Research Articles Base: Hong Kong Market

A Strategic Analysis of Hong Kong Local Fast Food Market

A Strategic Analysis of Hong Kong Local Fast Food Market   Hong Kong is an affluent free market economy with nearly no import tariffs, a net food importer with a high value food and beverages market and a good showcase and test market for foods from China and other parts of Asia. Its food trends are driven by food safety, increasing health consciousness, altering demographics and busy lifestyles and  its trend in food consumption include organic, functional, convenience and snack food, chilled and frozen meat and food for gifts. The major food retail outlets in Hong Kong are supermarket chains and department stores, specialty stores, traditional markets and convenience stores. Hotels, restaurants, airlines and hospitals comprise the food service sector in Hong Kong and there is a trend toward quality food and non-Chinese restaurants like Japanese food, fast food, coffee and snacks and casual dining restaurants.[1]   Hong Kong consumers are typically sensitive to price and not loyal to brands and prefer small and convenient packaging, with middle and high income young groups favoring premium Western food products. The qualities of clean and green production environments and high safety standards in connection with foods are seen as competitive advantages. Australian and Victorian producers in the Hong Kong market are particularly well-served in in-store promotion, alongside international trade shows and menu promotions of their products. Hong Kong is lenient in import regulations and standards, food labeling, organic certification and tariffs because of the policy of a free economy and no tariffs on food product imports. Prior market testing is mandatory in promoting a new food product due to varying taste preferences and long term relationship building with a suitable food agent or importer is important for success.[2] Because of the healthy eating and consumer product awareness trend in Hong Kong,  demand for fruits, vegetables, poultry and low fat and low sugar content products are  increasing. Convenience food has a growth potential due to the increasing number of working  women and single households, while the sales of organic and natural food is driven by several recent food safety incidents. Popular functional foods like whole/high fiber products and beverages like fruit juice with supplements, fermented drinks with good bacteria and soy milk are driven by the ageing population. Frozen and chilled meat including goat and emu meat is being preferred over fresh meat due to the farmer’s perception of being safer. Convenience food like instant noodles and frozen and canned meals is likewise being driven by dual income families and smaller households. Snack foods like nuts and biscuits are favored by young working people, while premium food products for gifts has potential because of the social gift giving practice in Chinese culture.[3]   Mainland China is the major source of Hong Kong visitors, with economic partnership agreements and visiting schemes across China being significant in boosting tourism. The Hong Kong culture and lifestyle includes eating out and 62%  of food budgets of households are spent on this practice. Consumers are attracted to brands that offer a discount and offering price cuts makes for effective marketing. Hong Kong is also receptive to Western food, which is mostly patronized by females and younger age groups, and can serve as a testing area for product acceptability in other Asian markets  like China. Hong Kong consumers favor small and conveniently packaged food products because countertop burners and microwave ovens are the usual cooking and heating devices.[4]   There are specific labeling regulations including product and manufacturer name and  address, list of ingredients and net weight for prepacked food items in Hong Kong. Excepting cigarettes and alcoholic drinks, there is no tariff for imported food products. It is important to conduct product-specific market research on consumer feedback and buying patterns before entering the Hong Kong market, which has China, USA, Brazil and Australia as its largest consumer food exporters. The preponderance of impulsive shoppers in Hong Kong makes sampling and store promotions of new food an effective strategy.[5]   		 		 		 		[1] Kit Chung, “Hong Kong Food 		Market Trends”, Department of Primary Industries, pdf, 2007, 		 <http://new.dpi.vic.gov.au/__data/assets/pdf_file/0012/33231/hong_kong_food_market_trends.pdf> 		[accessed 30 May 2011] 		 		 		 		[2] ibid 		 		 		 		[3] ibid 		 		 		 		[4] ibid 		 		 		 		[5] ibid Credit:ivythesis.typepad.com

A Strategic Analysis of Hong Kong Local Fast Food Market

A Strategic Analysis of Hong Kong Local Fast Food Market Hong Kong is an affluent free market economy with nearly no import tariffs, ...