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Hong Kong is an Ideal Partner for Croatian Winemakers

A seminar titled ‘Hong Kong-Your Business Partner’ was held at the Croatian Chamber of Economy. It featured a presentation by Michael Katzmarck, marketing manager of the Hong Kong Trade Development Council office in Frankfurt, on business opportunities for Croatian companies, with an emphasis on the placement of wine in the Hong Kong and Chinese markets.

The main advantage for Croatian wine exporters in Hong Kong is that tariffs on alcoholic beverages were abolished in 2008, and there is also no VAT or sales tax on alcoholic beverages. Hong Kong is home to the Wine Exchange Center in Asia, and after successfully entering the Hong Kong market, traders have the opportunity to expand the distribution of their products throughout Asia. An ideal venue for the first presentation of Croatian wines could be the ‘Wine and Dine Festival’ in Hong Kong, which will be attended by over 80,000 people and takes place from October 28 to November 30 this year. Although China does not have a developed wine-drinking culture, European products are considered very high quality in China, and therefore, price is not a concern when it comes to premium quality products, claims Katzmarck.

Croatian exports to Hong Kong increased by 11 percent compared to 2009, while imports decreased, stated Andrea Grubišić from the International Relations Sector of the Croatian Chamber of Economy. We mostly export raw materials to Hong Kong, such as hides and furs. However, despite the increase in our exports, in the first 6 months of this year, it amounted to five million dollars, while imports from Hong Kong were 16 million dollars. To balance these figures, it is important to study the Hong Kong and Chinese markets and try to achieve a significant breakthrough for our products.

Katzmarck also spoke about the potential of the Chinese market and the growing middle class that wants to buy more and more different products. For example, China is the second largest market for luxury goods in the world and the largest market for automobiles. There is also a high demand for technologies and services. For exporters looking to enter the Chinese market, Hong Kong emerges as the ideal starting point. Finding business partners in Hong Kong means opening doors to the distribution network throughout China. Hong Kong has a number of advantages for investors and traders, such as a legal system based on British common law, intellectual property protection that cannot be found elsewhere in China, free flow of information, people, goods, and capital, and a strong anti-corruption climate.

The Hong Kong Trade Development Council is a non-profit organization that connects 100,000 suppliers worldwide with over 700,000 global buyers and has more than 40 offices around the world. Through their website www.hktdc.com, interested exporters/importers can obtain various useful information about exporting and importing from Hong Kong and China, as well as contact them directly for more detailed information. For those interested in exporting to the Chinese market, the first thing they should do is contact the Croatian Chamber of Economy, which will provide them with all the necessary information and contacts to engage in successful overseas business. (Zlatko Salahović)