Here is a list of current Market Research done for the Hong Kong, P.R.D. and Macau markets. If you would like to receive a copy of the full report please email the author directly.
Access Control Equipment Olevia Yim
U.S. companies are major suppliers of access control systems and
equipment at the high-end of the Hong Kong market, owing to their
technical expertise and proven product reliability. They are
becoming increasingly competitive in the commercial and retail
spectrum of the market, as Hong Kong users begin to appreciate
reliable equipment and advanced features. Great potential exists
for systems with application in the residential sector, as
evidenced by Hong Kong Government’s pilot facial recognition
system installed in a public housing estate. Note: a U.S. company
from California supplied the system. General market information
shows that there are substantial opportunities for new U.S.
manufacturers of electronic security equipment.
Construction Projects on Macau’s Cotai Strip Elanna Tam
Macau’s economy is growing at 13% annually, with a recent surge
of 28% during the first half of 2007. The driving force has been
the construction of casino-related projects that resulted from
the opening-up of the gaming industry in 2001. Many U.S.
investors are actively pursuing casino-hotel projects, including
The Sands Corporation, Wynn Resort, and MGM, in addition to
large-scale expansion by other local and international firms.
Anticipating growth in gaming tourism over the next five to seven
years, at least USD10 billion in new projects are planned. These
projects present opportunities to U.S. architects, engineers,
building products suppliers, gaming equipment suppliers and show
organizers.
IPTV Fanny
Chau
Television is a substantial market in Hong Kong, with an
estimated subscriber base of almost 2.23 million households
(100%). There are hundreds of TV channels broadcasting in a range
of languages, including Free-to-Air commercial channels, pay TV
channels and a variety of Free-to-Air satellite channels.
Broadband IPTV technology is being widely adopted by licensed TV
operators because Hong Kong has one of the world’s best
telecommunication infrastructures, which makes Broadband IP
network available at a very reasonable price. More importantly,
the Hong Kong Government’s digital policy, which aims at
enhancing Hong Kong’s position as a regional technology and
broadcasting hub is also a major driving force for IPTV.
Currently, there are 878,000 IPTV subscribers, representing a
household penetration rate of nearly 40%, surpassing the number
of traditional CableTV subscribers. Spending on IPTV (revenue
from service subscribers, hardware and equipment investment by
operators) in Hong Kong is estimated at US$ 78 million in 2007.
Local industry players foresee that IPTV subscribers will
continue to grow in the next few years, as the IPTV technology
become more mature and the price drop.
Investment Banking- Marketing and Communications Services
Alice Lai
The key businesses of investment banks (raising capital and
providing advice on mergers and acquisitions) are often driven by
the relationships between the banks’ dealmakers and the key
executives of their client organizations. As a result, the
marketing and communications activities of investment banks focus
more on facilitating these relationships than directly
communicating a message to clients.
Best prospects for U.S. service providers include: providing
Customer Relationship Management Systems (CRM), Direct Market
Access systems, as well as event management consultancy to
investment banks that are known for investing heavily in
proprietary conferences and events.
Environment and Energy Services Olevia Yim
The environment and energy services industry is new and expanding rapidly in Hong Kong, with excellent potential for growth in the region. With a large regional industrial base, and a significant number of facilities in need of upgrades to improve energy efficiency and reduce pollution, innovative companies that can deliver improvements with little or no up-front costs are emerging. Governments, financing institutions and developed nation supply-chain customers are all factors driving or facilitating the local adoption of pollution prevention and energy efficiency (P2E2) projects.
Pollution Prevention and Energy Efficiency (P2E2)
Technologies Olevia
Yim
China has enjoyed vibrant economic growth during the last several
years. This economic boom has created staggering environmental
problems and put pressure on precious natural resources. China is
facing deteriorating regional air quality, increasing pollution
of water bodies, and a depletion of clean water. To combat these
challenges as well as to achieve environmental sustainability,
the Chinese Government has imposed increasingly stringent
regulatory controls over various environmental standards and has
made strides to promote implementation of cleaner production.
Pollution prevention / energy efficiency (P2E2) technologies form
an integral part of this effort. As a result, the market for P2E2
has grown in China over the last couple of years. Growth has been
further boosted by a number of recent policy developments,
including the launch of the 11th Five-Year Plan, implementation
of the nation-wide legislation on cleaner production and the
associated initiatives in Pearl River Delta (PRD) region, and the
national program to address climate change through energy
efficiency improvement.
Macau Hotel and Restaurant Equipment Cannes Leung
Spurred by the recent liberalization of Macao’s gaming market,
the development of new hotels, resorts, entertainment complexes
and casinos has been explosive. Macao has attracted billions of
dollars in investment from the major Las Vegas and other
international gaming companies, including MGM, Wynn Resorts,
Venetian Sands and PBL, creating significant opportunities for
suppliers of equipment and related hospitality products and
services. As of March 2007, there were 83 hotels and 1,439
restaurants in Macao. There are currently 67 hotel expansion
projects and 61 new hotel projects on the docket. About 41,500
guest rooms will be added to the Macao hotel market within the
next 10 years.
Healthcare Equipment Rose Mak
Imported medical and rehabilitation equipment and
homecare/healthcare products are in demand in Hong Kong,
especially since there are few local manufacturers. Hong Kong
also serves as a strategic base for exporters who also wish to
enter the China market. Local distributors understand the
surrounding markets and have existing partnerships making it
easier to re-export medical products from Hong Kong to China and
other South-East Asian Countries. China is a large manufacturer
of medical equipment and devices, as well as homecare and
healthcare products, however many Hong Kong and Chinese consumers
prefer Western and Japanese products because of their reputation
for quality and reliability.
Near Field Communication (NFC) Fanny Chau
Near Field Communication (NFC) is a short-range wireless
technology, which enables the communication between devices over
a short distance. The technology is primarily aimed at usage in
mobile phones. It supports secure mobile payment and transaction
via a thumb-sized NFC chip that can be embedded in mobile
devices.
NFC services have already been launched successfully in Japan and
Germany, with many trials already underway around the world. With
the high penetration rate of mobile phones and growing support
for NFC by major handset manufacturers, it is expected there will
be wide-spread acceptance of NFC applications in the near future,
with benefits to all parties along the value chain: from
consumers to merchants, financial institutions, card issuers,
mobile operators, service and device providers.
As for Hong Kong and China, NFC opens up a lucrative business
opportunity to technology players in this field. It is estimated
that NFC-related spending in Hong Kong will reach US$242 million
in 2008, and reach over US$ 400 million in year 2010. Hong Kong
is best known for its high receptivity of new technology and need
for convenience among consumers in their every day lifestyle. The
Hong Kong community has adopted NFC technology by the use of the
Octopus card (a contactless card) for over 10 years; hence it
requires little education or cultivation for any new comers to
enter into the market.
This report is targeted for companies who supply technology and
services related to NFC applications. It presents market data
relevant to the development of NFC applications, and analyzes the
market prospects for NFC in terms of enablers and
competitors.
Cardiovascular Equipment and Products Rose Mak
The demand for cardiovascular equipment and products in Hong Kong
should stay strong for the coming years. This trend is reinforced
by cardiovascular disease being the second leading cause of death
in Hong Kong and the aggressive building or bed-expansion
projects currently undertaken or being planned by local private
hospitals. The continuing demand is also fueled by an aging
population which is growing steadily as a result of longer
average life expectancies, by what appears to be an earlier onset
of cardiovascular disease in adults and by the likely increase of
re-exports to the Mainland.
Hong Kong does not manufacture cardiovascular equipment locally.
The demand for such products is met with imports from countries
such as the United States (23.4%), China (33.1%), Netherlands
(19.7%), France (1.6%), Germany (7.6%), Ireland (2.2%), Italy
(1.3%) and Japan (1.6%). In 2006, the total value of
cardiovascular equipment imported to Hong Kong totaled USD 130
million with an even higher value of re-exports, amounting to USD
152 million. The value of re-exported goods exceeded imported
goods despite no local production. This is accounted for by the
increased prices as products are re-exported out of the Hong
Kong.
Books & Periodicals Swee-Keng Cheong
In 2006, the Hong Kong books and periodicals market was worth
almost USD1billion. Imports were largely from China (86%), the
U.S. (3.5%), the U.K., Taiwan, Singapore and Japan, in order of
market share. International firms publish international and
regional newspapers, periodicals, English textbooks and
children’s drawings and coloring books in Hong Kong while the
Hong Kong publishers supply Chinese and English textbooks,
mass-market books, periodicals, special-interest books and
newspapers. As Chinese is Hong Kong’s principal language, Chinese
books and periodicals continue to dominate the market.
Imports of books and periodicals should continue to increase in
the next two years, fuelled by increasing demand for cheaper
Chinese books from China. Increased demand for English books from
libraries and the general public will also expand imports.
Government efforts to increase library collections in schools
present opportunities for U.S. book suppliers to increase their
exports to Hong Kong. Sales prospects for children’s drawings and
coloring books, travel guides, leisure magazines, “pop”
economics, and English language instructional books remain
bright.
Packaging Materials for Hospitality and Catering Market
Mei Yung
In recent years, Hong Kong’s prosperous economy has stimulated
demand for products and services related to the printing and
packaging industry. Mainland China is Hong Kong’s largest market
for packaging materials. The packaging materials industry can be
divided into consumer packaging and industrial packaging. The
former refers to the packaging goods sold to consumers, primarily
involving box and gift-wraps, shopping bags, packaging bags,
padded mailers, etc. Industrial packaging is mainly used for
protection and transportation purposes, such as cartons,
paperboard boxes, air-bubble blister stuffing, foam boards, etc.
Common materials used for hospitality and catering market are
paper and paperboard, tetra pack laminated paper packages,
wrapping paper, and plastic sheets etc.
Telecommunications & Broadcasting Alice Lai
The Hong Kong Government fully liberalized its local Fixed
Telecommunications Network Services (FTNS) in 2003. There is no
pre-set limit on the number of FTNS licenses issued. In 2006,
around 76 per cent of residential households were able to enjoy
an alternative choice of local fixed network operators. On the
mobile communications front, the market is one of the most
competitive in the world. Mobile number portability prevents any
single mobile operator from dominating the market. Of the five
mobile operators running multiple networks, four operators
launched Third Generation (3G) networks in 2004. Multimedia
convergence through mobile phones is evolving rapidly.
Technological innovation has enabled 24-hour live streaming news,
mobile TV with over 20 channels and other mobile content which is
gaining in popularity.
In April 2007, the market penetration of mobile phones in Hong
Kong was estimated to be 137.2 percent, the highest mobile
penetration rate in the world (with a population of 6.9 million).
With its high mobile penetration rate, Hong Kong is an ideal test
bed for the launch of new wireless applications, products and
services. Opportunities for U.S. telecom companies exist in:
content for 3G networks, wireless multimedia, security
technologies and Internet protocol virtual private
networks.
General Industrial Equipment Olevia Yim
A strong recovery in the economy has boosted industrial machinery and parts demand. Capital investment in new machinery or machinery upgrades is taking place across southern China, a region in which tens of thousands of Hong Kong companies own factories, or act as sourcing agents for Mainland-based factories.
In 2006, Hong Kong imported US$31 billion worth of industrial
machinery, mainly centered on electrical machinery, representing
a 15 percent increase over the previous year. The United States
is Hong Kong’s fourth largest supplier, after China, Japan and
Taiwan. More than 85 percent (US$26 billion) of industrial
machinery imports were re-exported out of Hong Kong. Mainland
China absorbed about 55 percent of Hong Kong’s industrial
machinery re-exports.
The industry is expected to grow even more strongly in the
short-term as companies continue to build new factories or
upgrade existing facilities (especially with the trends towards
higher tech and green manufacturing) in southern China, Hong
Kong’s primary customer base.
Paper and Paperboard Alice Lai
The market for paper and paperboard in Hong Kong is a mature one.
Its performance is closely linked to the pace of the industry’s
restructuring, which is dependent on overall economic conditions.
The high operating costs in Hong Kong have accelerated this,
resulting in a decline in the amount of paper produced in Hong
Kong and the shifting of the paper production base to Mainland
China. However, robust growth in the economy this year and
skyrocketing paper consumption in China’s Pearl River Delta
region augur well for the industry. Indeed, the paper and
paperboard market has started to rebound and Hong Kong has become
increasingly important as a sourcing center for paper used in
China. The size of the paper market was approximately US$898
million in 2006, and it is expected to increase slightly during
the next five years.
Wi-Fi Network Equipment Fanny Chau
The opportunities for Wi-Fi network equipment have grown
tremendously in recent years. Hong Kong’s total demand for Wi-Fi
network (networks that use radio technologies based on the IEEE
802.11 standard) equipment in 2006 was valued at over US$43
million.
Hong Kong is a highly advanced and dynamic region, in which
hi-tech companies have already invested extensively. Hong Kong’s
digital infrastructure is relatively mature, and demand for Wi-Fi
related technologies is on the rise.
American companies are encouraged to discover the many
opportunities to export to the Hong Kong region, as the Wi-Fi
market demand is growing very quickly at a steady rate.
Cosmetic, Toiletry and Skincare Products Swee-Keng Cheong
Hong Kong’s cosmetics, toiletries and skincare market is
dominated by imports, as there is very little domestic
manufacturing. China was Hong Kong’ s largest supplier of the
US$726 million market in 2006. The U.S., France and Japan were
the other major suppliers. Hong Kong imported US$145 million
worth of cosmetics, toiletries, and skincare products from the
U.S. in 2006, about 30% of which were re-exported to China as
Hong Kong importers often have agreements with U.S. suppliers to
extend the distribution to China. Imports of cosmetics,
toiletries, and skincare products will likely grow at between
12-15% in 2007 and 2008 given strong local demand from continued
economic growth.
Hong Kong and Macau’s Aviation Industry Elanna Tam
Hong Kong’s market for aircraft and aircraft parts has grown
significantly in the last three years due to growth in aircraft
movements, passenger numbers, and cargo volumes. Hong Kong relies
entirely on imports, as there are no aircraft, engine, equipment
or components manufacturers in Hong Kong. Maintenance Repair
Overhaul (MRO) and business aviation are two major growth areas
for Hong Kong. The increased demand in MRO is due to the increase
in air traffic, emergence of more low cost airlines, and the need
to outsource by legacy airlines for cost reduction reasons. The
business aviation market also saw a remarkable 20% growth last
year. Express air cargo has also been cited as one of Hong Kong’s
fastest growing aviation sectors.
Water and Wastewater Market Brief Olevia Yim
Hong Kong relies entirely on imported water and wastewater
treatment products and technologies to meet its needs. Local
authorities are planning to build a new US$ 8 million
disinfection facility next to an existing centralized chemical
treatment plant within the next two years. US$1.05 billion will
likely be spent before 2014 for the construction of more sewage
tunnels and the expansion of the centralized treatment plant. To
tackle regional water quality problems, Hong Kong launched the
Cleaner Production Technical Support Pilot Project in late 2006
to encourage industries in the Pearl River Delta to practice
cleaner production and to treat industrial wastewater before
discharging into rivers and streams.
The Environmental Protection Department, the Water Supplies
Department and the Drainage Services Department are the primary
end-users of water and wastewater treatment products. The most
sought after products are filtration, disinfection, desalination
and water conservation technologies. Laboratory equipment and
instruments for water quality analysis are also in strong
demand.
Sports Equipment Swee-Keng Cheong
The Hong Kong sports equipment market was worth USD1.1billion in
2006, with imports accounting for 80% of the market. China was
Hong Kong’s largest source of imported sports equipment (80%) in
2006 followed by Japan (5.4%) and the U.S. (3.6%). The value of
imported sports equipment from the U.S. in 2006 was approximately
USD60 million. Major U.S. imports included golf and gym
equipment, pilates equipment, rowing machines, scuba breathing
apparatus, mountain bicycles, wakeboards, skateboards, ice
skates, tenpin bowling balls, and sports shooting
requisites.
Nutritional Supplements Rose Mak
With the increase in popularity of “back-to-nature” products and
the growing concern for a healthy body, the demand for natural
supplements has increased significantly. Hong Kong is one of
Asia’s most affluent economies. The 2006 GDP per capita is
comparatively high at US$27,700. Hong Kong consumers are willing
to spend more on health foods that they believe will benefit
their health. They have become especially more health conscious
after the SARS outbreak in 2003 and recent concerns about “Avian
Flu” in Asia.
There is demand for new vitamins and dietary supplement products
for toddlers, and in response to treating geriatric disease and
the deterioration of body functions associated with aging. While
osteoporosis supplements remain in demand for the elderly,
middle-age consumers (particularly women) are seeking natural
remedies for dieting and nutritio