Hong Kong market entry checklist
This page provides recommended market entry steps into Hong Kong.
Step 1: Overview
Hong Kong is a city and special administrative region of China on the eastern Pearl River Delta in Southern China. With over 7.5 million residents of various nationalities in a 1,104 sq km territory, Hong Kong is one of the most densely populated places in the world.
Hong Kong is a standalone market however many exporters use Hong Kong as a first step into the China market – particularly those businesses pursuing a cross-border e-commerce strategy into the Southern China cities of Shenzhen and Guangzhou. If a brand or product succeeds in Hong Kong, it is a lot easier to repeat success in Shenzhen and Guangzhou - furthermore, there are bonded warehouses in the Guangdong province, which facilitate cross-border e-commerce activities.
Step 2: Assess your Export Readiness
Analyse your current operations and ensure the business is optimised before thinking about exports. From here, dedicate resources to capability development and upskilling yourself and your business in export fundamentals.
Step 3: Select and Validate your Market(s)
Hong Kong is a sensible market to tackle as it uses common law and many people speak or understand English.
Market research is key to validating and understanding where the best opportunities are and how to approach a potential market. You may need to hire a consultant if the market research is intended to be larger scale.
Hong Kong is a mature market with many Australian products already on the ground. It is important to research your competitors and analyse their activities in order to plan ahead. The Hong Kong market is highly competitive in terms of quality and price.
Step 4: Determine Market Access Regulations and Import Requirements
There is a free trade agreement between Hong Kong and Australia that came into force in 2020.
Free port status and easy customs procedures make it easier for goods coming into Hong Kong.
Step 5: Understand Labelling & Packaging, CE Marking, IP and GDPR
There is useful information at:
- Hong Kong Government Trade and Industry Department
- Hong Kong Government Customs and Excise Department.
Step 6: Develop Your Market Entry and Channel Optimisation Plan
Development of a Market Entry Plan will enable your organisation to better target opportunities, prioritise activities and frame financial budgets. Partnering with suitable market partners will make your market entry a lot smoother. Take the time to properly plan your market entry, as well as undertake appropriate due diligence on any potential partner.
Step 7: Engage with Global Victoria
Annie Leung is the Trade Manager for the Victorian Government Trade & Investment Office in Hong Kong, supporting Victorian businesses with market analysis, on-the-ground market insights and connections to key local partners to build momentum.
Step 8: Continue building your in-market network and be present
Once you’ve confirmed your export strategy, it is imperative you dedicate sufficient time and financial resources to build your professional network to maximise in-market opportunities. In-market visits, regular communication and engagement with existing customers, as well as potential new ones, supports long-term relationships and benefits your brand. Capability building trade activities as well as inbound and outbound missions hosted by Austrade, Global Victoria and Agriculture Victoria are additional ways of expanding your networks.