Overview

• Hong Kong is a regional design centre providing a rich source of innovative products and design talents.
• Hong Kong is a window to the world of the trends and styles of Asia, making it a great city to institute a well-established design community.
• Hong Kong is at the crossroads of Asia, and is a key gateway to the Chinese mainland. Meanwhile, Hong Kong's design industry is increasingly export-oriented.
• The Hong Kong government set up the Create Hong Kong Office (CreateHK) in June 2009, which was dedicated to promoting the development of creative industries in Hong Kong. In driving the development of Hong Kong's creative economy, CreateHK administers and manages three funding schemes, namely the CreateSmart Initiative, DesignSmart Initiative, and Film Development Fund.
• To provide a more enabling environment for Hong Kong designers, the Hong Kong government has turned a decommissioned factory estate in Shek Kip Mei into the Jockey Club Creative Arts Centre, where there are art galleries, a black-box theatre and other communal facilities.
• Business opportunities for Hong Kong's design services sector are expected to grow in light of upcoming events/projects like the 2010 World Expo in Shanghai and the West Kowloon Cultural Project, both of which are conducive to stimulating Hong Kong design services.

Range of Services

The design industry in Hong Kong encompasses a broad range of disciplines: product design, graphics design, interior design and fashion design. In recent years, design management has been taking shape as a new discipline in Hong Kong. Design management deals with the management of projects with a high content of design. Design management can be widely applied to projects related to fashion, product, graphics and interior design, though more applications are found in interior and product design whereby designers oversee the entire process from conceptualisation to production. In addition to their core services, some Hong Kong design firms also provide other design services including shop front design, advertising and promotion design.

Service Providers

Hong Kong's design practitioners are organised into various professional associations - e.g. the Chartered Society of Designers (CSD), the Hong Kong Designers Association (HKDA), the Interior Design Association (IDA) and the Hong Kong Fashion Designers Association (HKFDA).

The Hong Kong Design Centre (HKDC) is an establishment with the joint efforts of the four associations (HKDA, CSD, IDA and HKFDA). HKDC aims at promoting design as a value-adding activity, and raising Hong Kong's image as an innovation and creative hub. As a major contributor to the development of the InnoCentre, HKDC organises an annual event called "Business of Design Week" (BODW). Teaming up with an overseas partner in Asia's leading event on innovation, design and brand, BODW attracts the best of the global design world to Hong Kong.

Exports

Many Hong Kong designers are exporting their services. Export content varied among different design industries, and the Chinese mainland is the biggest export market for Hong Kong's design services. Hong Kong designers have been paying increasing attention to the mainland market.

While many Chinese mainland enterprises are expanding, some of them are seeking services from Hong Kong design firms for re-designing their brands with the aim of better catering to the international market. They believe that Hong Kong design firms can bring in an international perspective, and the fees are more reasonable than hiring foreign design firms.

Industry Development and Market Outlook

The demand for Hong Kong's high-end design services is rising in light of a more flourishing China market. Many international companies, large and small, rely on Hong Kong designers to tailor products for the Chinese mainland and Asian markets. Hong Kong designers can satisfy the demand for quality-assured creative services, which match international standards and at the same time, take into consideration Chinese tradition and design.

On the other hand, many of Hong Kong's light industrial products, such as toys, electronics and garments, are highly favoured in the international market. Hong Kong designers have participated in these industries for a long time and they maintain close working relationship with overseas companies. They understand fully the demands of overseas markets and therefore can capitalise on their international vision in designing products, and assisting the Hong Kong companies to advance from Original Equipment Manufacturers (OEM) to Original Design Manufacturers (ODM) and/or Original Brand Manufacturers (OBM).

With the affluent China market growing more sophisticated, more and more mainland enterprises are keen to stay ahead of the game in the local market while making inroads into the world market. Renowned as a stylish cosmopolitan and design hub in Asia, Hong Kong has always been a forerunner which mainland enterprises look up to their excellence in design, branding, and marketing.

There are various business opportunities for the design services sector in Hong Kong. For instance, the upcoming 2010 World Expo in Shanghai will stimulate demand for design services. The West Kowloon Cultural Development Project, aiming to turn the 40-hectares waterfront site situated in the southern tip of West Kowloon into an integrated art, cultural and entertainment district, will enhance the development of art and culture in Hong Kong and demand world-class design services. In 2009, the exhibition of Hong Kong's participation in World Expo 2010 won the German-based iF Communication Design Award in the "Corporate architecture" category.

Hong Kong government introduced the "DesignSmart Initiative" scheme in 2004, which comprised a Design Support Programme (DSP) and an InnoCentre. By end-May 2009, there had been 352 applications for funding under the DSP, among which 251 projects were approved, with total funding amounting to HKD 125.3 million. The InnoCentre, a one-stop shop for designer clusters, had admitted 51 incubatees by end-May 2009.

The Hong Kong government's "Create Hong Kong Office" (CreateHK) was set up in June 2009 to drive the development of Hong Kong's creative sector. The role of CreateHK includes administrating and managing three funding schemes, namely the CreateSmart Initiative, DesignSmart Initiative, and Film Development Fund.

According to the 2008-2009 Policy Address, the Hong Kong government promised to support artistic creations and overseas exchanges by enhancing tertiary institutions and professional arts groups to nurture intermediaries for arts services.  In 2009, Hong Kong government allocated HKD 10 million for the design sector to organise training courses and host major design events promoting Hong Kong as a creative city. Each trainee will receive a monthly subsidy up to HKD 4000 for one year. CreateHK planned to launch a trainee scheme for 50 graduates from higher diploma or design-related degree programmes in 2009.

Further, to provide a more enabling environment for Hong Kong designers, the Hong Kong government has turned a decommissioned factory estate in Shek Kip Mei into the Jockey Club Creative Arts Centre, where there are art galleries, a black-box theatre and other communal facilities. The Creative Arts Centre was opened in September 2008 and is providing 150 artists and art groups with workspace to practise and showcase their works.

In 2007, the Legislative Council approved an allocation of HKD 100 million to Hong Kong Design Centre (HKDC) for five years, with the funding aimed to subsidise HKDC in assisting trade industries to design and build their brand names.

Since January 2006, the Chinese mainland has implemented zero tariff policy on imported goods from Hong Kong according to CEPA. In July 2009, 1,565 types of products were on the list of zero-tariff policy. By agreeing with the CEPA origin rules (ROO), Hong Kong manufacturers can apply for zero-treatment on their goods exported to the Chinese mainland. This policy can boost demand for high value-added processes, such as product design in the city.