Think Local, Expand Global: Hong Kong Executive's Blueprint for Thai Startup Success

 

"Ideas are just ideas – execution is the most important thing," declares Lu Chin Yung, senior vice president of InvestHK's Startups Team, as he leans forward during an exclusive interview at the Techsauce Global Summit. 

 

His message to Thai entrepreneurs is clear: abandon rigid home-market strategies and embrace local thinking to succeed overseas.

 

Speaking candidly about the common pitfalls he's witnessed at the summit on Wednesday, Lu emphasizes that Thai startups must prove their worth domestically before venturing abroad. 

 

"First, build strong domestic traction before entering new markets," he advises. "You must prove your model at home before venturing abroad."

 

 

Lu outlines four critical principles that separate successful international ventures from costly failures:

 

Build Domestic Traction First: "Prove your model works at home," Lu explains. "Investors and partners in new markets want to see evidence of success, not just promises."

 

Adapt to Local Economics: For Hong Kong's high-cost environment, this means "smaller teams, leaner offices, and digital-first sales strategies." Lu notes that many Thai companies fail by trying to replicate their Bangkok office setup in one of the world's most expensive property markets.

 

Think Like a Local: "You must tailor products and services to local tastes and habits," he insists. This isn't just about language translation – it's about understanding cultural nuances, shopping behaviors, and business practices.

 

Form Strategic Alliances: Rather than viewing everyone as competition, Lu encourages early engagement through flagship events like StartmeupHK Festival and Hong Kong FinTech Week. "Share your ideas openly – this brings valuable feedback, partnerships, and funding opportunities."
 

 

For entrepreneurs starting with just an idea, Lu recommends a contrarian approach: "Target tier 2-3 markets that large corporates often ignore. Use your agility and disruptive technologies like artificial intelligence to compete with established players."

 

 

 

 

Hong Kong's Startup Goldmine

Lu's confidence in Hong Kong as a regional hub isn't misplaced. The city's startup ecosystem has grown consistently, with approximately 4,700 startups recorded in last year's survey, showing 7-9% annual growth over five years. The 2024 figures, expected shortly, are projected to reveal continued expansion.

 

"What makes Hong Kong special is accessibility," Lu explains.

 

With 28% of startup founders being international entrepreneurs and English as an official language, the barriers to entry are lower than regional competitors.

 

The funding landscape is particularly attractive. The government offers HK$100,000 (approximately 400,000 Thai baht) for early-stage ideas with no repayment required, even if ventures fail. Successful participants can access up to HK$1.3 million in grants plus subsidized office space.

 

 

The top five startup sectors flourishing in Hong Kong reflect the territory's economic strengths: fintech leads, capitalizing on the territory's status as a financial hub with over 160 banks. Information technology follows, driven by corporate demand for AI-related services, while e-commerce, education technology, and data analytics round out the top five.

 

The government's Top Talent Pass Scheme has received over 400,000 applications since launching two years ago, with a 40% approval rate, allowing graduates from the world's top 100 universities – including several Thai institutions – to obtain visas without securing employment first.

 

 

 

Thai Success Stories: Localization in Action

Several Thai companies exemplify Lu's localization strategy. Yindii App, addressing food waste management, now counts Hong Kong as its top market after partnering with Big C Hong Kong for a "Surprise Box" programme offering surplus food at discounted prices.

 

"They didn't just copy their Thai model," Lu observes. "They studied Hong Kong's food culture, shopping patterns, and waste concerns, then adapted accordingly."

 

Thai jewellery brand Ravipa opened its first Hong Kong store in December and expanded to two locations within six months through effective localization and targeted marketing.

 

Meanwhile, Thai food and beverage brands have shifted post-COVID expansion strategies from Central Business District locations to residential neighborhoods, adopting local delivery platforms including Foodpanda, Uber Eats, and Keeta.

 

 

"The successful Thai companies all did their homework," Lu notes. "They understood that Hong Kong consumers have different expectations, shopping habits, and price sensitivity than Bangkok consumers."

 

 

Your Next Steps: A Practical Roadmap

For Thai entrepreneurs considering Hong Kong expansion, Lu recommends a measured approach.

 

"Attend flagship events like StartmeupHK Festival and Hong Kong FinTech Week first. You will understand the ecosystem and start to make friends before committing full investment."

 

InvestHK's Bangkok office, which covers Thailand, Cambodia, Myanmar, and Bangladesh, provides comprehensive support for this exploration phase.

 

 

The organization increasingly helps established companies expand throughout Southeast Asia, positioning Hong Kong as both "a gateway to Asia" for inbound businesses and "a launchpad for global expansion."

 

Lu's final advice challenges conventional startup wisdom about protecting ideas: "When you share your ideas openly, you might receive valuable feedback or find potential partners or investors. The execution is what matters, not the secrecy."

 

The challenge for Thai startups, Lu suggests, lies not in finding opportunities abroad but in resisting the temptation to simply export their domestic playbook.

 

"Many fail because they think what works in Bangkok will automatically work in Hong Kong," he observes.

 

As regional competition for startup talent and capital intensifies, Hong Kong's combination of government support, international access, and business-friendly policies positions it as a key testing ground for Thai companies eyeing broader Asian expansion.