As the retail landscape in Hong Kong (SAR) and Chinese Mainland cities within the Greater Bay Area (GBA) continues to evolve, both consumers and businesses are navigating a new era shaped by rapid technological advancement and shifting expectations. Artificial intelligence (AI) is at the forefront of this transformation, redefining how retailers engage with customers, deliver value, and drive sustainable growth.
The eighth edition of our annual study, “Beyond Retail in the Age of AI,” co-sponsored by KPMG China and GS1 Hong Kong, provides a comprehensive analysis of the latest trends and challenges facing the retail sector. The report draws on a robust consumer survey conducted in August 2025, gathering insights from over 1,500 consumers across Hong Kong and GBA cities, as well as in-depth interviews with senior executives from leading retailers and brands. This dual perspective offers a holistic view of how AI-driven innovations are influencing both consumer behaviour and business strategy.
Key topics explored in the report include:
- The shift from transactional to experiential retail, as brands create immersive and engaging shopping journeys.
- The importance of balancing AI functionality with human emotion to build trust and foster meaningful customer relationships.
- The growing demand for sustainability, with consumers increasingly prioritising ethical practices and transparency in their purchasing decisions.
- The rise of health-focused spending, reflecting a heightened emphasis on wellness and quality of life.
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