The key is to let customers get the best value for money depending on their needs. When comparing your product to competitors’, you do not necessarily have to follow their pricing. 

Ask yourself if your product or service compares favourably and whether you can justify a higher price.

Get general advice on sales and pricing in the Export guide.

Professional market research companies can assist in collecting, analysing and reporting data about potential consumer groups. The market research will help you to identify quantitative and qualitative patterns in consumer groups.

Get general advice on how to identify your target market in the Export guide.

The easiest way to understand your competitors in the market would be to hire a local consultant to do the research for you, but of course this involves a cost.

Otherwise, you may do a research on the internet, but often it will be more comprehensive if you have someone physically present in the market. Then you can visit stores or the business locations of your competition. 

Observe store signs, the outside appearance of the store, displays, lighting and make note of competitors’ advertisements and sales promotions. Check the range of products and services provided by your competitor and look at the merchandise that's not on sale to get an idea of your own prices versus the competition's prices. You may also talk to the sales clerks to determine if they are knowledgeable about the products and if they are friendly. 

Alternatively, you may surf the web.  Look at comments made by customers and observe of the number of "out of stock" or "back-ordered" items. Send an email to the competition and ask about a product to check out the competition's customer service, make a note of the time it takes to receive an answer and how complete the reply is to your question. All these information could then help you to evaluate the competition's strengths and weaknesses. 

Get general advice on sizing up competitors in the Export guide.

Hong Kong is a service-oriented market. You can differentiate your product or services by making your customer service stand out more than the actual product. 

Although many decisions are price-driven, it is equally important to let consumers know that buying from you will be a good idea because of the quality of customer service they will receive.

Hong Kong generally accepts brand names in English. However, in most cases, the brand will also be translated into a Chinese name. 

Carefully research a suitable Chinese name before launching into the market. The Chinese language and culture represent unique challenges for the creation and marketing of brands. For example, the brand name has to mean something to the Chinese. Chinese characters are either pronounced phonetically or visually conceptualised. This means that when you register your trademark you will need to register the English language name and a transliteration of that name (Chinese characters that approximate the actual sound of the English), but which should also strive to have an auspicious meaning.

Get general advice on export marketing in the Export guide.

There are numerous regional and international exhibitions organised in Hong Kong annually. Exhibiting at these trade fairs could maximise exposure of your products. It is essential to carry out research on trade magazines, newspapers and the Internet about the trade fairs to find the most suitable ones to participate in or attend.

Get general advice on attending trade events and promotions in the Export guide.

Actively managing the relationship with your agent is critical to the success of your business in Hong Kong. Forward planning, early recognition of problems and quick resolution are keys to effective management of agent relationships.

Get general advice on working with agents and distributors in the Export guide.

As Hong Kong is a relatively compact economy, most agents in Hong Kong carry out the distribution role at the same time. Importers, distributors or agents usually mean the same thing.

Get general advice on working with agents and distributors in the Export guide.

The cornerstone of Hong Kong’s free trade approach is a strong and credible multilateral trading system. Most goods are imported direct into Hong Kong as there are very good air and sea services.  

Hong Kong agents and companies are also likely to have business relationships or factories on the mainland and can facilitate the re-export of products to China from Hong Kong. Hong Kong businesspeople have long and well-established relationships with businesspeople in China. 

Given China’s inexperience in international trade to date, and to improve security of payment, most exporters use Hong Kong middlemen for exports destined for the mainland. 

It is possible to sell direct to retailers or wholesalers in Hong Kong, but this is usually only for large companies who are prepared to hold stock there. These are few in number given the scarcity of land and the high costs of rental space. Therefore, exporters will usually require a local agent or distributor.

Get general advice on direct and indirect exporting in the Export guide.

Any person who imports or exports any article, other than an exempted article, is required to lodge an import/export declaration within 14 days of importation or exportation.

If a consignment of goods is selected by Customs for examination, the importer or the representative, can approach the shipping company, airline or cargo forwarder concerned for advice on Customs clearance procedures. 

An importer has to obtain an import and export licence from the Customs and Excise Department. Removal permits are also required. 

All imports, exports and re-exports are required to pay a declaration charge of HK50 cents for the first HK$46,000 of the value of goods, and thereafter HK25 cents for every additional HK$1000. Different charges apply to imports of food items and exports of clothing and footwear. Excise and motor vehicle taxes also apply to some imports.

Licences are required for textile imports and for products deemed dangerous to public health, strategic goods, the few products that are subject to duty and several other restricted items such as pesticide and pharmaceutical products.

Imports of rice and frozen meats are controlled to ensure that importers have sufficient quantities of stock. Applications for licences are usually approved in two to three weeks.

There are specific legal requirements for imports of some selected food items.  New Zealand companies need to be aware of, and comply with, any local regulations in relation to their industry. 

There is a one-stop advisory centre for cargo clearance matters in Hong Kong, including details on lodgement of import/export declarations, cargo clearance by the Customs, licences and permits and permit applications for prohibited articles and temporary imports.

Labelling and marking requirements are minimal. Information or instructions relating to goods must be marked on the goods or accompany them. 

There are specific regulations for products like pharmaceuticals, electronic and gas appliances, medical device, food, toys and pesticides. The relevant government bodies are Pharmaceutical Service and Medical Device Control Office of the Department of Health, Centre for Food Safety, and Agriculture, Fisheries and Conservation Department. 

Get general advice on packaging and labelling in the Export guide.

(Additional sources - Doing Business, Hong Kong Trade Development Council, GovHK, Department of Health, Centre for Food Safety, Agriculture, Fisheries and Conservation Department, and Electrical and Mechanical Service Department.)