what are the opportunities and potentials for hk businesses in the mainland?
Post on 31-Dec-2015
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What are the opportunities and potentials for HK businesses in
the mainland?
The economic growth in China
• Continuous growth in real GDP
• Also, there is an obvious growth in GDP per capita Increasing in purchasing power
• Enlarging the potential market in China
China’s Average Annual Real GDP Growth Rate
Year GDP growth rate
2004 10.1%
2005 9.9%
2006 9.5%
2007(forecast) About 9.25%
3800 36004600 5000
5600
7198 7600
0
2000
4000
6000
8000
1999 2000 2002 2003 2004 2005 2006
China - GDP percapita ($)
Globalization• becoming a single-world society
• Stages of production finished in different countries
• Customers are no longer concern about the origin of products (low regional preference)
Minimizing the possible risksReinforcing global development
The development of e-commerce
• General use of computer and internet
• People do business through internet (e.g. e-mail, e-conference )
• Easy to manage business and operations oversea
• Cross broad business become possible
The development of e-commerce (continued)
• E-commerce is well-developed in HKPossess the necessary skills and talentsA potential to enlarging the business in
China
Information Technology (Example)
• one of the focus for HK firms
- Telecom market;
- e-commerce;
- and software industries
What are the strengths and weaknesses of HK businesses
vis-a-vis mainland firms and multinationals?
Strengths
• Developed a good image in China
• High quality products and services
• Good infrastructure and business system
• Adequate talents and business experience
• Similar culture and language with China
• Market sensitive
• CEPA—zero tariff
Weaknesses
• Less innovative ideas
• Not enough famous and local brands
• High costs
• Lack high-tech professionals
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