retirement, the Cimigo banking survey results show that there are a large number of remaining investors who feel a significant level of financial stress about their impending retirement,” Ms Yeung said.

‘Silver haired’ investment

The Cimigo banking survey also asked Hong Kong investors aged 55 and over whether they intend to continue to invest after their retirement, and, if so, the reasons for their ongoing investment.

A majority of silver hair respondents (59%) said that they do intend to invest after retirement. A need to maintain their present standard of living was the most popular reason, quoted by 65% of those surveyed, while the need to counter the effects of inflation was the second most popular reason, cited by 60% of respondents.

Surprisingly, only 38% of Hong Hong’s silver hair investors said that they intend to continue investing after retirement to ensure they have more capital to pass onto the next generation. For the 21% of silver hair respondents who do not intend to invest after retirement, 38% are afraid of taking the risk, 29% do not want to spend the time required to manage such investments, and another 29% feel they will not have the energy to manage such investments. A further 19% of respondents said they just want to enjoy a carefree retirement.

In terms of who influences the wealth management decisions of Hong Kong’s silver hair segment, respondents cited family/myself as their greatest influencer (86%), followed by their bank (84%). The choice of family/myself (83%) was also an important influencer for the general investor aged 25 years and over, however only 69% of these respondents also named their bank as an influencer.

Family friends and colleagues are also an important source of information for researching investment decision among the silver hair segment. While 44% cite the news, 38% name printed media and 37% point to bank staff as their existing investment information source, more than three quarters (79%) of older investors will turn to their immediate social network for information. Only 36% of the general investor population will go to family, friends or colleagues for financial information.

Older investors also differ from general investors in how they use their banking centre or bank branch. While 89% of older investors name their bank branch or banking centre as their preferred channel for wealth management advice, only 55% of general investors feel the same. More than three quarters (79%) of silver hair investors will also purchase investment products from their bank branch, compared to only 31% of general investors.

Cimigo Managing Director Hong Kong, Ms Winnie Yeung, said the Cimigo banking survey results show that bank branches and their staff are vitally important in assisting the Hong Kong silver hair investor make financial decisions and purchase financial products.

“Three of the top five most important attributes driving satisfaction among Hong Kong’s silver hair segment are staff related. Banks need to ensure all their employees who deal with older customers can proactively give advice, know their products well, and can explain products to customers in simple terms.”

“Having a wide variety of relevant financial products is still important. However, Hong Kong’s older investors value staff contact and knowledge much more than the general investor, which is an important insight for Hong Kong’s bank managers to keep in mind for staff training and servicing levels,” Ms Yeung added.

About the survey

The annual Cimigo banking survey has been conducted by Cimigo since 2009 and is designed to provide information on investor confidence, the level of RMB investment in Hong Kong, and the development of mobile banking. The survey is conducted using online methodology among more than 400 Hong Kong general investors aged 25 or above.

The survey includes a booster sample of the ‘silver hair’ segment, comprised of Hong Kong investors aged 55 or above.

Please see the associated Cimigo banking survey media release for further Cimigo banking survey results.

Cimigo annual banking survey reviews investor confidence in Hong Kong

Posted on by Cimigo

Overwhelming majority of HK investors welcome establishment of the FDRC: Cimigo annual banking survey

HONG KONG – An overwhelming majority of Hong Kong investors believe establishment of the Financial Dispute Resolution Centre (FDRC) is beneficial to the general investor and will enhance confidence in the Hong Kong financial system, according to a new survey by marketing and brand research specialist, Cimigo.

Cimigo’s annual banking survey results show that 87% of Hong Kong investors aged 25 and over agree that setting up the FDRC is beneficial to investors. A further 85% of respondents also agree that establishment of the FDRC is useful in enhancing confidence in the Hong Kong financial system.

Cimigo Managing Director Hong Kong, Ms Winnie Yeung, said the survey shows that Hong Kong’s investors view the launch of the FDRC by the Hong Kong government as a positive move.

“More than 80% of Hong Kong’s investors questioned about the establishment of the FDRC in the Cimigo banking survey believe that the Centre will be of overall benefit to them and Hong Kong’s financial system,” Ms Yeung said.

“However, one area that the FDRC does need to address is awareness of the Centre among investors, as only 41% of people surveyed were aware of the establishment of the FDRC at the end of June 2012.”

The annual survey asked more than 400 general Hong Kong investors aged 25 and above a range of questions about their confidence in the Hong Kong banking sector, their RMB investment and their use of mobile banking services. The survey also provides insights into the investment attitudes of the ‘silver hair’ segment, consumers aged 55 and above.

RMB investment less attractive than in previous years The Cimigo banking survey examined investor’s attitudes towards RMB investment, as well as their use of RMB savings. Results show that although investment intentions and the number of RMB savings accounts are high, investor’s belief that the RMB is a safe investment is not as strong as it has previously been.

More than half (59%) of all investors surveyed have an RMB savings account, with that figure rising to 81% of affluent consumers, who are those with HK$1 million or more in liquid assets.

Despite the relatively high number of accounts, consumer’s views on RMB investment are less enthusiastic than they have been in previous years. Among the total investor population surveyed, 56% believe that the RMB will definitely be a better investment prospect than the US dollar (USD) or Hong Kong dollar (HKD) in the long run, compared to 68% in 2010.

This decrease in RMB confidence is more pronounced among younger consumers aged 25 to 29 years old and the affluent. Among the younger consumers, only 40% now believe that the RMB has better long-term prospects than the USD or HKD, compared to 66% in 2010.

Among affluent consumers, 58% now believe that the RMB has better prospects than the USD or HKD in the long run, down from 74% in 2010.

Although confidence has dropped, RMB investment intentions remain solid, with 58% of investors with an RMB savings account saying they planned to increase their holdings in the next year, while 48% of those who don’t have an RMB savings account also plan to start investing in RMB products in the next 12 months.

Ms Yeung said the reasons respondents gave for their positive or negative investment intentions reflected this contradiction and show that Hong Kong investors are unsure about where they should be investing in the present economic climate.

“The Cimigo banking survey results show that 60% of investors with a negative RMB investment intention cited the worsened investment atmosphere as a reason for their view.

“Among investors with positive RMB investment intentions, only 19% see the overall RMB environment as optimistic and only 23% believe that RMB investments carry a lower level of risk. However, among those same investors, 59% believe that RMB related products are either more stable or will provide a higher return than the alternatives,” Ms Yeung said.

“So while Hong Kong investors are not overly confident in the RMB, they do not feel that there are many other alternative investment options available to them.

“Although investors are concerned about the economic environment in China, they still believe RMB products will outperform those from the rest of the world economies,” Ms Yeung added.

About the survey

The annual Cimigo banking survey has been conducted by Cimigo since 2009 and is designed to provide information on investor confidence, the level of RMB investment in Hong Kong, and the development of mobile banking. The survey is conducted using an online methodology among more than 400 Hong Kong general investors aged 25 or above. The survey includes a booster sample of the ‘silver hair’ segment, comprised of more than a hundred Hong Kong investors aged 55 or above.