“E-Commerce Easy” HK$ 1,000,000 for Seizing Mainland Opportunities

In 2012, the government launched the "Dedicated Fund on Branding, Upgrading and Domestic Sales" (hereinafter referred to as the "BUD Fund"), which aims to support businesses in brand development, business transformation, and expanding into overseas markets. The maximum funding per company is capped at HK$7,000,000.

The mainland market offers enormous potential and endless opportunities, with more Hong Kong brands eyeing this thriving economic region. In response, the Hong Kong government introduced the "BUD Fund - E-Commerce Easy" to support Hong Kong companies in entering the mainland's e-commerce market. This article will thoroughly introduce the E-Commerce Easy Scheme and provide practical advice for Hong Kong companies planning to expand into the mainland e-commerce sector.

1. What is the "E-Commerce Easy" Scheme?

The "E-Commerce Easy" Scheme is an initiative under the BUD Fund, launched by the Hong Kong government on July 15, 2024. It aims to assist local businesses in enhancing their competitiveness through e-commerce expansion in the mainland market. The scheme offers funding support for businesses engaging in e-commerce market development in the mainland, with a maximum subsidy of HK$1,000,000 within the cumulative cap of HK$7,000,000 under the BUD Fund.

Scope of Funding

The scope of the "E-Commerce Easy" Scheme is limited to initiatives related to developing the mainland e-commerce market The following are eligible items for funding:

Online Sales Platforms: Design and development of online platforms, setting up third-party online sales platforms

Company Website: Building new company websites or optimizing existing ones

Mobile Applications: Developing or enhancing mobile apps

Advertising: Advertising on commercial media, hiring influencers and brand ambassadors, search engine marketing, search engine optimization

Auditing: External auditing of annual and final project accounts

Other e-commerce-related projects: Producing promotional videos or photos for e-commerce business

Under the scheme, companies can apply for funding for individual projects, with a maximum of HK$500,000 per project, and can apply for multiple projects simultaneously. The funding adopts a "matching grant" model, meaning businesses must cover half of the total project cost, with the government funding the other half.

2. Eligibility and Application Process

To apply for the "E-Commerce Easy" Scheme, companies must meet the following criteria:

Be a non-listed company registered in Hong Kong
Have substantial business operations in Hong Kong

Application Process

Submit Application Form and Documents: Complete the online application form via the BUD Fund website, detailing the project's objectives, implementation methods, timeline, financial budget, and expected outcomes. Required documents include:

Copies of the business registration certificate and company incorporation certificate
Documents proving the company has substantial business operations in Hong Kong
Promotional materials such as brochures or printed matter introducing the company's products or services
Proof of ownership (30% or more) of the company's shareholders or responsible individuals
Copies of audited accounts or proof of annual turnover in Hong Kong from the previous year

Approval Process: The Hong Kong Productivity Council will review the completed application and supporting documents within 60 working days from the date of submission.

Application Outcome: Companies will be notified in writing of the results. Successful applicants will receive an initial in-principle approval notification. If rejected, the letter will explain the reasons for the disapproval.

Project Implementation: Successful applicants can claim up to 75% of the approved government subsidy for the first disbursement and proceed with the project accordingly.

Progress Report: For projects lasting more than 18 months, a progress report and annual audited accounts must be submitted within one month after 12 months of project implementation.

Final Report: For projects lasting up to 24 months, a final report and audited accounts, including all expenditure proofs, must be submitted within two months after project completion.

3. How to Enter the Mainland Market

Several well-known e-commerce platforms exist in mainland China, such as Taobao, Tmall, JD.com, and Pinduoduo. Hong Kong brands need to choose the most suitable platform based on their product characteristics and target audience.

Localization Strategy

Before entering the mainland market, it is essential to plan a localization strategy. This includes translating product descriptions and marketing materials into simplified Chinese and adapting them to mainland-specific language. Consider the preferences and shopping habits of mainland consumers, such as incorporating localized elements into product packaging or design to better attract them.

Digital Marketing: Leverage mainland digital marketing channels such as WeChat, Xiaohongshu, and Douyin.

Supply Chain Management: Efficient supply chain management is crucial. Consider setting up warehouses in mainland China or partnering with local logistics companies to ensure fast and efficient delivery services.

Customer Service: Establish a team capable of promptly responding to customer inquiries and complaints. Providing excellent customer service is key to gaining mainland consumers' trust.

Data Analysis: Use data analytics tools to understand consumer behavior and preferences, continuously optimizing products and marketing strategies.

Cross-border Payment Solutions: Apply for popular mainland payment methods, such as Alipay and WeChat Pay, to improve conversion rates.

4. Conclusion

The "E-Commerce Easy" Scheme provides an excellent opportunity for Hong Kong brands to enter the mainland e-commerce market at a relatively low cost. However, securing funding is just the first step. To stand out in the competitive mainland market, Hong Kong brands must thoroughly understand the market and continuously adjust their strategies. As cross-border e-commerce continues to develop, more Hong Kong brands are expected to succeed in the mainland market through the "E-Commerce Easy" Scheme, injecting new vitality into Hong Kong's economic growth.

For Hong Kong companies interested in applying for the "E-Commerce Easy" Scheme, OneStart Business Centre offers professional consulting and application services, with dedicated staff to follow up on cases. Call 3575 6888 or contact our business consultants via WhatsApp. Don't miss this golden opportunity to kick-start your brand's e-commerce journey in the mainland market!

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