Economic Contribution to Hong Kong Exceeds HK$1.2 Billion
Hong Kong, Nov 13, 2014 - (ACN Newswire) - Seven trade fairs organised by the Hong Kong Trade Development Council (HKTDC) in October and November concluded with more than 8,800 exhibitors taking part. That represents a 2 per cent increase compared with the same period last year. Besides local exhibitors, overseas exhibitors came from 54 countries and regions. The fair also attracted nearly 186,000 local and overseas buyers from 174 countries and regions, down 5.7 per cent year-on-year.
The seven fairs were: Hong Kong Electronics Fair (Autumn Edition), electronicAsia, Hong Kong International Lighting Fair (Autumn Edition), Hong Kong Optical Fair, and Hong Kong International Wine & Spirits Fair, held at the Hong Kong Convention and Exhibition Centre; and Eco Expo Asia and Hong Kong International Building and Hardware Fair, held at the AsiaWorld-Expo.
Significant Economic Contribution
HKTDC Deputy Executive Director Benjamin Chau noted that the seven trade fairs attracted a total of over 110,000 overseas buyers. "According to the Hong Kong Tourism Board, per capita spending of business overnight visitors was over HK$10,000 during their stay. Based on this figure, the total amount spent by overseas buyers and exhibitors during the fairs would amount to more than HK$1.2 billion to Hong Kong, not including earnings from trade orders and related business services," Mr Chau said. "These findings prove once again the enormous economic contributions exhibitions and conventions make to the Hong Kong economy."
Mr Chau added that even though overall buyer attendance had dropped slightly, buyer numbers from developed markets including the United Kingdom, France and Switzerland, as well as such emerging markets as Saudi Arabia and Vietnam recorded significant growth. This indicates that, despite market challenges, growth opportunities still abound for Hong Kong companies that are savvy about market trends.
Surveys Show Positive Sentiment
The HKTDC commissioned an independent survey agency, CAP Strategic Research Limited, to conduct interviews during the electronics and lighting fairs, gauging views of more than 1,600 exhibitors and buyers about industry trends and market prospects. The surveys found that industry players were prudently optimistic about the prospects in their respective markets. Over half of the respondents expected growth in overall sales next year, while fewer than 10 per cent expected sales to drop.
The surveys also revealed cost pressure concerns for the coming year. Of the exhibitors interviewed, 59 per cent expected production or sourcing costs to rise next year, while 36 per cent expected an upward adjustment of the selling price. As for the buyers, 48 per cent anticipated that sourcing prices will rise in the year ahead and 42 per cent expected retail prices to go up. "These figures indicate that some of the exhibitors and buyers do not expect that the additional costs can be passed on to the customers next year. That is bound to put more pressure on business," Mr Chau said.
In terms of the prospects for electronics and lighting products in the next two years, 61 per cent and 59 per cent of the respondents, respectively, viewed North America and Western Europe as having promising growth prospects among the traditional markets. Among emerging economies, the respondents were most bullish about the prospects of the Chinese mainland (74%) and ASEAN countries (49%).
New Technology Driving Innovation and Design
Exhibitors and buyers were also surveyed about product trends. At the Electronics Fair, 33 per cent of respondents predicted that mobile devices and electronic/electrical accessories would have the highest sales growth in the coming year, followed by audio visual products (12%), and computers and peripherals (7%).
Ninety per cent of those interviewed forecast upward momentum for smartphones while 85 per cent anticipated growth for tablet devices. Regarding the types of electronic products that would benefit from this growth, many respondents favoured mobile battery chargers (34%), followed by mobile phone/tablet accessories (33%) such as Bluetooth speakers, and smart watches (22%).
The industry was also optimistic about wearable electronics with 78 per cent of respondents expecting promising, or very promising market potential in the coming three years. They also expected the largest growth would be seen in the Chinese mainland and the United States. In view of this trend, the Electronics Fair launched a "Wearable Electronics" zone this year to cater to market demand.
High-tech applications are not limited to the electronics industry, but are equally important to product innovation and design for a range of other industries too. During the concurrent Eco Expo Asia and Building and Hardware Fair, a variety of new environmentally friendly materials and technologies were on display. Among them, a new model of electric car, which incorporated a number of innovative technologies, was on display at Eco Expo Asia. Meanwhile, at the Optical Fair, a US exhibitor showcased its frames and lenses used in a range of smart glasses, aiming to tap into the strong demand for high-tech products in Asian markets.
For the lighting industry, 33 per cent of respondents expected LED and "green" lighting products to see the highest sales growth in the year ahead, followed by commercial lighting (27%) and household lighting (22%). With LED products becoming more widely used globally, buyers interviewed said they expected the retail price of LED lamps to decrease by 8 per cent within a year.
Cross-industry Opportunities
Among the autumn fairs, products derived from cross-industry collaboration continued to emerge. Eyewear and entertainment converged at the Hong Kong Optical Fair with one exhibitor showcasing its eyewear collection in a licensing partnership with FashionTV. The International Wine and Spirits Fair combined wine and fashion by featuring a selection of Italian wine chosen by fashion designer Anna Fendi, and carrying the renowned Italian designer's signature on the bottles. This highlights the potential for cross-industry cooperation to generate more new products and opportunities that cover different sectors.
Keen on Small Orders
In view of the keen demand for small orders, the Small-Order Zone - introduced by the HKTDC in early 2012 - has successfully helped generate more buyer orders. The Small-Order Zone was awarded the UFI Marketing Award 2013 for its effectiveness. The Small-Order Zones at the electronics and lighting fairs this year featured 430 suppliers offering over a thousand products. More than 37,000 buyers visited the Small-Order Zone and over 41,000 business enquiries were generated during the autumn fairs.
Fair VideosHong Kong International Wine & Spirits Fair: http://youtu.be/sBNcZ1mUNbkEco Expo Asia: http://youtu.be/beCGfCqPlQYHong Kong International Lighting Fair (Autumn Edition): http://youtu.be/bLBrbJEp9ZcHong Kong Electronics Fair (Autumn Edition): http://youtu.be/cmguw5EK8T8
Photo download: http://filesharing.tdc.org.hk/hktdc/download.php?fid=_phpQmgsJn
About HKTDC
A statutory body established in 1966, the Hong Kong Trade Development Council (HKTDC) is the international marketing arm for Hong Kong-based traders, manufacturers and service providers. With more than 40 global offices, including 13 on the Chinese mainland, the HKTDC promotes Hong Kong as a platform for doing business with China and throughout Asia. The HKTDC also organises trade fairs and business missions to provide companies, particularly SMEs, with business opportunities on the mainland and in overseas markets, while providing information via trade publications, research reports and online. For more information, please visit: www.hktdc.com. Follow us on Google+, Twitter @hktdc, LinkedIn.
Google+: http://plus.google.com/+hktdcTwitter: http://www.twitter.com/hktdcLinkedIn: http://www.linkedin.com/company/hong-kong-trade-development-council
Source: HKTDC
Contact:
HKTDC Corporate Communication Department Joe Kainz Tel: +852 2584 4216 Email: joe.kainz@hktdc.org
Copyright 2014 ACN Newswire. All rights reserved.
