Global exhibition organizer Global Sources said that Hong Kong can leverage the manufacturing capabilities of the mainland to reinforce the city's status as a global exhibition and marketing center.

The senior management of the private exhibition organizer Wednesday held a media function to illustrate their vision of the future development of the local exhibition industry, set against the backdrop of a local exhibition industry facing intense competition from other regions.

Other areas in the Pearl River Region, such as Guangzhou and Macao are catching up in the industry. The China Import and Export Fair, or so-called Canton Fair, has been very popular among trade buyers recently. This is one of the examples illustrating that the region is posing an increasing threat to the industry.

Global Sources, however, is bullish on the capability of Hong Kong to maintain its status as an exhibition hub.

"The mainland's manufacturing capability is the main factor that Hong Kong can take advantage of," said Tommy Wong, president of Global Sources.

Citing the example of the kinds of electronics products on hand at the exhibition, he noted that Hong Kong possesses distinct advantages in the process of transforming itself into a major electronic products exhibition center by leveraging the Taiwanese technology and mainland's labor-intensive and low-cost advantages.

"Most of these electronic products are designed by Taiwanese technicians employed by global manufacturers located in the Pearl River Region. After the stage of research and development, global manufactures will utilize their low-cost advantage in the region to sustain mass production of the products, and the finished products will enter the stage of marketing and distribution," said Wong.

He added, "As Hong Kong possesses more advanced expertise in marketing, product design and market information, global manufacturers in the region can rely on the city's marketing and exhibition services for product promotions."

A strategic focus on consumer products is another business approach that Hong Kong can emphasize, as the mainland is the major consumer-product manufacturer.

"Approximately 70 to 80 percent of global toy production originates in China, 40 to 50 percent of global garment products originate in China, and 60 to 70 percent of global electronic products are also manufactured in China. This can create enormous demand among global buyers for the local exhibition services," Wong emphasized.

He added, "Hong Kong's neighboring countries are also producing a variety of consumer products; for example, Thailand is famous for its jewelry and Vietnam is specializing in food processing. Hence, Hong Kong can be the showcase of all these finished goods to reinforce its exhibition hub status."

Global Sources will host the exhibition show in October this year, showcasing electronic components, security products, fashion accessories and home products. The company hopes that the show can attract 100,000 buyers.

The company will also host other trade shows in Singapore, India and South Africa in the second half of this year, hoping that other overseas regions can enhance more revenue contributions to the company. Currently, 60 percent of Global Sources' revenues is generated in Hong Kong.

China Daily

(HK Edition 05/06/2010 page2)