After thirteen years in Hong Kong, Chairman and CEO of German Industry and Commerce Hong Kong, South China, Vietnam (GIC) Ekkehard Goetting is a veteran of the local and regional scene. GIC, a largely self-funded non-governmental organisation operating on a private enterprise basis, has been working to facilitate trade investment and promotion for German companies in the region since 1987. Its non-governmental status gives it a great deal of flexibility, notes Mr Goetting, when it comes to operating freely across borders and regions.

"Hong Kong remains an important location for many German companies, both large and small" Mr Goetting affirms. "There are currently some 520 German companies maintaining a corporate presence in the HKSAR, and this doesn't include the many more which operate using local agents." Areas in which German businesses are particularly strong include the chemical, transport, and financial services industries.

Multi-level trading activity
Although outsiders often think of Hong Kong primarily as a sales location for the region, Mr Goetting points out that many German companies regard Hong Kong as a vital sourcing point for the goods and materials they need in their businesses. "Perhaps 25% of the commercial activities of German companies here would involve sourcing", he suggests. Hong Kong is an ideal place for this kind of activity, he notes, since a number of international sourcing operations have bases in Hong Kong, and the city itself represents a real "safe haven" for German companies to do business within the Asian environment, with its transparent and well-regulated financial regime and high productivity factor. Yet he also sounds a warning note --"There is no getting away from the fact," he states, "that in absolute terms Hong Kong remains an expensive city, and that can present some cost challenges to German SMEs wanting to do business here."

A long tradition of German trade
According to Mr Goetting, when it comes to promotion, sales and sourcing, German companies rely on trade fairs and exhibitions more than those of any other country. He cites a recent study by AC Nielsen indicating that German companies typically reserve a higher proportion of their promotions budget for trade fair participation than those in any other country, and make trade fairs the single largest item of promotional expenditure. "The reasons are both cultural and historical", he explains. "Trade fairs originated in Germany as far back as medieval times, and Germany has been a world leader in developing and adapting these fairs for the modern age. The German government, too, encourages German companies to participate in trade fairs and provides subsidies and other forms of assistance for them to do so, as a means of promoting German trade and industry throughout the world." It is not surprising then that German companies are always well-represented at trade fairs in Hong Kong.

The Hong Kong's trade fair drawcard
Hong Kong's trade fairs remain crucial for German companies, says Mr Goetting, and Hong Kong itself represents a multi-level attraction. The city itself is a major drawcard, Mr Goetting believes, with its stunning physical location and skyline, and its exciting range of activities available for participants. "It also boasts extremely well-appointed and well-managed trade fair venues with international reputations," notes Mr Goetting, "and continues to draw a truly international crowd to its fairs, which is just not the case with many of the region's competing fairs. What's more, its fair brand names are highly-recognised and prestigious, and participants know that trade fairs here can be relied on to deliver high-quality events that pay off."

Heightening German trade presence
From the perspective of German companies, Mr Goetting believes Hong Kong can further consolidate its reputation. To truly be an intermediary between China and the world, Hong Kong must do more to increase the number of Mainland visitors to its trade fairs. And he points out that currently the Hong Kong trade fair business is almost exclusively focused on consumer products: as Mr Goetting notes, "this is a frustrating fact for German companies involved in areas such as industrial machinery and technology!" Hong Kong has the facilities and the knowhow to successfully host these kinds of fairs, he says: all that is needed is organiser initiatives. By attracting more Mainland participants to its trade fairs and expanding the range of fairs beyond consumer products, Mr Goetting believes Hong Kong can retain its mantle as the premium trade fair location in Asia.