How digitalisation is driving the Greater Bay Area and Belt and Road Development

Speaking at the panel discussion on the said topic in Belt and Raod Summit 2022 during 31 Aug to 1 Sep, Alibaba Cloud Intelligence International’s vice president Selina Yuan said the company has continued to support and collaborate with BRI and GBA partners in the ecosystem to up level their digital journey through emerging technologies eg AI, cloud computing and big data for enterprises, startups, and enterpreneurs both locally and regionally.    Alibaba has also worked with various partners and universities to organize training programs and internship for tech talents.

Bessie Pan, the founder and CEO of HiNa Digital Marketing consulting firm said that to become successful cross border brands, many brand owners have applied and invested in data architecture in order to leverage audience insights, to drive and effectively launch digital marketing strategies with social media marketing across interactions of different target groups, to develop customer retention program in holistic customers’ views.

Traditionally, most brands run marketing mix campaigns with brand management and buying media channels to determine the campaign effectiveness but it is quite outdated input.  With data analytics, media strategists can instead anticipate unmet customer needs ahead by reviewing their audience insights and understand customer pain points.

To gain data-driven insights clearly, she raised one case study, China-based smartphone brand which aims to expand its global brand , especially East Europe and South Asia.   Firstly, the company needs to look into 1st party data or CRM database by excluding their existing customer.  Secondly, they can review those social media paid data search points eg Google, Facebook and analyse the potential mobile shoppers who have recently searched what mobile specific features they are looking for.  Thirdly, to obtain 3rd reliable data source eg Dun & Bradstreet (DNB) by using current device models, target audience occupations, online shopping habits or other necessary data to come up with the most probable digital marketing campaigns in target markets.   The said client achieved 60% of planned sales target with media budget optimization from clearer and customized marketing strategy.

Andrew Wu, Dun & Bradstreet HK, focused the importance of data analytics in 2 dimensions.  Firstly, it creates huge business opportunity across industries and regions from digital-natured companies like Alibaba whose businesses are utilizing hyperscale cloud-based data centers in various platforms and applications while those traditional businesses can also easily expand their capabilities, distribution networks  and manage supply chain eg logistics, sourcing suppliers, pharmaceutical, food.  Secondly, it helps driving decision making for SME, SMB, startups to grow their business, to gain more market share by leveraging and combining 1st party data and useful 3rd party data.

The company can use data analytics in both defensive and offensive ways; to manage risk and provide alternative solutions as a defensive strategy and to determine what strategy to be used for marketing as an offensive one.

Wu viewed HK as a potential hub to the success of BRI and GBA in terms of data analytics competitiveness, expertise, technology, and financing capabilities which create tremendous opportunities across countries.

Pichet Durongkaveroj, executive director, Bangkok Bank, said that 3 core elements contributing to BRI and GBA partnership relies on (i) digital connectivity which can expand across countries through other non-satellite based services eg. submarine cable financing, bandwidth capacity investment.  In logistics perspective, the development of high speed railways, deep sea ports, other infrastructure projects are undergoing with huge investment.  (ii) collaboration between the regions, especially tech talents and cyberports to be promoted and attract young startups or tech nomads. (iii) legal alignment in rule-based cybersecurity, privacy and data protection.  How to leverage consumer-database across countries in efficient way.

Due to cross border and complex project financing deals arising from BRI and GBA development areas, digitalization can help involved parties ranging from project owners, EPC contractors, engineering consultants and partners, equipment manufacturers, ECA insurers, local and foreign banks to execute and work remotely and efficiently amid uncertainties and long project negotiations, said Peter Burnett, managing director of Standard Chartered Bank Hong Kong Ltd.

The pandemic has accelerated all businesses to change the way they operate.   In financial services, the bank’s stakeholders and clients adapt and continue their business as usual, according to Burnett.

Terrence Chui, commissioner, HK Export Credit Agency (ECA), saw the credit insurance claims tend to  normalise in 2022 and China’s commitment to the BRI and GBA areas still remains with more challenges and one of the current key impacts over semi-conductors shortages.  Although HK ECA recorded good profitability in 2021 due mainly to significant investment growth and low insurance claims, however, it is not the organisation’s key target, instead of supporting exporters in various ways.