The Doing Business in Hong Kong Playbook: 7 Key Strategies for Success

In 2024, Hong Kong is making a quiet but powerful comeback, signaling opportunities for businesses ready to adapt and innovate.

Our doing business in Hong Kong playbook breaks down the key strategies for success in the city’s evolving business environment, offering actionable insights for startups and multinationals alike.

Whether you’re looking to enter the market or expand your operations, understanding the economic trends, strategic positioning, and government initiatives will give you a winning edge.

Play 1: Leverage Steady Economic Recovery for Strategic Expansion

Hong Kong’s economy is showing signs of resilience, and this creates opportunities for strategic business moves.

The Strategy:
Use the 3.3% GDP growth to your advantage. Startups should see this as a green light to scale operations, especially in technology and innovation sectors. Multinationals can leverage this economic recovery to expand regional headquarters and operations.

How to Execute:

• Startups: Consider hiring top talent through government programs like Hong Kong Talent Engage.
• Multinationals: Use the stable market as a base to explore opportunities in the Greater Bay Area.

Play 2: Anticipate Inflation Trends to Optimise Pricing

Inflation is a reality for any business, but Hong Kong’s moderate inflation rate opens up strategic opportunities for cost management.

The Strategy:
With inflation projected to remain around 1.3% for 2024, businesses can plan long-term pricing strategies without the risk of sudden cost spikes.

How to Execute:

• Startups: Build a cost-management strategy that accounts for moderate inflation. This will help you maintain pricing competitiveness while preserving profit margins.
• Multinationals: Lock in supplier contracts now to take advantage of the relatively stable inflation forecast, ensuring predictable pricing across global markets.

Play 3: Recalibrate Retail Strategies to Meet Changing Consumer Behaviours

Hong Kong’s retail market is undergoing shifts, offering an opportunity for businesses to adapt and find new growth avenues.

The Strategy:

Retail sales dipped by 6.6% in the first half of 2024, but this downturn opens up possibilities for innovation, particularly in e-commerce. The Hong Kong government’s ‘E-commerce Easy’ scheme is an opportunity to pivot towards digital platforms.

How to Execute:

• Startups: Apply for the ‘E-commerce Easy’ scheme to secure up to HK$1 million in funding and build a robust online sales channel.
• Multinationals: Use this period to diversify retail strategies, investing in digital transformation to align with the shifting consumer preferences in Hong Kong.

Play 4: Tap Into Export Growth to Expand International Reach

The surge in Hong Kong’s exports signals strong demand for goods and services in international markets.

The Strategy:
Capitalize on the 12.4% growth in exports to tap into global supply chains. Hong Kong’s position as an international trade hub offers startups and multinationals access to key markets across Asia and beyond.

How to Execute:

• Startups: Use Hong Kong as a gateway to plug into established supply chains, leveraging its trade agreements and logistics networks.
• Multinationals: Expand export operations to Asia-Pacific markets using Hong Kong’s strategic location and trade infrastructure.

Play 5: Maximise Hong Kong’s Position as a Global Financial and Services Hub

Hong Kong’s dominance in financial services provides a platform for businesses to manage finances, investments, and operations efficiently.

The Strategy:
Hong Kong’s status as the 4th largest global financial center and leading offshore RMB business hub offers businesses a dynamic environment for financial operations, investment activities, and wealth management.

How to Execute:

• Startups: Utilize Hong Kong’s sophisticated banking services and financial markets to attract investment, manage finances, and facilitate international transactions.
• Multinationals: Establish regional financial headquarters in Hong Kong to benefit from its deep liquidity in forex markets and global RMB clearing capabilities.

Play 6: Attract and Retain Top Talent with Government Initiatives

Hong Kong is actively working to make itself more attractive to global talent, offering businesses access to a diverse and skilled workforce.

The Strategy:
Programs like Hong Kong Talent Engage and the reduction in stock transfer stamp duties aim to draw global talent and facilitate business expansion.

How to Execute:

• Startups: Tap into government-backed talent attraction programs to build a strong team and benefit from tax incentives designed to support new businesses.
• Multinationals: Establish talent development programs in Hong Kong to attract skilled professionals from around the world, ensuring a competitive edge in the region.

Play 7: Align with Government Initiatives to Foster Innovation and Growth

The government’s investment in key sectors is creating new opportunities for businesses to collaborate, innovate, and expand.

The Strategy:
Take advantage of the HK$10 billion New Industrialisation Acceleration Scheme and other government projects to position your company at the forefront of sectors like life sciences, AI, and advanced manufacturing.

How to Execute:

• Startups: Partner with government-funded research institutes and apply for grants to accelerate product development and market entry in innovative fields.
• Multinationals: Collaborate on Greater Bay Area (GBA) projects to access regional markets, drive R&D efforts, and capitalize on Hong Kong’s evolving industrial landscape.

Where To Next?

2024 presents a landscape of both challenges and opportunities in Hong Kong. By following this playbook and executing these strategies, businesses can effectively navigate the market’s dynamics.

To further strengthen your position, InCorp Hong Kong offers tailored services to help you leverage these developments and successfully expand in this vibrant market. Contact our experts today to explore how we can support your business journey in Hong Kong.