Amid the financial tsunami, some academics are urging the local retail industry to strengthen its promotion of Hong Kong brands on the mainland in order to encourage tourists' spending in Hong Kong.

The Asian Centre for Brand Management (ACBM) of the Hong Kong Polytechnic University (PolyU) yesterday announced the latest findings of its biannual study on customers' perceived value (CPV) of Hong Kong retail services.

The report shows a steady decline in customer perception of Hong Kong retailers over the last two years. The overall CPV index dropped from 100.5 in July 2006 to 97 in September 2008.

"This decline is alarming because Hong Kong has always been considered a safe, reliable and low-risk shopping paradise. It's also an important factor in attracting repeat visitors," ACBM director Sherriff Luk explained.

Customer dissatisfaction is also reflected in the decline in overall customer spending. On average, shoppers spent HK$1,863 per transaction in the second half of 2008, a 25 percent drop from the first half of the year.

With the financial tsunami affecting global customers' spending, Leslie Yip, associate head of PolyU's Department of Management and Marketing, remarked that local retailers should work on brand-building.

"Brand preference is crucial in attracting potential visitors," Yip elaborated. "More publicity work needs to be done for local brands in order to bolster the city's tourism in the long run."

Luk added that brand preference is a determining factor for mainland tourists, who tend to be more brand-oriented than local shoppers, as well as tourists from Europe and America.

(HK Edition 10/15/2008 page1)