Mention any big brand you know of today, from Samsung to Cathay Dragon, and one common thing about them is likely to be a presence in Hong Kong. Taking a closer look at Hong Kong, it becomes easy to see why – the island is a unique investment destination that serves as a springboard for success to global status.
Even with the support provided by the Hong Kong administration and the huge market, each of the top brands points that it was never easy, but they had to plan well to grow into the respected brands they are today. This post is a closer look at the strategies they used so that you can also grow your brand into a multinational.
Hong Kong in Numbers
To understand why every brand is headed to Hong Kong, it is important to start by understanding crucial economic numbers. These can help you to develop the right projections for growth after registering your company in Hong Kong. So, here are some of the numbers:
- Hong Kong is a free-market economy with well-established infrastructure and free-port trade.
- The economy is managed via a positive non-interventionism model to promote free trade.
- Hong Kong’s economic strength largely comes from its strong banking system.
- According to the 2019 estimates, the population of Hong Kong was 7.5-million.
- The nominal GDP of Hong Kong was estimated at $372.989 billion in 2019.
- The main industries in Hong Kong are banking, textiles, tourism, clothing, electronics, and shipping.
In addition to these numbers and figures, Hong Kong makes it pretty easy for investors to grow into the neighboring markets. Like the top brands out there, you can also incorporate your company in Hong Kong and grow it into a giant using the following strategies.
Taking Advantage of Bilateral Trade Agreements
To expand your company globally, it is important to intensify its presence in both Hong Kong and other countries. The lovely thing about Hong Kong is that it has signed bilateral trade agreements with over 40 countries across the globe. For example, Hong Kong has signed free trade agreements with New Zealand, Chile, Member States of the European Free Trade Association (EFTA), and the Association of Southeastern Asian Nations (ASEAN).
As you can see, these agreements act as doors to new jurisdictions where you can expand your company’s presence. For example, instead of only supplying health and fitness products to Hong Kong, consider exporting them to the EU. It will be pretty straightforward if you market the products well and identify good channels of distribution.
Using Hong Kong to Reach the Chinese Markets
One fact that you need to appreciate about Hong Kong is that it is part of China. Therefore, it is important to have China at the back of the mind when expanding your company to Hong Kong. Most companies operating in Hong Kong can easily access Mainland China and exploit its huge market. Think of what you can do with a population of more than 1.3-billion people.
Start crafting plans for expanding into china the moment you open your company in Hong Kong. For example, you should ensure your company demonstrates tax substance to avoid double taxation. Whether you want to source products from China and export to the rest of the world or sell your services there, it is an awesome opportunity for growth.
Hong Kong is an offshore jurisdiction that never disappoints. To take advantage of these opportunities, consider working with an agency of expert, which can assist you with company registration, identifying global opportunities, and compliance with different laws. Do not get content with the performance of your local company; you have an opportunity to grow it abroad.