Fair Survey Shows Industry Expecting Better Market Prospects Next Year
Hong Kong, Nov 12, 2012 - (ACN Newswire) - Eight major trade fairs organised by the Hong Kong Trade Development Council (HKTDC) in October and November attracted nearly 200,000 buyers from all over the world, an increase of six per cent over 2011, creating business opportunities for more than 8,300 exhibitors, up nearly four per cent over last year.
The HKTDC's autumn trade fairs were: the Hong Kong Electronics Fair (Autumn Edition), the electronicAsia, the Hong Kong International Lighting Fair (Autumn Edition), the Eco Expo Asia, the Hong Kong International Building and Decoration Materials & Hardware Fair, Sports Source Asia, the Hong Kong Optical Fair and the Hong Kong International Wine & Spirits Fair. The optical fair and the wine fair, both of which closed last week, drew nearly 13,000 buyers, up almost four per cent, and over 20,000 buyers, up five per cent, respectively, over 2011.
Nearly HK$1.4 Billion to Hong Kong
The eight trade fairs attracted close to 200,000 buyers from 163 countries and regions, some 60 per cent of whom came from overseas. Buyers from Asia were up nearly three per cent over last year, with the Chinese mainland and India up four per cent and almost five per cent, respectively, over 2011. Buyers from Eastern Europe were up five per cent, and those from BRICS countries were up nearly four per cent, with Russia leading the way, up 13 per cent. Emerging markets, including Columbia, the Czech Republic, Thailand and Ukraine, each recorded double-digit growth in buyers.
According to the most recent industry survey, an overseas business traveller spends, on average, about HK$11,000 during his stay in Hong Kong. Based on this, it can be calculated that the HKTDC's eight trade fairs brought in nearly HK$1.4 billion to Hong Kong - and this does not include earnings from business orders and related trade-support services.
"In the face of challenging market conditions, manufacturers need to have effective promotional channels, while buyers should adapt to market trends and address the needs of consumers," said HKTDC Deputy Executive Director Benjamin Chau. "As Hong Kong provides world-class exhibition and trade services, we are confident that Hong Kong's trade fairs will remain the top choice for suppliers and buyers," he added.
Market Potential: Asia and Latin America
The HKTDC commissioned an independent survey agency, the Nielson Company, which interviewed nearly 1,500 buyers and exhibitors at the Hong Kong Electronics Fair (Autumn Edition) and the Hong Kong International Lighting Fair (Autumn Edition). Their views were sought on such issues as market prospects, export outlook and product trends in the electronics and lighting industries. Half the respondents expect better market prospects in 2013, while 35 per cent expect no change.
Some 44 per cent of the interviewed electronics fair exhibitors and 39 per cent of the interviewed lighting fair exhibitors said that they would raise the prices of their products next year. Nearly 60 per cent of the interviewed buyers in the two industries said that they expected their sourcing costs to increase next year, mainly due to rising raw materials costs (80 per cent), higher labour costs (73 per cent) and exchange rate fluctuations (51 per cent).
The interviewed exhibitors and buyers were generally optimistic about sales prospects in emerging markets. The majority expects increases in sales to Asia (68 per cent), Latin America (63 per cent) and the Middle East (57 per cent). Over 40 per cent of the respondents indicated that they were interested in developing the Asian markets, while nearly 30 per cent said they intended to expand into Central and Eastern Europe, as well as Russia.
"The interviewed buyers and exhibitors are cautiously optimistic about market prospects, mainly because emerging markets still have good growth potential," said Mr Chau. "Consumers are increasingly interested in eco-friendly and high-tech products, generating new business opportunities for enterprises. Hong Kong companies should take heed of the fact that the middle class is expanding rapidly on the Chinese mainland and in India, Central and Eastern Europe and Russia, with strong consumption growth."
Eco-Friendly Products in Demand
When asked about product and market trends, the interviewed electronics fair exhibitors and buyers said that personal electronics products, including smartphones, tablets and related accessories, have higher growth potential, while more than 60 per cent of the interviewed lighting fair exhibitors and buyers said that LED lighting products have the biggest growth potential, followed by residential and commercial lighting products. About half the interviewed exhibitors indicated that they intended to comply with green-manufacturing requirements or invest more in R&D activities to add green features to their products and services.
In addition, the interviewed buyers generally agreed that consumers increasingly demand product quality and after-sales service. Consumers are now doing more price comparisons, while making more online purchases or relying more on social media to obtain product information. According to the survey findings, more than 70 per cent of the interviewed exhibitors and buyers agree that participating in Hong Kong's trade fairs is the most direct and effective means to expand their customer base.
Small Orders Increasing
Survey findings also showed that demand for small orders is on the increase, with some 40 per cent of the respondents saying that, given the shortening of delivery time and low stock levels prevalent in recent years, they would choose suppliers willing to accept flexible terms. In view of the increasing demand for small-order suppliers, the Small-Order Zone was staged once again at the Autumn Electronics Fair and the Autumn Lighting Fair. An "Experience Corner" was added, allowing buyers to inspect or try out products. The Small-Order Zone at the two fairs featured more than 1,000 products from over 200 suppliers, attracting almost 31,000 buyer visits and generating about 21,000 trade enquiries.
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 11 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 connect companies with opportunities in Hong Kong and on the mainland, while providing information via trade publications, research reports and online. For more information, please visit: www.hktdc.com . Follow us on Twitter @HKTDC.
HKTDC Corporate Communication Department Joe Kainz Tel: +852 2584 4216 Email: email@example.com
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