Entering Grooming Business in Hong Kong Pest Analysis

Topics: Hong Kong, Hong Kong Island, Household income in the United States Pages: 40 (8721 words) Published: September 8, 2009
Executive Summary

The objective of this report is to provide comprehensive research and analysis on the political, economic, social and technological environment in Hong Kong. The research and analysis is then used to evaluate the market for potential in pet grooming service. “Hong Kong is such a cramped place that it is surprising to learn that we have hundreds of thousands of dogs sharing our city with us”, according to South China Morning Post (2006, p.14). Nonetheless, due to the desire for more sophisticated pet products including pet grooming services, the pet industry in Hong Kong has been flourishing despite the already saturated market for pets. Furthermore many younger couples rather keep a pet instead of having children. Pets are being treated like human beings and therefore as members of a family. Furthermore, people in Hong Kong tend to spend more disposable income on their pets compared to many other countries in the region.

In order to establish a pet business in Hong Kong, PEST analysis is a noteworthy tool for studying and assessing the business environment. Additionally, the legislative, social lifestyle and communication infrastructure environments in Hong Kong come together for establishing a conducive environment for a variety of pet related businesses including pet grooming services. This report also demonstrates the possible segmentations and roughly projects the potential of each segment. The company will then see if potential for pet grooming service in Hong Kong exists. However, due to limited secondary data, for instance the updated information and the exact numbers of pet, a more in depth market research on pet grooming service may need to put into place when the company decides to enter the market. Table of contents

Executive Summary3
Introduction5
Environmental Analysis (PEST)6
1. Political6
1.1 Overall political analysis in Hong Kong6
1.2 Ecological / environmental issues and the government term and change6 1.3 Current legislation home market, regulatory bodies and processes7 1.4 Government policies and future legislation8
1.5 Home market lobbying/pressure groups and international pressure groups9 1.6 Wars and conflict9
2. Economic9
2.1 Home Economy Situation9
2.2 Home Economy Trends10
2.3 Tax issues10
2.4 Seasonality10
2.5 Interest and exchange rates10
2.6 Trade cycle and customer driven drivers11
3. Social Analysis in Hong Kong11
4. Technological aspect analysis13
4.1 Competing technology development13
4.2 Research funding13
4.3 Maturity of Technology14
4.4 Information and communications14
4.5 Consumer buying mechanism / technology15
4.6 Innovation potential15
4.7 Intellectual property issues16
4.8 Global communication16
Segmentation17
1. Variables used to segment market17
1.1 Location17
1.2 Lifestyle17
1.3 Income18
2. Characteristics each segmentation19
2.1 The flow chart of segmentation related to income and pet owner19 2.2 Matrix of Income level and pet ownership (in term of household)21 3. Attractiveness of segments22
Conclusion23
Appendix 1.24
Appendix 2.24
Appendix 3.25
Appendix 4.25
Appendix 5.26
Appendix 6.26
Appendix 7.27
Appendix 8.28
Appendix 9.30
Appendix 10.32
Appendix 11.34
References35

Introduction

Our team is a consultant for a pet service provider intending to enter the Hong Kong market. The pet service provider intends to enter the Hong Kong market with “in house pet grooming services’. Our team is going to perform research and analysis to determine if Hong Kong is a viable market by taking into account macro markets which we define to be the political, economic, social and technological environment. Our team achieves this research and analysis by using the PEST analysis tool. In principal, we analysed that there are advantages and disadvantages of establishing this business in Hong Kong vis-à-vis its neighbours.

The geographical nature of the Hong Kong market is...

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