Article contributed by Sally Daniels
Anyone who wants to do business in Asia must consider Hong Kong, whose strategic importance continues to remain strong. Add the fact that the Hong Kong has long been a vital financial and business hub for all of Asia, and you’ve got a region teeming with economic possibilities, including the potential to enter the lucrative Chinese and Asian markets. That said, if ever you decide to bring your business to this hub, here are some things you need to know:
Putting up the business will be easy
A big reason why Hong Kong is a business hub is the ease with which entrepreneurs and owners can start their business. That has been the case for several years now, with Hong Kong consistently ranking high in World Bank’s ease of doing business index. In the past decade, in fact, Hong Kong has placed no lower than 5th among 190 economies, which underscores just how business friendly the region is. Last year, Hong Kong was ranked 3rd, an improvement from its 5th ranking in 2017 and 4th in 2018. Expect Hong Kong to continue ranking high this 2020, especially at the back-end of 2020 (see below). In other words, look for Hong Kong’s regulatory environment to be even more conducive for businesses, with better protection for property rights and friendlier regulations for companies big and small.
Digital marketing will be vital
As with any business headquartered anywhere in the world, launching your business in Hong Kong will mean embarking on new and localised digital marketing initiatives to broaden the company’s reach. This is why the digital marketing campaigns launched by Ayima in the region are done through popular local leading platforms such as Google, Baidu, Facebook, and WeChat. This gives businesses the online presence they need to increase both visibility and credibility, and helps them reach the widest scope of customers in the Chinese market. This kind of marketing will be even more important moving forward, with Virgin Media noting how the Hong Kong digital landscape is currently booming due to recent events that have kept people staying at home. Now more than ever, businesses will have to pivot to become online-orientated, with the end-goal of creating brand awareness and connecting to as many people as possible. In order to be successful at this it is best to use Hong Kong locals in your digital marketing strategy, as they will understand the unique cultures, tastes, and preferences of the region.
The economic climate will improve
The region’s economy has been taken a beating these past few months, but the South China Morning Post points out how resilient Hong Kong’s economy is, having weathered both the 1997 Asian financial crisis and the 2008 global financial crisis. With a strong regulatory environment, sound fiscal policies, and an international make-up, Hong Kong figures to survive this latest economic storm, and rebound in the latter part of 2020. In fact, the International Monetary Fund still forecasts a 0.2% increase in Hong Kong’s gross domestic product this year, which means there will be considerable economic activity at the year’s end in the form of private consumption. This consumption will be made possible in part by a HK$120 billion relief package that includes a HK$10,000 cash hand-out to permanent residents age 18 and above. In short, Hong Kong residents will have money to spend, and that will be good for your business.
Doing business in Hong Kong comes with a unique set of challenges, but for those who do set up in the region it also opens up plenty of opportunities for growth in Asia.
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