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International Licensing Community Targets China

8 July, 2004

Ms. Rachel Chan, Director of Service Promotion, HKTDC, hosted the press conference.

The Chinese mainland remains a key growth market for the international licensing business, according to an independent survey conducted by AC Nielsen at the Hong Kong Licensing Show 2004, which was released today (July 8).

The survey was conducted on the first day of the Hong Kong Licensing Show (6-8 July) which is organized by the Hong Kong Trade Development Council. A total of 30 exhibitors and 213 international visitors were interviewed.

75% of respondents indicated a rosy outlook for the next 12 months, and also signaled expansion plans in Asia Pacific. 69% of respondents believed there is huge growth potential for their business in the Chinese mainland, with Shanghai identified as the growth engine. Properties with the greatest potential in the mainland are animation characters and trademark/brands; whereas industries with the greatest potential are toys/games and apparel/accessories.

Some respondents have also indicated a preference for partnering with Hong Kong's licensing community to enter the Chinese mainland, due to Hong Kong's unique strengths as a licensing hub for Asia - market sensitivity and knowledge about the mainland, language skills, well-established distribution network and sourcing center for suppliers of licensed products, clustering of licensors and licensing agents, and strong intellectual property rights protection. The Closer Economic Partnership Arrangement (CEPA) will further facilitate the market entry of Hong Kong products and companies in the mainland.

The Hong Kong licensing business will further benefit from major international events in the region. Ms. Rachel KY Chan, Director of Service Promotion of the Hong Kong Trade Development Council, commented: "The opening of the Hong Kong Disney Theme Park in 2005, the Beijing Olympics in 2008, the Shanghai World Expo in 2010 and the Guangzhou Asian Games in 2010 will bring a wealth of business opportunities to the Hong Kong licensing community."

Mr. Charles Riotto, President of the International Licensing Industry Merchandisers' Association, echoed Ms. Chan's views. "There is no doubt that Hong Kong is the showcase for brands attempting to enter the mainland Chinese market. As China's consumers become more and more brand conscious, and the demand grows for more brand options, this dynamic environment provides the perfect setting for developing licensing relationships to address this growing need."

On Hong Kong being at the forefront of licensing trends, Ms. Chan said: "In Asia, Hong Kong is already seen by the international licensing community as a first adopter and trendsetter. Hong Kong is the first to go in the region for cross-branding cooperation, franchise-building and multi-media convergence - multiplying the effects of licensing contents across different carriers to achieve maximum market reach and penetration."

Hong Kong's role as the licensing hub in Asia is reflected by the survey finding that the Hong Kong Licensing Show was ranked as the most important licensing event in Asia.