Bargaining power of customers (Buyers)
It bears negatively on the prospects of Hong Kong's instant noodle industry as more and more people rising in terms of social status and economic position. The increasing purchasing power of the population exerts leverage on instant noodle companies who might see the loyalty of their customers being eroded by their increasing incomes. The substitute product firms such as the fast food chains are also known for their notoriously low operating costs and their relatively cheaper products. Cheaper products have a corresponding income effect on the consumer as they realize the greater power of their money vis-a-vis the substitute product. When combined, these factors lead to the rational consumer realigning his consumption possibilities curve to favor the substitute rather than the formerly patronized product. This situation currently faces the Hong Kong noodle industry.