Next month, a 180-member Canadian delegation from the fashion industry will be in Hong Kong to explore business opportunities at the HKTDC Hong Kong Fashion Week for Fall/Winter http://hkfashionweekfw.hktdc.com/ and HKTDC World Boutique, Hong Kong http://worldboutiquehk.hktdc.com/.

Once again, the Hong Kong Trade Development Council (HKTDC) brings the fashion industry together for these two important events in the global fashion industry. They will take place concurrently from January 12 – 15, 2009 at the Hong Kong Convention and Exhibition Centre.

Hong Kong Fashion Week for Fall/Winter is the largest fair of its kind in Asia, and the second largest in the world. World Boutique, Hong Kong is Asia’s pioneer show promoting designer collections and brands from around the world. The two fairs will gather more than 1,600 exhibitors under one roof, to provide a wide spectrum of ready-to-wear garments, accessories and designer collections as well as lifestyle products. Continue reading ‘Canadian delegates to tap business opportunities at global fashion industry event in Hong Kong’

With new Christmas toys still a novelty and wrappings barely discarded, it’s time to consider what’s hot in the toy and games market once again!

A sizeable contingent of Canadian business delegates from the toys and games industry will be in Hong Kong next month for Asia’s largest fair of its kind – HKTDC Hong Kong Toys and Games Fair which will be held from January 5 – 8, 2009 at the Hong Kong Convention and Exhibition Centre. http://hktdc.com/hktoyfair.

To meet the demands of the ever-changing market, the fair will introduce a new zone – Paper Products & Toys Packaging. As attractive packaging is one of the keys to success, toy manufacturers will find the new zone meets a vital need.

At the previous Fair in January 2008, over 2,000 exhibitors from 36 countries & regions were featured and some 30,000 buyers from 130 countries & regions attended the event. Continue reading ‘Over 170 Canadian delegates have signed up to attend the HKTDC Hong Kong Toys and Games Fair 2009′

For the first time, Beijing has out-ranked Hong Kong in a cost of living survey.  Its rise is mostly attributed to the rising inflation on mainland China and the appreciation of the Yuan (even though it has leveled off recently).  This is according to a survey released by ECA International, a UK based international human resources firm.  Hong Kong actually fell 12 spots while Beijing leapt 70 places from 101 to 31. Luanda, Angola was ranked as the most expensive overall, retaining the ranking from 2007.  Tokyo was the most expensive Asian city, ranked 2nd overall.  Shanghai rose from being 106 in September 2007 to 35.  London, UK sits at 72, Seoul at 90 and Manhattan jumped to the fill the 20th spot (the same level as Paris), last year it was 54.  No Canadian city made it in the top 50.   

The ECA survey is sent out twice per year and includes comparing the prices of 128 consumer goods and services  purchased by expatriates in over 370 countries.  ECA notes that the survey results from September 2007 and March 2008 were heavily influenced by inflation and exchange rate fluctuations.   Visit ECA website for their media release and the complete rankings.

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Currently, exported auto parts to China are assessed a 10 per cent tariff rate, however, if these foreign parts account for 60 per cent or more of the value of a completed vehicle, China then charges an additional 15 per cent, for a total 25 per cent tariff rate.  According to Chinese officials, this is looked upon as if the vehicle was imported completely built.  This tariff practice, which China began in 2004, was the subject of a World Trade Organization (WTO) dispute brought forward by Canada, the European Union and the United States.  It will soon change due to a WTO Appellate Body ruling which upheld a previous settlement that this practice violates China’s WTO obligations. 

The case, which began as a request for consultations back in April 2006 with Canada, and separately the EU and US in a joint request in May 2006, argues that China’s policy is putting foreign companies at an unfair disadvantage.  In September 2006, all three countries banded together to request a WTO panel be assembled.  Japan, Argentina, Australia, Brazil, Thailand, Mexico, and Chinese Taipei later joined as third parties. 

China’s argument was that its 40 per cent local content rule was implemented to prevent tax evasion by those who import whole cars as spare parts to avoid paying the higher tariffs.  This was countered by pointing out that this in effect pushes foreign auto part suppliers to relocate manufacturing to China and more so encourages Chinese car makers not to use foreign auto parts.  This brings the dispute process to a close and also marks the first time China lost a WTO dispute.    

Canadian exports to China totaled $9 billion in 2007 and imports accounted for $38 billion.  Between 2003 and 2007, China imported Canadian auto parts on average of $225 million a year. 

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HKTDC World SME Expo and Inno Design Tech Expo (IDT Expo), two international shows organized by the Hong Kong Trade Development Council (HKTDC) and designed to provide insight and information for small and medium-sized enterprises, were held successfully at the Hong Kong Convention and Exhibition Centre (HKCEC) last week.

The two expos attracted some 600 exhibitors worldwide, including the Chinese mainland.

Under the theme of “Supporting SMEs, Creating New Opportunities,” SME Expo featured a wide range of practical services at its Solutions Hall. Prominent business leaders and academics were invited to speak at a series of SME forums on topical issues related to the current economic crisis. One of these experts was from Canada — Susan Sheehan, vice president of client business and sustainability for motum b2b.

Chinese Mainland and Hong Kong entrepreneurs must strive to lead in sustainable development and corporate social responsibility if they want to develop global brands, said this Canadian brand development specialist.

“It is not about talk. It is about actions and the time to get serious is now,” Susan Sheehan told an audience of 200 international businessmen at World SME Expo 2008 here Friday. “Brands that align with sustainable development have to build or rebuild the way they do business from the ground up, not simply plant trees. That is the basis of building a genuinely great brand.”

“Asian leaders view brand building as strategically critical to moving up the global value chain and increasing either revenues of profitability,” she said. “They are right but future brand building will not be business as usual. The party is over. Focus on substance: develop brands based on customer needs and tastes, and ensure the goods and services are safe, durable and reliable. Lead by associating yourself only with things that harm neither people nor the natural environment at home or abroad.”

“New public policy approaches are emerging in the United States, Europe and possibly globally to advance sustainability in new ways.”

To request a copy of her speaking notes and accompanying PowerPoint^TM presentation, please email.

About motum^® b2b

motum b2b is a strategic and tactical business-to-business and sustainability marketing firm, acting as a gateway between North American and Asian markets. Based in Toronto, Ontario, Canada, the company has a proven track record working with global brands such as BASF, Toyota Industrial Equipment, Fluke Electronics, Tembec, Canadian Standards Association and BPA Worldwide, as well as helping smaller brands to establish themselves in new markets where they thrive.

Photo – Susan Sheehan, Vice president, Client Business and Sustainability, motum b2b presenting her insights at the World SME Expo 2008 in Hong Kong

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Canadian clean tech companies advised to use Hong Kong business platform

An executive at motum b2b, the Toronto-based business-to-business (b2b) marketing consulting firm, returns from a recent environmental trade mission to Asia, encouraging Canadians to look to Hong Kong for expansion prospects. Susan Sheehan, the Vice President,Client Business and Sustainability at motum b2b, provides strategic counsel and  tactical advice on b2b business growth and sustainability. Clients include BASF, BPA Worldwide, Honeywell, Toyota, Psion Teklogix and Tembec Inc. Susan is also a columnist for the magazine, Green Business, and says in the latest issue: “Hong Kong’s plan for an urban overhaul offers opportunities to Canadian clean tech companies.”

Susan’s clean tech case for Hong Kong is available from the magazine’s website:

Hong Kong has, for some time, been a platform for foreign firms expanding their markets into Mainland China and throughout Asia. Canada, however, has never had as substantial a foothold there as it should.

Currently, there are only about 150 Canadian firms using Hong Kong as their Asian base. Yet the strength of Canada-Hong Kong relations is indisputable, as evidenced by the Canadian Chamber of Commerce in Hong Kong. It’s the largest Canadian business association outside of Canada, and the second largest foreign Chamber in Hong Kong. Despite this, the Canadian Consulate in Hong Kong is unable to respond to frequent requests for new Canadian suppliers because Canadian companies aren’t seizing the opportunities available.

Read the rest here.

Photo by A. www.viajar24h.com.

China and Singapore are strengthening economic ties with a free trade agreement (FTA) that will come into effect January 1, 2009 and implemented in a two-phase process.  In this agreement, the first comprehensive bilateral agreement by China with another Asian country,  the two countries also agree to develop simplified customs processes.  The particulars of the FTA are:

• All goods Chinese imports to Singapore should not have customs duties applied to them as of January 1, 2009.
• More than 85 per cent of China’s imports from Singapore (complying with Origin criteria) should not have customs duties applied to them as of January 1, 2009. Some local excise duties will apply on certain goods.
• About 95% of China’s imports from Singapore (save for 260 products) should not have customs duties applied, “tariff-free”, by 2010.

Goods are eligible under the program if they are wholly obtained or produced in China or Singapore.  If they are not, then they must comply with one of three rules:  1) Regional Value Content Rule; 2) Cumulative Rule of Origin Rule; 3) Product Specific Rules. For more specifics about the rules and the FTA, check out briefing this from Deloitte, as well  the news release from the government of Singapore.

Last year, bilateral trade between China and Singapore hit a record of more than $76 billion.  China ranks as Singapore’s third largest trading partner and the major market for investment.  Singapore as well is China’s eighth largest trading partner and seventh largest investor.

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When Hong Kong announced in February that it was removing its 40 per cent wine tax, excitement grew.  It has since attracted auction houses such Christie’s, Bonhams, and Acker Merrall & Condit to flock to the island.  During Hong Kong’s first International Wine Fair, back in August, nearly 9,000 buyers from 55 countries were in attendance, and among them were 45 companies representing Canada.

The tax announcement is one point in a targeted effort to develop Hong Kong into a major wine hub.  Most recently, Rita Lau, Hong Kong’s commerce and economic development minister, said at a luncheon that she expects $1.5 billion USD worth of wine to be imported into Asia by 2017; $870 million USD of which is expected to be brought in by China. As well, the International Wine and Spirit Record predicts that from 2002 to 2011 wine consumed in Asia will rise by 80 percent.  Not bad for a region that already drinks 47 per cent of the world’s spirits, this from an interesting read in International Herald Tribune.

From Acker Merrall & Condit’s first auction in May — and first event in Asia — they sold $8.2 million USD worth of wine.  They returned in November, this time selling $6.7 million USD.  Three hundred collectors and traders were in attendance with 90% of the 950 lots sold.  Christie’s also recently held an auction, the first in seven years, with 245 lots of rare vintages up for sale, this brought in $4.07 million USD.   It was a success considering 94 per cent of the inventory was sold and sales were predicted to be only $3.2 million USD.  Among the sales, a 12-bottle case of 1959 Chateau Latour went for $900,000 HKD.  Another 12 bottle case of 1961 Chateau Latour went for $1.32 million HKD, a world record for the vintage.

Hong Kong has also been busy signing agreements to build up its wine center.  In August Hong Kong signed a Memorandum of Understanding (MOU) with France.  In October, a MOU was signed with the Bordeaux Chamber of Commerce and Industry of France.   This is Hong Kong’s first agreement with a wine-producing region.  Then, a similar pact was signed with Spain, the world’s third largest wine producer, which covers six areas of wine related businesses.  As a side note, since removing the tax, wine imported from Spain has increased 49 per cent.

So, don’t miss out on a chance at auction.  Acker Merrall & Condit is hosting another event in March.  Check out www.winesearcher.com for a listing of auctions, brokers, retailers and wholesalers in Hong Kong.

You may also want to start planning early for Hong Kong’s International Sprit and Wine Fair November 4-6, 2009.

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