Deming ProDevelop Consultant Agency (China) Limited, the sister company of LONG Engineering Ltd on the mainland, provides one-stop services ranging from professional qualification accreditation to skills enhancement for professional engineers, engineering college students and people with professional skills. As well as its bases in Hong Kong and Macao, Deming ProDevelop has mainland offices in Shenzhen, Guangzhou, Maoming and Zhuhai. The company also plans to open a new branch in Huizhou this year. Chan Chi-man, engineer and executive director with Deming ProDevelop, told HKTDC Research about his experience of setting up and operating businesses in the Greater Bay Area (GBA), providing valuable information for industry players looking to access the GBA market.

Identifying Opportunities

Chan Chi-man has long been keen to identify opportunities for doing business in the mainland market. In 2010, Shenzhen Qianhai was designated a key development planning zone, which was to be part of the Shenzhen-Hong Kong Modern Service Industry Co-operation Zone and would draw on Hong Kong’s experience and international connections. At the time, Chan originally hoped that, with his experience in undertaking engineering projects in Hong Kong, he could participate in the initial project planning for Qianhai. However, most of the civil engineering plans involved massive infrastructure projects, and Chan decided that Hong Kong companies’ advantages in engineering and project management services would not be sufficient for them to compete with their mainland counterparts which had greater experience of handling large-scale projects.

Chan Chi-man addressing a seminar on Lantau Tomorrow.

Despite that setback, Chan remained optimistic about the possibilities of accessing mainland markets and continued to draw up strategies of how to do so. Explaining what he believes is required for such a move, Chan said: “As the economy has expanded, the mainland market has developed its own unique culture and demands. Hong Kong companies wanting to tap the mainland market have to know what they are good at, and understand what the market needs, before they can identify business opportunities. Developing the mainland market is no longer a process of simply replicating the success stories of the older generation. Now it is a process that requires fresh learning and understanding.

“The mainland market is also unique in that the planning for each and every region is different. Take industrial parks for example. Normally each park has its own requirements for industry players looking to establish a presence there. An IT industry park, for instance, usually only accommodates companies in the IT sector and related industries. So when a company is looking to select a location to base itself, it must first know whether the planning strategies of the various cities and regions it is looking at are compatible with the company’s development.”

International Qualifications

In recent years, the mainland has staged a large number of innovation and entrepreneurship competitions for young people. The aim is to get young people to participate, enhance the reputation of their companies and increase their exposure to potential clients. The presence of venture capital companies at these competitions can also help participants expand their interpersonal networks in the GBA and lay a foundation for developing their business. In the course of his exchanges with mainland enterprises and government departments, Chan came to understand the kinds of challenges faced by mainland engineering teams and engineers when they try to gain access to the international market.

Chan came to realise that one of the thorniest of these challenges is the accreditation of professional qualifications. Explaining the problem, Chan said: “On the mainland, the Human Resources and Social Security Bureau is responsible for the accreditation of engineers. As the qualification accreditation mechanism on the mainland is different from that in the international market, the accreditation of mainland engineers is often not recognised internationally.

“Following the implementation of the Belt and Road initiative in recent years, an increasing number of mainland enterprises and engineers are participating in international projects. To undertake projects in Belt and Road countries, one must observe international engineering codes and standards. Although mainland companies have a large pool of engineering personnel, the absence of internationally recognised qualification accreditation has made it necessary for them to employ a great number of foreign qualified engineers in order to meet international standards.”

Most mainland engineering enterprises are not familiar with international accreditation. This is an area which Chan excels in, and once he had identified this market demand, Chan focused his mainland business development on qualification accreditation. He helps mainland engineers obtain their international qualification accreditation and thus makes it easier for them to enter the international market.

Business Model

After setting his business development goal, Chan mapped out a new vision for his company, which was to take outstanding mainland engineers to the international arena and help them upgrade their professional skills by offering various kinds of training courses. He explained that the philosophy and mission of the company - helping clients obtain international professional qualifications and capture better career development opportunities - are very important, saying: “Engineers with international qualifications will have a broader scope for career development, and their income will rise significantly. For instance, the annual salary of a supervisory engineer on the mainland ranges between RMB200,000 and RMB300,000. But if he or she has international accreditation which qualifies them to take part in international infrastructure projects, their salary for three months could easily match the annual salary of a supervisory engineer on the mainland.”

Chan admits that other companies would find it difficult to copy Deming ProDevelop’s business model, saying: “I have accumulated years of engineering management experience in Hong Kong and have established good interpersonal networks with the majority of international engineering societies and associations which have set up branches and organisations in Hong Kong. At the same time, I have also spent many years in the mainland market, building up my interpersonal networks and laying down a solid foundation for co-operation with governments and enterprises in areas related to engineering. All this would be difficult for others to replicate within a short time.”

Core team members (from left): Engineers Pun Chun-hin Ekmanson, Wong Chun Joe, Chan Chi-man and Wong Kam-shan Winston, and Chun Kong Roman.

Professional Training

The training programmes offered by Deming ProDevelop on the mainland primarily target three types of clients:

1. Enterprise-led engineers: Businesses select engineers at middle level and above and ask Deming ProDevelop to act as their personal consultant. The engineers sign a contract with Deming ProDevelop and decide for themselves whether or not to join the training programmes.

2. Enterprise-chosen engineers:  Businesses handpick engineers wanting to receive training and directly sign a contract with Deming ProDevelop to provide targeted training for these staff.

3. Individual engineers: Engineers sign a contract with Deming ProDevelop on a personal basis to receive international qualification training.

When Deming ProDevelop first started this business, its clients were mostly enterprise-led engineers who were just looking to obtain qualification licences. However, with increasing numbers of engineers wanting to develop enhanced professional skills, Deming ProDevelop has transformed into a business that now provides diverse vocational planning. Noting that this does not come cheap, Chan remarked: “Our fees are by no means low, that’s why we don’t simply help our clients apply for a licence, we help them obtain international professional accreditation, and pave the way for them to enter the international market. I believe that in the near future, the GBA’s demand for professionals with international qualifications will become even stronger.”

Deming ProDevelop serves government agencies, state-owned enterprises and large companies. The company co-operates, for example, with Guangdong Association for Science and Technology in promoting the mutual recognition of international qualifications for engineers. It also provides professional services for the international accreditation of engineers for China Railway First Group, CLP Group and China Merchants Group.

Deming ProDevelop was named among the top 10 contestants from Hong Kong and Macao region in the Guangzhou Thero International Innovation and Entrepreneurship Competition 2018.

Differing Demands for Accreditation

Although there are excellent transport connections between Hong Kong and most of the cities in the GBA, Deming ProDevelop has opened branch offices in Guangzhou, Shenzhen, Maoming and Zhuhai. The company also plans to open a new branch office in Huizhou in 2019.

Explaining the need for this by pointing to the differences between the various parts of the GBA, Chan said: “Each city in the GBA has its own unique city planning. The positioning of different cities determines the focus of our local business. Shenzhen and Guangzhou, as first-tier cities in the GBA, are places where engineering enterprises cluster and there are also more businesses and engineers there willing to pay for international training and accreditation. That is why we chose these two cities as our first stop.

“Because of the opportunities for co-operation in Maoming, Huizhou and Zhuhai, our business has also expanded to these cities. Other GBA cities such as Dongguan mainly place their emphasis on light industries and high-tech manufacturing, so their demand for engineering qualification accreditation is lower. Unless actual projects and co-operation opportunities arise there, we are unlikely to enter these cities.”

Chan added that the development of the GBA brings about new opportunities. At present, Deming ProDevelop’s mainland branches are mainly responsible for client recruitment, promotion, hosting talks and strengthening co-operation with different enterprises and organisations. The Hong Kong company, meanwhile, is primarily in charge of logistic support, including accreditation of academic and professional qualifications, engineering report and consultancy services, and making arrangements for clients to take exams and providing examination venues. Since most engineering societies are based in Hong Kong, written exams and interviews are held in Hong Kong.

Hong Kong as an Investment Platform

Chan pointed out many of the advantages of being in Hong Kong while looking to access the mainland market. These include its sound, mature financial system and a legal system aligned with the rest of the world. The availability of free capital flow in Hong Kong means that international corporations can move their capital to Hong Kong before investing it in the GBA and mainland China. Likewise, mainland enterprises can invest and expand overseas through Hong Kong. For instance, as Belt and Road projects continue to roll out, more and more mainland enterprises have come to Hong Kong to set up companies and invest in foreign countries through Hong Kong. Moreover, Hong Kong has a good business environment in which the processes of setting up companies, recruiting talents and handling tax matters are clear and simple, and a large pool of companies offering support services is also available. Because of these factors, many foreign and mainland businesses choose to establish a foothold in Hong Kong.

When we travel, most of us are keen to sample produce from the place we’re visiting. The trouble is that we don’t often know where to go to do that. That’s where a platform like SoveNear can be of assistance. Created by Showcase (Hong Kong) Technology Co Ltd, it’s designed to help tourists find that local authenticity without the inconvenience of having to search for it themselves. David Zhang, founder and CEO of Showcase Technology, spoke to HKTDC Research about his experience in establishing the SoveNear platform for goods from tourist destinations around the world and running the company in the Guangdong-Hong Kong-Macao Greater Bay Area (GBA).

Sourcing Special Local Products

Zhang explained that SoveNear was set up to help tourists keen on buying special local products, saying: “When we travel, we want to experience local culture, try local cuisine and buy special local products. This is how we understand different cultures. But people visiting a city for business or pleasure may know nothing about its special products. Even if they do, they may not have the time to go shopping and can only buy some ordinary souvenirs at the airport.

“Our purpose in establishing SoveNear was to put special products from different countries and places on our online platform. When travellers reach their destination, they can search for and buy special local products online and we can send their purchases to their hotel free of charge to save them time and hassle.”

SoveNear positions itself as a “platform for products of tourist destinations around the world”. Zhang said that it aims to bring together the most representative products of each city, adding: “Products on this platform are not restricted to traditional souvenirs and may include representative brand-name products, designer products and works of art from different places. We hope that travellers can appreciate the characteristics of local culture through these local products.”

SoveNear’s WeChat Mini Program.

Marionettes from the Czech Republic.

Launched in February 2019, the SoveNear platform has already attracted companies from a host of countries and territories, including Hong Kong, Taiwan, Macao, Thailand, Australia, New Zealand and the Czech Republic. Zhang said that SoveNear will continue to expand its services to more places, particularly in South-east Asia and countries along the Belt and Road routes, pointing out: “Most of the Belt and Road countries are developing countries with special commodities not many people know about. Our platform will help tourists visiting these destinations know about the local specialities. As well as boosting the local economy, this will also help promote cultural and economic exchanges between countries.”

SoveNear arranges free delivery to local hotels.

Moving to Shenzhen

Zhang established Showcase Technology in Hong Kong in 2018 to design, research and develop online platforms. The company later joined the Shenzhen start-up services pilot scheme organised by the Hong Kong United Youth Association (HKUYA) and set up Showcase (Shenzhen) Technology Co Ltd the following year. Outlining how the move came about, Zhang said: “The Shenzhen start-up services pilot scheme was a scheme to help young Hong Kong people tap GBA opportunities. The HKUYA set up three pilot areas for this scheme in the innovation and entrepreneurship bases in Shenzhen’s Futian, Lohu and Nanshan districts for a period of six months, during which time one-stop support services and preferential measures were offered to start-up companies to lower their cost and help young people planning their future career in the GBA integrate into and align with the mainland market.

“The three innovation and entrepreneurship bases have different distinctive features. I chose Futian. Using the ‘own fund + co-operative fund” model, the Futian base brought together more than 100 leading investment institutions and paired off participating companies with investors to help start-up companies overcome financing problems and provide them with funding support. Companies in different sectors moved into the innovation and entrepreneurship bases. There were also business matchmaking companies. The base would introduce these companies to us to promote co-operation.”

Complementing Companies

Programmers in Showcase’s Hong Kong and Shenzhen offices develop online platforms and WeChat Mini Programs. Zhang explained how the different platforms are aimed at different sets of customers, saying: “Mainland travellers make about 120 million outbound trips each year while the total made by global outbound tourists is roughly 2 billion. Both groups are our target customers. WeChat Mini Programs are mainly designed for mainland travellers, while the web version is mainly intended for overseas tourists. Mainland people prefer using WeChat Mini Program, but there are not that many people capable of developing these programmes in Hong Kong. That is why WeChat Mini Programs are developed in Shenzhen. Conversely, mainland programmers are not familiar with the sort of webpage designs preferred by overseas tourists or their software preferences. So our Hong Kong colleagues are responsible for developing systems for overseas tourists. This division of work is good for both sides.”

Outlining a further distinction between the two parts of the company, Zhang continued: “Our Hong Kong company is mainly responsible for overseas development and establishing ties with businesses in overseas markets. Our Shenzhen company, meanwhile, is mainly responsible for turning mainland tourists into our target customers. With a population of 70 million, the GBA is a huge potential market, which is why we take it as our starting point for attracting customers and learning how to tap mainland tourist resources.

“Advertising campaigns on the SoveNear online platform mainly target overseas tourists and take place in overseas markets. The most effective publicity is to make overseas tourists aware of SoveNear’s services in their own country. In our co-operation with businesses in overseas markets, the most effective approach is to focus our publicity at the sort of places visited by most tourists, like hotels, travel agencies and car rental companies.”

Transport Network Boosts Tourism

The Hong Kong-Zhuhai-Macao Bridge and the Guangzhou-Shenzhen-Hong Kong High-Speed Rail have improved transport links in the GBA. Pointing out how they not only make business travel easier but also help promote the development of tourism in the area, Zhang said: “I live in Hong Kong but go to work in Shenzhen two to three days a week. It is very convenient to go to Futian from West Kowloon, taking only 17 minutes by high-speed rail. Over 20 million mainlanders visited Macao in 2018, while more than 50 million mainland visitors arrived in Hong Kong. The total number of mainland tourists visiting Hong Kong and Macao exceeded 70 million. Our hope is that all mainland tourists visiting Hong Kong and Macao get to know about SoveNear so that we can further expand our services.”

In Zhang’s opinion, each GBA city has a role to play in boosting the region’s economic value. Arguing that co-operation can turn the GBA into an integrated whole and create synergy, with the pooling of talents being the most obvious advantage available, Zhang said: “Dongguan is a manufacturing base. Innovative technology can achieve large-scale production here. Shenzhen is a science and technology centre with large numbers of skilled scientific and technological personnel working in telecoms giants such as Huawei and Tencent. As a financial centre, Hong Kong can help companies raise funds. Diversification of industries in the GBA can reinforce the pooling of talents while stimulating the growth of emerging industries.”