Rise of new wealth: Unlocking the Greater Bay Area's potential for Hong Kong brands

The Greater Bay Area (GBA) is poised to be a game-changer, with economists predicting its GDP growth to outpace the national average. By 2035, its GDP could rival Germany's, the world's fourth-largest economy. Currently, the GBA has over 86 million residents and contributed about US$2 trillion to GDP in 2023.

Transforming consumer markets

The GBA's consumer market is set for transformation, fueled by rising affluence and a stable population, leading to an upscale in goods, services, and amenities. This affluent demographic —entrepreneurs, the middle class, and wealthy individuals, is educated and eager to enhance their lifestyles.

In line with this trend, a recent HKTDC survey shows that GBA consumers are increasingly choosing imported skincare, cosmetics, and bespoke household items, prioritising quality over low prices. Additionally, many mainland enterprises have set up offices in Hong Kong to manage foreign trade and import goods into Guangdong and beyond.

Strategic opportunities for Hong Kong companies

Building on this consumer evolution, the GBA's economic size, growth, supportive Mainland policies, open economy, improved connectivity, and people-centric initiatives, alongside Hong Kong’s unique “One Country, Two Systems” status, offer unmatched opportunities for Hong Kong brands.

This dynamic environment is also attracting more Hong Kong residents to the Mainland part of the GBA, drawn by better employment prospects and more affordable living conditions. This region opens new horizons, creating a substantial new “domestic market”.

The premier growth engine

With these favourable circumstances in mind, companies are optimistic about the GBA’s economic prospects. A KPMG survey of nearly 800 business executives in Mainland China, Hong Kong, and Macau reveals that 80% expect the GBA’s economy to outpace the rest of Mainland China over the next three years, anticipating strong revenue growth from its development.

Amid global economic uncertainties, many companies see the GBA as their primary growth pillar for the next decade. Looking ahead, the GBA will serve as a launchpad for Mainland companies expanding internationally.

Expert insight

To further illuminate these trends, Tom Wan, CEO of dentsu GBA Solutions, shares his perspective:

"The Greater Bay Area combines economic dynamism with cultural integration. For senior marketers, understanding nuanced consumer behaviors and leveraging advanced digital infrastructure is key. China's digital ecosystems, such as WeChat, Weibo, and Xiaohongshu, integrate social commerce, digital payments, and user-generated content. Focus on personalised, high-quality experiences that resonate with the affluent GBA consumer to drive brand loyalty and position your brand as a market leader."

Innovative solutions for tomorrow’s brands

Dentsu GBA offers a suite of integrated solutions designed to empower brands to thrive in the GBA. By integrating proprietary and third-party intelligence, they provide a holistic view of market dynamics and consumer behaviour. Key features include:

- Integrated platform: A seamless merge of dentsu’s self-developed products with third-party resources, providing a comprehensive view of market trends and consumer insights.

- Unmatched consumer insights: The largest quantitative consumer survey in China offers in-depth insights across 400+ markets, helping brands understand preferences and behaviors.

- Real-time trend tracking: Analysis of content consumption and sentiment enables brands to connect with consumers at the right moment.

Navigate the GBA with ease and impact

As the GBA evolves into a powerhouse of economic activity, brands must adapt to thrive. Dentsu GBA enhances brand outreach and drives business growth. Contact the team at fiona.tsui@dentsu.com to explore tailored strategies for navigating the GBA and achieving
success.

Source of data:
www.statista.com | Gross domestic product (GDP) in China's Greater Bay Area in 2023
HKTDC 2024 Survey | Focusing on China’s Domestic Demand and Tapping Greater Bay Area Market Opportunities
Guangdong-Hong Kong-Macao Greater Bay Area Stories 2023 | SCED highlights GBA's business opportunities and Hong Kong's strengths on visit to Germany

This article is sponsored by dentsu.