Swedish Trade Council presents its services in Hong Kong

1. Confidential
For internal use within client company only
INNOVATIVE SWEDEN – TRENDS AND DEVELOPMENTS IN ICT
AND CREATIVE INDUSTRIES
Swedish Trade Council
Stockholm, 6 September , 2012
1
SWEDISH TRADE COUNCIL 2012-09-04

2. AGENDA
What is the STC
Internationalization Trends of Swedish ICT
Creative Industries
Some Cases from Hong Kong
SWEDISH TRADE COUNCIL 2012-09-04

3. WE MAKE IT EASIER FOR SWEDISH
COMPANIES TO GROW INTERNATIONALLY
SWEDISH TRADE COUNCIL 3 2012-09-04

4. WE ARE AT HOME ON YOUR FOREIGN MARKET
500 employees
66 offices in 57 countries
SEK 630 M turnover
SWEDISH TRADE COUNCIL 4 2012-09-04

5. WE COMBINE THE BEST OF TWO WORLDS
Use our strengths in your internationalization
Business focus
Local knowledge
The brand “Sweden”
Industry Track Record Official Sweden
Networks
Door opener
SWEDISH TRADE COUNCIL 5 2012-09-04

6. WE KNOW INTERNATIONAL BUSINESS
Strategic and hands-on assistance in all phases
Grow
Act
Develop
business
Establish • Sales & Market
How presence Support
• Business • Event
Choose strategy Support Office
• Market • Company
Analysis/Check establishment
Where • Visiting Program • Recruitment
• Partner Search • Sourcing
Examine
opportunities • Acquisition
• Information & Support
Knowledge • BOP
• Steps to export
• Market Selection
SWEDISH TRADE COUNCIL 6 2012-09-04

7. AGENDA
What is the STC
Internationalization Trends of Swedish ICT
Creative Industries
Some Cases from Hong Kong
SWEDISH TRADE COUNCIL 2012-09-04

8. HOW DO WE DEFINE ICT?
ICT consists of all Technical means used to handle information and aid communication. The ICT
continues to grow faster than any other sector.
Based on a global inventory of the world's IT capacity between 1986 and 2007:
− Machines’ application-specific capacity to compute information per capita has roughly doubled
every 14 months
− The per capita capacity of the world’s general-purpose computers has doubled every 18
months
− The world’s storage capacity per capita required roughly 40 months to double (every 3 years);
− The global telecommunication capacity per capita doubled every 34 months.
The World’s Technological Capacity to Store, Communicate and Compute Information, Martin Hilbert and Priscila López (2011)
SWEDISH TRADE COUNCIL 8 2012-01-24

9. SINCE 2005, ICT SERVICES SHARE OF TOTAL ICT EXPORTS
HAS INCREASED FROM 22% TO 40%
Swedish export of ICT equipment and services*, 2005 - 2011
Billion SEK
200
160
120
ICT services
80 ICT products
40
0
2005 2006 2007 2008 2009 2010 2011
Trade promotion will need to adapt to the new emerging Swedish ICT export landscape
* ICT Services , SITC 75 and 76
Source: SCB
SWEDISH TRADE COUNCIL 9 2012-05-28

10. ICT ACCOUNTS FOR 13% OF SWEDISH SERVICE EXPORTS
- IT services and support are important sectors of Swedish ICT service exports
Swedish service exports 2011 Swedish ICT service exports 2011
100% = 521 Billion SEK 100% = 68 Billion SEK
Mobile Other
telecom telecom
ICT service Wired 4% 4%
exports telecom
Other 13% 9%
service
exports Webbhosti
87% ng
3%
IT support IT services
37% 43%
Source: SCB
SWEDISH TRADE COUNCIL 10 2012-05-28

11. KEY FINDINGS
Findings for Swedish ICT exports include:
Services is playing an increasingly important role
Nine out of ten companies intend to increase sales on international markets
Americas and Asia are considered the most attractive future markets among respondents
An increasing number of companies have no particular geographic market in mind for future expansions
Finding the right contacts and financing are the main obstacles for expansions
SWEDISH TRADE COUNCIL 11 2012-05-28

12. AGENDA
What is the STC
Internationalization Trends of Swedish ICT
Creative Industries
Some Cases from Hong Kong
SWEDISH TRADE COUNCIL 2012-09-04

13. ARE NOT ALL COMPANIES CREATIVE?
All companies have creative components, including those from industries such as manufacturing,
healthcare and transportation – and many of them are aspiring to be just as much ”Creative” as
any advertising or fashion company…Why are they not part of Creative Industries?
Creative Industries can be defined as “those industries which have their origin in individual
creativity, skill and talent and which have a potential for wealth and job creation through the
generation and exploitation of intellectual property.” (DCMS 2001, p. 04)
SWEDISH TRADE COUNCIL 13 2012-09-04

14. WHY ARE CREATIVE INDUSTRIES IMPORTANT?
Synergies between Traditional Industries and Creative Industries
Creativity - the decisive USP for Swedish companies
Strengthening the Swedish brand with Creative Industries
Creative Industries as a carrier of Swedish values and ideas
Creative Industry an increasingly important part of a Modern Swedish Economy
SWEDISH TRADE COUNCIL 14 2012-09-04

15. WHAT DO WE MEAN BY ”CREATIVE INDUSTRIES”?
COMPUTER GAMES FILM DESIGN ARCHITECTURE
MEDIA PHOTO FASHION ARTS
MARCOM MUSIC PERFORMING ARTS LITERATURE
SWEDISH TRADE COUNCIL 15 2012-09-04

16. SYMBIOCREATE – THE CREATIVE INDUSTRY’S PLATFORM
“SO CLEVER. SO SWEDISH”
The Swedish Institute was assigned by the
government to develop a platform to help players
within creative industries to market themselves
internationally.
SymbioCreate is a communication Platform that
shows how we jointly can promote the Swedish
Creative industries.
SI has come to the conclusion that there are six
segments in particular where Sweden has a
significant potential for international growth.
SWEDISH TRADE COUNCIL 16 2012-09-04

17. ABOUT 13% OF THE COMPANIES WITHIN CCI HAVE SOME
SORT OF EXPORT
78 078 companies, whereas 10 459 have exports Total Sales of 319 BSEK, with Exports of 59 BSEK
10459 exporting companies
13 % Sales outside
have Sweden
exports 18%
87% have no exports 82% Sales in Sweden
*Omsättning samtliga företag inom branschen 403 671 MSEK, 2010
SWEDISH TRADE COUNCIL 9/4/2012

18. DESIGN & FASHION ACCOUNTS FOR ABOUT 75% OF THE
CCI EXPORTS
Total Sales 319 BSEK, disposition by segment Total Exports 59 BSEK, disposition by segment
Music2% Others* 2% Music 1%
Media 4% Media 2% Others 3%
Photo 2%
Film 4% Literature 3%
Photo MarCom
6% * 7%
MarCom* Design 39% Film 9%
8% Design 51%
Literature11
% Mode 23%
Fashion 24%
*Arkitektur, dator &TVspel, konst och scenkonst
SWEDISH TRADE COUNCIL 18 9/4/2012

19. CREATIVE INDUSTRIES AS AN “EIGHTS” BUSINESS AREA
- Better understanding of the sectors’ priorities and needs, resulting in
improved services and higher internationalization rate.
SWEDISH TRADE COUNCIL NEW ORGANIZATION
BUSINESS AREAS
A new matrix
organization dividing SERVICES & REACH
Sales & Marketing
responsibilities launched in July an
between Operations In Sweden, 20+
eights Business Area: Regional Export
and Sales & “Creative Industries,
Marketing. Advisors help
Retail and Services” companies’ preparing
for internationalization.
Abroad, 67 offices help
them on the ground.
SWEDISH TRADE COUNCIL 19 2012-09-04

20. AGENDA
What is the STC
Internationalization Trends of Swedish ICT
Creative Industries
Some Cases from Hong Kong
SWEDISH TRADE COUNCIL 2012-09-04

21. HONG KONG ECONOMY (SIX NEW INDUSTRIES)
GOVERNMENT IS RAPIDLY DEVELOPING SIX NEW
INDUSTRIES IN WHICH HK ENJOYS DISTINCT
ADVANTAGES
Value Added in 2010
HKD Billion
80 78
The six new industries
70
60
50
40
30 26
20 18
12
10 6 5
0
Cultural and creative Medical services Education services Innovation and Environmental Testing and
industries technology industries certification services
6 industries representing 8% of HK's GDP (~HKD 143 billion)
Source: Census & Statistic Department, HKSAR
SWEDISH TRADE COUNCIL 21 2012-09-04

22. CULTURAL AND CREATIVE INDUSTRIES (CCI)
THE CCI IS ONE OF THE MOST DYNAMIC SECTORS
– Contributing to economic growth and job creation as well as nurturing cultural
diversity and innovation in Hong Kong
Examples of government fundings CCI comprises 11 component domains
USD 39 million “CreateSmart Initiative (CSI)” supports Advertising
the development of creative industries Amusement services
USD 41 million “Film Development Fund (FDF)” Architecture
supports the development of the film industry
Art, antiques and crafts
USD 62 million earmarked for a series of initiatives
from 2010-11 until 2014-15, including Cultural education and library, archive and museum services
− Stepping up promotion of public art Design
− Trainee programmes for arts administrators Film, video and music
− Supporting student participation in arts and cultural activities
Performing arts
− Enhancing the brand of the Hong Kong Arts Festival
Publishing
− Strengthening the development and preservation of
Cantonese Opera Software, computer games and interactive media
Television and radio
Source: HKSAR Government
SWEDISH TRADE COUNCIL 22 2012-09-04

23. INNOVATION AND TECHNOLOGY
HONG KONG GOVERNMENT HAS BEEN ATTACHING
GREAT IMPORTANCE TO THE IT DEVELOPMENT
Examples of government’s actions
Built Hong Kong Cyberport
Infrastructure
Built Hong Kong Science Park
USD 640 million “Innovation and Technology Fund (ITF)” provides
funding for applied R&D projects
Five R&D Centers set up under the ITF:
Innovation and
− Automotive parts and accessory systems
Technology
− Information and communications technologies
Fund (ITF)
− Logistics and supply chain management enabling technologies
− Nanotechnology and advanced materials
− Textiles and clothing
Guangdong-Hong Kong Technology Cooperation Funding Scheme
and the Shenzhen-Hong Kong Innovation Circle facilitate science
and technology cooperation between the two places
Cross-border
Working with the Ministry of Science and Technology
cooperation
− To enhance HK’s participation in national-level science and technology
projects and enhance collaboration through fostering partnership with
research institutes and enterprises in the Mainland
Source: Hong Kong Economic and Trade Offices (HKETO) in the United States of America
SWEDISH TRADE COUNCIL 23 2012-09-04

24. STC PERFORMED A MARKET CHECK AND DISTRIBUTOR
SEARCH FOR SWEDISH LIGHTING COMPANY IN HONG KONG
Background
– One of Europe’s leading lighting groups with approximately 2,000
employees and operations in 17 countries
– Develop, manufacture and market lighting systems for public
environments
– Hong Kong is an important strategic market for the Swedish lighting
company
Objectives
– To assist the client to determine an effective distribution solution and
assist in finding a suitable setup on the Hong Kong market
Market Check & Partner Search
– Market insights
High-end and sustainable lighting products in Hong Kong
Competition and prices
Market segments
Private and public procurement for building projects
– Contact and discuss with potential customers, lighting makers,
industry associations, and government departments
– Short term and long term market entry strategies
Source: pictures from client’s website
SWEDISH TRADE COUNCIL 24 2012-09-04