Discusses the state of direct marketing and what channels are available for companies to use direct marketing.
Last Published: 2/5/2019
Direct marketing is now recognized not just as the fastest growing segment of the marketing business, but also the segment that produces the most substantial profits for every business, from financial services to fast moving consumer goods. Direct marketing in Hong Kong has changed significantly over the last decade and is now multichannel and electronic to a large extent. 
Transactions via online business-to-business (B2B) marketplaces are increasing at a brisk pace. Well-known online B2B platforms in Hong Kong include Alibaba and Global Sources.

The direct marketing business environment relies on a highly developed supply chain infrastructure that enables even small firms to sell directly to their consumers with minimal complications. Smaller-scale companies, that do not have an in-house supply chain department, often make use of professional logistics service providers established in Hong Kong. 

Regulations regarding direct marketing are primarily centered on customer privacy rights, data security and postal regulations. On April 1, 2013, the new Personal Data Ordinance took effect regulating the use of personal data for direct marketing. The Digital + Direct Marketing Association Asia works with regulatory bodies to ensure that regulations do not have an adverse effect on direct marketing users and suppliers.

Hong Kong is the marketing services capital of Asia. The sophistication of the market has attracted a strong presence of multinational agencies and a pool of marketing services talent. A number of multinational PR, marketing, and advertising agencies have regional headquarters in Hong Kong. 

Hong Kong's marketing services companies are first-movers in the mainland market. Mainland business has also become an increasing source of income for Hong Kong marketing services companies. The Closer Economic Partnership Arrangement (CEPA) agreement has further facilitated Hong Kong marketing firms’ expansion in the mainland market.
 
Prepared by our U.S. Embassies abroad. With its network of 108 offices across the United States and in more than 75 countries, the U.S. Commercial Service of the U.S. Department of Commerce utilizes its global presence and international marketing expertise to help U.S. companies sell their products and services worldwide. Locate the U.S. Commercial Service trade specialist in the U.S. nearest you by visiting http://export.gov/usoffices.


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