jeudi 23 février 2023

China VS Hong Kong An European Businessman shared his Opinion

 After a week spent in this special administrative region of China, we have stopped counting the number of times that the simplicity of doing business in Hong Kong has been praised to us.

Without necessarily seeking to question the entirety of this discourse, our education has taught us to question this kind of assertion to find where the nuance lies.

And the fact is that, if all the elements are indeed in place to promote business, Hong Kong is not an easy market. It would be more honest to say that everything is simple to attack a difficult market.

Indeed, if 80% of companies launched in Hong Kong are by foreigners, they will have to learn to deal with local particularities and adapt to market constraints.

But if the problem had to be summed up in one element: in view of its very small surface area, Hong Kong real estate has nothing to be ashamed of in the face of Parisian prices. The cost of living may therefore be low on all other lines, the budget that you will have to put in office and housing implies an essential obligation: your business will have to generate cash, and it will have to generate it quickly.

  I started doing sales work for the first time, rather than recounting my life again, I rather want to describe funny things to you: The most important thing in Asia for doing business is your business card, but just having a business card is not enough.

When you give your business card, you have to give it with both hands showing it to your interlocutor, and when he gives you his card, you also have to take it with both hands and inspect it, you remember the catalog of Toys R Us, well it's the same.

Doing Business in Asia, not impossible 

In addition, after having examined it well, it is relatively advisable to place it next to your belongings like your whitewash when you were very young, never very far away.

You should also never get upset, even if the guy makes you understand that your business is rotten and that he will die in 5 days, you still have to save face and wish him the best blalbla. In short, lower your pants is the French translation of what I just said.

That's all for today, tomorrow I finally get my own scooter (which means that in a few days I'm going to take a bus from the front, goodbye). I hope to be able to go and take pictures when the sun goes down but the day promises to be just as busy, it's a shame because at the moment they are working quite a lot in the rice fields and I already have a few spots to take pictures!

Hong Kong may therefore appear to you as an entrepreneurial paradise on one condition: that of agreeing to work hard.

So after 8 days in Hong Kong, around 30 meetings and around 50 encounters, here is our checklist of the 10 things to think about before launching your business from Hong Kong:

1Does Hong Kong have a competitive advantage for your particular industry?

Not all businesses are equal in luck and some businesses are more likely to succeed in HK. Three major scenarios:

My Feedback 

Being close to your production unit: this is the first good reason to open an office in Hong Kong. If you offer a product manufactured in China (whether it is a technological product or not for that matter), you will have great advantages by choosing a base in Hong Kong. This is the case for Native Union, which produces its accessories in Shenzhen and runs its business from HK. 30 minutes from their production unit, they benefit from better responsiveness to market a product more quickly, without sacrificing quality (when you are far away, you end up accepting small defects because another return trip would be too long).

Being in the wine business: the former chief executive being a great wine lover, he eliminated import and sales taxes. Hong Kong therefore presents itself as one of the places where wine is the cheapest, attracting many traders for an Asian population that is increasingly fond of French wines in particular.

Wanting to target the Asian market: it is the very objective of the Think Asia Think Hong Kong campaign to want to present HK as the window to Asia (and in particular China). If the expansion of your business must go through China, it is better to settle in Hong Kong where the laws are Western (remains of the colonial heritage) and where business is encouraged by many initiatives.

Read more 

If you don't produce anything in China, you're not in the wine business (or luxury in general) and you're not targeting the Asian market... do you really have good reasons to go to Hong Kong? Only you have the answer.

lundi 16 janvier 2023

4 surprising news about the Chinese Economy


China's bulk commodity index c

While global inflationary pressures are expected to ease somewhat in 2023, inflation is unlikely to decline quickly. The latter is likely to remain elevated compared to pre-Covid levels.

China's bulk commodities market development index reversed its downward trend in December 2022, according to industry data.

China's bulk commodity index came in at 101 percent during the period, up 0.8 percentage points from the previous month, according to the China Logistics and Purchasing Federation.

An index above 100% indicates expansion, while an index below 100% reflects contraction.

The bulk commodity supply and inventory sub-indices both rose from the previous month, and the decline in bulk commodity sales eased in December.

The federation predicts that the national bulk cargo market will perform better in 2023.

“We would be surprised if developed countries manage to reach target inflation levels of around 2% in the near future. We expect weaker global economic growth in 2023, although we still expect to see earnings growth and dividends from a number of companies we own," they said.

Geopolitically, elevated tensions between China and the West, particularly the United States, are likely to continue. The two analysts do not foresee an escalation to the point of a military conflict in Taiwan.

This country is a fully functioning country, has a productive workforce and is home to many successful companies that hold large market shares and high barriers to entry, with very few state-owned companies. Corporate governance is particularly strong and we believe Australia faces far fewer long-term environmental risks than many other countries in the region and around the world."

The manager also highlights Singapore, which is home to many interesting companies with revenues from across Southeast Asia. In addition, thanks to its flexible immigration policy and stable economy, a considerable number of wealthy Chinese residents are deciding to settle there, a trend that is expected to continue and which should benefit Singapore.

Over the next decade, India is expected to contribute about 20% of total global growth.

China’s pet industry was worth RMB 298.8 billion (US$44.4 billion) in 2020 and reached a projected RMB 348.8 billion (US$51.5 billion) in 2021, a year-on-year growth rate of 16.7 percent. The iResearch white paper also projects the industry to reach RMB 445.6 billion (US$66.1 billion) by 2023.

The Sales Volume of Scarves is Higher in China

Scarves have a huge market volume in China. According to the data from the National Bureau of Statistics of China (NBS), the Chinese scarf market has a scale of 250 billion CNY (33.9 billion EUR) in 2022. This market volume was boosted by 2 factors:

The strong power of textile products in China 

A research by Statista in 2019 shows that clothing and accessories (including scarves) are the third most purchased luxury goods in China with a 44.6% acceptance rate.

China’s Baby Care Market in 2022, chck this 

Following rising concerns about Chinese babies’ health over the years, baby personal care, in general, is poised to witness significant growth. In 2019, the market size of mother and baby products in China reached approximately 2.7 trillion yuan, growing at around a 15% rate annually in the past three years.

According to market research, the China baby care products market is expected to grow at a compound annual growth rate of 10.69% between 2020 and 2027 to reach a market size of US$23.469 billion in 2027, from US$11.531 billion in 2020. Chinese young parents pursue high-end lifestyles, particularly in lower-tier cities.