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Overview
Textile quotas among WTO members on the first day of the year 2005, after the elimination, with the Agreement on Textiles and Clothing (ATC). But the spread of resistance against the abolition of quotas in the United States and the European Union. Then he reached an agreement with the EU, China and the United States in June and November 2005. China-US Agreement with effect from January 2006 which regulates the export of a total of 21 groups with 34 categories of Chinese textiles and apparel to the United Statesduring 2006-2008. EU-China Agreement with effect from June 2005, includes 10 categories of Chinese textiles and clothing to the EU in 2005-2007.
On the other side agreed to the Mainland and Hong Kong in October 2005 on the mainland market for Hong Kong society continues liberalization under the third phase of the Mainland and Hong Kong Closer Economic Partnership Arrangement (CEPA III). Together with other products enter Hong Kong origin, agreed with the mainland for all products of HongKong origin, including items of exemption as from 1 January 2006. Following established procedures, products which have no existing CEPA rules of origin enjoy tariff free treatment to applications by local manufacturers and the rule of origin CEPA will be agreed and met.
Hong Kong clothing companies are reliable to produce OEM and ODM. You are able to provide quality garments in a short period due to foreign importers and retailersRequest to tighten the clothes suppliers of supply chain management, to ensure the ordered product reaches the shop at the right time. Increasingly, apparel companies in Hong Kong have shown particular enthusiasm for the promotion of the mark established.
Hong Kong's total exports of clothing increased over the previous year by 9% in the first 11 months of 2005. While in Hong Kong re-exports of clothing increased by 20%, domestic exports decreased by 14%. In the first 11 months of the year 2005 in Hong KongClothing exports to the United States and the EU have increased by 11% and 18%. Flattened, while Hong Kong's clothing exports to Japan, which declined in the Chinese mainland increased by 11%.
Characteristics of the sector
The garment industry is an important area of production in Hong Kong. The gross production is one of the highest among all sectors of production amounting to 35.9 billion U.S. dollars HK in 2003. And 'the largest employer in the production of Hong Kong, 1673 companies with 28,752 employees, rent from June2005 was also the recipient of the national leaders in terms of exports, with 40% of the total in the first 11 months of 2005.
Geographical border with Hong Kong has never forced the development of future-oriented industry. Most apparel manufacturers have established production facilities offshore in an attempt to reduce the transaction. Relocation of production facilities offshore, however, has led to a steady decline in the number of apparel manufacturers in HongKong.
Hong Kong is not only one of the main centers of production, but also a hub for clothing sourcing globally. Firms that trade in the Hong Kong apparel fabric procurement, sales and marketing, quality control, logistics system experience, designs clothing and international and national standards and regulations. The professionalism that they have control and will be offered the combined services elsewhere is not so easily controlled. With a total of 15,190 establishments hiring 95,889 workers,constitute the largest group in the field of import-export trade incorporated in Hong Kong.
Performance of Hong Kong exports of clothing
Hong Kong's total exports of clothing increased over the previous year by 9% in the first 11 months of 2005. While in Hong Kong re-exports of clothing increased by 20%, domestic exports decreased by 14%. Contrasting performance in Hong Kong re-exports and domestic exports mainly attributed to the increasing change in the clothing industry in China, resulting fromThe abolition of quotas under the WTO Agreement on Textiles and Clothing (ATC). But the decline in exports on the domestic market has been reversed in recent months, the re-imposition of quantitative restrictions on textiles and clothing continental United States and the European Union.
Retail sales in the United States held company in the first 11 months of 2005, an increase of almost 6% over the same period last year. In the first 11 months of 2005, exports of apparel from Hong Kong for the United States has increased over last year11%.
In the first 11 months of 2005, exports of Hong Kong's total clothing to the EU increased by 18% over the previous year. Recorded for exports of clothing to major European markets like France, Germany and Italy, the growth rates of over 20%.
On the other hand, exports of clothing leveled Hong Kong to Japan in the first 11 months of 2005, due in part to the development of direct shipping. On the back of rising incomes, however, be incorporated in general, Japanese consumers their spending spree for clothes press again.In the meantime, let the Hong Kong apparel exports to the mainland by 11% in the first 11 months of 2005 compared to the same period last year.
Product-wise, exports to Hong Kong to wear fabrics increased by 12% in the first 11 months of 2005. While fabric wear for women / girls have increased by 13% and for men / boys to grow by 8% over the same period last year. Sweaters grew by 2%, with women / girls and men / boys increases by 1% and 6%. While clothing accessoriesdecreased by 3%, other articles of clothing, which in turn increased by 13%.
Sales channel
Hong Kong garment manufacturers have built strong relationships with their customers. You are able to understand and comply with the preferences of very broad customer base. Exporters also have good knowledge of international and national standards and regulations for exports of clothing, such as rules of origin, quota restrictions, tariffs and documentation requirements. Cuts andtrim (CMT) arrangements are common Hong Kong, although many manufacturers have shifted to higher value activities such as design and brand development is, quality control, logistics and material sourcing.
Some well-established local manufacturers have started the business of retailing, both locally or in overseas markets. Many of them have retail chains in major cities around the world, including Beijing, London, New York, San Francisco, Shanghai, Singapore, Sydney, Taipeiand Tokyo. Some well-known clients include production Baleno, Bossini, Crocodile, Episode, Esprit, G-2000, Jordan JEANSWEST, Mademoiselle and U-2.
In a global hub for sourcing in Asia, Hong Kong attracts a number of houses of international trade and retail. Buyers sourcing from Hong Kong are the American and European department stores (eg Macy's, JCPenney, Federated, Karstadt Quelle, C & A), discount (eg, Sears, Target and Carrefour), special chains (eg,.'sGap, The Limited) and mail order houses (eg Otto and Great Universal Stores). Many international premium fashion brands – including Calvin Klein, Donna Karan, Ralph Lauren, Tommy Hilfiger and Yves Saint Laurent – source clothes in Hong Kong through their buying offices or other intermediaries.
Hong Kong designers have gained a reputation worldwide for its expertise, sensitivity to merge the current trends and the ability to commercialize innovation. In the mediumexpensive clothes designer clothing Hong Kong has been sold / have been sold in the department of fame
Subsidiaries abroad, as Bloomingdale's, C & A, Harrod's, Isetan, Macy's, Marui, Mitsukoshi, Nieman Marcus and Seibu.
Fairs and exhibitions remain common places for buyers and suppliers of clothing to collect. To establish connections and explore new market opportunities, Hong Kong, producers and distributors have actively participated in international exhibitionsunder the direction of Hong Kong Trade Development Council (TDC), including Beijing, Chengdu, Dalian, Dubai, Dusseldorf, Hong Kong, Moscow, Mumbai, Paris and Tokyo. "Hong Kong Fashion Week twice a year and attracts international suppliers and buyers participating in the exhibition. Organized by TDC, 'World Boutique, Hong Kong is" the first independent event in Hong Kong to promote the collection of designers and brands from from around the world dedicated.
IndustryTrends
Changes in the retail landscape: in transit through the United States and the European Union, large retail outlets drastic restructuring and consolidation, in particular the increasing importance of supermarkets like Wal-Mart. To enhance competitiveness, Kmart and Sears have joined forces to form the third group to detail the United States.
The growing importance of private labels: private labels have become an essentially asking increasingly effective marketing tool among clothing retailers. In order to distinguish asalso improve the image of their products, large retailers have begun to place more emphasis on its label. According to Cotton Incorporated, private labels accounted for 45% of total sales of apparel in the United States in 2003, compared to 39% in 2001. In some categories of clothing for adults, such as skirts, private labels accounted for as high as 76% of total sales. It is also estimated that 45% of products are sold in the European Union, are sold under private brands. The well-known retailers like H & M, Marks &Spencer, Orsay, Palmers, Pimkie, Springfield and Kookai have listened to their own brands. Since consumers for their own marks on clothes every day like jeans, T-shirts and accessories desire, the doors are open for the supply of these garments for the owners of private label.
Growing interest in the domestic market in China: The rapid expansion of the Chinese economy has a fundamental interest of society in Hong Kong have taken away his clothes clothing exploring the market. TDC A survey of garment MainlandBuyers point out that the brands in Hong Kong are ranked number one, who responded in the midrange segment. While international brands are most preferred in high-end segment, dominated by the continental low-end brands. Moreover, the same survey found that consumers' eyes mainland, Hong Kong's very strong in casual wear, as a rule of good design and quality. In essence, many mainland consumers greater awareness of Hong Kong brands created byTravel to and from shopping in Hong Kong. This is why Hong Kong's casual wear successfully projecting a positive image projected on the mainland consumers.
CEPA
On October 18, 2005 approved the Mainland and Hong Kong for the mainland market for Hong Kong society continues liberalization under the third phase of the Mainland and Hong Kong Closer Economic Partnership Arrangement (CEPA III). Together with other products enter Hong Kong origin, agreed with the mainland for all products of Hong Kong origin, includingGarments for duty-free from 1 January 2006. Following established procedures, products which have no existing CEPA rules of origin enjoy tariff free treatment to applications by local manufacturers and the rule of origin CEPA will be agreed and met. But not in Hong Kong has made clothing is still the duty rates of 10-25% when you enter the continent.
The promulgation of rules of origin for the leaders benefit from the hotel CEPApreferably are substantially similar to the existing rules in Hong Kong, exports of these products. General, the main manufacturing process of cut and sew garment is sewn into clothing parts. If the connection and / or stapler / necessary, should such a process / processes are carried out in Hong Kong. Per piece knitted garment, if it is made of yarn, knitting is the most important process to knit-to-see form.
If the piece of knitted garments is producedof knit-to-shape panels is the most important process of knit-to-shape panels in chief. If repair is needed, should also be performed in Hong Kong.
Trade measures relating to exports of clothing
Under the ATC, has been textile quotas among WTO members on the first day of the year 2005 will be eliminated. But the spread of resistance against the abolition of quotas in the United States and the European Union. Especially in the United States, China and specific guarantees over 10 categories of clothing from China have been called. Against thisBackground reached agreements with the EU, China and the United States in June and November 2005.
China-US Agreement with effect from January 2006 which regulates the export of a total of 21 groups with 34 categories of Chinese textiles and apparel in the United States during the period 2006-2008. It provides an annual growth of 10-15% in 2006, 12,5-16% in 2007 and 15-17% in 2008. EU-China Agreement with effect from June 2005, provides for an annual growth rate of 8-12,5% in 10 categories of Chinese productsTextiles and clothing to the EU in 2005-2007. Also decided the European Union and the United States to show restraint, relying on China, against some Chinese textile and clothing industry, which are not covered by the agreement is protected.
Product Trends
Formal Dressing: While casual dress has frozen the accounts for the majority of sales of clothing, a general trend towards stricter corporate dress codes in an increased demand for formal dress, in particular, its actions are brought. According to a survey conducted by CottonRecorded in late 2005 or early in 2004, 38.5% of respondents believe that people in the workplace dress casual. This is 6.5 percentage points higher than the same year.
Adolescents: One of the main drivers of clothing seems to be young in years to come. The number of young people in the United States expected to increase from 31.6 million in 2001 to 34.1 million euros in 2010. A recent survey by Teenage Research Unlimited revealed that the money savings of the young is worth shopping. DuringJCPenney is their favorite store, Target and Wal-Mart is their favorite supermarkets and department stores. Also, Old Navy is their decisions in a specialty clothing stores.
Silver market: the aging population is a common phenomenon in many developed countries in Europe and Japan and the United States. The elderly represent a significant segment of the market as "silver market". Supported by savings, benefits and pensions, many elderly people have very strong purchasing power. It isestimated that the age group 65 years and over accounted for about 21% of consumer spending in Japan in 2000. A survey was conducted by the Japanese government also shows that people who are 60 years old and are almost three times the financial assets in the age group 40-50. In the United States is at or above 65 years amounts to 18.1 million in 2001, and the number expected to swell to 26 million euros in 2015.
Plus-size market: the market for plus-size has been an area ofGrowth over the years and this trend should continue in the near future. It is estimated that 65 million women in the U.S. wear size 14 or above. This group represents half of the female population of the United States. It was reported that some well-known brands have already been the trend, providing the goods with a greater extent, these companies are Liz Claiborne, Ralph Lauren and Tommy Hilfiger.
Easy-Care: clothing stain and wrinkle free fabrics are wellreceived in the market. It is estimated that about one quarter hours wear easy care fabric is produced, and its popularity is expected to continue in the coming years. While the major clothing brands such as Dockers and Liz Claiborne already widely marketed by clothing stores and department stores like Wal-Mart to offer quality products as such.
Source: Hong Kong Trade Development Council
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