Establishing Brand Credibility: Strategies for Hong Kong’s Economic Landscape

In times of economic uncertainty, trust isn’t just a marketing advantage—it’s a currency. Consumers in Hong Kong have witnessed economic highs and lows, political shifts, and global disruptions, making them one of the most skeptical yet brand-conscious audiences in the world. Gone are the days when flashy advertising alone could earn customer loyalty. Today, brands are judged not just by what they sell, but by how they behave when the economy tightens, when consumer spending dips, and when public confidence wavers. In a city where resilience is part of everyday life, a brand’s ability to build trust amidst financial instability isn’t just about survival—it’s about proving its worth, over and over again.

Trust is Built in Hard Times, Not in Good Times

Any brand can claim reliability when business is booming. But when markets shake, consumer confidence drops, and people start tightening their wallets, this is the moment that defines a brand’s true credibility. Will it be the kind of brand that stands with its customers, or the one that disappears into damage control mode?

Think about the brands that thrived during past crises. In 1997, when Hong Kong’s economy took a massive hit post-handover, some brands retreated—cutting budgets, pulling back investments, and waiting for the storm to pass. Others doubled down on consumer trust-building strategies. HSBC, famously known as "The World's Local Bank," leaned into its brand promise, reassuring Hongkongers of its long-term commitment to the city’s financial stability. Fast-forward to today, and financial uncertainty still looms, but consumers remember the brands that didn’t panic under pressure.

During COVID-19, another test emerged. Some businesses immediately slashed costs, cut staff, and disappeared from the conversation. Others, like Hong Kong’s Mannings and Watsons, adapted by prioritizing product availability, absorbing some costs, and making essential goods accessible at a time when people needed reliability more than ever. This is where trust is built—not when times are good, but when consumers are watching to see who truly stands for them when things get tough.

The challenge for brands today: Are you treating an economic downturn as a time to withdraw or as an opportunity to demonstrate your commitment to customers? Because people remember who stood by them when things were uncertain. And if a brand’s message is all about loyalty and reliability, consumers will expect that loyalty to be mutual.

Cutting Corners Cuts Trust

When times get tough, the instinct for many brands is to scale back—on quality, on service, on engagement. But here’s the paradox: the very things brands cut first are often the ones that consumers use to measure trust. If a luxury fashion house starts using cheaper materials but keeps prices high, customers will notice. If a coffee chain secretly reduces the size of their cups while charging the same, regulars will talk. If a customer service hotline suddenly becomes impossible to reach, frustrations will spread.

Brands may think these small compromises go unnoticed, but the reality is that consumers are more perceptive than ever. In Hong Kong, where shopping habits are deeply rooted in word-of-mouth trust and repeat business, even minor betrayals of expectation can lead to long-term reputation damage. The infamous case of Hong Kong supermarkets subtly reducing package sizes during inflationary spikes—a tactic known as “shrinkflation”—sparked massive consumer backlash. The issue wasn’t just the price—it was the perception that brands were being deceptive rather than transparent.

The brands that maintain credibility don’t try to disguise their cost-saving measures. Instead, they engage their customers in the process. Consider how some brands, when forced to adjust pricing, communicate openly about rising costs, explaining why changes are happening rather than hoping no one will notice. This honesty transforms a negative into a shared understanding, reinforcing the idea that the brand respects its customers enough to be upfront.

So, ask yourself: Is your brand cutting costs in ways that undermine trust? If difficult changes must be made, are you bringing customers along in the conversation, or hoping they won’t see? Because in an era where people demand authenticity, silence often speaks louder than words—and not in a good way.

Loyalty is a Two-Way Street: Give Before You Take

Most brands talk about customer loyalty. They create reward programs, offer discounts for repeat purchases, and push consumers toward subscriptions. But in an economic downturn, loyalty isn’t something consumers automatically give—it’s something brands must earn, often by giving first.

Consider how restaurants in Hong Kong’s struggling F&B industry have adapted. Instead of simply hiking prices to make up for lost revenue, some eateries have taken an alternative route: offering exclusive, limited-time perks to regulars, rewarding loyalty before expecting it in return. Small gestures, like a free add-on for frequent customers or exclusive pre-sale access to new menu items, send a powerful message: We see you. We value you. We appreciate you sticking with us.

Now contrast that with brands that go the opposite way—those that raise prices, cut perks, and demand loyalty without offering anything in return. It’s no surprise that brands that only see customers as transactions lose them in times of financial stress. If consumers feel like they are just another sale, they will have no hesitation in walking away when times get hard.

The lesson is clear: Loyalty isn’t just a program—it’s a relationship. If brands want customers to keep choosing them during difficult times, they need to prove they are also willing to invest in the relationship, not just extract from it.

Trust is Not About Avoiding Mistakes—It’s About Handling Them Well

Even the most well-intentioned brands will make mistakes. They’ll price something incorrectly, delay a product shipment, or fail to meet consumer expectations at some point. The brands that maintain trust aren’t the ones that avoid errors altogether (because that’s impossible)—they’re the ones that own up to mistakes, fix them fast, and rebuild relationships with integrity.

Hong Kong’s Octopus Card system once faced backlash when technical issues caused errors in fare deductions, frustrating thousands of daily commuters. Instead of downplaying the issue, Octopus took full responsibility, implemented immediate corrective actions, and offered refunds to affected users without making them jump through unnecessary hoops. The result? Instead of long-term damage, the brand reinforced its reputation as a company that values consumer trust over corporate excuses.

Now, compare that with brands that try to silence complaints, delay responses, or shift blame. In today’s digital world, every consumer has a voice, and public perception can change overnight. The brands that maintain trust are the ones that treat mistakes as opportunities to reinforce transparency and accountability—not as moments to hide.

So, what happens when your brand inevitably faces a misstep? The brands that win are the ones that ask, "How do we make this right in a way that builds trust, rather than erodes it?" Because trust isn’t about being perfect. It’s about being accountable.

Final Thought: Trust is the Brand’s Most Valuable Asset in Tough Times

Economic downturns don’t just test consumer spending—they test consumer faith in brands. The businesses that will emerge stronger won’t be the ones that focus purely on survival mode, cutting corners, and hoping for better times. They’ll be the ones that see these challenging moments as a chance to prove what they stand for.

When the economy recovers—and it always does—people will remember who stood with them, who respected them, and who treated them as more than just transactions. Because in the end, trust isn’t built in good times. It’s built in the hard times.

So, is your brand treating this economic landscape as a crisis to endure—or an opportunity to deepen trust that will last far beyond it?