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Cultural, creative works take center stage in HK

Updated: 2015-01-13 06:01

By Gladdy Chu in Hong Kong(HK Edition)

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More than 40 cultural and creative companies, led by China's Ministry of Culture, made their debut at the 13th Hong Kong International Licensing Show running through Monday till Wednesday, to look for overseas expansion chances through licensing.

Together with regional participation from Guangzhou, Fuzhou and Hangzhou, the Chinese pavilion at the fair formed by these mainland companies was the largest to date.

Raymond Yip, deputy executive director of the Hong Kong Trade Development Council (HKTDC), the organizer of the fair, said the central government is seeking to promote the mainland's cultural and creative sectors as a pillar industry.

"As comics, art and cultural companies have a better chance in tapping into new markets encouraged by the government through licensing," he said, "Hong Kong, with robust legal infrastructure, strong intellectual-property protection and a pool of professional licensing intermediates, will continue to help commercialize mainland cultural and creative works, as well as promoting them to the world."

Licensors of these mainland comic and animation companies would deliver projects at the fair, such as mainland cultural heritage brand The Palace Museum, would introduce its registered trademark in the licensing promotion.

For another, the mainland's appetite for licensed merchandise is particularly strong as more than 310 exhibitors from 18 countries are looking for suitable licensees, intermediates and partners via the Hong Kong platform to expand in Asia and the mainland market at the fair.

"Licensing, as a type of intellectual property trading, helps extend brands to various products and services such as we've seen international automobile brands licensing to baby products in tapping into the mainland market," said Billy Lam, a Hong Kong certified licensing professional. "If their businesses don't perform quite well in the original market, it's workable to earn a profit though brand licensing."

According to HKTDC's data, being the second-largest licensing market in Asia after Japan, retail sales of the mainland's licensed merchandise amounted to $5.5 billion in 2013, accounting for nearly 30 percent of the total in Asia.

"While the licensing business has been stagnant or even diminishing in some countries due to unstable world economy, the licensing industry in the mainland has been achieving double digit growth year on year in the past few years, and we see the momentum picking up fast and will continue," Rebecca Lo, council member of Licensing Executives Society China (Hong Kong Sub-Chapter) told China Daily. "Some studies forecast that in 10 years' time, China will surpass Japan to be the biggest market for licensing business in Asia, and will be the second-biggest market for licensing business in the world, second only to the US."

Asia's licensing market accounts for 12 percent of the world's total as global sales of licensed merchandise reached $155.8 billion in 2013.

Meanwhile, entertainment and cartoon characters remain the most popular licensing merchandise in Asia, with retail sales at $6.9 million, accounting for 37 percent of market share in 2013.

"Factors such as a fast growing middle class and willingness to spend money on kids, a fast growing creative industry, and the high penetration rate of the digital media amongst young people in mainland indicate that the licensing of movie, cartoon and digital game characters will continue to take the lead in driving the licensing business of China," Lo said.

gladdy@chinadailyhk.com

(HK Edition 01/13/2015 page9)

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