The tagline of HSBC—“world’s local bank” reflects HSBC’s positioning as a globe-spanning financial institution with a unique focus on serving local markets. HSBC has served over 100 million customers through 9,500 branches in 85 countries. Therefore, HSBC must do a lot of research before segmenting to the international market.
The first consideration of HSBC is that the bank works hard to maintain a local presence and local knowledge in each area. Its fundamental operating strategy is to remain close to its customers. It can be seen from the tagline that HSBC actually devotes itself to serve local markets. Remain its local knowledge will make it easily understand local cultural and local fashion demand, then the bank will satisfied every customer need in each area. HSBC has demonstrated its local knowledge with marketing efforts dedicated to specific locations, such as “New York City’s Most Knowledgeable Cabbie”contest. The second consideration of HSBC is that local economy. HSBC undertook some “” Support Hong Kong” campaign to revitalize the local economy hit hard. In that special period, only HSBC has occupied some market shares in the local economy, it can survive in the long term. Hence, HSBC delayed interest payments for personal-loan customers who worked in industries most affected by SARS. Also, the bank offered discounts and rebates for HSBC credit card users when they shopped and dined out. More than 1500 local merchants participated in the promotion. The third consideration of HSBC is targeting consumer niches with unique products and services. A niche is a more narrowly defined customer group seeking a distinctive mix of benefits. For example, HSBC found a little-known product area growing at 125 percent a year: pet insurance. Different customers has different need when they facing financing their assets. For instance, In Malaysia, HSBC offered a “smart card” and no-frills credit cards to the...