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

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

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

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

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

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