UST113 HK Tramways

HBP Product ID: ST113
UST113
CORAL PUIG GARRIGO

MINYI HUANG
The Hong Kong Tram: A Ride from Heritage to Lifestyle Branding
Hong Kong locals are particularly fond of the tram they affectionately call the Ding Ding,
an integral part of Hong Kong.
- Cyril Aubin, Managing Director, Hong Kong Tramways1
Hong Kong Tramways (HKT), first established in 1904, was an icon of Hong Kong. The trams were
all designed, manufactured, and maintained locally in Hong Kong. Locals gave it the nickname “Ding Ding”
to mimic the double-bell ring when a tramcar approached a stop. Ding Ding was a local public transport
that traversed along the north side of Hong Kong Island. Ding Ding witnessed the city’s growth and changes
over a century, while being a must-see tourist attraction, making it unique from trams in other cities globally.
Having witnessed the trend of declining ridership over the years, HKT started rebranding in 2017 by
changing its logo. Later, HKT opened up a new revenue stream by developing partnerships to introduce a
wide range of innovative merchandise. Within two years, HKT successfully developed its heritage and
lifestyle branding and managed to work simultaneously with both B2B and B2C business models.
Nixon Cheung, the head of Commercial and Brand was the mastermind behind HKT’s innovative
initiatives. While HKT had successfully rejuvenated its brand and made it more appealing to the younger
generation, Nixon was contemplating how to make Ding Ding stay competitive and innovative in the years
to come. After introducing an array of trial products, Nixon wanted to review what HKT did to achieve the
successful repositioning into a heritage and lifestyle brand company. Based on the brand image, how should
HKT justify and transform those successful trial products into real businesses? Also, how could HKT
leverage the existing B2B and B2C business models?
1
HK Tramways, “Hong Kong – China: A time-honored, iconic tram perfectly blending past and present,” 2021,
https://www.ratpdev.com/en/references/china-hong-kong-tramway, accessed 14 May 2021.
Dr. Minyi Huang prepared this case under the supervision of Professor Coral Puig Garrigo solely as a basis for class discussion.
The authors have disguised certain data to protect confidentiality. Cases are written in the past tense; this is not meant to imply
that all practices, organizations, people, places or facts mentioned in the case no longer occur, exist, or apply. Cases are not
intended to serve as endorsements, sources of primary data, or illustration of effective or ineffective handling of a business
situation.
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Last edited: 21 April 2022

HKUST Business School Thompson Center for Business Case Studies
Public Transportation Industry in Hong Kong
Hong Kong has a well-developed transport system, which is among the top-rated globally in
rail infrastructure, safety, environmental impact, ticketing system technologies, and
electronic services.
- McKinsey Report2
Hong Kong had developed a comprehensive public transportation system and was often ranked among
the top cities with the best public transport networks in the world [Exhibit 1]. The public transportation
modes included buses, minibuses, taxis, railways, trams, and ferries. In the first half of 2020, around 8.9
million passenger journeys were made with public transportation every day, down from 12 million on a
normal day before the COVID-19 pandemic.
By 30 June 2020, besides Ding Ding, the following public transportation modes worked together to
provide a city-wide service network [see Exhibit 2 for a map of Hong Kong]: 3
 Buses and Minibuses:

 The Kowloon Motor Bus Company (KMB) had a fleet of 4048 air-conditioned buses
operating 354 bus routes in Kowloon and the New Territories and 65 cross-harbor routes.
For urban routes, its fares ranged from HK$3.2 to HK$13.4.
 The New World First Bus Services had 681 air-conditioned buses serving 47 Hong Kong
Island routes, 33 cross-harbor routes and 13 Kowloon and Tseung Kwan O routes, with
fares for Hong Kong Island routes ranging from HK$3.4 to HK$12.3.
 Citybus Limited had 771 air-conditioned buses serving 52 Hong Kong Island routes and
35 cross-harbour routes, with fares for Hong Kong Island routes ranging from HK$2.7 to
HK$11.4.
Additionally, there were 67 main green minibus routes with scheduled services serving Hong Kong
Island, with fares that were normally higher than regular buses.
 Taxis: There were 15,250 urban taxis (red) along with New Territories taxis (green) and Lantau
taxis (blue). As stipulated in the law, urban taxis charged HK$24 for the first two kilometres or
shorter distance, then HK$1.7 for every subsequent 200 meters and every waiting period of 1
minute until the total amount reached HK$83.5. After HK$83.5, HK$1.2 instead of HK$1.7 was
charged.
 Mass Transit Railway (MTR): MTR, which had been operating since 1979, had a total length of
262.2 km and its fares ranged from HK$4 to HK$63.5. The MTR carried an average of 3.39 million
passengers on a daily basis. MTR provided nine main lines serving HK Island, Kowloon, and the
New Territories, the Airport Express to connect the airport with city centres, and intercity railway
services and High Speed Rail to travel to Mainland Chinese cities.
2
Stefan M. Knupfer, Vadim Pokotilo and Jonathan Woetzel, “Elements of success: Urban transportation systems of 24 global
cities,” June 2018, https://www.mckinsey.com/business-functions/sustainability/our-insights/elements-of-success-urban-
transportation-systems-of-24-global-cities, accessed 21 June 2021.
3
Transport Department, “Hong Kong: The Facts – Transport,” September 2020,
https://www.gov.hk/en/about/abouthk/factsheets/docs/transport.pdf, accessed 23 May 2021.
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UST113 The Hong Kong Tram: A Ride from Heritage to Lifestyle Branding
 Ferry: The “Star” Ferry Company, established in 1888, offered two cross-harbour services, with
adult single journey fares costing between HK$2.2 and HK$3.7. Other ferry companies offered the
remaining cross-harbor and outlying island passenger ferry services.
Compared to other public transport, Ding Ding was the most affordable [Exhibit 3] and
environmentally friendly way to travel around Hong Kong Island.
The trams are special for many reasons. Apart from being very convenient, this very old
public transport system has strong links to the past and is well loved by Hong Kongers.
Worldwide, it is the only double decker tram in commercial service also with one of the
lowest ticket prices. It offers a completely different way to travel. It’s like going back in time,
but in reality, it travels at its own pace, allowing you to relax in a trendy way. The windows
are open and you have a good view from the upper deck so you can really connect to the city.
You won’t see many people glued to their mobile phones when they’re on board; they are
enjoying the city instead, looking at the people and the shops. There’s a kind of magic when
you’re on board the tram that you don’t get on the metro or bus. It’s a unique experience
you won’t find anywhere else but in Hong Kong.
HKT did not consider other public transport modes as rivals, but rather worked with the providers or
looked at their services and offers for inspiration. For example, the KMB-Tram interchange discount
allowed passengers who used their octopus cards to ride the KMB-operated cross-harbor routes to ride on
trams for free within three hours. While ferries mainly served tourists, the more approachable HKT was
primarily focused on serving locals, with tourists only making up a small portion of passengers.
Hong Kong Tramways
Company Background
Ding Ding has been providing safe and joyful rides for the community over 117 years. This
renowned city icon will keep going to do its best in making everyone in the city proud and
stanDING by every citizen through thick and thin.
When the company was first established, the first fleet was made up of 26 tramcars, all of which were
single-deck [see Exhibit 4 for a brief company history]. Having served Hong Kong for over 100 years,
HKT witnessed and became part of the city’s history.
Ding Ding operated 30 kilometers of track between the east and west of Hong Kong Island’s north
shore [see Exhibit 5 for the tram map]. An entire journey from the Kennedy Town depot to the Shau Kei
Wan depot was 13 kilometers long and took about 90-100 minutes. Ding Ding could travel at a maximum
speed of 50 kilometers per hour (kph) but typically moved at no more than 43 kph. Since Ding Ding
4
Wendy Kay, “Staying on Track: Cyril Aubin,” The CEO Magazin, 19 March 2020,
https://www.theceomagazine.com/executive-interviews/transportation-logistics/cyril-aubin/, 3 June 2021.
5
HK Tramways, “Tram Ambassador ‘Ding Ding Cat’ joins hands with ‘CAT IS CAT’ to wish you Good Health Good Luck in the
Year of the Ox,” 10 February 2021, https://www.hktramways.com/media/files/press-releases/20210210_CNYTram_EN.pdf,
accessed 14 May 2021.
ST113 3
travelled at a relatively low speed, the journey was usually regarded as a leisure ride, passing through the
historical area in Sheung Wan, the financial district in Central, the commercial districts in Causeway Bay
and Wan Chai and connected them with the residential areas on Hong Kong Island. With the average
distance between two stops being 250 meters, passengers could easily hop on and off between the 120 tram
stops. 6 TripAdvisor rated Ding Ding rides as one of the top-20 popular things to do in China and one of the
top-6 in Hong Kong.7
HKT was the only transportation system in the world that designed and manufactured trams locally.
Since a small mechanical change could affect the whole system, the technically fine-tuned process required
HKT to combine tradition and modernity, legacy systems and high-tech adaptations. The main technologies
used in Ding Dings remained unchanged over the years, apart from improvements in the braking system
and development of a control center to regulate traffic to prioritize traveler safety. HKT also used advanced
technologies to improve services. They were exploring incorporating audio guides for tourists to understand
Hong Kong’s past and future while riding the tram and the “Smart Ding Ding” project to improve tram
services. Besides updating IT infrastructure, database, and the ticketing system, the project would improve
tram positioning accuracy up to 5 cm and install new control room software, algorithm-based real-time
scheduling optimizer and in-vehicle real-time safe driving assistance functions.
Corporate Management
HKT was fully acquired by RATP Group in October 2020. HKT was under RATP Dev, which belonged
to RATP Group, with its ultimate owner being the Government of France. HKT wanted to become “the
world’s most iconic and ingenious tramways,” emphasizing passion, trust, partnership, ingenuity, and
agility as the core values. 8 HKT aimed to develop Ding Ding into a globally recognizable icon of the
greenest, most affordable, and most joyful transport mode in Hong Kong.
Cyril Aubin, Managing Director of HKT, worked as an architect for four years before filling various
RATP positions including Bus Line Manager, Operations Director, Head of LRT Division and Project
Manager of RATP Dev, and then relocating to Hong Kong in 2016.
HKT had five departments [see Exhibit 6 for the organizational chart]. The Operations department
managed tram drivers. The Engineering department was responsible for the engineering and maintenance
of trams. The Finance department and Human Resource department managed back-office operations. The
Commercial and Brand department was responsible for searching for and grasping business opportunities.
HKT employed around 600 staff members, some of whom had worked for the company for 30-40 years.
For a team to be creative, we have some creative people who can think out of the box, say
crazy things and don’t mind arguing, even with the boss. Then, we also have some people
who always look at the risks and challenges. We have them discuss thoroughly what are the
pros and cons. This drives the innovation.
- Nixon Cheung, Head of Commercial and Brand, Hong Kong Tramways 9
6
Matthew Keegan, “Why a Tram Ride Is the Best Way to Explore Hong Kong,” 8 October 2018,
https://theculturetrip.com/asia/china/hong-kong/articles/why-a-tram-ride-is-the-best-way-to-explore-hong-kong/, accessed 14
May 2021.
7
Gavin, “Hong Kong Tramways – One of China’s Top 20 Most Popular Attractions,” 18 March 2021,
https://www.chinahighlights.com/hong-kong/transportation/tram.htm, accessed 24 May 2021.
8
Hong Kong Tramways, “Key Figures,” https://www.hktramways.com/en/about-hong-kong-tramways, accessed 14 May 2021.
9
Interview with Cyril Aubin and Nixon Cheung on 1 June 2021 at Whitty Street Tram Depot, Hong Kong.
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Nixon’s department had five people, including himself. The department had a yearly plan, along with
individual KPIs. They were able to organize milestones for each project using their monthly calendar, which
helped the teams understand how to coordinate. Each year they had four or five milestones that were called
“big rocks,” which were then broken down by quarter, by month, and finally, by actions.
We are in a continual process of researching what fundamentally characterizes trams and

thereby finding what their profound contribution to improving well-being in the city could
be. It also means respecting what people expects from Trams. Today, we work on developing
a classy and inclusive image and brand, which means quality, trustworthiness, heritage,
respectfulness, positive, and human-centric values.
Externally, HKT kept good relationships with the public and government, staying politically neutral,
which was in line with the public expectation. Internally, HKT supported its staff and worked with them to
ensure they felt happy and proud of the company. By emphasizing teamwork, the company made its staff
feel safe and gave them a sense of belonging. Regular communication with motormen further contributed
to creating this safe environment. The company not only organized activities, such as Monopoly
competitions and beer or mooncake tastings, to engage staff, but also regularly communicated the
importance and responsibility of carrying out public transport services, leading to company and brand pride
among employees. During the COVID-19 pandemic (2020), HKT had zero layoffs, instead increasing the
headcount by 5%. While staff turnover rates were at the market standard, HKT’s absenteeism rate was
about 2.5%, much lower than the industry’s average of 6-8%.11
Trams were running every day, so staff had specific duties and obligations to ensure the system was
operating safely and properly. For example, the TramOramic Tour was scheduled at non-rush hours in order
to avoid worsening traffic jams. Trams were expected to accommodate various stakeholder expectations,
such as those from the company’s management, the public, and the government, which meant the company
had limited room for manoeuvre and needed to find innovative ways to make improvements on technologies,
services, and branding.
Business Models
Traditionally, HKT had two revenue pillars: ridership and advertising. These pillars accounted for over
95% of the total current revenue12, with ridership revenues gradually declining, and advertising revenues
rising. A third pillar, merchandising, was an attractive new potential revenue stream.
Ridership
In the latest Nielsen Survey, we score 4.29 out of 5 and rank the first among public
transportation in HK. People in HK consider trams as a complementary function rather than
a dominating function if they want to go somewhere. Nielsen’s 2021 passenger survey
suggests 83% of tram users and 81% of non-tram users consider trams represent the history
of Hong Kong, more than just transportation. The tram won’t sell itself if it is treated only
10
11
12
Interview with Nixon Cheung on 4 June 2021 in Hong Kong.
ST113 5
as a transportation. You really have to add people’s desire, to think about the brand, and to
immerse that brand value and to align with what people expect.
With ridership in decline, traffic revenue had been dropping since 2011 [Exhibit 7]. Despite the fare
increase in 2018, traffic revenue dropped by HK$30 million when compared with 2011.14
In 2021, HKT owned and operated a fleet of 165 tramcars, carrying an average of 200,000 passengers
a day. 15 The Guinness World Record Campaign granted HKT’s first award for “the largest double-decker
tram fleet in service” on 30 July 2021. To celebrate and share this world-class honor and joy with its
supporters and the general public, HKT set up a World Record Pop-Up Store, HKT’s first mall pop-up store,
in ArtisTree, Quarry Bay [Exhibit 8]. HKT also held a photo exhibit titled “RecorDING our moments”
with Leica HK to highlight trams’ proud moments in Leica Flagship Store, Causeway Bay, and collaborated
the first time with the Hong Kong Philharmonic Orchestra to produce a specially prepared orchestral piece
named “Ding Ding Music.” 16 HKT introduced a collection of limited-edition tram-themed products, such
as Guinness World Records™ Honour Tram Model and Guinness World Records™ Licensed
Commemorative Limited Edition Octopus Card Collection.
Apart from regular tramcars, HKT operated a “TramOramic Tour” sightseeing tramcar, two antique
party tramcars, and one premium party tram named Tram No.18.
 The “TramOramic Tour,” launched in January 2016, was a one-hour sightseeing journey in a 1920s-
style open top tramcar equipped with free WiFi.17 Passengers could hear local stories told in eight
languages on board. The fares were HK$150 (adult) and HK$95 (child).
 Party tramcars had open-top upper decks, which enabled passengers to enjoy a full view of Hong
Kong’s nightlife while leisurely strolling along the track on Hong Kong Island. The tramcars also
offered catering services, and could be hired by individuals, or by companies for marketing and
promotional activities under the company name [Exhibit 9]. 18
 Tram No.18 was a premium party tram targeted for business usage, involving B2B transactions. It also
encouraged and supported creativity in Hong Kong with onboard artistic programs. The tram had three
thematic rooms which could hold artistic salons and cultural exchanges, official and diplomatic
receptions, corporate and private functions, and social welfare activities for underprivileged groups. 19
To comply with the government’s pandemic prevention policies, the “TramOramic Tour” service had
been temporarily suspended since 23 March 2020, while party trams were suspended from time to time,
depending on the situation of COVID-19.
13
14
Information provided by the company, on 1 June 2021.
15
Hong Kong Tramways, “Vision, Mission and Values,” https://www.hktramways.com/en/about-hong-kong-tramways, accessed
14 May 2021.
16
Adapted from the song called "Typewriter" (https://youtu.be/nW8dGwa2zRw), “Ding Ding Music” was rearranged and replaced
the sounds of typing on a typewriter in the original song with the iconic “Ding Ding” sound of the tram. “Ding Ding Music” is
available on https://www.youtube.com/watch?v=MLaHZyWNPuE.
17
Hong Kong Tramways, “Book a TramOramic Tour,” https://www.hktramways.com/en/tramoramic/, accessed 14 May 2021.
18
Hong Kong Tramways, “Charter Your Party Tram,” https://www.hktramways.com/en/book-your-party-tram/, accessed 14 May
2021.
19
CIRCUS Tram, “About CIRCUS Tram,” https://circustram.com/about.html, accessed 14 May 2021.
ST113 6
Tram Advertising
Traditionally, tram body and tram shelter were the two main channels of tram advertising. HKT had a
tender every five years. Nixon spent most of his time on improving customer experiences and developing
strategic, financial, and branding products. Nixon occasionally needed to work with the vendors, such as
accommodating their special requests or supporting companies that booked many trams for special events.
Advertising revenues grew considerably over the years, but they reached a plateau and flattened
[Exhibit 10]. Like all other non-traffic revenues such as tram parties, advertising was very sensitive to the
local economy. 20
Tram Body
Ding Ding was considered a historical icon of Hong Kong. In 2006, JCDecaux Cityscape, a Hong
Kong-based advertising company, first introduced the advertising concept – “Icons of Hong Kong” for
trams. The company transformed 140 tramcars to become an attractive medium for brand advertising, which
allowed clients to raise brand awareness in prime business and shopping areas on Hong Kong Island over
15 times a day. It was regarded as a “stylish, chic, and prestigious” way of advertising. Tramcar advertising
raised more public awareness effectively, as it connected the key commercial and shopping areas with
surrounding residential districts on Hong Kong Island. The tram body of the Bright Ring Tram was
equipped with LED panels, so that ad messages were visible and eye catching at night. 21
The illuminating nature of the Bright Ring Tram caught our attention with its potential to
create strong visual impact and deliver our brand and product message to a wide audience.
The bright, moving message effectively captured the public’s attentions and created
conversations.
- Ramsy Yeung, Chief Marketing Officer, Cigna Worldwide Life Insurance Company Ltd. 22
A tramcar could also be transformed into an “ADventure Tramcar” for special events. ADventure
Tramcar was developed exclusively for brands to create engaging experiences for their target audience.
Italian luxury brand Moncler was the first advertiser to run an ADventure Tramcar campaign, which they
did for their citywide launch, called “Destination Hong Kong,” in November 2017. The brand decorated
the inside and outside of a fleet of tramcars in bold and clean style. Numerous 19-inch tall figurines of its
brand ambassador, Mr. Moncler, were debuted on the upper deck of the Tramcars [Exhibit 11].
Tram undoubtedly is a true cultural icon of Hong Kong. It is an ideal medium perfectly in
line with our theme “Destination Hong Kong” and helped raise awareness of our new
flagship launch.
- Moncler Asia Pacific Ltd23
20
Information provided by the company on 1 June 2021.
21
Jcdecaux Cityscape, “Icons of Hong Kong: Tramcar – showcase the world’s most celebrated brands with HK’s heritage icons,”
https://www.jcdecaux-cityscape.hk/hong-kong/products/tramcar#bright-ring-tramcar, accessed 23 May 2021.
22
Ibid.
23
Jcdecaux Cityscape, “Mr Moncler Hops on ADventure Tram,” https://www.jcdecaux-cityscape.hk/news-and-press-releases/mr-
moncler-hops-adventure-tram, accessed 23 May 2021.
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Tram Shelter
Cody had been HKT’s business partner for tram shelter advertising since 2017. Cody provided outdoor
advertising solutions to connect on-the-go commuters with brands in major tunnels, busy financial and
commercial districts, and taxis in Hong Kong. Tram shelters drew immediate attention in the middle of the
road at the busiest commercial, shopping and residential districts, enabling adaptive targeting and
connection with local communities.
Rebranding Process
We never put non-transport activities as a priority before transport. First of all, we want to
be a useful, convenient and enjoyable daily transportation solution for HK people. To be
strong on our core function and reason-to-be is our foundation. If we are good at that, we
can then find opportunities to offer more.
Before rebranding, HKT was already a beloved brand and its main objective was to increase ridership.
With declining ridership revenue and flattened advertising revenue growth, HKT was seeking a new
revenue stream – merchandising.
It is the overall experience with customer experience and safety all working together, not
only the brand. The brand is like the external face of all these consolidated, making people
feel like the tram is more approachable, not just a transportation.
In May 2017, HKT collaborated with a local branding agency to unveil its new logo together with the
launch of a creative campaign to convey the brand’s slogan “Catch a ride, Catch a smile”, bringing
passengers a pleasant journey. The updated logo used a green color, with reference to its branding as the
most affordable and greenest mode of transportation on Hong Kong Island, and featured the narrow double-
decker with a smiling face [Exhibit 12]. This marked HKT’s first re-brand since 1974, and the efforts
gained full support from the headquarters.
Later, HKT developed the “Tram+” theme which included a wide range of innovative products from
F&B, lifestyle commodities and luxury accessories [Exhibit 13]. HKT wanted to make the brand more fun
and sustainable by business expansion, integrating seamlessly in HK people’s lifestyle.
Tram+ means the tram plus something, a tram-inspired lifestyle with character. It is more
than just a transportation in HK. It represents the city. It means diversity, quality, companion,
creativity, well-being, and sustainability.
DING became an eye-catching word for HKT. For example, the company’s Facebook page, which
showed street views from trams, was called “recorDINGourcity”.
24
25
26
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Mascot: Ding Ding Cat

Ding Ding Cat, a mascot character, was introduced as a new communications messenger to attract the
attention of the general public and build brand value.
On August 2020, Ding Ding Cat was appointed as HKT’s Ambassador to spread pandemic precaution
messages, such as keeping tram windows open. This was also a unique feature of trams as other public
transportation were only equipped with air conditioning and closed windows. Keeping tram windows open
could ensure tram cabins were well ventilated and help minimize the risk of virus spreading.
Ding Ding Cat was publicized on various online and offline platforms, and appeared on tram bodies to
reflect different themes in special occasions and campaigns. Ding Ding Cat hoped to bring a positive spirit
to the community and invite everyone to enjoy a tram ride. Ding Ding Cat was featured in WhatsApp
stickers, which achieved a huge success with over 350,000 downloads. Ding Ding Cat appeared both in
HKT’s merchandises and in its festival greeting videos [Exhibit 14]. Ding Ding Cat was also used in the
videos not only to demonstrate tram ridership etiquette but also to share pandemic related tips.
HK Tram Green as an Official Pantone Color

After World War II. HKT furnished the tram bodies using the most commonly found and economical
paint left from wartime, which resulted in green becoming HKT’s iconic colour. In July 2021, HKT worked
with Pantone Color Institute27 to create a new signature dark green shade, the “HK Tram Green.” HKT also
launched the first “HK Collection” with Home and Lifestyle Retailer ISSHO46. The collection used six
colours present in iconic Hong Kong elements, from the tram to landmarks and local cultural icons such as
HK Skyline and HK wet market red lanterns, for products including T-shirts, cups, and coaster sets.
This collection aimed to leverage the colour in design to preserve and celebrate the history and heritage
of Hong Kong’s rich social and cultural past while communicating a vision for the future. The HK Tram
Green aimed to showcase this unique, globally renowned mobile landmark as a pleasurable mode of
transport – one whose ability to bring people together nourishes a sense of connection with others and
creates a welcoming feeling of community.
This unique green shade will be included into a collection of six colors specially selected
from the Panton Color system. We appreciated the opportunity to work with HK Tramways
to create a color that could showcase the historical and cultural significance of the HK Tram
within Hong Kong
- Laurie Pressman, Vice President of Pantone Color Institute 28
Tram No. 30 and No. 88, dressed as a Pantone color chip, were driven around the city. Pantone Color
Institute described “HK Tram Green” as a “vivid and verdant deep grassy green that celebrates the heritage
27
The Pantone Color Institute based in the U.S. is an international authority on colour. Its codified colour standards are used by
professionals, including architects, designers and paint manufacturers. But HK Tram Green is not codified in the color system.
28
Marketing Interactive, “HK Tram Green now an official Pantone colour for the world to see,” 21 July 2021,
https://www.marketing-interactive.com/hk-tram-green-now-an-official-pantone-colour-system-for-the-world-to-see, accessed 21
July 2021.
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and cultural significance of HKT and its unique distinction as a globally recognized iconic mobile
landmark.” 29
The “HK Tram Green” color had the following four objectives: 30
 To continue to show HKT’s commitment to safety and environmental sustainability.
 To exemplify HKT’s openness and welcoming spirit that echoed with Hong Kong people’s creative
mindset.
 To operate as a public transport with zero road emissions that enables passengers to relax,
rejuvenate and replenish.
 To provide a mindful journey, encouraging connections with others and the community.
Rebranding Strategies
Companion
In the past, people only saw trams as a mean of transportation on HK Island. This had changed as HKT
tried to penetrate daily life, increasing brand awareness and impression. For example, people could see tram
toys at Toys“R”Us and tram desserts in supermarkets. This also helped remind people to take the tram when
on Hong Kong Island.
Before 2019, HKT did not own any retail facilities such as shops or distribution outlets. Later, when
choosing partners, HKT wanted to find those with an online presence, knowing that digital would be the
trend. HKT had 45 online shops. It worked with Kee Wah for cookies, which became the best seller for a
number of years. As of 2021, HKT had over 1,000 sales and distribution outlets including supermarkets.
Their product line included cookies, ice-creams, umbrellas, clothing, beers, jeans, and rice water, which
was described as “the consolidated franchised coded products.”
HKT had more than 1,000 ad publications. Since tram service was limited by its geographic location,
the company had many ad publications outside of Hong Kong Island, which encouraged consumers to buy
from HKT, regardless of where they lived.
The Ding Ding Diary was the first direct interaction with the public, which took place before
Nixon joined. My frustration at that time was that our message was too restricted to nostalgic
emotion “When I was a kid, I was taking the tram with my grandpa...” It is a great fact, but
it is too exclusive. I want it to be wider, more fun and more in the present… This is definitely
what Nixon has achieved. He exactly understand what I have in mind to make it much more
young, fresh and up-to-date. The heritage is our foundation, we like exponentially to bring
the contrast. What is the real value of our brand now is the contrast. We hope that people
will see us and think 'Oh you [HK trams] are so old, but you [the brand] are so fresh. We
like it.
29
Marketing Interactive, “HK Tram Green now an official Pantone colour for the world to see,” 21 July 2021,
https://www.marketing-interactive.com/hk-tram-green-now-an-official-pantone-colour-system-for-the-world-to-see, accessed 21
July 2021.
30
Ibid.
31
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As part of the rebranding process, HKT redesigned the look and contents of its social media to make it
more appealing to the younger generation, and all the tram stations’ names began using the new logo. These
subtle changes, along with new brand exposure, made the public feel “we are not sure what has changed
exactly.” In terms of advertising, HKT worked hard on improving advertising quality and changed its
products’ design and packaging and the exterior design of the trams.
Diversity and Quality through Partnership

We use partnership strategy, so we didn’t have much budget to invest in transforming the
brand. What we have been doing is to leverage on the partners’ resources, maybe they have
great distribution channels, or they have great R&D capabilities, or they have great
designers. For us, we have the exposure, the brand and the tradition.
When Nixon first joined HKT in 2019, it did not attract active business partners to initiate partnerships
because the brand was regarded as too traditional and too rigid. Within two years’ time, companies like
Sanrio, the brand owner of Hello Kitty, were interested in HKT partnerships. During Christmas time in
2020, HKT and Sanrio introduced a series of accessories, including keychains, lapel pins, and stickers,
featuring Sanrio characters like Hello Kitty and Little Twin Stars taking the trams.
HKT positioned itself as “old age young heart,” and it was important to show partners that they were
young at heart. HKT respected the past, but they innovated towards the future. All of the trams were 100%
made in Hong Kong, something that HKT considered a selling point to its business partners. To rejuvenate
the brand and to create synergies with business partners, HKT aimed to partner with local brands that were
made in Hong Kong. HKT wanted to collaborate with the brands that were up-and-coming or start-ups with
high potential to offer premium quality products. Then, the concept of craftsmanship concept was a way of
expressing respect for cultural and technological heritage. HKT depot was the only factory on the entire
HK Island.
HKT offered a range of branded products, including block building trams, model trams, toy trams,
books, stationeries, clothes, travel essentials (key rings, badges, bags etc.), jewelry and watches. HKT also
made a unique HKT Monopoly game, incorporating popular Hong Kong tram stations and different tram
models and accessories as the bespoke tokens [Exhibit 15].
We don’t have a very exact target segment, but very generic and general target segments.
We normally segment the market by the upcoming trend. For example, educational business
is growing, and we did a market research and have found that the next generation may not
know trams as well as the others. So we need to put some efforts to educate them to be the
next generation of tram users. We also have different strategies on Facebook, Instagram and
social media for mainland China. Facebook is more content-base. For Instagram, we have
more artistic, cultural-based and story-based contents.
32
Nixon Cheung, “Alumni Online Sharing: Brand Transformation of the 116-Year-Old Hong Kong Trams,” HKUST Business
School Ideas Lunch Series, Hong Kong, February 25, 2021.
33
Ibid.
ST113 11
HKT also worked with the Hong Kong University of Science and Technology (HKUST) on STEM
products, as education was believed to be the future. It made perfect sense for HKT to branch out into
education, as it was related to engineering and had a vision of promoting its legacy and heritage. HKT
planned to use the education channel to simultaneously promote STEM and lifestyle branding. HKT was
also building the “tramplus” brand (https://www.tramplus.net/), the education pillar with B2C educational
products established and B2B school programs curated, targeting over 1,000 schools in HK.
Starting from scratch, HKT developed over 35 brand partnerships in 2019 and 2020. In partnership
deals, HKT offered advertising placements for its business partners, while the latter invested in R&D and
developing new products. HKT changed its role from a vendor to a partner, and did not need to worry about
inventory and storage. Therefore, HKT could grow its merchandising business by leveraging its partners’
strengths. The following are some examples of what HKT had offered with its partners:
 HKT partnered with SPCA (the Society for the Prevention of Cruelty to Animals) who appointed
Ding Ding Cat as its 100th anniversary Raffle Ambassador, promoting charitable work and
corporate social responsibilities.
 HKT worked with KONSEPT to produce a programmable tram that people could play using their
mobile phone to move the tram forward and backward. This tram was also considered an artwork
that people had to spend hours to put 2528 pieces together, similar to assembling a model.
 HKT had a child-friendly, themed hotel room at the Gold Coast Hotel.
Creativity through Craftsmanship

“Classic Craft, Modern Meaning” Tramcar No. 61 Exhibition was the first arts and crafts public tram
exhibition [Exhibit 16], which won the Gold Sky Design Award in Japan. It was held from 10 am to 8 pm
between May 8 and June 10, 2020. The ticket price was HK$2.60. Artwork created by Amanda Tong
Ceramics, Frédéric Bussière, GoHung and Jun Matsumura were on display in the moving tram, allowing
passengers to enjoy the installations while travelling. This was an innovative way to pay tribute to
traditional craftsmanship in Hong Kong and make the artwork accessible to the public. 34
To celebrate HKT’s 115th anniversary, they collaborated with Hong Kong’s local wine brand, Perfume
Trees Gin35, which had close connections with local artists. Eventually, they had three local artists create
the bottle illustrations for the HKT limited edition wine [Exhibit 17]. The standard price of Perfume Trees
Gin was HKD750 a bottle, while the limited HKT edition was sold for HKD1150 a bottle.
HKT was also working on these new products by upcycling materials to promote sustainability and
green initiatives. For example, when replacing the old rails in the tram tracks, they cut the cross sections of
the retired rail to make Y-shaped beams which could be used as a decoration or a souvenir. Coming with a
booklet and premium packaging, they would be a perfect souvenir for someone who wanted a piece of
Hong Kong history or art collection.
34
Honeycombers, “About CIRCUS Tram,” https://thehoneycombers.com/hong-kong/event/classic-craft-modern-meaning-tram-
61-exhibition/, accessed 14 May 2021.
35
The award winning Perfume Trees Gin had the sumptuous and refreshing aromas to represent the heart and soul of Hong Kong,
the ultimate harmony and balance of complex flavor, which is created by mixing classically recognized gin tones with botanicals
from the heritage of Hong Kong. [Source: company website, https://perfumetreesgin.hk/en/our-gin/]
ST113 12
Looking Forward
We do not care too much about the revenues of B2C. Our B2C target is to breakeven,
preferably marginal revenue, but we do not require the commercial and brand department
to dramatically increase the revenues. What is important is the quality, the exposure and the
visibility of what they are doing.
HKT was at the stage of introducing all trial products and figuring out whether they made sense from
financial and business perspectives. They wanted to find the right products by conducting market research,
analyzing revenues, and monitoring online responses. By far, education seemed to be the most promising.
Food and beverage were also doing quite well thanks to one-off events, as HKT’s super fans loved to buy
HKT’s branded tea and beers. But it was uncertain whether F&B could generate continuous revenue in the
long run. In B2B, Free Ride Day was offered, allowing businesses, advertisers, and promoters to sponsor a
day of free tram ridership, which garnered a lot of media and press attention. For instance, Edko Films Ltd.,
which produced the movie “Anita” in honor of Cantopop legend Anita Mui Yim-fong, responded to the
overwhelming public support by offering free tram rides on 30 December 2021, the anniversary of Anita’s
death.
This is a picture of what it is now. I’m sure there will be a totally different picture in two
years’ time regarding to the B2C revenue, brand and partnerships.
While HKT was diversifying at this stage, the next step would be converging. It would be a matter of
how to converge and choose wisely among the wide range of trial products. They needed to establish criteria
for careful selection, not only depending on the company’s morale, performance, and strengths, but also
the company’s strategic directions to become a heritage and lifestyle brand. How could HKT leverage on
the existing B2B and B2C business models to achieve this?
36
37
ST113 13
EXHIBIT 1: TOP CITIES WITH THE BEST PUBLIC TRANSPORTATION
Top 10 cities in terms of public transport
Source: Adopted from Stefan M. Knupfer, Vadim Pokotilo and Jonathan Woetzel, “Elements of success:
Urban transportation systems of 24 global cities,” June 2018, https://www.mckinsey.com/business-
functions/sustainability/our-insights/elements-of-success-urban-transportation-systems-of-24-global-
cities, accessed 21 June 2021.
Cities with the best public transportation in 2020

Ranking Name of City Ranking Name of City
1 Singapore 6 Chicago
2 London 7 Tokyo
3 Hong Kong 8 Dubai
4 Paris 9 Shanghai
5 Madrid 10 Zurich
Source: Briana Hansen, “Cities with the best public transportation, ranked,” 1 October 2020，
https://www.farandwide.com/s/public-transit-systems-ranked-c5d839d8a48d4da3, accessed 21 June 2021.
ST113 14
EXHIBIT 2: MAP OF HONG KONG
Source: Adapted from the Government of the Hong Kong Special Administrative Region, “Survey and
Mapping,” https://www.landsd.gov.hk/en/survey-mapping/mapping/multi-scale-topographic-
mapping/digital-map.html, accessed 12 February 2022.
EXHIBIT 3: NORMAL FARES OF HONG KONG TRAMS
Type of Tickets Cost

Adult HK$ 2.60
Child (Aged 3 or above and under 12) HK$ 1.30
Senior Citizen (Aged 65 or above) HK$ 1.20
4-Day Pass HK$34.00
Monthly Ticket HK$ 220.00
Source: Hong Kong Tramways, “Schedules and Fares,” https://www.hktramways.com/en/schedules-fares,

accessed 14 May 2021.
ST113 15
EXHIBIT 4: A BRIEF COMPANY HISTORY
Year Event
1881 A tramway system for Hong Kong was first proposed.
1901 A revised tramway system proposal was accepted by the government.
1902 Hong Kong Tramway Electric Company Limited was established in London,
U.K.
1903 A single-track system between Kennedy Town and Causeway Bay was under
construction which was later extended from Causeway Bay to Shau Kei Wan.
1904 The first fleet of 26 UK-built, single-deck tramcars were shipped to and
assembled in HK.
1920 The first double-decker tramcar was introduced to meet increased customer
demand.
1922 Hong Kong Tramways Limited (HKT) was first used as the company name.
1925 All open-balcony tramcars were replaced with enclosed double-decker tramcars.
1945 After Japanese occupation, 15 tramcars were operational among the 109 tramcars
remained.
1949 A double-track system replaced the original single-track system.
1950 After an extensitve redesign, the company started building its own tramcars.
1964 The first single-deck trailer along with three locally made tramcars came into use.
1967 The last trailer was built.
1972 Flat fare was introduced and class distinction was abolished.
1974 HKT was acquired by The Wharf Holdings.
1976 Each tram was fitted with a coin farebox at the front exit and rotating turnstiles at
the rear entrance. Conductors were retained to be become motormen.
1992 Two double-decker tramcars built by HKT exported to England. Manual point
operation was replaced by a point automation system.
2001 Octopus electronic smat card payment was implemented on tramcars.
2008 Antique-style tramcar No. 28 was installed with air condictioning.
2009 Veolia Transport RATP Asia (later named RATP Dev Transdev Asia) acquired
50% of the company’s shares and operating rights and got the full ownership in
2010.
2016 HKT became the first transport operator in Hong Kong to give real-time
estimated time of arrival data to Citymapper.
2017 HKT was rebranded with a new logo, new livery, and new map.
2020 HKT was fully acquired by RATP Group.
2021 HKT was awarded Guinness world record for “Largest double-decker tram fleet
in service.”
Source: Hong Kong Tramways, “Our Story,” https://www.hktramways.com/en/our-story/, accessed 13

February 2022.
ST113 16
EXHIBIT 5: HONG KONG TRAM MAP
Source: Hong Kong Tramways, “Schedules,” https://hktramways.com/en/schedules-fares/, accessed 13

February 2022.
ST113 17
EXHIBIT 6: ORGANIZATIONAL CHART
Source: Information provided by the company.
ST113 18
EXHIBIT 7: TRAMWAYS’ RIDERSHIP AND FARE REVENUE (2008-2019)
EXHIBIT 8: HK TRAMWAYS’ POP-UP STORE

ST113 19
EXHIBIT 9: TRAM HIRING
Hiring Charges
(in HK dollars, per hour per tram, minimum 2 hours)
Type of Private Charter Company Commercial Max Hiring
Tramcars Mon. to Fri. / Sat. / Charter Charter Capacity Period
Sun. /P.H. / (no. of
Thur.
The day persons)
before P.H.
2,000 2,500 3,200 7,500 30
Red Antique
Tram Daily
8:00-24:00
2,000 2,500 3,200 7,500 30
Green Antique
Tram
Mon. to Fri.
10:00 - 16:00
1,300 1,700 3,200 7,500 40
19:00 - 24:00
Sat.
Passenger 10:00 - 12:00
Tram 14:00 - 24:00
Sun / P.H.
8:00 - 24:00
2,500 3,200 7,500 36 Daily

19:30 - 24:00
“TramOramic
Tour” Tram
3,500 4,000 5,500 10,000 36 Daily

8:00 - 24:00
Tram No.18
P.H. stands for public holidays.

Source: Hong Kong Tramways, “Charter Your Party Tram,” https://www.hktramways.com/en/book-your-
party-tram/, accessed 14 May 2021.
ST113 20
EXHIBIT 10: TRAMWAYS’ ADVERTISING REVENUE (2008-2019)
HK$ (M)
EXHIBIT 11: ADVENTURE TRAM
Source: Jcdecaux Cityscape, “Mr Moncler Hops on ADventure Tram,” https://www.jcdecaux-

cityscape.hk/news-and-press-releases/mr-moncler-hops-adventure-tram, accessed 23 May 2021.
ST113 21
EXHIBIT 12: TRAMWAYS’ LOGO REBRANDIG IN 2017
Source: Company website.
EXHIBIT 13: TRAMWAYS’ ANCILLARY REVENUE (2015-2019)
12
10
8
HK$(M)(M)
6
HK$
0
2015 2016 2017 2018 2019
ST113 22
EXHIBIT 14: DING DING CAT
ST113 23
EXHIBIT 15: TRAMWAYS’ MONOPOLY GAME
Source: Company Facebook, https://www.facebook.com/hongkongtramways/, accessed 22 July 2021.
ST113 24
EXHIBIT 16: “CLASSIC CRAFT, MODERN MEANING” TRAMCAR NO. 61
ST113 25
EXHIBIT 17: HK TRAMWAYS X PERFUME TREES GIN
Source: Miyakokai, “I wrote the story of Hong Kong Tramways 115th Anniversary Limited Edition Perfume
Tree Gin on Paketra,” 2019, in Japanese, http://hk-tokidoki.com/tramptg/, accessed 13 February 2022.
ST113 26

UST113 HK Tramways

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CORAL PUIG GARRIGO

The Hong Kong Tram: A Ride from Heritage to Lifestyle Branding

Last edited: 21 April 2022

Public Transportation Industry in Hong Kong

 Buses and Minibuses:

Hong Kong Tramways

We are in a continual process of researching what fundamentally characterizes trams and

Mascot: Ding Ding Cat

HK Tram Green as an Official Pantone Color

Diversity and Quality through Partnership

Creativity through Craftsmanship

EXHIBIT 1: TOP CITIES WITH THE BEST PUBLIC TRANSPORTATION

Top 10 cities in terms of public transport

Cities with the best public transportation in 2020

EXHIBIT 2: MAP OF HONG KONG

EXHIBIT 3: NORMAL FARES OF HONG KONG TRAMS

Type of Tickets Cost

Source: Hong Kong Tramways, “Schedules and Fares,” https://www.hktramways.com/en/schedules-fares,

EXHIBIT 4: A BRIEF COMPANY HISTORY

Source: Hong Kong Tramways, “Our Story,” https://www.hktramways.com/en/our-story/, accessed 13

EXHIBIT 5: HONG KONG TRAM MAP

Source: Hong Kong Tramways, “Schedules,” https://hktramways.com/en/schedules-fares/, accessed 13

EXHIBIT 6: ORGANIZATIONAL CHART

Source: Information provided by the company.

EXHIBIT 7: TRAMWAYS’ RIDERSHIP AND FARE REVENUE (2008-2019)

Source: Information provided by the company.

EXHIBIT 8: HK TRAMWAYS’ POP-UP STORE

Source: Information provided by the company.

EXHIBIT 9: TRAM HIRING

2,000 2,500 3,200 7,500 30

2,500 3,200 7,500 36 Daily

3,500 4,000 5,500 10,000 36 Daily

P.H. stands for public holidays.

EXHIBIT 10: TRAMWAYS’ ADVERTISING REVENUE (2008-2019)

Source: Information provided by the company.

EXHIBIT 11: ADVENTURE TRAM

Source: Jcdecaux Cityscape, “Mr Moncler Hops on ADventure Tram,” https://www.jcdecaux-

EXHIBIT 12: TRAMWAYS’ LOGO REBRANDIG IN 2017

Source: Company website.

EXHIBIT 13: TRAMWAYS’ ANCILLARY REVENUE (2015-2019)

Source: Information provided by the company.

EXHIBIT 14: DING DING CAT

Source: Information provided by the company.

EXHIBIT 15: TRAMWAYS’ MONOPOLY GAME

Source: Company Facebook, https://www.facebook.com/hongkongtramways/, accessed 22 July 2021.

EXHIBIT 16: “CLASSIC CRAFT, MODERN MEANING” TRAMCAR NO. 61

Source: Information provided by the company.

EXHIBIT 17: HK TRAMWAYS X PERFUME TREES GIN

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