Comprised of nine municipalities in Mainland China, as well as Hong Kong and Macau, the Greater Bay Area (GBA) is extraordinary. Since its inception, the megapolis has attracted attention from brands looking to capitalise on this thriving integrated economic area.

The core cities of Hong Kong, Macau, Shenzhen and Guangzhou are well-established and well-known to international brands and companies alike.

But what about the rest of the cities? Or the Greater Bay Area as a whole?

In a discussion about the Greater Bay Area's prospects in 2024, and what they mean for communicators, Ruder Finn Asia’s Charles Lankester said the term 'GBA' is used widely but its "potential is often not understood in detail."

"The scale of the GBA is extraordinary: it is the 12^th largest economy in the world, larger than South Korea, Russia or Canada," Charles said. As Ruder Finn Asia’s Executive Vice President, Global Reputation and the newly appointed Managing Director, Greater Bay Area, Charles said the population of the GBA currently sits at 86 million, making it larger than the combined powerhouse economies of Tokyo, Delhi and Shanghai. "The 11 cities which comprise the GBA share a combined GDP of US$1.9 trillion, which translates to US$23,000 per person," he said.

Numbers never lie, and these numbers make it clear that the GBA presents incredibly enticing opportunities for global brands to expand to an expansive and lucrative market.

For these brands, Charles has some pointers. 

First, businesses that are used to working in Hong Kong must understand that "copy-paste" tactics will not work in their northbound expansions. "Any corporation who thinks what works in Hong Kong will just plug and play in the GBA or more widely in Mainland China will soon discover this is a serious error!" he cautioned.

According to Charles, in a recent meeting with the global leadership of a well-respected international financial services client, Ruder Finn’s teams were tasked with creating concepts and plans for the Hong Kong and Greater Bay Area markets. When the teams presented their ideas, Charles found it fascinating how differently they each responded to the same brief for the two markets.

"Put simply, they are completely different markets in terms of communication strategy and activation," he said.

Navigating the nuances of these markets requires local expertise, something Charles credits for Ruder Finn’s rapid growth across the region to date. In Mainland China and Hong Kong alone, the agency employs 550 staff.

Another common mistake brands can make is stopping once the differences between the Mainland Chinese and Hong Kong markets are identified. In order for businesses to succeed in the GBA, it is essential to develop an appreciation for the composition of both markets on an intimate scale.

Within the nine Chinese municipalities, for instance, the distinctions are immense, creating a larger scope for error by uninformed foreign businesses. In the 2023 edition of PwC China’s Chinese Cities of Opportunities, which ranked Chinese cities across 10 factors, at least one GBA city made it to the top five in nine dimensions.
 
While the usual suspects dominated the list (Hong Kong, Shenzhen and Guangzhou), the emerging entrants of Foshan and Huizhou cannot be overlooked.

Charles’ first piece of advice for international brands looking at GBA expansion is to understand the differences between the cities that comprise this integrated economic area, as well as the characteristics that make them unique.

"Most people understand Hong Kong and Macau relatively well, along with Shenzhen and Guangzhou. The other cities, less so, and they are all very different," Charles said.

"Just taking Huizhou as an example, it has world-class transportation infrastructure with seaports, an airport, high-speed railways and expressways. From a business perspective, electronic information and petrochemicals are Huizhou’s pillar industries."

What else should a brand keep in mind when expanding into the GBA?

"Keep up!" Charles said. "The GBA cities and the larger economy are growing fast and high volumes of marketing services will be required."

He said a business should also prioritise being "present" in the GBA. "You can’t run a business in Spain when you only have an office in London," he said. "Do your planning, figure out your priorities and establish a presence."

For Charles, there is nothing more important than developing a localised understanding of the market you operate within, especially for firms that are active in the Greater Bay Area's communications industry.  "From the communications standpoint, Ruder Finn will be first-to-market with a single GBA solution: whatever service is required, in whichever city, we will deliver," he said. "We currently have a presence in Guangzhou and Shenzhen and are looking at expanding this rapidly to meet client demand."

As for the 2024 prospects of other industries, Charles highlighted several key sectors that communicators can keep an eye on in the Greater Bay Area. "In terms of opportunities, we are looking at priority China Government sectors, which include financial services, green energy, healthcare and tourism," he said.