With the global economy slowing down and competition intensifying in traditional markets, many companies are considering market diversification, but at the same time face the difficulty of unfamiliar business practices in emerging markets. Israel, a market with business practices similar to that of the US and EU, Israel is a niche market in the Middle East for Hong Kong exporters to contemplate market diversification. With a high per capita income riding on the country’s high-tech industries and a population predominantly aged under 29, Israelis’ strong purchasing power and cultural emphasis on gifts-giving offer ample opportunities for Hong Kong exporters of toys, gifts and premiums and consumer electronics. This study examines opportunities in different product markets of Israel in light of its consumers profile, purchasing behaviour as well as trade rules.