Hong Kong Enterprises Integrate Art, Technology, and Marketing for Transformation and Successful Engagement with the Mainland Market
Hong Kong is actively establishing itself as an international innovation and technology hub. However, in comparison to its high-level foundational research and development, the technology sector has lagged behind. Meanwhile, the mainland has made significant achievements in the innovation and technology industry, with various technological products and services worthy of emulation. This engagement not only benefits Hong Kong's development as a world-class smart city but also maximizes the advantage of being "backed by the motherland and connected to the world." It aids mainland technology in reaching global markets.
X Social Group, headquartered in Hong Kong, is an art technology and marketing company with over 12 years of expertise and experience in brand marketing, Internet 3.0 technologies, medical technology, art technology, drone performances, and Victoria Harbour light shows.
In 2023, the company established its presence at Cyberport in Hong Kong. During the National Day and Mid-Autumn Festival celebrations that same year, they hosted the first drone performance over Victoria Harbour post-pandemic, coinciding with the vibrant events at the Wanchai waterfront. This initiative attracted over 250,000 visitors.
Interest from Mainland Enterprises in Low-Altitude Economic Experience
Leveraging their experience in conducting low-altitude economic activities in Hong Kong, including emergency firefighting drones and drone surveillance, several mainland low-altitude enterprises have approached X Social Group for collaboration, hoping to utilize the Hong Kong platform for international expansion.
"In the past, we could focus solely on perfecting our products in isolation. However, now, in addition to product development, we must actively align with national and Hong Kong policies to create richer resources and opportunities," explained Lon Hon Yuen Samuel. He cited that the national strategy positions Hong Kong as a center for cultural and artistic exchange between China and the world. The company's drone performances exemplify the fusion of technology, art, and business, utilizing the "aerial canvas" to showcase works from the Xu Beihong Art Museum and renowned Western paintings against the backdrop of Victoria Harbour.
In response to Hong Kong's proactive development of the low-altitude economy, X Social Group has also applied for the Special Administrative Region government's "Regulatory Sandbox," aiming to launch long-term drone performances and drone safety solutions for firefighting.
The Necessity of Integrating into National Development Strategies
Discussing the importance of integrating into national development strategies, Lin Hanyuan used the drone project as an example. He noted that mainland factories possess mature production capabilities, while Hong Kong primarily plays a role in adding value and providing application scenarios.
"Unlike the mainland, Hong Kong has limited takeoff points for drones and relatively constrained space. Therefore, we collaborate with mainland factories to communicate Hong Kong's specific needs and offer tailored solutions for drone hardware suited to Hong Kong's low-altitude economy."
Collaboration with the Mainland to Promote Drone Emergency Projects
Regarding drone emergency projects, close collaboration with the mainland is essential. He shared that partners in the mainland are researching drone firefighting technology. "Drones can patrol various scenarios 24/7, and once a fire is detected, AI-equipped cameras can assess the scene for hazardous conditions, allowing for different firefighting strategies such as dropping dry powder or spraying water."
Moreover, given Hong Kong's dense skyscraper landscape, some fire scenes are inaccessible by aerial ladders. Drones not only provide reconnaissance but can also transport emergency supplies, aiding in crisis response.
He specifically mentioned that some hospitals in the mainland are already using drones to deliver blood bags, organs, and testing samples. These technologies and case studies can significantly enhance the development of Hong Kong's low-altitude economy. Many mainland low-altitude enterprises wish to use Hong Kong as a platform for international expansion. "For instance, if drone performances can be successfully implemented in the densely populated and high-rise environment of Hong Kong, this technology could eventually be applied to major cities worldwide."
He believes that Hong Kong's positioning as an international hub bridging East and West, with its superior legal framework, culture, and language capabilities, is advantageous for attracting both mainland and overseas enterprises. Hong Kong companies must seize the opportunity to act as "super connectors," supporting mainland firms in their international ventures while also facilitating overseas companies in using Hong Kong as a platform to effectively access the potential markets of the mainland.
The Need for Continuous Innovation to Avoid Obsolescence
While there are abundant development opportunities in the mainland, Hong Kong companies must keep pace with the times to avoid being left behind. Samuel believes that in the past, businesses were primarily attracted to the demographic dividends of the mainland market, even if their products or services lacked high technical content. "For instance, in marketing, the sheer size of the market and population meant that simply participating could yield profits." However, we are now in an era of specialization. "If companies continue to offer identical products or services, they will no longer be appealing in the mainland market." Therefore, while the mainland market remains vast, he emphasizes that Hong Kong must effectively serve as a springboard and add value to maintain its competitive edge in the mainland market.
Samuel shared that since the company's founding in 2012, it initially focused on market-oriented cross-border initiatives. Over time, recognizing the gradual shift in technology and the numerous opportunities presented by the "Internet Plus" concept, as well as Hong Kong's development as a center for cultural and artistic exchange, the company transformed into an art technology firm. Subsequently, driven by drone performances, it ventured into the low-altitude economy. Additionally, with the government's policy report establishing Hong Kong as an international hub for medical innovation, the company also engaged in telemedicine projects. These initiatives are examples of aligning technology with market demands while closely adhering to the policies of both the national and Hong Kong SAR governments.
The Necessity of Transformation and Continuous Innovation
Samuel stated, "Transformation is essential, especially in the technology sector. In the past, companies might have taken a decade to mature, but now a complete cycle could take just two to three years. While we will continue to pursue our traditional business, we also recognize that using the same methods will make us vulnerable to market obsolescence." Therefore, continuous innovation is imperative.
Samuel believes that the technology industry is currently facing a survival-of-the-fittest scenario. "If a company takes the wrong direction or fails to transform smoothly, it can quickly be eliminated from the market." Hence, it is crucial to stay informed about the policies of both the national and Hong Kong SAR governments. "These policies can have a positive impact; for instance, the government's policy report promoting the low-altitude economy has prompted us to increase our investments in drone technology and apply for the government's 'Regulatory Sandbox,' thereby creating experimental scenarios." Such policy support instills greater confidence in companies to allocate resources and hire talent effectively.
Targets Mainland Healthcare Demand with Telemedicine, Attracting 158 Million Users
With a population exceeding 1.4 billion, China is one of the world's largest consumer markets, and the Guangdong-Hong Kong-Macao Greater Bay Area alone has over 80 million consumers, offering substantial market potential. "Silver Leaf Internet Hospital" has identified the healthcare needs of mainland residents and developed an online consultation system, electronic prescriptions, and medical records management, achieving a user base of 158 million, with an average of 300,000 daily users. The platform boasts an average waiting time of just five minutes for video consultations, making it particularly suitable for patients with mild ailments, chronic conditions, or mobility issues. Additionally, medications are delivered within three hours via drones, enhancing convenience for citizens.
"Waiting times for medical appointments are not just an issue in Hong Kong; they can be lengthy in the mainland as well. Our partners, Lawrence Yip and Timothy Wong, recognized this public concern as early as 2019 and began to address it through technology," stated Non-Executive Director Samuel Lam. Yin Ye Health collaborates with platforms such as Meituan, Alibaba Health, Ele.me, and Pinduoduo, leveraging physical healthcare institutions to provide remote consultations and prescriptions through professional doctors via images and videos.
"On this platform, even if a patient needs to consult a specialist such as a neurologist or ophthalmologist, they can immediately select from dozens of available doctors. Both traditional Chinese medicine and Western medicine services are included, and patients can choose to consult via text or video."
The system also stores user medical histories, allowing each doctor to access a patient's past records and prescribed medications upon their first visit. "This database helps doctors understand the patient's condition at different points in time." Coupled with logistics support, medications can be swiftly delivered to patients' doorsteps, with deliveries typically arriving within a day, and in some urban locations, within two hours. Emergency situations can also be addressed with drone deliveries.
"Telemedicine is particularly suitable for long-term or mild patients. For serious emergencies, we recommend that patients seek care at physical hospitals, which helps to alleviate the burden on healthcare facilities by preventing unnecessary queues. We are seeing significant market demand for this approach." Given its success in the mainland, Samuel revealed plans to launch a version of the system for Hong Kong and overseas markets this year, enabling mainland citizens to connect with Western doctors via telemedicine, and expanding to include mental and emotional health issues, such as art therapy.
Support from Cyberport for Enterprise Development
In Hong Kong, there are numerous platforms that support the development of innovation and technology enterprises. Lin Hanyuan highlights that Cyberport serves as an excellent support platform for innovation and technology. It facilitates business matching, attracts investors, and provides opportunities for presentations, all of which help promote companies' technologies on an international scale. "Since we operate across various industries, approaching each sector individually can be quite challenging. Cyberport understands our background, case studies, and capabilities, and helps us connect with government departments, which is crucial for those involved in emerging technologies."
X Social Group has applied for the government's "Regulatory Sandbox" initiative and has chosen Cyberport as the testing ground. Their goal is to launch a long-term drone performance and drone firefighting safety program. "Cyberport offers stunning sea views and hosts numerous events throughout the year. Our drone shows can significantly enhance these activities." In the long run, there is potential to link this initiative with Ocean Park and Aberdeen Typhoon Shelter, creating a low-altitude economic zone in the southern part of Hong Kong Island.
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