Chord Insights | January 2025
Redefining Target Audiences in Asset Management Sector: Embracing a New Generation of Investors.
Pricing vs. Branding in Asset Management: Lessons from Deliveroo’s Exit
The abrupt departure of Deliveroo from Hong Kong—a brand lauded for its creative campaigns and cult-like customer loyalty—has ignited a fiery debate: Can even the most polished marketing withstand the pressure of cutthroat pricing? The rise of Keeta, a mainland-backed food delivery platform that undercut rivals with aggressive discounts, suggests that in some industries, price might be the ultimate trump card. But what does this mean for Hong Kong’s asset management sector, a crowded arena with over 1,800 licensed firms? Does competing on cost eclipse the need for brand-building and storytelling? Or is this a false dichotomy in a business where trust and differentiation are paramount?
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ETF vs. Active Funds: Why Marketing Strategy—Not Just Cost—Is Reshaping Investor Choices.
The rise of exchange-traded funds (ETFs) has been one of the most disruptive trends in asset management. While lower fees and transparency are often cited as drivers of their growth, another critical factor is overlooked: ETF marketing strategies are fundamentally redefining how investors engage with financial products. As active funds lose ground, the industry must confront a pivotal question: Is their reliance on traditional distribution channels stifling their ability to compete in a digital-first, investor-centric era?
READ MOREHong Kong’s asset management industry has long catered to a well-defined clientele: high-net-worth individuals (HNWIs) and institutional investors. However, seismic shifts in the city’s demographic and economic landscape are challenging this traditional focus. With an influx of Mainland Chinese professionals, a rising cohort of young, digitally native investors, and evolving wealth distribution, asset managers must rethink their approach to audience targeting—or risk losing relevance in a rapidly diversifying market.
The Rise of New Investor Profiles
The migration of Mainland professionals to Hong Kong, driven by the city’s role as a global financial hub, has introduced a growing segment of affluent, ambitious individuals. Unlike traditional HNWIs, many of these professionals are self-made, tech-savvy, and prioritize cross-border investment opportunities that bridge Mainland China and international markets. Simultaneously, younger generations —millennials and Gen Z—are accumulating wealth earlier, often through entrepreneurship or fintech-driven platforms. Their priorities differ sharply from older cohorts: they demand transparency, sustainability (ESG-focused investments), and seamless digital engagement.
Why Traditional Strategies Fall Short Many asset managers still rely on legacy playbooks: relationship-driven private banking, in-person consultations, and products tailored to static risk profiles. But these methods struggle to resonate with newer audiences. Younger investors, for instance, favor self-directed research via social media and apps, while Mainland professionals may seek hybrid solutions that reflect their bicultural financial needs. A one-size-fits-all approach risks alienating these groups, who value personalization and agility.
Adapting to the Shift
To stay competitive, asset managers must adopt a dual strategy:
Hyper-Personalization: Leverage data analytics to segment audiences beyond wealth brackets. For example, create offerings for expatriate Mainland professionals (e.g., tax-efficient cross-border portfolios) or thematic ESG products for younger investors.
Digital-First Engagement: Build omnichannel experiences—think AI-driven robo-advisors paired with human expertise—to cater to tech-dependent clients. Platforms like LinkedIn, WeChat, and TikTok are critical for education and trust-building.
Cultural Fluency: Understand the unique aspirations of Mainland clients (e.g., wealth preservation amid geopolitical shifts) and the values-driven mindset of younger generations.
The Bottom Line
Hong Kong’s investor base is no longer monolithic. Asset managers that diversify their outreach, embrace technology, and align with the nuanced priorities of emerging client segments will not only survive but thrive. In a market where change is the only constant, flexibility and innovation are the new currencies of trust
