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Write 9 page essay on the topic International Marketing and Business Operations.The GDP of Hong Kong was recorded at $369.4 billion and it showed a 5 year compound annual growth of 2.5%. The picture a
Write 9 page essay on the topic International Marketing and Business Operations.
The GDP of Hong Kong was recorded at $369.4 billion and it showed a 5 year compound annual growth of 2.5%. The picture above shows some of the factors which have contributed to making Hong Kong number 1 in the world in the economic freedom index (The Heritage Foundation, 2014). It has fiscal freedom, regulatory efficiency, market openness and rule of law, making it the perfect place for direct investment. This is also evident by looking at the FDI inflow into Hong Kong which stands at a staggering $74.6 billion (The Heritage Foundation, 2014).
The growth in the tourism industry of Hong Kong has led to an increase in the numbers of mainland tourists visiting Hong Kong. The stable job market has also increased local positive spending with the retail industry increasing by 11% in current value terms in 2012 (Colliers International, 2013). In 2012, there was an increase in the number of international brands opening their stores in Hong Kong, an act which is a testament to the confidence in the market. There has been an increase in the number of retail outlets in Hong Kong which has attracted even more shoppers from mainland China. The total value of retail sales growth was recorded at an 8.5% YoY growth in November (Colliers International, 2013).
Inbound visitors support the retail sector and the figures from the Hong Kong tourism board shows that Hong Kong received a total of 13.5 million inbound visitors during 2013 (Euromonitor International, 2013). This influx of tourists means that there are a lot more potential shoppers in the market than the existing population figures show. The market is ideal for retailing as tourists shoppers are likely to shop and indulge in positive local spending. Another aspect worth noting is the fact that retail rents of shops in key shopping districts and expected to decline by 5% over the next year (Euromonitor
