New research from KPMG China and GS1 Hong Kong indicates that retailers require distinct strategies to turn consumer confidence in artificial intelligence into growth.
Anna Lin, chief executive, GS1 Hong Kong, says: “AI is increasingly shaping how consumers discover and evaluate products, and it tends to recommend those backed by data it can readily interpret and trust. Businesses with trusted, standardised product data that is structured for machines to understand and use and traceable to an identifiable source will be best positioned to earn consumer confidence and influence future purchasing decisions.”
Building Consumer Trust in the AI Era
The Growth Reimagined: Building Consumer Trust in the AI Era report outlines three key themes that serve as a roadmap for future growth:
- Trusted AI builds consumer confidence: While AI enhances personalisation and accelerates service, privacy, accuracy, transparency, and human interaction remain critical for consumer adoption.
- Silver shoppers diverge by market: To capture the growing silver economy, brands should prioritise price in Hong Kong and focus on brand reputation and engaging experiences in other GBA cities.
- The low-cost-only label no longer fits Chinese Mainland brands: Their improvements in quality and innovation are prompting competitors to reconsider future sources of brand advantage.
Anson Bailey, head of Consumer & Retail, Asia Pacific, KPMG China, says: “Any brand that still sees Chinese Mainland competitors as a low-cost threat is looking in the rear-view mirror. Chinese Mainland speed is now producing better products, sharper design and faster innovation at a scale few markets can match. The real shift is that Chinese Mainland brands are learning to build brand equity at the same pace as they have built scale through value and speed. This is increasingly influencing who can win – not only in the GBA, but in consumer markets worldwide.”
