(Source: Hong Kong Brand Development Council)
1. Branding Wave in Hong Kong
In the recent years, branding has become a hot topic resonating among the Hong Kong business community.
Some Observations
· Local companies stepping up readiness for branding.
· Consumers become increasingly brand-conscious
· Branding becomes the latest hit on media.
· Government has begun to include branding elements into the policy agenda.
· Brand awards/competitions have mushroomed.
According to a survey by the CMA Chinese Manufacturers’ Association of Hong Kong ) in 2003:
· 65% respondents had moved up to ODM / OBM
· §60% indicated interest in stepping up branding
· 40% would increase budget for brand promotion
· 39% planned to designate staff to specialize in brand management
· 48% called for a high-level committee to coordinate brand-related policies
A Priori Analysis
· After protracted and painful restructuring, the epicenter of Hong Kong economy is shifting towards value-added activities;
· Manufacturers have to move up from OEM to ODM/OBM because cost effectiveness no longer secured a competitive position
· In a highly service-oriented (about 90% of GDP) economy, service companies now have increasing interest in branding because of fierce competition and growing impetus to expand overseas.
2. Hong Kong’s Prospect as a Brands Hub
Hong Kong has an enviable “advantage portfolio”, providing a sound foundation for local companies to develop our own brands
Hong Kong’s Distinctive Edges
(1) At product level
· HK products are renowned for high quality, trendy, and good value for money.
· HK services are famous for high efficiency, agility, flexibility, and professionalism.
(2) At corporate level
· Hong Kong manufacturers are adept at cost control, supply chain management and international marketing.
· Hong Kong service companies are experienced in operating under inter-cultural contexts and fast-changing environment.
(3) At territorial level
Hong Kong wears a bevy of prestigious “hats”:
· Asia’s world-class metropolis
· International financial center
· Gateway to the world’s factory
· Bridge between China and global economyAlso, Hong Kong has advanced infrastructure, abundant talents, free flow of information, sound intellectual property system.
Leveraging on Mainland’s Developments
China’s domestic market is booming and speeding up liberalization, providing a vast hinterland for HK brands to grow and thrive:
· With the implementation of CEPA, HK products can export tariff-free to Mainland market and service providers could enjoy enhanced access
· With the pick-up of living standard and the emergence of middle class, Mainland consumers exhibit a growing appetite for middle-range brands, Hong Kong’s branded products/ services are most likely to be benefited
A Summary
In a nutshell, Hong Kong provides the right time and right place for our industries to develop brands and it definitely has the potential to become a bands hub:
· Hong Kong’s premium geographic image is transferable to brands originated from/based in it
· Hong Kong is a bridgehead for international brands to tap into Asia-Pacific market, especially Mainland China
