What does Hong Kong have in common with Facebook, business intelligence software, and new mobile medical diagnostic technologies for physicians working the front line of patient care? They're all platforms which will dominate the 21st century landscape. Platforming is the" new black" for smart business "architecture." Send out an email and you've used a platform. Bank online and you've used a platform. Create a Facebook and you've used a platform -- you and 850 million global FB users.
If you are not already familiar with Asia, grab a map. Why? It's a market whose ultra high-net-worth segment will eclipse the U.S. counterpart in the next 20 years. Want to sell financial services to the burgeoning HNW Asian market? Use a platform! It's called Hong Kong.
This was the message from a seminar I attended last week called, "Hong Kong: America's Bridge to Asian Growth." This event was sponsored by the HKTDC-Hong Kong Trade Development Center in New York City (http://www.hktdc.com ) Here are some of Hong Kong's fast financial facts:
--World's largest IPO market in 2009 and 2010; key capital raising center for Chinese enterprises
--Asia's largest venture capital center
--World's second highest per capital holding of foreign exchange reserves
--Asia's third-largest stock market, seventh largest in the world
--Low tax system (15% maximum for individuals, no value-added or sales tax; no capital gains tax)
Hong Kong, as of June 2010, is home to more than 3,600 regional headquarters and offices representing companies outside of Hong Kong. Hong Kong is the platform of choice for those financial services firms who are looking to stage, execute and (now even settle) financial transactions in Asia. As all restrictions have been removed, anyone can open an account in RMB-Renminbi, the national currency of China. Learn about the "delicious" Dim Sum (small delicacy) bond which may be a perfect entry point for hungry, foreign investors.
The amount of wealth in Asia will triple by 2015 to USD $15.8 trillion, according to the findings of the recently-published Asia Wealth Report by private Swiss bank, Julius Baer. The report, done in collaboration with brokerage and investment group CLSA, also estimates that the current 1.15 million high net worth individuals (HNWI) across Asia will double to 2.82 million by 2015.
China alone is estimated to hold 55.4 percent of this wealth by 2015 and will also have 49.6 percent of the total high net worth individuals with a stock of wealth of USD 8.76 trillion by 2015. Hong Kong is obvious entry point for financial services firms who are seeking future UHNW/HNW clients. This newly "minted" group of HNW individuals has a huge appetite for venture opportunities, private equity deals, family office services, luxury goods, private banking and more.
Hong Kong is practically teeming with UHNW/HNW individuals and their entities. They are eagerly seeking investment opportunities and deal flow. In fact, one obstacle to growth in Hong Kong has been the lack of available financial deals. As a result, there is pent-up demand for all types of investment instruments. Another important fact is Hong Kong's English-speaking, well-educated, and affluent population. Alhough this blog post is focused on financial services in Asia, there are equally significant opportunities for technology firms, manufacturing plants, exporters and businesses of all kinds.
In marketing's new math where one platform enables another, there is an obvious opportunity to use social media networking to connect American firms with their counterparts in Asian financial markets.
Here are some suggestions for social media strategies to begin seeking relationships in Hong Kong. To leverage social media and connect with Hong Kong-based financial service firms and beyond, look for new connections on LinkedIn. Stay beyond the obvious US-based financial services firms when looking for new connections. Identify firms and important individuals with whom you may have a similar client base. Research and seek out strategic relationships with Hong Kong and Mainland China-based individuals. This can "jump-start" your entry to this market,
Join LinkedIn groups which are geared toward the Asian financial/luxury brand market to gain first-hand intelligence. Post engaging questions about the Asian market and encourage conversation around best practices. Consider starting your own LinkedIn group where you can control and facilitate conversations and recruit members around your own firm's offerings. Create and launch an Asian-oriented Facebook business page which can help you connect with HNW consumers and engage with them to learn some of their preferences. "Like" existing luxury brands Asian-based or Hong Kong-based Facebook pages and learn real-time about consumer trends. This may be a source of clients fro financial products as well.
Search through existing Twitter handles and #hashtags and follow the tweets of those Tweeters whose content is relevant to Asian UHNW/HNW. Curate and aggregate content from luxury trends to financial services smarts. Use the Twitter "List" function to separate out those firms which you are following for affluent Asia to help segregate that content from your other streams. This are some simple ideas to whet your appetite for Hong Kong and its possibilities.
If you believe in the new religion of social media, you already recognize that marketing's new math equals new platforms. Stop sitting on the sidelines. Dinner is served.