Quarterly Newsletter January 2019

Hong Kong – A Magnet for All

Ranked as the world’s freest economy for the 24th consecutive year, is an ideal place for overseas and Mainland companies to run their regional and local operations.

This Issue 4-5 Special Feature: Hong Kong as an I&T hub 6 International Forward Calendar 7-15 Case Studies 2

According to the results of a joint survey conducted by Invest Hong Kong (InvestHK) and the Census and Statistics Department (C&SD), in 2018 over 8,700 business operations in Hong Kong have parent companies situated overseas or in the Mainland. Among them, 1,530 are regional headquarters (RHQ), 2,425 regional offices (ROs) and 4,799 local offices (Los).

The following are the top favourable factors that affect the choice of setting up an office in Hong Kong:

Simple tax system Free port and status low tax rate HK

Free flow of Geographical information location

1,530 Top five source countries/ territories Regional headquarters ( 8.3% growth) 2,425 regional offices 8,754 companies ( 6.4% growth) 1,591 1,393 1,351 712 427 Mainland Japan United United Singapore 4,799 China States Kingdom offices

No. of staff employed Major lines of business

Import/ 485,000 export trade, Financing and ( 8.6%) wholesale and banking retail

Professional, Transportation, business storage and and courier services services

The full survey results are available from the C&SD website: www.censtatd.gov.hk Cover Story 3

Hong Kong Continues to be a Leading Global Startup Hub

Hong Kong’s startup ecosystem has network of incubators and accelerators, a The survey was carried out in collaboration skyrocketed in the last few years. On top pool of experienced angels and venture with 48 co-work spaces, incubators and of its enduring commercial advantages, capitalists, a host of government backed accelerators covering 79 locations. The Hong Kong’s legendary spirit of enterprise programmes and a welcoming community objectives are to better understand the and its boundless energy create the of startups knit together by dozens startup community and to promote Hong perfect environment for starting a of networking events, seminars and Kong as a leading hub for innovation and business. This is supported by a strong associations. entrepreneurship.

InvestHK’s Startup Survey highlights:

Number of startups Number of staff employed 2,625 9,548 ( 18%) ( 51%) 2,229 6,320

2017 2018 2017 2018

Origins of founders Top business sectors

FinTech, e-Commerce/ 62% supply chain management/ Hong Kong logistics technology, professional or consultancy services, information, computer and 3% technology or ICT Hong Kong 35% returnees

UK, US, and Australia, etc.

Check out the details of the To set up or expand your business in Hong Kong, StartmeupHK Festival 2019 contact us: 21-25 January (852) 3107 1000 Hong Kong Convention and Z Exhibition Centre m enq@.gov.hk 4 Special Feature

Innovation Hong Kong

The Chief Executive’s 2018 Policy Address development not later than 2021. The at Tseung Kwan O Industrial Estate will outlining the key strategies for developing Science Park expansion project will be be completed progressively starting from Hong Kong into an international completed one year ahead of schedule in 2020 as scheduled. innovation and technology (I&T) hub has 2019, the InnoCell residential building for received wide recognition from various talent, as well as the Data Technology Hub Funding Support sectors and good progress has been and the Advanced Manufacturing Centre In addition to hardware support, the made in the past year. The Guangdong- Hong Kong-Macao Greater Bay Area has a strong focus on I&T and offers not just a huge market of 68 million people for technology enterprises, but a highly efficient manufacturing base for turning research outcomes into prototypes and products.

The Government focuses on four key areas with notable strengths, namely biotechnology, artificial intelligence, smart city and financial technologies, and is implementing a series of new policies to support their development. The infrastructure works of the Hong Kong-Shenzhen I&T Park at the Lok Ma Chau Loop has commenced in June 2018, with the objective of providing the first batch of land parcels for superstructure 5

Government provides $10 billion dedicated funding to develop two research clusters in healthcare technologies and artificial intelligence and robotics. The Institut Pasteur from France, as well as the Guangzhou Institute of Biomedicine and Health and the Institute of Automation in Beijing under the Chinese Academy of Sciences (CAS) have expressed interest in joining the clusters at Hong Kong Science Park to work in collaboration with local universities and research institutions. The University of Hong Kong and the Harvard John A. Paulson School of Engineering and Applied Sciences have agreed to set up a joint laboratory of instrumentation for precision medicine in December 2018.

In September 2018, the “Arrangement on Enhancing Innovation and Technology Cooperation between the Mainland and Hong Kong” was signed as an action guide and framework for the two parties to take forward the various I&T co-operation initiatives in the coming few years. The two sides will enhance co-operation in six areas, namely scientific research, development of platforms, nurturing of talents, transfer of results and incubation of I&T industry, integration into national development strategies, and cultivation of an I&T atmosphere. It will also promote transfer and translation of scientific research the injection of $3 billion into the results, co-ordinate collaboration Encouraging R&D Research Endowment Fund, providing between the CAS and local universities, Hong Kong also offers a super tax studentships for local students admitted undertake technological education and deduction of up to 300 per cent for to research postgraduate programmes promotion activities as well as setting up the first $2 million of qualified R&D and subsidise local enterprises on a a Joint Laboratory Funding Scheme with expenses, and 200 per cent for the matching basis for training their staff on the provision of one-off research grants remainder with no upper limit. It has advanced manufacturing technologies. up to $30 million. also deployed $2 billion under the The Postdoctoral Hub programme Innovation and Technology Venture Talent Admission provides funding support to qualified Fund Scheme to co-invest, on a Since having quality talent is the key companies to recruit up to two matching basis, with venture capital to I&T development, in June 2018, postdoctoral talents for research and funds in local technology startups and the Government has launched a pilot development (R&D) work and provide a has already entered into agreement fast-track Technology Talent Admission monthly allowance of $32,000 for each with six investment companies in Scheme to enable technology companies postdoctoral talent for up to 24 months. July and August this year to invest, on or institutes to attract overseas a matching basis, in local technology Furthermore, in August 2018, the technology talent, in focused technology startups. Government announced its first talent areas, including biotechnology, artificial list aiming to attract quality people To sum up, the recent developments intelligence, cybersecurity, robotics, etc. from around the world in 11 professions and strong policy support have created In addition, a $500 million Technology to support Hong Kong’s development many exciting business opportunities Talent Scheme was launched to train as a high value-added and diversified and scope for expansion in Hong Kong. and pool technology talent, and through economy. 6 International Forward Calendar

JAN MAR

American Community Networking Reception Mainland Reception This networking reception is to thank American companies This networking reception is to thank Mainland companies 9 for their contribution to Hong Kong. for their contribution to Hong Kong. Location: Hong Kong 14 Location: Hong Kong Organiser: InvestHK (by invitation only) Organiser: InvestHK Co-organisers: Hong Kong Chinese Enterprises Association, Chinese Banking Association of Hong Kong, Chinese Securities Asian Financial Forum (AFF) Association of Hong Kong (by invitation only) The AFF brings together some of the most influential members of the global financial and business community to discuss developments and trends in the dynamic markets Art Basel Hong Kong 14-15 of Asia. Art Basel returns for its seventh edition in Hong Kong. Location: Hong Kong Convention & Exhibition Centre The show will feature 242 premier galleries representing Organisers: HKSAR Government and the Hong Kong Trade 36 countries and territories from around the world, Development Council (HKTDC) including 21 new galleries, with works ranging from modern 29-31 masterpieces to the most contemporary work by established www.hktdc.com/ncs/aff2019/en/main/index.html and emerging artists. Location: Hong Kong Convention & Exhibition Centre Hong Kong Business Seminar & Organiser: MCH Group Asia Ltd. Chinese New Year Reception in Bristol www.artbasel.com/hong-kong Hong Kong business seminar followed by Chinese New Year celebrations. InvestHK will share about the business opportunities in Mainland China and Asia via Hong Kong, APR 15 including the Greater Bay Area and Belt and Road initiatives. Location: SS Great Britain, Great Western Dockyard, Hong Kong ICT Awards 2019 Gas Ferry Road, Bristol, England BS1 6TY The Hong Kong ICT Awards aims at recognising and Organisers: InvestHK, Hong Kong Economic and Trade Office promoting outstanding information and communications (London) technology (ICT) inventions and applications, and encourage innovation and excellence among Hong Kong’s ICT talents 4 and enterprises. Business Luncheon in London Steered by: The Office of the Government Chief Information InvestHK will share about the business opportunities in Officer Mainland China and Asia via Hong Kong, including the Location: Hong Kong Greater Bay Area and Belt and Road initiatives. www.hkictawards.hk/index_e.php 16 Location: Harry’s Bar2, 17-20 Ironmonger’s Lane, London, EC2V 8EP Organiser: International Professional Association Internet Economy Summit 2019 www.internationalprofessionalsassociation.com The 4th Internet Economy Summit (IES) is the region’s flagship event on digital economy that aims to examine how businesses can leverage data-driven innovations to 4th Paris Fintech Forum capitalise on opportunities in the connected world. The The event will address key issues related to digital finance 2-day Summit themed “Digital Economy • Redefines our and FinTech in particular in 90+ panels and 60 pitches Future” brings together prominent industry icons, top on four stages and two workshop rooms. 220+ CEOs will 15-16 business executives and entrepreneurs from around the be on stage and 2,600+ participants from banks, AI, Data, world offering a vision into the digital future with disruptive 29-30 alternative lending, Insurtech, Blockchain & Crypto assets, influence in the hottest topics at the forefront of global Payment, platforms will attend. technology development. Location: Palais Brongniart, Paris Location: Hong Kong Convention and Exhibition Centre Organiser: Alteir Consulting Organisers: HKSAR Government, Hong Kong Cyberport www.parisfintechforum.com ieconomysummit.hk

FEB Innovate Finance Global Summit This annual event is one of the most prestigious conferences MWC Barcelona for the FinTech industry. It is a platform that convenes the world’s global institutions together with startups, policy One of the world’s largest mobile events, the event brings 29-30 makers and investors to share ideas and solutions to the together the latest innovations and leading-edge technology challenges facing financial services. from more than 2,400 leading companies, with a conference Location: Guildhall, Gresham St, London EC2V 7HH 25-28 programme assembling today’s visionaries to explore the hot industry. Organiser: Innovate Finance Location: Fira Gran Via and Fira Montjuïc ifgs.innovatefinance.com Organiser: GSMA www.mwcbarcelona.com

2019 ChinaWatch Forum Under the overall theme of “Pioneering China with New Paradigm Strategy”, this forum targets to welcome 250+ See more events at 27 attendees who are interested in investing into Mainland China and Hong Kong. Location: Four Seasons Hotel Seoul Organiser: BusinessWatch

Organised by InvestHK Visit investhk.gov.hk for details Case Study 7 Innovative Spaces for Startups to Grow

Hong Kong has always been an international business hub and makes it the ideal base from which Tencent can connect to the world. Elaine Wang, General Manager Tencent WeStart

Leading Mainland China internet value-added services conglomerate launched a pioneering platform in Hong Kong to nurture the digital.

In 2013, Tencent launched Tencent Westart Other than just setting up a physical time, Hong Kong has an excellent working Innovation Space in Mainland China and presence in the Innovation Space, environment and free flow of information. has rapidly spread to 34 locations. The enterprises can also leverage on a wide “With similar Chinese cultural background, objective is to create an open, inclusive range of exclusive services provided by there are a lot of potential talent in the area and borderless ecosystem for startups Tencent for further collaboration. Through of creative industries that we can nurture and cutting-edge industries. Recently, online service platform open.qq.com, and tap into,” Wang commented. the group launched their first Innovative entrepreneurs can get access to a variety Eyeing the future, Hong Kong plays a key Space branch outside Mainland China in of business services or app development assistance. In addition, they can ride on role in enhancing the Guangzhou-Hong Hong Kong. Tencent’s open media content platform, to Kong-Macao Greater Bay Area development Located in Kwun Tong, Tencent WeStart create short videos, pictures and articles thanks to its proximity to Shenzhen and HK spans over 16,000 square feet and can and distributed across multiple Tencent Guangzhou. “We at Tencent have always host around 200 enterprises. By pursuing content products. Content can be easily been focusing on the Greater Bay Area Tencent’s open platform strategy with accessed by Mainland users or content development. With our headquarters in the focus on digital content and AI, the generated in Mainland can go global. Shenzhen, we hope to join forces with Hong Kong to promote China’s digital ecosystem Hong Kong centre partnered with VS Media Investment is also an essential element by encouraging more interaction with (a YouTube certified MCN company) and for startups to succeed. Tencent provides Hong Kong’s reputable developer New investment support, including Tencent overseas enterprises,” Wang concluded. World Development’s K11 with the aim WeStart innovation fund incubator Together with InvestHK’s Hong Kong and of attracting local and overseas digital programme, Tencent open platform Mainland teams, a wealth of information on content creators to contribute to the interest-based content fund for potential the region’s startup ecosystem can be shared startup ecosystem. Through promoting enterprises. In addition, entrepreneurs can with the Innovation Space enterprises. entrepreneurship in Hong Kong, Tencent easily connect to other Tencent’s partners WeStart hopes to attract overseas for advice and support and can attend companies to come to Asia and help education courses, conferences and events. Tencent WeStart Mainland entrepreneurs to go global. Supportive Government  Tencent WeStart Hong Kong “Hong Kong has always been an Garners Greater Opportunities international business hub and has always Innovation Space is the first Given Hong Kong government’s staunch been innovative, open and collaborative. of its kind to open outside support in promoting the innovation and It makes an ideal base from which Tencent Mainland China technology development through different can connect to the world. Together with areas such as investing in infrastructure  Digital content startups can the deep talent pool, the city is the ideal development, R&D collaboration and leverage on a wide range of location to set up the first Tencent WeStart nurturing startups, Xu strongly believes Innovation Spaces outside Mainland China. that these initiatives can attract many exclusive services provided We hope local and overseas entrepreneurs foreign companies to set up their presence by Tencent around the world can establish a closer relationship with in Hong Kong. With increased interaction for support and collaboration the Mainland market and understand with Mainland Chinese enterprises, mutual the related policies better,” said Elaine exchange of knowledge and experience w westart.tencent.com Wang, General Manager of Tencent WeStart. can be further facilitated. At the same 8 Case Study Bon Voyage to Success

Miami-based Norwegian Cruise Line vies to lead the fast-growing cruise market in Asia.

Asia’s cruise line industry is definitely serve our travel agency partners and Besides the consumer market, incentive booming. According to Cruise Line guests in different places such as Japan, travel also creates a big opportunity in Industry Association’s “Asia Cruise Trends India, Southeast Asia and Mainland China,” Asia for NCLH. “Cruise is one of the best Report 2018”, Asian cruise passengers grew he said, “with the language advantage as solutions for incentive travel organisers from 775,000 to over four million between well as the time-zone convenience, Hong for its logistical arrangement convenience 2012 and 2017. Hong Kong, being Asia’s top Kong is undoubtedly an ideal place to be and value-for-money packages,” Chan said, five largest source markets, also saw an our regional hub.” “we are seeing more demands for hosting 80 percent growth in passenger number incentive groups on our ships, especially NCLH’s three brands serve Asia’s diverse in 2017. from India and Japan. There is a big market well: Norwegian Cruise Line is potential in Asia.” Seeing a great potential in Asia, US-based the most popular choice for young adults Norwegian Cruise Line Holdings Ltd. and multi-generation families; Oceania In response to the demand from its (NCLH), one of the world’s leading cruise Cruises features “the finest cuisine at sea” home market, NCLH is also expanding its companies, expanded to Asia in 2015 for upper premium, epicurean travellers, deployment in Asia on top of its existing with Hong Kong as its first port of call. while Regent Seven Seas Cruises offers 450 destinations. More cruises will be Followed by more regional offices opened highly‑personalised services for guests who sailing in Asian waters in the coming in Shanghai, Beijing, Tokyo, Singapore are seeking the most luxurious experience years, including a 2,400‑passenger cruise and Mumbai, Hong Kong remains on the ocean. Norwegian Jade which will sail from NCLH’s regional hub for reservations and Hong Kong in January 2020. “Asian consumers are driven by operations of its fly-cruise business in Asia. destinations and great value,” Chan said, Felix Chan, Vice President of Sales Asia, “cruising offers great value proposition as believes that the city’s high quality talent you can easily visit multiple destinations Norwegian Cruise Line pool is the most important factor for NCLH in a single trip, particularly so when you go Holdings Ltd. to begin its Asia voyage from Hong Kong. to places where dining, transportation, and “We have a strong team of sales and accommodation are expensive or difficult  Listed on the New York Stock operations professionals here who could to get by in a typical land vacation.” Exchange (NYSE:NCLH) and has been selected to join the S&P 500 Index from 13 October 2018.

 Currently hires 14 employees With the language advantage as well as in Hong Kong office covering the time-zone convenience, Hong Kong operations, sales and is undoubtedly an ideal place to be our administration functions.  Owns a combined regional hub. fleet of 26 cruises with approximately 54,500 berths. Eight more ships will be Felix Chan added to the fleet by 2027. Vice President of Sales Asia w ncl.com Norwegian Cruise Line Holdings Ltd. Case Study 9

Enabling a Smarter, Safer City US wireless MESH technology company offers one-of-a- kind Smart City network solution to help governments improve public safety.

Headquartered in Hong Kong, Anywhere “one of the main reasons is that we saw Networks (formerly “P2 Wireless the HKSAR government has been putting Technologies”) is a Smart City network a lot of effort to help companies to be solutions and service provider offering successful here.” comprehensive solutions that focus on We looked at many He added that with the proximity to public safety and connects IoT devices Mainland China, Hong Kong has given them such as IP surveillance cameras, sensors other cities before, the best position which makes it easy for and other applications for governments, them to access the China market. industries and enterprises. Ideal for but we finally deploying city‑wide applications, Anywhere decided to set up With office in the Hong Kong Science and Networks’s intelligent MESH technology Technology Park, Anywhere Networks offers a secure, high capacity and scalable our headquarters here currently hires some 30 professionals, which network solution for high‑bandwidth two third of them are engineers. With the demanding application and mission‑critical in Hong Kong. rapid business growth, their target is to triple network infrastructure. One of the main the headcounts in the coming year. Moving forward, Anywhere Networks also plans to Leveraging existing fiber infrastructure, reasons is that launch IPO in Hong Kong in the next two Anywhere Networks’s unique technology years, hoping to raise enough funds for the enables customers to reliably connect we saw the HKSAR company to become a global market leader. and manage multiple Ethernet devices at 19,200 locations on one network. government has been Introduced to InvestHK’s head office before it The company has recently completed putting a lot of effort came to Hong Kong, Larsson thinks that the a Smart City pilot project for the department has offered tremendous help in government, deploying some 620 smart to help companies to helping them to set foot in the city. “The team lamp poles with IP cameras, smart lighting is very kind and supportive. They helped systems, sensors, and digital signage, be successful here. us a lot on understanding how everything providing full connectivity coverage to all works here,” he concluded, “their service is smart lamp poles across Taoyuan city. Bo Larsson invaluable to foreign companies like us.” Bo Larsson, Executive Chairman & Executive Chairman & Chief Operating Officer, believes MESH Chief Operating Officer networking is the future for supporting Anywhere Networks Smart City projects. With the Hong Kong and Anywhere Networks Mainland Chinese governments launching  Headquartered in Hong Kong various initiatives supporting the innovation “we also plan to hire more engineers in Hong and technology industry, such as the Hong Kong and Mainland as we see substantial with regional offices and Kong‑Shenzhen Innovation and Technology opportunities ahead of us.” Headquartered R&D center in San Francisco Park on the Lok Ma Chau Loop, and the in Hong Kong, Anywhere Networks has also Bay Area Guangdong-Hong Kong-Macao Greater set up a new office in Guangzhou this year  Established business Bay Area, there are ample opportunities to better serve the Mainland market. for intelligent MESH networking solutions presence in Asia Pacific, Larsson thinks that Hong Kong is the best connecting IoT devices anywhere. Europe, North America, and headquarters location for Anywhere Middle East “We are excited about all these government Networks. “We looked at many other cities initiatives that promote the development of before, but we finally decided to set up our w p2wireless.com innovation and technology,” Larsson said, headquarters here in Hong Kong,” he said, 10 Case Study

Boosting Connection to Hong Kong Finnair goes “Double Daily” to Hong Kong to meet rising demand for flights between Europe and Asia.

Many recent government initiatives have a positive impact on the future growth of our business.

Stan Kwong Regional Head Finnair

Finnair, one of the world’s longest growth of our business,” Kwong said. that allows customers to book and operating airlines, will increase their “With the development of Guangdong- purchase their Finnair flights. direct flights between Helsinki and Hong Kong-Macao Greater Bay Area, Set up in 2002, Finnair’s Hong Kong Hong Kong in 2019 to cater for the rising more traffic into and out from the region office has recently expanded the staff demand. Currently with 12 flights weekly, is expected. With Finnair’s extensive size by 60 percent. To support the fastest Finnair will go “Double Daily” with network in Hong Kong and Guangzhou growth phase in its 95-year history with two flights per day, or 14 flights weekly, covering the Greater Bay Area, travellers increased capacity, growing traffic, new starting from April 2019. can choose to travel via their closest services, and strong ambitions, the departure point in either city.” “The Nordic region has become a very airline also plans to recruit more experts, popular destination for Hong Kong “The newly opened HongKong-Zhuhai- digital professionals, customer service, travellers, as Northern lights and Macao Bridge (HZMB) situated right next mechanics and cabin crew. nature travel in Finland are some of the to the Hong Kong airport will bring more hottest travel trends,” said Stan Kwong, travellers from neighbouring cities,” Regional Head, “we see the increasing Kwong added, “HZMB, coupled with the demand and the rapid market growth, Express Rail Link, will certainly enhance and we expect the growth will continue Finnair Hong Kong’s status as the regional hub, to accelerate.” especially for trading and business. We  Founded in 1923, Finnair With a network covering will take this opportunity to partner with is one of the world’s 100 destinations in Europe and different stakeholders to build the best longest continuously connecting to 19 Asian cities, Finnair travel ecosystem in the region.” operating airlines also offers one of the fastest connections between Asia and Europe via Helsinki. According to Kwong, Mainland China  Hong Kong office current will remain Finnair’s focus market in employs 15 staff members The launch of “Double-Daily” not only Asia for its high volume of travellers responsible for sales, cargo, shows the popularity of Finnair’s and the enormous growth potential. In airport counter servicing, products in the Hong Kong market, the coming years, the airline will also but also highlights the airline’s strong business development harness digital to boost revenue, system commitment to Asia. and marketing efficiency and customer experience. For “Many recent government initiatives example, Finnair has recently launched w finnair.com have a positive impact on the future its official WeAir under WeChat account Case Study 11 Unleashing the Power of Data Innovation

Hitachi sees Hong Kong as a perfect launchpad to set up its first innovation center with an aim to offer smart city solutions to the city.

Data is always a great asset to a company customers and partners. In addition, over but how to use it effectively to increase a hundred employees including more revenue, enhance customer experience than 70 technicians in Hitachi Vantara’s or lower business cost is a popular topic Hong Kong office are ready to offer among many enterprises. In view of this, additional technical and marketing and Hitachi Vantara, a wholly owned subsidiary The technology sales assistance at any time. of Hitachi Ltd opened an innovation center startup ecosystem Sampson appreciates the quality of talent in Hong Kong in 2018 with the goal to in Hong Kong. “We are able to find very co‑create data-driven solutions and insights is booming talented technicians here thanks to the high with its partners to drive business growth productivity and deep talent pool,” he said. and foster social innovation development. in the city and “As local universities are launching a range The innovation center in Hong Kong is we are excited of innovation and technology‑related a first-of-its-kind by Hitachi in Greater programmes, I am very confident in finding China region to carry out its new business about the enormous high‑skilled talent to join our venture.” concept. The HKSAR government released With the assistance of InvestHK, the Smart City Blueprint in end 2017 with opportunities Sampson and his team were connected a vision to develop Hong Kong into a to other government departments world-class smart city by making use of to co‑create and oraganisations to broaden their innovation and technology. The company business network. believes Hong Kong is an ideal place for the smart city solutions “The technology startup ecosystem is new rollout. “The government’s emphasis booming in the city and we are excited on technology development creates a with different about the enormous opportunities to favourable environment for innovation in partners. co‑create smart city solutions with different the city,” explained Andrew Sampson, Vice partners,” Sampson concluded. President and General Manager, Hong Kong and Taiwan, “we are seeing a lot of potential Andrew Sampson for our center to grow here.” Vice President and Hitachi Vantara “Companies in Hong Kong also have a General Manager, long history and good reputation of being Hong Kong and Taiwan  Hitachi Vantara’s first creative and entrepreneurial, which innovation center and makes the city an excellent base for our Hitachi Vantara officially opened in operations,” he added. October 2018 The center is strategically situated in the Park to develop widely applicable sensors  Aims to co-create smart city Hong Kong Science Park, making it easy for and alert systems for healthcare, security solutions with partners to Hitachi Vantara to collaborate with partners and space management applications by foster social innovation to develop different kind of smart city utilising Internet of Things (IoT), cloud solutions for their clients. service, data intelligence, big data and w hitachivantara.com/hk analytics platforms. Soon after its soft-launch, the center has partnered with a number of technology At present, there are six staff based in companies and startups in the Science the center, providing instant help to its 12 Case Study Art for Everyone

French entrepreneur brings leading gallery brands to Hong Kong with an aim to make art collecting more accessible.

Art de Vivre Collection is a contemporary a dynamic and energetic place. People here “The networking events are very useful, art platform under the Art de Vivre group are very open-minded and welcoming,” and I appreciate their advice and support founded in France by Arthur de Villepin, he said, “the city has provided me with a on administration, recruitment and legal son of former Prime Minister of France, vibrant retail landscape with a hunger for matters,” he concluded. Dominique de Villepin. With a vision to new ideas and concepts. These qualities propagate art in everyday life and making have allowed our brands to flourish in it more accessible for all, the company the market.” presents a number of leading art brands in He added that the city’s well-established Art de Vivre Group Asia, and offers original artworks across all financial and legal infrastructure also media with an affordable price.  Carries two gallery concepts makes setting up a business easy namely YellowKorner and De Villepin believes that art is for everyone. and accessible. Carré d’Artistes As an art collector himself, he sees Art de Vivre Collection currently has over Art de Vivre Collection as a platform to  Under the two brands, the 20 staff members and de Villepin plans to democratise art collecting, and at the same company now represents expand the team as their business grows. time to cultivate and promote French “There is an incredible pool of promising over 850 international artists culture. “Our aim is to provide a place not artists here,” commented de Villepin, with more than 100 galleries only for established collectors, but also “and I look forward to the possibility of globally first time buyers to explore and discover collaborating with local talented artists.” new artists in a unique and friendly w www.artdevivre- environment,” said de Villepin. He also finds the assistance provided collection.asia by InvestHK is valuable to the company. In 2013, Art de Vivre began its journey in Hong Kong by bringing YellowKorner, a France-based limited-edition fine art photography gallery network, to the city. The encouraging market response to the Hong Kong has provided me with concept of accessible art has inspired de Villepin to bring another leading art brand a vibrant retail landscape with a here- Carré d’Artistes. hunger for new ideas and concepts. Sitting on Hollywood Road, a renowned art district in Hong Kong, Carré d’Artistes These qualities have allowed our showcases a wide range of styles from classical paintings to 3D Pop Art collages. brands to flourish in the market. According to de Villepin, the company will add more Asian artists as well as Hong Kong artists to enrich its diversity. Arthur de Villepin

De Villepin thinks that the city offers great Founder and CEO qualities for his art business. “Hong Kong is Art de Vivre Group Case Study 13 From Xero to One A global small business platform which offers Hong Kong is cloud-based accounting software can enable SMEs home to about to have better control of their business. 330,000 SMEs and we see an abundance of opportunities arising, especially from the increased government‑funded initiatives to nurture the small business economy.

Kevin Fitzgerald Regional Director – Asia Xero

Managing cash flow is always a trusted relationships with their clients company wants to play an instrumental headache for small businesses. Finding by obtaining access to better insights role in pushing forward technological a trusted accounting partner who and reducing administration hours adoption in Asia. understands cash flow and financial spent on data entry. On the other hand, Fitzgerald finds Hong Kong people management is essential. Xero offers real SMEs hope to get paid faster, be better smart, hardworking, eager to learn and time visibility of a company’s financial informed and have better control and adaptable to evolving market needs. position and performance in a simple, visibility on their financial health,” A huge talent pool in the accounting smart and secure method. Fitzgerald commented. sector is a critical success factor to Xero’s Established in New Zealand in 2006 and Through Xero’s banking partnerships, business growth in Asia. now with offices in Australia, Canada, users can also connect Xero to their Singapore, South Africa, United Kingdom banks to facilitate bank reconciliation, and United States, the company set online invoicing and direct up-to-date up their Hong Kong branch in 2018 bank feeds. In Hong Kong, SMEs who after seeing an increasing trend in bank with Xero’s partnering banks can Xero demand. “Hong Kong is home to about securely get their bank transactions 330,000 SMEs. We see an abundance flowing seamlessly into Xero, saving up  Established in New Zealand of opportunities arising, especially to 15 hours of administration time per in 2006 and with offices from the increased government-funded month, according to Fitzgerald. in Australia, Canada, initiatives to nurture the small business “We have proven that SMEs who use Singapore, South Africa, economy,” Kevin Fitzgerald, Regional Xero are able to shorten the number of United Kingdom, United Director – Asia, said. days in between invoicing and getting States and Hong Kong Xero is connected to over 700 third paid, from 42 days to 32 days. The cash party applications including some of the flow cycle is also much shorter for our  Offers a cloud-based most in-demand business management customers as compared to other SMEs accounting platform for tools such as inventory, time tracking, (6 percent late payment vs 24 percent). SMEs, accountants and payroll and expenses processing. That is effectively reducing the cash flow bookkeepers This effectively alleviates the daily gap for small businesses,” Fitzgerald said. administrative tasks so that SMEs can  Xero is used in over With more than 1.38 million global focus on running their businesses. 180 countries by 1.38 million subscribers, Xero places a strong focus paying subscribers and The requests they get from SMEs and on nurturing a strong relationship with accounting firms are very similar their existing and potential customers by integrates with more than across the world, and Hong Kong is no creating a community through events, 700 add-on solutions different. “Accountants want to forge workshops and training sessions. The w Xero.com 14 Case Study Driving Korean Fashion Market in Hong Kong and Beyond

Seoul-based fashion group starts regional expansion with opening five stores in Hong Kong within a year.

Best known for its signature baseball caps “We decided to use Hong Kong as the first and street-style ready-to-wear, MLB Korea test point, and replicate the model to other is a brand under FnF, a Seoul-based fashion locations in the region as we expand,” she group owning over eight Korean fashion said, adding that more locations in Asia will and cosmetic lines. Reinterpreting the Hong Kong is be opened following the launch of its Taipei heritage of Major League Baseball (MLB) store earlier this year. with a contemporary fashion touch, MLB a well‑known With the current 70:30 ratio between Korea has become a wardrobe essential for visitors and local customers for MLB Korea, many Korea pop celebrities and street-style shopping mecca FnF also plans to further build a local fashionistas in Asia. Last year, the brand presence through continuous marketing recorded 3.5 million baseball caps sold in in Asia, providing efforts, such as using social media Korea alone. excellent exposure influencers and celebrities to build brand Seeing fashion from Korea taking a more awareness and exposure. prominent role in the international fashion to our brand. InvestHK has been in contact with FnF scene, FnF would like to ride on this group when it first set up in Hong Kong. trend and expand MLB Korea to a global Tung finds that the assistance offered level, with Hong Kong as its starting point. Jenny Tung by the department very helpful. She In 2017, MLB Korea’s first overseas store was added, “the networking events organised opened in Mong Kok, one of the trendiest Retail Director by InvestHK helped to expand our neighbourhoods in the city. With soaring FnF Hong Kong Ltd. network and establish business contacts, sales and popularity, FnF quickly spread resulting in increased brand exposure at the brand’s footprint across Hong Kong in different levels.” the following year, with new shops opening in the highest-traffic districts including Central, Tsim Sha Tsui and Causeway Bay.

Jenny Tung, Retail Director of FnF, considers that while MLB Korea’s products FnF Hong Kong Ltd. and customer experience are vital, choosing the right location also plays a  FnF Hong Kong Limited decisive part in the brand’s success. “Hong currently oversees five retail Kong is a well-known shopping mecca in stores in Hong Kong and Asia, providing excellent exposure to our two in Macau brand,” Tung said, “we are also very careful in choosing the right location for our stores  Employs 15 office staff with in order to elevate the brand image and functions such as marketing, maximise traffic.” visual merchandising, According to Tung, Hong Kong is the top-of- retail operations, logistics mind destination for overseas expansion. and finance “We chose Hong Kong to launch the brand’s  Hires over 70 frontline staff in first overseas store as it is an international Hong Kong and Macao city with a great pool of talent. The city also has a very sophisticated retail market and w www.fnf.co.kr ecosystem,” Tung said. Case Study 15 Defining NewLaw Solutions

As part of the NewLaw ecosystem, KorumLegal’s solutions use models and tools not found in the traditional law environment. Its client‑centric legal solutions are flexible, innovative, smart and tech‑enabled.

Founded with an aim of providing a tremendous opportunities. Also, the city wide range of innovative legal solutions, has a strong and exceptional talent pool, KorumLegal offers services ranging and an innovation-friendly environment from on-demand legal consultants, legal which made it a perfect spot for us to take process management to LegalTech Hong Kong was off. The ease to establish a startup here solutions, whether it is a startup client or is a plus.” an established MNC. The law company our starting base brings a fresh approach to the delivery of At the moment, the law company has legal solutions because it is a 12 staff in their Hong Kong headquarters and over 50 legal consultants in Asia. Traditionally, the legal services industry Looking ahead, Rahiri believes that the might be seen as expensive, inaccessible dynamic and legal industry will be completely different and complex. At KorumLegal, they seek entrepreneurial city in 10 years’ time with NewLaw models to present their clients with flexible, becoming an integral part of the legal innovative, smart and value-driven with tremendous ecosystem. Data analytics, AI, blockchain solutions. The law company focuses and people in the gig economy will be key on legal solutions delivery across its opportunities. to the future of law. three business pillars of People, Process and Technology. InvestHK has been assisting the firm by Titus Rahiri providing update on relevant industry KorumLegal consultants come from events and introduction of contacts experience in reputable international Founder & Director through networking activities. firms, in-house legal teams of Fortune KorumLegal 500 companies, listed MNC’s as well as fast-growing startups. They sit with the client teams or work remotely, depending as it matures and starts solving some of the KorumLegal on client’s needs or budget. For example, major pain points of our clients,” he added, a KorumLegal senior consultant from “We can tailor legal solutions to a wide  KorumLegal provides legal Hong Kong worked remotely in Canada for range of clients, and this obviously includes solutions across People, a few months for a London-based client, startups with smaller budget.” Process and Technology supporting the client with its Asia legal operations. This was enabled by technology Innovative legal solutions  The Hong Kong headquarters and a flexible mindset of both client and growth in Asia has a team of 12 and over legal consultant. 50 legal consultants in Asia Identifying Asia as being a competitive Titus Rahiri, Founder & Director believes hub in innovation and entrepreneurship,  Clients include law firms, that technology is the key enabler to especially with the startup community financial institutions, Fortune growth but people are still at the heart of growing in exponential rate, Rahiri 500 companies as well as the business. While technology in the legal explained why the law company chose SME’s and startups. realm is still in its relative infancy compared Hong Kong as their operation headquarters. to other industries “at KorumLegal, we see “Hong Kong was our starting base because it w korumlegal.com technology as a key pillar to our business is a dynamic and entrepreneurial city with 25/F, Fairmont House 8 Cotton Tree Drive Central, Hong Kong Get Our App Now (852) 3107 1000 Find Us on Social Media InvestHK News & Events [email protected]

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