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HKCBA National posted an articleHong Kong offers Canadian firms talented workers, the rule of law, modern infrastructure, low taxes see more
By Ken Mark, Special to Financial Post
Bitten by the “Asia is now” bug, three young, Canadian high-tech firms — GuestLogix Inc., Vision Critical Communications Inc. and Neverblue Media Inc. — recently set up regional offices in Hong Kong with a common objective: To leverage Hong Kong’s position as the gateway to Asia’s burgeoning marketplace.
Dominic Barton the global managing director of McKinsey & Co., recently concluded: “By 2025, the Asian consuming class will swell to more than two billion people and spend an estimated US$22-trillion – nearly one-third of global consumption.”
Hong Kong is located five hours’ flying time from half the world’s population. Together with New York and London it is ranked as a global financial and business services centre, a lofty perch decided by its rule of law, independent legal system, well-educated talent pool, modern infrastructure, low taxes and light regulation topped off with an “open for business” culture.
“Hong Kong is a city built by entrepreneurs for entrepreneurs,” says Bruce Wells, Vision Critical’s Hong Kong-based president and managing director, Asia.
All three businesses say they chose Hong Kong for its central location and ease of doing business. But equally important was the mix of languages. “To sell into China, we needed Cantonese, Mandarin and English,” says Brett Proud, co-founder and chief executive of Toronto-based GuestLogix. “Hong Kong is about the only place we could find them all in one place.”
Vancouver-based Vision Critical says its goal is to transform market research into an engine for eliciting timely consumer insights. Since 2002, the company has built branded, online insight communities for corporate clients. They invite targeted participants to respond digitally to a wide range of topics on which firms seek to quickly analyze in-depth consumer perspectives and thoughts.
These include Banana Republic, Yahoo!, Discovery Communications, Molson Coors and Jet Blue. The solution delivers 40% to 45% response rates compared with single-digit levels from traditional research approaches.
Vision Critical’s proprietary technology enables market research firms to abandon outdated face-to-face, phone or online encounters for real-time feedback from a community of targeted consumers.
Consequently, businesses can dig into a continuing, more nuanced flow of consumer insights over a longer time. That replaces previous, one-time snapshots from randomly approached respondents.
Mr. Wells compares this approach to having a customer advisory board providing input on an ever-widening range of topics. In the hands of astute marketers, such rich consumer data leads to more sharply focused offerings and campaigns.
“We try to make them feel special as a member of a select community and that their contributions and suggestions are valued,” he says of the interaction with respondents.
Vision Critical says the signing of Cathay Pacific Airways as a client among other notable global brands operating in Asia validates its decision to set up in Hong Kong. About 10% of its business is conducted in the Asia Pacific region. In 2012, the company had about $80-million in revenue, and in 2013, it is poised to reach $100-million with much of the expected growth attributed to international expansion, including in Asia.
Cathay Pacific has also embraced GuestLogix Inc.’s technology, which expands in-flight sales items far beyond duty-free standbys of alcohol, tobacco, perfume etc. For example, passengers on some Ryanair flights to London can now buy and pay for subway tickets from Heathrow Airport to Paddington Station.
Mr. Proud describes GuestLogix as a revenue enabler. Its technology boosts carrier ancillary income by transforming international flights into specialty, e-commerce outlets. Sales are no longer limited to what can be physically carried on the plane. Around GuestLogix’s head office, the motto is “the sky’s the limit.”
“Passengers can buy items such as cases of wine to be delivered to their home addresses,” Mr. Proud says.
GuestLogix technological advantage rests on its ability to deal quickly and securely with all global payment systems. “Our system captures the transaction and sends it to the most suitable, global ‘pipe’ for the fastest, most secure and lowest cost way to process it,” he says.
“Banks are all onside because we meet all security encryption and safety compliance regulations and certifications.
“Once passengers can order on their own smart phones, airlines will offer higher priced items,” Mr. Proud says. “That will be possible because of real-time purchase confirmation. Now, we can only confirm after the plane lands.”
Potential users are also attracted by its pay-on-performance revenue model. In other words, deploying GuestLogix technology is a variable cost — no sale, no fees.
That’s also part of the appeal of Neverblue, a Victoria-based company specializing in lead generation, client acquisition and mobile advertising. It provides a digital link between online advertisers (product and service vendors and distributors) and consumers
“At the end of each month, an audit reveals the number of hits, transactions and sales,” says Jeff Kwok, Neverblue’s Hong Kong-based director of business development, Asia. “But clients pay only for actual sales.”
Neverblue’s technology serves as an aggregator or funnel for websites of affiliates, i.e., firms and individuals that have bought advertising space on social media sites. The barrier to entry is the speed, scale and power of its technology to track traffic that Mr. Kwok estimates at millions and millions of hits a day.
Neverblue allows consumers to bypass distracting banner ads and control e-mail blasts from unwanted sellers, to access more efficiently websites offering products items and services they want.
Its affiliates include major travel service providers such as Grand Hyatt, the Macau-based Venetian Hotels & Resorts and online travel agents including Priceline and Expedia. Fashion retailers targeting younger buyers such as Quicksilver for clothing and Gilt for bags and accessories are a growing category.
Neverblue reached break even after six months in Hong Kong. “We have to be the most productive link to optimize traffic to our affiliates’ websites,” Mr. Kwok says. “We need to grow revenue, expand our office staff and boost scale to maintain our market dominance.
“Our goal is to get big fast, keep operations efficient and do it properly.”
All three firms relied on Invest Hong Kong in setting up their operations in the city.
— Ken Mark is a 2013-2014 Asia Pacific Foundation of Canada Media Fellow supported in part by Cathay Pacific Airways.
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HKCBA National posted an articleCathay Pacific is focusing its Canadian operations on Vancouver and Toronto. see more
BY JENNY LEE, VANCOUVER SUN
As airline competition intensifies to meet growing demand for travel between Asia and North America, Cathay Pacific is focusing its Canadian operations on Vancouver and Toronto.
“The growth in seats from mainland China alone into Canada (during 2013) is about 70 per cent,” Cathay’s incoming chief operating officer Rupert Hogg told a Hong Kong-Canada Business Association luncheon on Tuesday.
Delta Air Lines is preparing to launch Seattle-to-Hong Kong flights, and last summer, China Eastern Airlines increased flights between Vancouver and Shanghai to twice daily.
“Our Canadian ambitions will be to increase frequency when the market merits it,” Hogg said. “We would love to be (twice) daily in Toronto, and we keep close watch on the Vancouver market.”
Cathay flies twice-daily non-stop Vancouver-Hong Kong, and 10 times a week between Toronto and Hong Kong. The airline employs 700 in Canada, 500 of whom are in Vancouver, which is also Cathay’s call centre for North America.
“Inevitably, more carriers will come into this market,” Hogg said. “Our strategy is very clear: We are a full-service carrier and we provide a premium product because we believe that people value that premium product. They are prepared to pay for it.
“Over the last two or three years, we’ve gone entirely to (Boeing) 777 services here, and every cabin in that aircraft is new. So if you take the economy cabin, where most people travel, we’re nine abreast (with) inflight entertainment in every seat. Many of our competitors are 10 abreast.”
As cities such as Guangzhou vie to become large international flight hubs, Hogg emphasized Hong Kong’s geographic advantage and the importance of Cathay Pacific’s (and its subsidiary, Dragonair’s) role as Hong Kong’s home-base carrier.
“Only a home-base carrier has the wherewithal to create the banks of incoming flights and make them connect to the banks of outgoing flights — once, twice or three times a day — and that’s what allows you to connect efficiently across a hub,” Hogg said.
This year, 30 million mainland Chinese are expected to travel by air.
Cathay is addressing the challenge of increasing fuel costs by rejuvenating its fleet of 180 aircraft. It has ordered 95 aircraft and taking possession of 15 to 16 new aircraft a year.
“Our fleet is rapidly becoming younger and rapidly becoming more fuel efficient, and that is the key way you have to address this issue. You have to invest in advance.”
Hogg, a longtime Cathay and Swire Group executive, has been Cathay’s director of sales and marketing since 2010 and will become COO in March.
“If you look at Cathay Pacific we have very long-term plans, and we have great continuity of management. All my colleagues, I’ve worked with for decades. So when a new man comes in, most of the challenge is making sure we keep running the ship as normal.”
© Copyright (c) The Vancouver Sun -
HKCBA National posted an articleTravel & business professionals gather for Hong Kong Canada Business Association luncheon in Vancouv see more
Cathay Pacific Airways and the Hong Kong Canada Business Association held a luncheon event attended by over 200 travel and business professionals at the Four Seasons hotel in Vancouver yesterday.
The theme of the event was "Hong Kong and Cathay Pacific: Continuing a Successful Journey". Last year marked the 30- year anniversary of Cathay Pacific’s Vancouver- Hong Kong service, which launched in 1983.
Vancouver was the first gateway Cathay Pacific opened in North America, with 747 service across the Pacific to Hong Kong.
The Hong Kong Canada Business Association is also celebrating it's 30 year anniversary in 2014.
Top Cathay Pacific executives were on hand to introduce the airline’s current director of sales and marketing Rupert Hogg. Hogg has also been appointed Cathay’s new chief operating officer, effective in March.
"[It’s] great to see such a large turnout at today's Hong Kong Canada Business Association lunch," said Chris Vandenhooven, Cathay Pacific's general manager, sales, Western Canada.
"Being Rupert Hogg's first North American speaking engagement since his announcement to chief operating officer underlines the importance YVR [and] Western Canada plays in the airline's global success," Vandenhooven added.
Hogg’s keynote address focused on the ever-strengthening aviation and business ties between Vancouver and Hong Kong.
“Vancouver has a very special place in the heart of those of us based in Hong Kong,” said Hogg. “Vancouver is important to us, and Canada has placed an incredible role in the evolution of Cathay Pacific.”
The address emphasized a “20 year view” on Hong Kong and Cathay Pacific’s path to continuing their successful partnership.
Hogg emphasized that Cathay Pacific’s Vancouver service contributed to the growth of Hong Kong international airport, and the airline’s commitment to the future of Hong Kong aviation.
“When [we] first started Vancouver- Hong Kong service, we carried 3.2 million passengers per year, we now carry 30 million passengers per year and connect to 40 points in mainland China,” Hogg said.
With sister airline Dragon Air, Cathay Pacific now flies to 60 destinations in China and India.
“The Hong Kong hub carried 56 million people last year, it’s the largest aviation hub in Asia the third largest international aviation hub in the world, and the largest cargo hub in the world,” Hogg said.
108 airlines now fly in and out of Hong Kong, which is home to 3,500 regional and international business headquarters.
Cathay Pacific also has its sights set on new destinations, and plans on introducing new product.
“We do intend to continue to grow in Canada, we want to be the preferred airline in Canada on the aviation side of the Pacific Rim, and we want people to choose us above all other airlines because of the standard of service, and that’s our commitment for the next 20 years,” said Hogg.
