Beyond discounts: How grocery apps are cashing in on HK's shopping shift

Grocery shopping in Hong Kong has moved far beyond paper leaflets, as supermarket apps are now the norm, with 75% of local shoppers use them for discounts, and over 60% are enrolled in digital loyalty programmes, according to YouGov's latest report titled “The rise of value shoppers: APAC grocery retail report 2025”.

Don't miss: Survey: Over 60% of HK grocery shoppers use digital loyalty programmes

This trend underscores the evolving role of loyalty programmes. As Mark Sage, chief experience and membership officer at Masan Group and a key leader behind the launch of yuu Rewards in 2020, noted, “Apps such as yuu Rewards are driven through loyalty and the underlying points currency, but they leverage this attention to also enable sales promotion visibility (discounts) and wider advertising.  This highlights the real value that loyalty brings – specifically through digital apps.” 

Sage pointed to a critical insight: consumers typically avoid apps that are purely for discounts and ads. The success of social media, by contrast, lies in engaging users with content—such as short videos—before introducing advertising. 

The findings suggest that consumers' primary channels for discovering grocery deals are highly intentional and value-driven, rather than passive scrolling on social media, said Tim Durgan, founder of Nodal. "The convenience and effectiveness of dedicated apps and websites for finding the best prices make them a more impactful channel for grocery-related marketing than social media."

Brands can aim to understand the specific characteristics of the discount buyers including key moments in the year, to understand when and how to compete, he added. "If a brand can drive switching through discounts as the starting point of a loyalty initiative, there's opportunity to drive an unfair share of growth."

Beyond discounts: The shift to budget management

The 75% figure isn't just about discounts, as it signals a profound shift in consumer expectation, said Rose Tsang, SVP, media management and delivery (MMD), WPP Media Hong Kong. “Hong Kong shoppers aren't just looking for deals; they're actively managing their household budgets through these apps. For brands, the real opportunity isn't just to offer another discount, but to become an indispensable part of that budget management.” 

Instead of generic promotions, brands should leverage the app environment to create predictable value, Tsang added. “Think of it as a 'smart savings' partnership. For example, a brand could offer a tiered discount that unlocks after a certain spend threshold over a month, or provide personalised recommendations that genuinely save the shopper money on items they already buy regularly.” 

Meanwhile, Tony Ng, founder and creative director, DigiSalad, said discounts are the hook, but habit is the goal. “Brands should build ‘earn-anywhere, redeem-everywhere' journeys: e-receipts auto-credit points, app receipts unlock tier boosts, and weekly ‘missions’ (buy X, try Y) nudge cross-category exploration.” 

They should also pair always-on savings with dynamic perks such as surge bonus points in off-peak hours or for private-label trials, he added. “Finally, close the loop with receipt scanning and wallet-stored rewards so value lands instantly, not in tomorrow’s inbox.” 

Vincent Ma, co-founder, Zlashy, said brands should focus on creating a seamless and rewarding app experience that combines convenience with exclusivity, offering dynamic loyalty features such as real-time rewards tracking and personalised discount notifications based on shopping habits. He added: 

Location-based promotions can also be implemented to alert users to nearby deals when they are close to a store.

A powerful, unique advertising channel

This digital engagement is also a powerful advertising channel. According to the YouGov report, 49% of Hong Kong respondents encounter ads within these supermarket apps—a figure nearly equal to the 51% who see grocery ads on social media (Facebook, Instagram, TikTok).  

However, this balance starkly contrasts with Thailand and Indonesia, where social media dominates ad exposure at 82% and 77%, respectively. 

Sage attributed this difference to market concentration: "In Hong Kong, the grocery category is highly concentrated with two main players, and both of these have strong digital apps. This means they already have good existing customer digital reach – essentially owning their own performance marketing channels – and so have less need to utilise paid channels such as Facebook."

WPP Media's Tsang added that Hong Kong consumers are highly sophisticated and efficient. “They don't browse social media for grocery inspiration, but rather they go directly to the source – the supermarket app, the physical store, or a trusted word-of-mouth recommendation from their friends and family." This is also backed by the survey results that showed over half of Hong Kong shoppers prefer to shop in-store.  

As a result, brands trying to push traditional product ads on social media will likely see diminishing returns, Tsang said. “The smarter play is to use social to build brand affinity, share recipe ideas, or create engaging content that indirectly drives app usage or in-store visits.” 

“It's about being part of the conversation, not just shouting about a sale. We often advise clients that in Hong Kong, social media is for 'why buy,' not 'what to buy' when it comes to groceries.” 

Echoing Tsang's thought was Zlashy's Ma, who said Hong Kong consumers tend to favour direct and functional tools for grocery-related decisions, such as supermarket apps and price comparison platforms. "This reduces their reliance on social media for discovering promotions and products."

Synergy between social and loyalty

The experts agree that the greatest potential lies in integrating social media and loyalty programmes into a continuous feedback loop.

DigiSalad’s Ng said brands should treat social as the “top of loop” and loyalty as the “memory”, leading to engagements and coversions. “Gate exclusive codes to members, but let non-members ‘bank’ a one-time trial reward via social sign-in. Use creators to launch limited drops that require membership to redeem. Then retarget viewers with personalised boosters. Post-purchase UGC earns bonus points to fuel more social reach.” 

Meanwhile, WPP Media's Tsang sees social media as the 'proof point' for loyalty. “Social media is excellent for creating buzz and attracting new users, but the loyalty programme is where you capture their data and deepen the relationship.” 

she added brands should showcase real members enjoying exclusive benefits, highlight the community aspect of their loyalty programmes, or even run social-only challenges that feed into loyalty points.

“And conversely, use loyalty data to inform your social content strategy: what are your most loyal customers interested in? What content resonates with them? This creates a virtuous cycle, where social drives loyalty sign-ups, and loyalty members become your most authentic social advocates,” she added.  

In the long run, Masan’s Sage said the aim will always be to maximise engagement in brands' own channels – via their own digital app, push notifications and other direct marketing channels so as to lessen the need to pay for reach within social media channels.  “This is the real win for loyalty programmes.”

In the era of artificial intelligence (AI) disruption, it is also critical to consider the role and opportunities it provides to help brands stay competitive while personalising the customer experience, said Zlashy's Ma. "AI can enable features such as personalised recommendations through shopping pattern analysis, dynamic pricing based on real-time market demand and competitor prices, and predicting customer drop-offs to proactively offer reactivation incentives."

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