Hong Kong Clothing Industry

review

eliminated on the first day of textile quotas among WTO members, in accordance with the 2005 Agreement textiles and clothing (ATC). However, resistance to quota removal spread in the US and the EU. Then China entered into an agreement with the EU and the US in 2005 was June and December. The China-US agreement, effective January 2006, regulates the export of a total of 21 groups with the participation of 34 Chinese textile and apparel products to the US during 2006-2008. The China-EU agreement in force in June 2005, covers 10 categories of Chinese textile and clothing exports to the EU from 2005 to 2007.

On the other hand, the Mainland and Hong Kong in October 2005 agreed to further liberalize the mainland market, Hong Kong company said the third phase of the Mainland and Hong Kong Closer Economic Partnership Arrangement (CEPA III). Other products simultaneous Hong Kong origin, the mainland agreed to give all products of Hong Kong origin, including clothing, a duty-free 2006, under the prescribed procedures, products that do not exist CEPA rules of origin will enjoy from 1 January based on the duty-free applications in local manufacturers and when the CEPA origin rules agreed and met.

Hong Kong companies famous ODM and OEM production. They are able to supply quality garments with short lead times, as foreign importers and retailers of apparel suppliers seek to tighten the supply chain management to ensure that the ordered goods will reach the shop floor at the right time. More and especially Hong Kong clothing companies, showed enthusiasm among the established brand promotion.

Hong Kong's total exports of clothing rose by 9% year-on-year in the first 11 months of 2005. While Hong Kong's re-exports of clothing increased by 20%, domestic exports decreased by 14%. In the first 11 months of 2005, Hong Kong's clothing exports to the US and the EU by 11% and 18%. While Hong Kong's clothing exports to Japan leveled off, these Chinese mainland decreased by 11%.

industrial levels

The clothing industry is a major manufacturing sector in Hong Kong. The gross output amounting to HK among the highest of all manufacturing sector is $ 35900000000 2003 was the largest manufacturing employer in Hong Kong, hiring in 1673 Facilities 28 752 workers in June 2005, is the leading search engine in terms of domestic exports, taking up 40% of the the first 11 months of 2005

Hong Kong's geographical borders has never been limited to the future development of the apparel industry. Most clothing manufacturers set up production facilities offshore in an attempt to reduce operating costs. Relocation of production facilities offshore, however, has led to a steady decline in the number of garment manufacturers in Hong Kong.

Hong Kong is not only a leading production center, but also a hub for clothing purchases worldwide. Companies Garment Industry in Hong Kong experienced a tissue procurement, sales and marketing, quality control, logistical preparations, clothing patterns, and international and national rules and regulations. The professionalism, the command and the combined services offered are not easily matched elsewhere. A total of 95 889 establishments hiring 15,190 workers, they make up the largest group involved in the import-export trade in Hong Kong.

Performance of Hong Kong's exports of clothing

Hong Kong's total exports of clothing rose year-on-year by 9% in the first 11 months of 2005. While Hong Kong's re-exports of clothing increased by 20%, domestic exports 14% decreased. The contrasting performance of Hong Kong's re-exports and domestic exports primarily attributed to the increasing relocation of clothing production textile WTO agreements on quotas in the Chinese mainland, arising from the termination and Clothing (ATC). But the downward trend in domestic exports reversed somewhat in recent months, since the re-introduction of quantitative restrictions on land made of textile and clothing to the US and the EU.

The retail sales held firm in the US in the first 11 months of 2005, rising by almost 6% over the same period last year. In the first 11 months of 2005, Hong Kong's clothing exports to the US increased year-on-year by 11%.

The first 11 months of 2005, Hong Kong's total clothing exports to the EU increased by 18% year- -évre. Garment exports to major EU markets, such as France, Germany and Italy registered growth rate exceeding 20%.

On the other hand, Hong Kong's clothing exports to Japan leveled off in the first 11 months of 2005, part of a trend in the direct delivery. On the back of rising incomes, however, the Japanese consumers tend to continue the spending spree premium apparel. Meanwhile, Hong Kong's clothing exports to the Chinese mainland decreased by 11% in the first 11 months of 2005, compared to the same period last year.

Product-wise, Hong Kong's exports of woven wear increased by 12% in the first 11 months of 2005. While woven wear for women / girls increased by 13%, these are the men / boys recorded an increase of 8% over the same period in previous year. Knitwear increased by 2%, women / girls and men / boys rises by 1% and 6% respectively. While clothing accessories decreased by 3%, other clothing, for their part, increased by 13%.

sales channels

Hong Kong clothing manufacturers forged a strong relationship with their clients. They are able to understand and cater to the preferences of very broad customer base. Exporters also well aware of the international and national rules and regulations governing clothing exports, such as rules of origin, quota restrictions, tariffs and documentation requirements. Cut, make and trim (CMT) joint agreements although many Hong Kong manufacturers moving to higher value-added activities such as design and brand, quality control, logistics and material procurement.

Some well-established local manufacturers have entered the retail business, either locally or overseas markets. Many of them have retail networks in major cities around the world, including Beijing, London, New York, San Francisco, Shanghai, Singapore, Sydney, Taipei and Tokyo. Some well-known manufacturing retailers include Baleno, Bossini, Crocodile, Episode, Esprit, G-2000, Giordano, WEST JEANS, Moiselle and U-second

The global sourcing center in Asia, Hong Kong attracts a number of international trading houses and major retailers. Purchase of customers in Hong Kong: American and European department stores (eg Macy's, JCPenney, Federated, Karstadt Quelle, C & A), discount stores (eg, Sears, Target and Carrefour), specialty chains (eg, The Gap, The Limited) and mail order houses (eg Otto and Great Universal stores). Numerous international awards fashion designers – such as Calvin Klein, Donna Karen, Ralph Lauren, Tommy Hilfiger and Yves Saint Laurent – source clothes in Hong Kong through the purchase of offices or other intermediaries.

Hong Kong fashion designers have been getting worldwide fame in the professional and sensitivity to current trends and the ability to blend commercialism innovation. Medium and high-priced fashion clothing bearing Hong Kong designer labels sold / gave prominent class

overseas stores like Bloomingdale's, C & A, Harrods, Isetan, Macy's, Marui, Mitsukoshi, Nieman Marcus and Seibu.

fairs and remain in the public areas of the buyers and suppliers come together clothing. Contact us to create and explore new market opportunities, Hong Kong manufacturers and traders involved themselves, led by active international exhibitions in Hong Kong Trade Development Council (TDC), including those in Beijing, Chengdu, Dalian, Dubai, Dusseldorf, Hong Kong, Moscow, Mumbai , Paris and Tokyo. "Hong Kong Fashion Week" twice a year and attracts foreign suppliers and buyers to attend the exhibition. Organised by TDC, & # 39; World Boutique, Hong Kong "is the first independent event in Hong Kong dedicated to promoting designers collection and brands from around the world

Industry Trends

Changes in retail landscape: the US. in and in the EU, under the large retailers drastic restructuring and consolidation, particularly the growing importance of hypermarkets such as Wal-Mart. strengthening competitiveness, Sears and Kmart has created the third largest retail group in the United States.

growing importance of private labels: private labels, in essence become in an increasingly effective marketing tool for clothing retailers in order to differentiate and upgrade the image of their products, major retailers have started to put more emphasis on their labels, according to Cotton.. Incorporated, private label 45% of the total US apparel sales in 2003 to 39% in 2001, some adult apparel categories such as skirts, private labels accounted for as high as 76% of all sales. It is estimated that 45% of the products sold in the EU sold under private labels. Well-known retailers such as H & M, Marks & Spencer, Orsay, Palmers, Pimkie, Springfield and Kookai be owned by private labels. As consumers desire to own brand of everyday clothing such as jeans, accessories and T-shirts, the door is open for the supply of these garments, which operates its own brand name.

growing interest in the Chinese domestic market: the rapid growth of the mainland economy towards high interest in Hong Kong clothing companies to look into the apparel market. The TDC survey for apparel buyers from mainland indicates that Hong Kong brands are ranked by number of respondents in the mid-range segment. While most international brands of high-end segment, mainland brands dominate the low-end. Moreover, the same survey finds that in the eyes of consumers in the mainland, Hong Kong companies are very strong in casual wear, as they are generally of good design and quality. In essence, many mainland consumers have developed a stronger brand awareness in Hong Kong through the tour, shopping in Hong Kong. Therefore, Hong Kong has successfully projected a positive image to wear mainland consumers.

CEPA

of 18 October 2005 on the mainland and the further liberalization of Hong Kong adopted in the mainland market in Hong Kong companies in the third phase of the Mainland and Hong Kong Closer Economic Partnership Arrangement (CEPA III) . Other products simultaneous Hong Kong origin, the mainland agreed to give all products of Hong Kong origin, including clothing, a duty-free 2006, under the prescribed procedures, products that do not exist CEPA rules of origin will enjoy from 1 January based on the duty-free applications in local manufacturers and when the CEPA origin rules agreed and met. But it was not the subject of Hong Kong clothing remains 10-25% tariff when entering the mainland.

The rules of origin for apparel promulgated to benefit from CEPA tariff preference essentially similar to the existing rules in Hong Kong's exports of such products. Generally speaking, the main production process of cut-and-sewn garment sewing part of the garment. If linking and / or stitching / are required, such process / processes must also be done in Hong Kong. Chunky knit garment if manufactured from yarn, the main process of knitting yarn to knit-to-shape panel.

If the piece is manufactured knitted garment knit-to-shape panels in the main process connects the bound-to-shape panels garment. If stitching is required, it must also be done in Hong Kong.

Trade Measures Affecting Exports of clothing

between

According to the ATC, textile quotas ceased to WTO members on the first day of 2005. However, the removal of quotas resistance spread to the US and the EU. In particular, the US, China-specific safeguards for 10 categories of clothing from China raised. Against this background, China reached an agreement with the EU and the United States in June and November 2005 respectively

The China-US agreement regulates the exportation of force in January 2006, a total of 21 groups with the participation of 34 Chinese textile and apparel products under the US from 2006 to 2008. This allows for an annual increase of 10-15% in 2006, from 12.5 to 16% in 2007 and 15-17% in 2008, China-EU agreement in force in June 2005, provides for an annual increase of 8 12.5% ​​between 10 categories of Chinese textile and clothing exports to the EU from 2005 to 2007. In addition, both the EU and the US agreed to exercise restraint in referring to China-specific antidote for Chinese textiles and clothing, which are not included in the agreements.

Product Trends

Formal Dressing: While casual wear accounts for the bulk of apparel sales, the overall trend of stricter corporate dress codes has led to increasing demand for formal dressing, particularly suits. According to a survey by Cotton Incorporated in late 2004 / early 2005, 38.5% of respondents believe that people dressed too casually in the workplace. This represents a 6.5 percentage point increase over the same year-ago.

adolescence: One of the main driving forces of clothing market appears to teenagers in the coming years. The more teens in the United States expects to increase to 31.6 million in 2010 2001-34100000 According to a recent survey by Teenage Research Unlimited found that teenagers saving money worth buying. While your favorite department store JCPenney, Target and Wal-Mart is your favorite hypermarkets. In addition, Old Navy in their choice of specialty clothing stores.

Silver Market: Ageing population becomes a common phenomenon in many developed countries in Europe as well as Japan and the United States. Older people are a very important segment of the market so-called "silver market". Supported by savings, social security benefits and pensions, many elderly people are strong enough purchasing power. It is estimated that the age group accounted for over 65 years about 21% of Japan's consumer spending, according to a survey conducted in 2000, the Japanese government also shows that people who are over the age of 60 is almost three times the financial assets are 40 -50-year-olds. In the US, those 65 years old or above reached 18.1 million in 2001, and this number is expected to swell to 26 million in 2015

Plus-size Market: the plus-size market has been a area of ​​growth for many years, and this trend is expected to continue in the coming future. It is estimated that 65 million women in the US wear a size 14 or higher. One half of this group among the American female population. It seems that some well-known brands have already responded to the trend by making goods, larger; These companies include Liz Claiborne, Ralph Lauren and Tommy Hilfiger.

Easy to use clothes: Clothes made of stain-resistant and wrinkle-free fabrics are well received by the market. It is estimated that about a quarter of apparel is now made of easy-care fabrics, its popularity is expected to continue in the coming years. While the major clothing brands like Dockers and Liz Claiborne dresses are easy to clean, large hypermarkets such as Wal-Mart is providing goods already distributed more widely this quality.

Source: Hong Kong Trade Development Council

Source by Gaurav Doshi


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