| Abstract | Cross-border consumption activities of Hong Kong residents in Shenzhen partly reflect their increasing price-consciousness in the current economic recession, and partly are an extension of their purchases of imported products and overseas spending. The trend would persist on sustained price differentials, more convenient cross-border transportation and simplified customs formalities. The substitution for domestic consumption, however, would only be partial as Shenzhen cannot deliver the quality and convenience offered by local retailers. Local retailers nevertheless should focus more on the quality of products and services to stay competitive in addition to trimming costs. |
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