益普索-智能数字城市（英）-2021-37页_2mb

Summary of "Smarter Digital City: A Refreshed Look at Export"

Core Content

This report, titled Smarter Digital City: A Refreshed Look at Export, provides an in-depth analysis of the current state and future direction of export activities in Hong Kong, with a focus on the role of digital tools in overcoming barriers and driving growth. It highlights the importance of digital transformation for both small and medium-sized businesses (SMBs) and Corporates in the context of global economic recovery post-pandemic.

Main Points

1. Export as a Key Economic Driver

• Hong Kong is one of the world's largest merchandise trading economies.
• Export has played a crucial role in the city's economic recovery, especially during the pandemic.
• Merchandise exports increased by 25% in November 2021 compared to the same month in 2020.
• Exporters are looking to expand into new markets, particularly Southeast Asia, which is expected to have a USD360 billion internet economy by 2025.

2. Key Barriers to Export Growth

• Marketing Barriers:
  • Challenges in localisation, gaining market insights, and using digital ads.
  • SMBs are more likely to lack agency support and experience in digital marketing.
• Policy and Regulatory Barriers:
  • Exporters need accurate information on foreign regulations and certification processes.
  • SMBs often lack the resources to navigate complex regulatory landscapes.
• Business Operations Barriers:
  • Difficulties in building offshore partnerships and managing production abroad.
  • Challenges in delivering services or goods to foreign markets and gaining customer trust.

3. Benefits of Digital Adoption

• Digital tools help exporters increase market share, enhance global branding, and improve customer loyalty.
• 68% of exporters plan to increase investment in digital tools in 2022.
• SMBs and Corporates both express a need for digital upskilling to better utilise cloud-based solutions and digital marketing tools.

Key Findings

Key Finding 1: Global Revenue Share and Market Expansion

• Hong Kong exporters' global revenue share has increased by approximately 9 percentage points since the start of the pandemic.
• Exporters are actively seeking to expand into new markets in 2022, with Southeast Asia being a top target.
• The average number of new export markets targeted in 2022 is 2.4.

Key Finding 2: Barriers to Export Growth

• Marketing, policy, and business operations are the top three barriers to global expansion.
• SMBs are more likely to face challenges in all three areas compared to Corporates.
• Specific issues include lack of market insights, localisation difficulties, and regulatory compliance.

Key Finding 3: Digital Investment and Upskilling

• Digital tools are essential for enhancing market research, demand generation, confidence building, client service, and customer loyalty.
• Both SMBs and Corporates require education and training in digital marketing, analytics, and cloud-based solutions.
• Cloud tools and data analytics are identified as crucial for improving business operations and customer service.

Recommendations

1. Digital Tools Adoption:

   • Leverage digital tools to lower barriers to entry, increase resilience, and expand market share.
   • Invest in cloud-based solutions and digital marketing tools to enhance global branding and customer engagement.

2. Digital Upskilling:

   • Exporters, especially SMBs, need training in digital marketing, data analytics, and cloud technologies.
   • Marketing agencies should enhance their digital capabilities to support SMBs in global expansion.

3. Regulatory Support:

   • Exporters should seek information from authoritative sources like trade associations and chambers of commerce.
   • The government and industry bodies should provide guidance on foreign regulations and compile accurate online resources.

4. Trade Ecosystem Collaboration:

   • Trade ecosystem players should support digital trade initiatives to help exporters succeed globally.
   • Establishing government offices or partnerships in key markets can provide on-the-ground support for Hong Kong businesses.

5. Data and Cybersecurity:

   • Policymakers should facilitate digital economy partnerships to enable secure cross-border data transfers.
   • Businesses should adopt cybersecurity technologies and use trusted cloud services to meet regulatory standards.

Conclusion

The report underscores the importance of digital transformation for Hong Kong exporters to navigate the challenges of global expansion and capitalise on new opportunities. It calls for a collaborative effort between businesses, the government, and industry players to provide the necessary support and resources for digital upskilling and tool adoption, ultimately enhancing the competitiveness and resilience of Hong Kong's export sector.