Clothing carrying Hong Kong brand names are enjoying better opportunities on
the Chinese mainland, according to an industry survey released today (January
16).
Oracle Market Research, an independent survey company commissioned by the Trade
Development Council interviewed a total of 437 exhibitors and 759 buyers attending
the Hong Kong Fashion Week and World Boutique this week.
The survey was conducted two weeks after Closer Economic Partnership Arrangement
(Cepa), a free trade deal between Hong Kong and the Chinese mainland came into
force. Under the arrangement, a large number of Hong Kong-made clothing items
now enjoy tariff-free entry into the mainland market, starting on 1 January
2004.
Cepa has given Hong Kong's garment industry a further boost on the mainland.
Eligible Hong Kong companies will also be permitted to engage in commission
agents' services, wholesale, retail and external trade on the mainland on a
wholly owned basis. Hong Kong's clothing companies will be allowed additional
market access as specific restrictions in the area of distribution services
on the mainland are removed.
Comparing to clothing manufactured in the Chinese mainland, "Made in Hong Kong"
clothing enjoys a 16% price premium, according to surveyed buyers.
Surveyed exhibitors incline to produce mid to high-end "Made in Hong Kong" products
for the mainland market.
Surveyed exhibitors mapped out their strategy under Cepa, which include:
- developing a brand and sell in the mainland market,
- establishing/expanding retail stores/distribution network on the mainland,
- producing overseas branded products in Hong Kong and sell on the mainland,
- assisting overseas brands to promote in the mainland,
- establishing new plants/increasing production lines in Hong Kong to produce
"Made in Hong Kong" products and sell to the mainland
- using more expensive materials for production and sell to the mainland.
Other findings of the survey are as follows:
Market outlook of 2004: the majority of interviewed exhibitors (78%)
and buyers (80%) said 2004 will be better than or slightly better than 2003.
The result is much more positive than last year. In 2003, only half of the respondents
were positive of market outlook.
Regions with biggest growth in retail market: Chinese mainland tops
respondents' choice, followed by Western Europe, the US and Japan.
Interest in the mainland market after Cepa: 42% of interviewed exhibitors
and 39% of buyers said they have stronger interest in the market now.
Top-3 consumer segments with highest growth potential in the next 3 years:
female white-collar workers have the highest growth potential, followed
by female professionals/managers/executives, and high school/college students.
Clothing categories with highest growth potential: leisure casual wear/street
wear, followed by business casual wear and sportswear.
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For press enquiries, please contact Ms Katherine Chan of TDC's Corporate Communication
and Marketing Department at 2584 4537.
