Finance Spotlight | What can HK's SMEs learn from EU in facing unprecedented challenges?

The government recently released data showing that Hong Kong's economy recorded moderate growth in the first quarter, and local retail consumption also showed signs of recovery.

However, the high-interest environment in Hong Kong has weakened economic demand, and the surge in consumption northward has diverted purchasing power, leaving Hong Kong's local small and medium-sized enterprises (SMEs) still facing considerable challenges.

Financial commentator Nina Wang said that to solve the predicament faced by Hong Kong's local SMEs, in addition to the SAR government promoting an event-based economy and actively attracting customers, they can also learn from the successful experiences of EU countries in the past.

She mentioned that Hongkongers' northward consumption is driven by the price advantage and service experience of Mainland products, while Hong Kong can take a differentiation development approach, emphasizing the availability and uniqueness of its products, highlighting the price advantage over neighboring regions, and attracting cross-boundary shoppers, realizing a "two-way" consumption between Hong Kong and Mainland consumers, and leveraging the broader Mainland consumer market.

On the other hand, Nina Wang emphasized the importance of strengthening infrastructure construction. She believes that Hong Kong can comprehensively improve the local tourism and shopping experience and attract and retain cross-boundary consumers through investments in modernizing retail spaces and improving supporting transportation infrastructure.

Nina Wang further suggested that Hong Kong can focus on promoting shopping opportunities outside the border in the future through a series of effective marketing strategies, stimulating potential shoppers in neighboring regions to recognize Hong Kong, and attracting foreign tourists.