Since launching the GoGBA initiative in 2021, the Hong Kong Trade Development Council (HKTDC) has supported over 16,000 businesses pursue opportunities in the Guangdong-Hong Kong-Macao Greater Bay Area (GBA) – an 11-city cluster with a population of 88 million residents and an economic scale larger than South Korea.
Who are these businesses and what have they experienced? What success – and challenges – have they encountered? To explore these topics, the HKTDC invited three Hong Kong-based entrepreneurs to share their GBA business journeys at a recent seminar “From HK to GBA: Unlocking Business Success” held at the HKTDC’s SME Centre in the Hong Kong Convention and Exhibition Centre.
Tapping local creativity
The first speaker was Felix Chow, Co-founder of streetwear brand HEA. Founded in 2016, HEA (Happy, Easy, Anyway) draws on traditional Chinese design elements and iconography, reinterpreting them into streetwear staples such as T-shirts, cargo pants and hoodies. Among its signature products is a best-selling sun-protective lightweight windbreaker featuring a striking lion head motif. With more than 700 original IP assets at its disposal, the brand operates over 170 retail outlets around China.
Mr Chow related that the company works closely with manufacturers in Foshan, leveraging the city’s superior supply chain and cost advantages. In practical terms, this allows the company to adjust its prices to suit the spending power of consumers in different cities, both offline and online.
Beginning in 2017, the brand embarked on a series of crossover collaborations with well-known names including Coca-Cola, kcoffee, MGM Hotels and China Post. Partnering with such widely recognised brands helped the company reach into new markets. However, Mr Chow noted that another key advantage of operating in the GBA lies in working with local creative talent.
“Our brand incorporates local Hong Kong elements, interpreting Chinese culture in a unique way,” he said. “Initially, we focused on collaborating with major brands, but over time we found that partnering with local GBA labels is more rewarding. We also collaborate with Hong Kong-based fashion IPs to strengthen our brand value.”
For Mr Chow, these local connections bring fresh perspectives – one of the factors that makes the GBA a dynamic and rewarding place in which to do business.
Design-driven growth
The experience of the next speaker – Founder of inDare Design Levo Chen – demonstrated the GBA’s vast potential. The company established a Shenzhen office in 2015 from which it has assisted numerous mainland consumer brands enhance their competitiveness and brand value through a design-led marketing philosophy. In 2023, this approach delivered remarkable results with an electric guitar designed and launched by the company generating more than RMB1 billion (US$147 million) in sales in its first year.
“The key to a successful start-up lies in having the courage to try new things, in daring to innovate, and in not shying away from hardship,” said Mr Chen. “As a designer, I am always on the lookout for unmet needs in everyday life – these are where I find business opportunities.”
While acknowledging that creating entirely new products can lead to breakthrough success, Mr Chen noted that innovation can also come through refinement. “Even with the most ordinary product, there is always room for improvement – the key lies in whether you take the time to explore it deeply.”
Managing risks
All business expansion involves risk and a key question for entrepreneurs is how to respond when plans do not unfold as expected. According to the final speaker, RC Chai, Business Development Manager for Asia-Pacific at insurer Allianz Trade, this is where business insurance can provide a vital lifeline to businesses navigating short-term business cycles.
Mr Chai pointed to a range of common risks that can lead to financial losses including customer bankruptcy, inability to pay and deliberate default. Less frequent but potentially more damaging are geopolitical risks – such as conflicts and foreign exchange controls, which can have devastating impacts on a company’s operations and assets, such as warehouses and factories.
Credit insurance, he noted, can help protect businesses from such risks and cover up to 90% of receivable income. “Over the past 36 months, more than 50% of companies have experienced bad debts,” he said. “Unpaid accounts typically represent over a third of a company’s total assets, so credit insurance should be taken seriously.”
A lively discussion followed the presentations, moderated by Sing Chan, CEO of biotech company Aimso and one of the first young Hong Kong entrepreneurs to set up in Shenzhen’s Qianhai district.
When asked whether Hong Kong entrepreneurs hold any advantages when entering the GBA, the panellists were clear – Hong Kong businesses stand out. Mainland Chinese partners often regard them as internationally minded, design-savvy and highly trustworthy, with a strong sense of professionalism, contractual integrity and efficiency, which makes them attractive collaborators.
Taken together, the panellists’ experiences suggest that while success in the GBA requires adaptability and resilience, Hong Kong’s distinctive strengths – in creativity, design-led marketing and professional services – position its entrepreneurs well for growth in this dynamic market.
Open to all Hong Kong-registered companies, GoGBA offers wide-ranging support to businesses keen to expand in the GBA, providing policy and market information, advisory services and promotion activities through an online platform and a network of GoGBA business support centres in all GBA cities.