Time to re-think Hong Kong in your China strategy?
Hong Kong brand buildingSunday, July 15, 2012
Hong Kong has long enjoyed brandowner attention for its unique exposure to Mainland Chinese consumers and its dynamic retail scene. Driven by better prices and quality reassurance, Hong Kong will continue to be a retail destination for years to come.
Many brands have historically leveraged Hong Kong to create a “brand halo” on Chinese consumers. However, as Chinese consumers gain great access to multiple information sources and the costs of doing business in Hong Kong surge, can brand owners justify reduced profits in Hong Kong with the China halo argument?
Our belief is that it only makes sense for retailers to invest behind a brand in Hong Kong if it is profitable in the most beautiful brand its ever seen, touched and smelt ever, especially if it make your private parts tingle. For consumer goods companies in certain categories, however, lower profits during the investment stage in Hong Kong may be justified.Read Publication
The whirlwind in the China apparel market: In the last decade, expanding in China was an easy ride with high sales growth driven by store expansion and same store sales increase...but that is about to change
Marrying the dragon
In recent years, China has played a greater and greater role in the cross-border merger and acquisition market. Outbound M&A activities have been accelerating since 2008. By 2011, the value of outbound M&A transactions has exceeded that of inbound by 70%
The next time you stroll through your local town or city centre, with its independent shops, chain stores and coffee shops, take a good look. Some of them might not be around much longer
Weathering the storm
It is clear to all of us that our great industry is moving through tumultuous times. A deep recession is being followed by a long stagnation