Hong Kong maintains an edge in the business of technology thanks to a number of intrinsic advantages and its proximity and close relationship with China. All help the economy survive weaknesses such as higher operating costs and the lack of front-end research and development (R&D) activities.
Key market segments
- Information technology (IT) – Most service providers specialise in software design and development, or in providing IT consultancy services. The main businesses buying professional IT services in Hong Kong are banking and finance; shipping, freight forwarding and logistics; and trading and transportation.
- Telecommunications - Most telecommunications services are open for competition. In 2008, there were 14 digital networks operating in Hong Kong, 173 Internet Service Providers (ISPs) licensed to provide broadband services and 42 fixed-line telecoms network service companies (including wireless, satellite and cable). Wireless utilisation continues to gain momentum in the consumer market.
- Internet - In 2008 an estimated 77.3 percent of households connected to the Internet were using broadband and 59 percent of business establishments had an internet connection. In 2009 Hong Kong had 167 ISPs.
- Digital entertainment - The Hong Kong Government has identified digital entertainment as a focus for technological development. While high internet and broadband penetration facilitates the growth of the local digital entertainment industry, there are problems relating to high operating costs and a lack of R&D capability. The competitive edge for local companies comes from competitive pricing, creative solutions and excellent management skills. The domestic market is still the major customer for local digital effects companies, followed by Southeast Asia, mainland China and the United States. The main focus of companies is on digital effects for commercials, films, and television.
- Electronics - Hong Kong is the key electronics parts sourcing and distribution hub for Asia. Information technology and multi-media products continue to be the star performers.
Getting your product into market
New Zealand companies need to have a unique product to sell, especially in information technology, telecommunications and the Internet.
Finding the right partner is crucial to a company’s success. It is important that the partnership is enhanced by joint marketing plans and timely communications about trends and developments that present threats or opportunities for the business.
Regulations
Hong Kong is a free port - there are no tariffs on goods imported into or exported from Hong Kong.
There are different government departments governing various products, services and technologies in the ICT sector, depending on the nature of the specific product, service or technology. Different regulations apply as well.
Opportunities
- The Hong Kong market is very quick to adopt new products that have distinctive value.
Challenges
- New Zealand products and services are often more costly than those of competitors.
- New Zealand is seen as remote from Hong Kong, making local companies feel New Zealand suppliers will be out of reach or not as responsive as others in after-sales service.
- For some products or services, language and culture will be issues. New Zealand companies are recommended to employ professional translators or consultants to adapt products to local market requirements.
