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A supply-chain management specialist warns that despite having the best physical and technical infrastructure in Asia, Hong Kong must do a better job of marketing itself to stop the erosion of its place as the key gateway to the lucrative China market.

V-Logic chief executive Peter Levesque, describing the SAR as 'China's natural store front', told delegates at a Hong Kong Chamber of Commerce seminar the key was to sell Hong Kong's assets overseas.

'Many key local logistics initiatives are being put in place, but we need to turn up the juice a bit and get outside Hong Kong to where the companies live. Start the courtship there, and then bring it back home. Now is the time,' Mr Levesque said.

His comments echoed those offered in September's McClier Report, the state-funded study the Government said was the basic framework for its multi-billion dollar logistics push.

The report suggested the formation of a post within a 'logistics services development unit' specifically to 'promote and market Hong Kong internationally as a multi-modal logistics hub'.

It recommended a Web site and database to achieve this.

Arguably, the formation of the m-logistics team under the Logistics Development Council fits the bill, but sources within the team said it had yet to set out any strategic objectives.

Mr Levesque said: 'The most frustrating part of trying to convince potential clients that Hong Kong is where you want to be based in Asia is the lack of knowledge out there.'

V-Logic, a venture between Wharf's Modern Terminals, institutional investor Warburg Pincus and independent shareholders, offers online stock management and networking opportunities for global clients through its warehouse and offices in Kwai Chung.

Mr Levesque said V-Logic chose Hong Kong as a base because it compared favourably to regional alternatives, including Singapore, for access to key sourcing markets, namely China.

'If you match up data on data Hong Kong is the place to be,' he said.

Critics said the local trade transport community had been slow to shake off the Field of Dreams mentality - build it and they will come - developed in the past two decades' boom years.

They said industry promotion was new to most of the players, private or public, which may be why initiatives had been slow to come from the m-logistics team.

Last month the full m-logistics team, under the guidance of James Hughes-Hallett, met for the first time to plot the way forward.

A team member said: 'It was our first brainstorming session. We were trying to find a unified way to more strategically market Hong Kong as a logistics hub. Having one voice is vital, especially for marketing.'

Mr Levesque suggested Hong Kong should sell itself as a 'bridge' between Western and south China markets on four levels - geographic, economic, cultural and administrative.

'The gap between where Western companies want to be in China and their knowledge of the mainland business environment is very large. Hong Kong must position itself as the knowledge bridge to China. It bridges those four critical gaps better than any country in Asia,' he said.

Singapore has been noted for its self-promotion. Some executives argued the move had been necessary, given its small domestic consumer base and geographical distance from the Asian Tiger markets further north.

Nevertheless, its foresight last decade to bring trade management initiatives online and to liberalise its aviation regime gave it the jump on regional rivals.

But Mr Levesque said Singapore had nothing that was lacking in Hong Kong.

'Their head start will not be a major disadvantage because we have the location. Singapore has done a great job of marketing itself as a hub for hi-tech industry. The bottom line though, this is a marketing initiative.

'Singapore knows at the end of the day China's success should become Hong Kong's success . . . I wouldn't be surprised to see many companies which chose Singapore as a base returning to Hong Kong when they realise China is actually their target,' Mr Levesque said.



Marketing the key to Hong Kong exploiting China role