Future
The future of Hong Kong and
China continues to be uncertain for
the time being, but there are signals
that this region is on the eve of a new
era of economic growth. The cautious
approaches being made by Taiwan
towards China and the 'Turnover' of
Hong Kong in 1997 may create un
precedented opportunities. The hes
itant start to the air link between
China and Taiwan is seen as an
improvement. Besides, there are also
thoughts of doing away with the bor
der between Hong Kong and the
Special Economic Zone in due course.
Heineken and Guinness Hong
Kong are in any event confident about
the future. Area Export Manager Sjors
Janssen believes that the appointment
of a Heineken brand manager for
Hong Kong and China, employed by
Heineken Far East and based at
Guinness Hong Kong, is 'a clear sign
of the importance and faith we have in
Hong Kong and China despite 1997.'
There are still big hurdles to be
overcome on the road to prosperity,
but there is already tentative talk of a
Greater China, in which enormous
possibilities may be created for the
area to the north of Hong Kong and for
the Chinese coastal region including
the island of Taiwan. There are few
differences between the population
groups in a cultural respect. But it is
particularly as regards standards of
living and know-how where the dif
ferences between Hong Kong, China
and Taiwan are very wide, albeit
capable of being bridged over the long
term. Much will depend on which
direction China's policy takes over the
next two decades.
Wilson Chan (left), marketing manager of
Jardine Riche Monde and responsible for
Heineken in China. Right, sales director
Gregory Wong.
ness for Heineken, since Heineken
beer commands a high price.
Heineken is the dearest imported
brand and is as much as 4 times
dearer than a local brew. The pack
form also brings a disadvantage.
Heineken is sold in the 33 cl bottle or
can, whilst local beer is offered in 70
cl bottles. So, it's logical that, because
of the price alone, the local population
shows little interest for Heineken.
According to Wilson Chan, mark
eting manager of Jardine Riche
Monde, the joint venture hotels and
the local discos (and karaoke) are
amongst the key outlets. 'We are
predominantly strong with Heineken
in the international hotels.'
Although Heineken is obtainable
in hotels throughout the whole of
China, Jardine Riche Monde targets
its main efforts on four key markets:
Shanghai, Beijing and the south of
China, including Guangzhou and
Shenzhen Provinces. Compared to the
remainder of the country, this area
(the Special Economic Zone) is highly
prosperous thanks to the investments
made in this region by Hong Kong
businesses. The level of consumer
spending is therefore significantly
higher than in the rest of China.
Partly thanks to the developments
in southern China, Wilson Chan can
see good prospects for Heineken to
grow. But there are also drawbacks
attached to that growth. In view of the
immense size of the country (and the
resultant growing number of govern
ment bodies) it is becoming more and
more essential for Jardine Riche
Monde to allocate increased resources
to the Chinese market from its base in
Hong Kong which currently handles
the marketing activities for China.
That's the reason why more local staff
are being employed by Jardine Riche
Monde.
THE WORLD OK HEINEKEN
