What does Pinpoint Consultancy do?
We help companies put together their brand strategy. We focus not only on their core competencies, but also in the management of product development, sales distribution and marketing communications. When a company first launches its brand, we put together a game plan on how to penetrate a market, including creating the appropriate "noise level." I advise mainly Hong Kong companies, which were previously in manufacturing and now want to set up a brand. We also work with other companies that have brands needing rejuvenating and others that want to move up the value chain by going regional.

Businesses are now looking to the Chinese mainland market as the most promising amid the economic downturn. What should companies do to help ensure that their mainland strategy is successful?
For companies used to Hong Kong's transparent system, moving to the mainland is a completely different ball game. The rules are constantly changing there. There are no cut-and-dried rules. Some may find that disturbing. But real entrepreneurs will find it challenging. 

Regardless of the size of the company, they must follow certain basic rules: do your homework, do the basic numbers. If you're a novice, visit the market. Don't just listen to what others say. Go see it for yourself. 

Look at your products. If they're not top-of-the-line products, it's easier to gain a foothold in second- and third-tier cities. For SMEs, beware of unrealistic expectations and set some realistic targets. And make sure you have a good team in place, because without a good operating plan, you can't win. People are very important. 

What are some of the pitfalls you have observed that businesses commonly make when breaking into the mainland?
One has to understand that the mainland is a big market, similar to Europe, where you have varying tastes and preferences. You have some companies that just throw their product out without much thought. I've also seen companies that have assigned their brand to one agent to tackle the entire country. But there's no agent that's strong nationwide in every territory. It's better to move in region by region, employing agents to specific regions. Otherwise, it may only end up hurting your brand. 

Another pitfall is not making accurate forecasts of sales and inventory, which will end up tying up your cash. Some make overly optimistic forecasts when allocating products. What works in Shanghai may be different in Guangdong. It's better to start out modestly and focus on one region at a time. I don't advocate the shotgun approach, unless your product happens to be generic or commoditised. 

What are some of the qualities businesses should look for in a mainland partnership?
Make sure they share the same values as you do. This is important; many business partnerships have fallen apart because of differing values. Know the potential partner's track record. And bring him to your market, making sure he understands your expectations. 

What are Hong Kong's advantages when it comes to helping overseas firms enter the mainland market?
When it comes to mainland expansion, the strength of Hong Kong companies lies in their years of experience working there, which make them good partners for overseas companies. Hong Kong has acquired a lot of knowledge and understanding over the past 20 to 30 years, during the opening of the mainland economy. Its ability to synergise Eastern and Western cultures makes Hong Kong an asset for foreign firms. 

Hong Kong's main strength is its manpower, which is made up of hardworking people who are fluent in Chinese and English. They understand Chinese culture but are also able to sympathise with foreign difficulties. 

How can Hong Kong stay relevant as the mainland market continues to open up?
Hong Kong's advantage is not a given but built up over the years. It needs to ensure that it continues to move with the times. 

Hong Kong's biggest strength is its intellectual capital. Its services industry goes beyond financial. It has a pool of value-added services, including consultancy, which I see as one area with great potential. In the future, I see smaller scale Li & Fungs that can source, collaborate and fine-tune products. 

Manufacturing has moved beyond products to taking care of products, finding collaborators and partners. Trading companies that have been around a long time can capitalise on their expertise and spin that off into new lines of business. Some companies only see the tangible part of their assets. But a company's intellectual capital – the intangible – is often overlooked and can be leveraged to allow it to make the leap.