A consumer-confidence survey by Nielsen Media Research found that across the region - and particularly in Hong Kong - people are postponing holidays and putting off major purchases in the belief that they must save as much money as possible in the current economic climate.
Consensus among advertising agency chiefs is that while everybody's looking for value, the "cheap, cheap, cheap message has worn thin. They say consumers want to see advertising that cheers them up, reassures them that life is not all bad, and gives them the confidence to spend. The research was an online survey of almost 8,000 consumers across the region, conducted in late July.
About half of those polled said they cancelled extended holidays or postponed making investments and major purchases of such items as cars, property and shares. In Hong Kong, one-third of respondents said they had put off buying stocks and shares because of the poor economy.
In the region, Hong Kong people were the most worried about job security, with 39 per cent citing this as their top concern. "Prolonged deflation and a depressed property sector added to rising unemployment and volatile equity markets have taken a real toll on consumer confidence, said Frank Martell, president Nielsen Media Research Asia Pacific.
"People do not yet see much light on the horizon ... it looks like we may have to wait another 12 to 18 months before the region's consumers open their wallets again."
Of course, not all consumers are behaving as if they are about to be thrown on the employment scrap heap, and Hong Kong's top income-earners are still pocketing a pretty penny.
Luxury goods such as imported European cars are selling in record numbers, along with French champagne and other items that are growing further out of reach for the so-called "sandwich class further down the income chain.
Local psychologists have put the boom down to the fact that in uncertain times, people find security in up-market international brand names - and the fact that while unemployment continues to reach new highs, the city's wealthiest residents have barely noticed the recession. "Among the tai-tais (upper-class wives), most are well off and if there's a product that spells prestige and individualism they'll go for it, says J. Walter Thompson Hong Kong's chief executive officer William Lau.
For the mass market, however, creative messages must take into account the concerns - and shrinking levels of disposable income - of most shoppers.
Mark Crouch, DDB Hong Kong general manager, recently asked consumers about the types of advertising they responded best to in a time of recession.
"People said they want advertisers to be more positive, they said 'don't remind us times are tough - we know that'. Crouch says. "Obviously advertising needs to be relevant but they don't want reinforcement of the dire situation.
They want the advertisers to help them and be empathetic with their situation... as opposed to bleating on about how times are tough and it's all doom and gloom."
Around Hong Kong, TV screens, billboards and buses are peppered with the smiling faces of the famous and not-so-famous, and emotion-charged messages attempt to distract consumers from their financial woes.
Jeffrey Yu, regional president of Bates, says a successful campaign in this climate boils down to the right combination of inspiring confidence and offering value for money. 'They are looking for comfort, a sense of reassurance that everything's going to be fine, he says. "It's not the gung-ho spirit we used to have in Hong Kong about going forward and challenging ourselves."
The new Bates campaign for discount furniture store Pricerite illustrates the point. Card tables and plastic storage boxes are shown in classy TV ads as having multiple uses, but their price is never mentioned. "People are looking to honest-to-goodness brands, he says. "Consumers want to know they're getting value, but not necessarily cheap products."
Crouch says that while the economy and consumer confidence have their ups and downs, the golden rule of advertising remains: "You still need a great idea and a compelling ad."
