Ipsos in Hong Kong conducted the study “Smarter Digital City – A Refreshed Look at Export” for Google
As part of its Smarter Digital City initiative, Google Hong Kong released its “Smarter Digital City - A Refreshed Look at Export” report conducted by Ipsos, illustrating how exporters in Hong Kong thrive with increased digital capabilities.
The world’s sixth largest exporter in merchandise trade as recently as 2020, Hong Kong’s merchandise exports have continued to increase over the pandemic, registering 21.4% year-on-year growth in October 2021 and 25.0% year-on-year growth in November 2021. Meanwhile, according to the newly released “Smarter Digital City - A Refreshed Look at Export” report, the global export revenue share of Hong Kong exporters has increased by 9 percentage points, from 26% to 35% amid COVID-19. With exports poised to aid the city’s economic recovery, 68% of the surveyed small and medium-sized exporters plan to pilot new markets, and 62% are considering Southeast Asia as an attractive region.
Hong Kong exporters remain optimistic and are willing to invest in digital tools
Hong Kong exporters have seen the benefits of going digital, especially in increasing market share. 68% of exporters plan to increase their digital investments in 2022, and 9 out of 10 exporters planning to grow digital investment next year are optimistic about growth.
Small and medium-sized exporters need more support in digital upskilling
When asked about key barriers to going global, Hong Kong exporters mentioned marketing (28%), policy and regulations (19%), and business operations (18%); in particular, small and medium-sized exporters are more likely than corporates to experience these barriers.
Though exporters are at different stages in their digital journeys, digital upskilling emerges as a common need. It is important that exporters adopt tools and cloud-based solutions at all stages of their journeys in export business, ranging from conducting market research to attracting new customers, to building customer loyalty and operational efficiency. Small and medium-sized exporters are eager to learn more about digital ads and tools that can meet their business needs and diversify revenue streams; while corporates need to better utilise cloud and AI-powered solutions including data analytics and productivity tools to serve customers and optimise operational efficiency.
Trade ecosystem players can better support exporters
Policymakers and public and industry organisations also play a vital role in exporters’ global journeys. For example, key public and industry organisations can provide exporters with more guidance and support on how best to address foreign regulations; while government offices or partnerships set up in key export markets can offer on-the-ground support for Hong Kong businesses, and at the same time, promote Hong Kong as a reliable source of goods and services.
In addition, policymakers should establish digital economy partnership agreements with key trading partners that will help exporters ensure that data can flow freely across borders in a secure and privacy-protective manner. This should be coupled with the ongoing active negotiation of global digital trade rules at the World Trade Organization, so as to ensure that Hong Kong businesses’ own digital interests are promoted.
Download the report: https://goo.gle/hkexport
