Market Report: Hong Kong

Hong Kong is considered by many in the West as the gateway to China — and China is the source of much of the product in the gift industry. Gifts & Decorative Accessories recently went to Hong Kong to attend Global Sources' China Sourcing Fair: Gift & Home, which launched its inaugural edition in April at the new AsiaWorld Expo Center. On October 19, Global Sources chairman and CEO Merle Hinrichs addressed the assembled VIPs, exhibitors and buyers and welcomed them to enjoy the fair, which ran through October 22.

In a highly competitive marketplace, where buyers, suppliers and vendors are already complaining about there being too many shows, some have questioned the need for another that runs on the dates as other established shows. And by Global Sources own admission, the China Sourcing Fair is the “new kid on the block,” competing during its October dates with Kenfair's Mega Show Part 1, and in the spring with the Hong Kong Trade Development's Gift & Premium Fair.

During a pre-show press conference, Sarah Benecke, Global Sources director, noted that although Global Sources is relatively new to the trade show business, the company is not new to the marketplace, having produced successful sourcing publications for 35 years. The new AsiaWorld Expo Center (which is close to the airport) gives Hong Kong a second major exhibition venue that provided Global Sources with the opportunity to launch a show that increases the sourcing potential for buyers coming to China. Many of Global Sources exhibitors are new resources from the mainland who have never shown anywhere before; others had been wait-listed for space at the Exhibition Center shows.

For this autumn fair, Global Sources “chose to start our show first, while the buyers are still fresh and energetic,” noted Benecke. “[When they come to Hong Kong,] they can do our show first, then move on to Kenfair and the Canton fair” with very little overlap in the way of resources.

According to Benecke, as the shows mature, the issue is finding enough space, rather than fighting with the competition for exhibitors and buyers. The Chinese export market continues to grow: this show fills all 10 halls of the Expo Center with 4,000 booths — of which more than half are from the mainland.

“Mainland China companies want to come to Hong Kong, because Hong Kong is convenient for the buyers,” Benecke said.

For this show, Global Sources added four new focused product areas to make it easier for buyers to source targeted categories. In the spring, two other new sections will be Pet Products and Spa & Wellness.

Another matter of interest was Global Sources reaction to the recent announcement of Kenfair's intent to launch another gift and home products show on Macau, a nearby island known primarily for its casinos and gaming. (Seeing the report in the morning newspaper, we likened the reaction to the ripple that went through the industry when we heard about the World Market Center in Las Vegas and the launching of its shows.)

Benecke commented that they will have an awful lot of competition, since the leading cities for trade shows in China (depending on your point of view) are: Hong Kong, Canton, Shanghai and Beijing. “I think there are reasons for Hong Kong to keep building up its trade show industry,” she said. “Hong Kong is a hub for business, finance and transportation. It is already a successful and established trade show venue.”

Benecke went on to note that the cost of doing this kind of business is high no matter what side of the show floor you are on. Travel to Macau is not easy, and buyers have to pass through Hong Kong to get there anyway. But her short answer is, “we'll have to wait and see.”

After the opening remarks and the introduction of dignitaries, Merle Hinrichs led a parade through the exhibit halls, first to the New Product Gallery and then moved on to the Product Parade area, a new element at this fair, which presents runway-like fashion shows of exhibitor's products. While all this hoopla might seem a little over-the-top, it demonstrates that while Global Sources means business, they aren't afraid to have a little fun with it.

Not to be overlooked at any show are the amenities it offers attendee to make the experience more worthwhile. This fair offers a full complement of free conferences. The first we attended, aimed at buyers new to buying from China, presented tips and strategies for evaluating and negotiating and working with suppliers. It addressed cultural differences that could impact the business process. The panels were also informative, presenting a range of viewpoints on certain business matters based on panelists personal experiences.

Another program, a color trend seminar presented by Pantone's Tod Schulman, was conducted with an eye toward customizing or developing products for retail.

Other topics on the slate over the course of the fair included Baby and Children's products, Essentials of Packaging Design, and Protecting Your IPR in China (a matter of great concern in many circles.)

For the complete Hong Kong Market Report, visit www.giftsanddec.com and click on “Direct From Market.”