Overview
Textile quotas were being removed among WTO customers for the 1st working day of 2005 in accordance using the Settlement on Textiles and Garments (ATC). Nevertheless, resistance to quota removing unfold from the US and EU. Subsequently, China arrived at agreements while using the EU and the US in June and November 2005 respectively. The China-US settlement, helpful from January 2006, governs the exports of a complete of 21 groups involving 34 types of Chinese textiles and clothes products towards the US in the course of 2006-2008. The China-EU agreement, powerful from June 2005, covers 10 categories of Chinese textiles and outfits exports into the EU in the course of 2005-2007.
Then again, the mainland and Hong Kong agreed in Oct 2005 to more liberalise the mainland marketplace for Hong Kong organizations beneath the 3rd section from the Mainland and Hong Kong Nearer Financial Partnership Arrangement (CEPA III). Coupled with other goods of Hong Kong origin, the mainland agreed to give all goods of Hong Kong origin, together with garments items, tariff-free cure starting from one January 2006. According to the stipulated processes, products which have no existing CEPA policies of origin, will enjoy tariff-free therapy on apps by neighborhood producers and upon the CEPA rule of origins remaining agreed and achieved.
Hong Kong garments organizations are highly regarded for ODM and OEM output. They can produce quality clothes posts in brief lead time, as overseas importers and merchants request clothing suppliers to tighten up provide chain administration to be sure the purchased goods achieving the store flooring with the proper time. Significantly, Hong Kong clothes firms, the set up types particularly, have revealed enthusiasm for manufacturer marketing.
Hong Kong's total exports of clothes rose year-on-year by 9% within the initially 11 months of 2005. Whilst Hong Kong's re-exports of garments rose by 20%, domestic exports fell by 14%. While in the very first 11 months of 2005, Hong Kong's outfits exports towards the US and EU rose by 11% and 18% respectively. Whilst Hong Kong's clothing exports to Japan levelled off, all those on the Chinese mainland declined by 11%.
Marketplace Functions
The garments business is usually a key manufacturing sector of Hong Kong. Its gross output is probably the optimum among all manufacturing sectors, amounting to HK$35.9 billion in 2003. It's the largest manufacturing employer in Hong Kong, with one,673 establishments choosing 28,752 personnel as of June 2005. It is also the main earner in terms of domestic exports, getting up 40% with the whole inside the 1st eleven months of 2005.
Hong Kong's geographic boundary has not constrained the event of your forward-looking clothes marketplace. Nearly all garments brands have established up offshore creation services within an try to scale back operation charges. Relocation of manufacturing amenities offshore has however resulted in the continuous decline during the range of clothing producers in Hong Kong.
Hong Kong isn't merely a primary creation centre but in addition a hub for outfits sourcing globally. Providers performing garment trade in Hong Kong are expert in fabrics procurement, sales and promoting, top quality handle, logistic arrangements, outfits designs and international and countrywide policies and rules. The professionalism which they command plus the blended products and services available are certainly not effortlessly matched somewhere else. Having a overall of 15,a hundred ninety establishments employing ninety five,889 employees, they form the most important group involved in import-export trade in Hong Kong.
Overall performance of Hong Kong's Exports of Clothes
Hong Kong's complete exports of clothes rose year-on-year by 9% during the 1st 11 months of 2005. Whilst Hong Kong's re-exports of clothing rose by 20%, domestic exports fell by 14%. The contrasting effectiveness of Hong Kong's re-exports and domestic exports was fundamentally ascribed into the rising relocation of garment production towards the Chinese mainland, ensuing in the elimination of quotas under WTO's Arrangement on Textiles and Apparel (ATC). However the declining pattern of domestic exports has become reversed rather in new months, on account of the re-imposition of quantitative restraints on mainland-made textiles and apparel because of the US and EU.
Retail gross sales while in the US held business from the initially eleven months of 2005, mounting by nearly 6% in the same time period while in the preceding yr. Inside the first eleven months of 2005, Hong Kong's apparel exports into the US rose year-on-year by 11%.
From the 1st eleven months of 2005, Hong Kong's total clothes exports on the EU surged year-on-year by 18%. Clothes exports to important EU marketplaces like France, Germany and Italy recorded advancement premiums in excess of 20%.
On the other hand, Hong Kong's clothes exports to Japan levelled off in the first eleven months of 2005 partly because of the pattern of direct cargo. Within the back again on the growing revenue on the other hand, Japanese consumers are inclined to resume their spending spree on quality clothing goods. In the meantime, Hong Kong's outfits exports to the Chinese mainland dropped by 11% while in the to start with eleven months of 2005, compared with all the exact same period of time last yr.
Product-wise, Hong Kong's exports of woven use rose by 12% in the to start with 11 months of 2005. While woven wear for women/girls grew by 13%, individuals for men/boys recorded a expansion of 8% from your identical period of time inside the past year. Knitted don grew by 2%, with women/girls and men/boys increasing by 1% and 6% respectively. While outfits components declined by 3%, other clothing posts, for his or her portion, greater by 13%.
Gross sales Channels
Hong Kong's clothes manufacturers have solid strong interactions with their consumers. They are able to recognize and cater to the choices of incredibly wide buyer bases. Exporters even have good familiarity with intercontinental and nationwide principles and rules governing outfits exports, these types of as rules of origin, quota restrictions, tariff fees and documentation specifications. Slash, make and trim (CMT) preparations are widespread despite the fact that a lot of Hong Kong brands have moved to better value-added activities this sort of as structure and manufacturer advancement, excellent command, logistics and content sourcing.
Several well-established neighborhood brands have entered in to the retailing organization, both locally or in overseas marketplaces. Lots of them have retail networks in big towns about the earth including Beijing, London, New york, San Francisco, Shanghai, Singapore, Sydney, Taipei and Tokyo. Some well-known production retailers consist of Baleno, Bossini, Crocodile, Episode, Esprit, G-2000, Giordano, JEANSWEST, Moiselle and U-2.
Being a international sourcing hub in Asia, Hong Kong attracts a variety of worldwide investing residences and major retailers. moschino bikini Buyers sourcing from Hong Kong consist of American and European department shops (e.g. Macy's, JCPenney, Federated, Karstadt Quelle, C & A), discount stores (e.g., Sears, Target and Carrefour), specialty chains (e.g., The Gap, The Limited) and mail order residences (e.g. Otto and Great Universal Outlets). Many international high quality designer labels -- these as Calvin Klein, Donna Karen, Ralph Lauren, Tommy Hilfiger and Yves Saint Laurent -- source clothes in Hong Kong through their buying offices or other intermediaries.
Hong Kong's fashion designers have been gaining worldwide reputation for his or her professional expertise, sensitivity to current trends and ability to blend commercialism with innovation. Medium to high-priced fashion garments bearing Hong Kong designer labels is getting sold/have been sold in renowned section shops overseas such as Bloomingdale's, C & A, Harrod's, Isetan, Macy's, Marui, Mitsukoshi, Nieman Marcus and Seibu.
Trade fairs and exhibitions remain prevalent places for purchasers and suppliers of apparel to congregate. To establish connections and explore market place opportunities, Hong Kong companies and traders have involved themselves actively in worldwide shows led by the Hong Kong Trade Growth Council (TDC), such as the types in Beijing, Chengdu, Dalian, Dubai, Dusseldorf, Hong Kong, Moscow, Mumbai, Paris and Tokyo. 'Hong Kong Fashion Week' is organised twice a 12 months and attracts worldwide suppliers and prospective buyers to participate from the exhibition. Organised by TDC, 'World Boutique, Hong Kong' is definitely the very first independent event in Hong Kong dedicated to promoting designers' collection and brands from all over the earth.
Field Trends
Changes in retail landscape: From the US and EU, large-scale stores are undergoing drastic restructuring and consolidation, particularly, the growing prominence of hypermarkets these types of as Wal-Mart. To strengthen competitiveness, Sears and Kmart have merged to variety the third major retail group inside the US.
Growing importance of private labels: Private labels, in essence, have become an increasingly powerful marketing tool among the garment retailers. In order to differentiate as properly as upgrade the image of their solutions, significant suppliers have started to put a stronger emphasis on their own labels. In accordance with Cotton Incorporated, private labels accounted for 45% of total US attire profits in 2003, up from 39% in 2001. In some adult attire classes, this kind of as skirts, private labels accounted for as high as 76% with the full product sales. Additionally it is estimated that 45% of goods sold while in the EU are sold beneath private labels. Renowned merchants such as H&M, Marks & Spencer, Orsay, Palmers, Pimkie, Springfield and Kookai have owned their private labels. As buyers desire to have private labels on everyday garments like jeans, add-ons and T-shirts, the doors are also open towards the provide of these garments things to private label owners.
Growing interest in China's domestic marketplace: The rapid expansion of mainland's economy has attracted great interest of Hong Kong garments providers to explore its clothes marketplace. A TDC survey on mainland's garment shoppers indicates that Hong Kong brands are ranked number one by the respondents during the mid-range segment. While global brands are most preferred from the high-end segment, mainland brands dominate the low-end. In addition, a similar survey finds out that within the eyes of mainland individuals, Hong Kong firms are pretty potent in casual wear, as they may be generally of great design and style and high quality. In essence, many mainland people have developed a stronger awareness of Hong Kong brands through tour to and shopping in Hong Kong. Therefore, Hong Kong's casual have on has successfully projected a positive image to mainland consumers.
CEPA
On eighteen October 2005, the mainland and Hong Kong agreed to even more liberalise the mainland marketplace for Hong Kong companies beneath moschino teddy bear bag the third phase with the Mainland and Hong Kong Closer Financial Partnership Arrangement (CEPA III). As well as other items of Hong Kong origin, the mainland agreed to give all products and solutions of Hong Kong origin, such as apparel objects, tariff-free remedy starting off from 1 January 2006. In accordance with the stipulated techniques, merchandise which have no present CEPA regulations of origin, will enjoy tariff-free cure upon purposes by nearby brands and on the CEPA rule of origins being agreed and achieved. But non-Hong Kong manufactured outfits goods will remain subject to tariff fees of 10-25% when entering the mainland.
The promulgated procedures of origin for clothes merchandise to benefit from CEPA's tariff preference are generally similar to the present regulations governing Hong Kong's exports of these products. Generally speaking, the principal manufacturing process of cut-and-sewn garment is sewing of parts into garments. If linking and/or stitching is/are required, this sort of process/processes must also be done in Hong Kong. For piece-knitted garment, if it is manufactured from yarn, the principal process is knitting of yarn into knit-to-shape panel.
If the piece-knitted garment is manufactured from knit-to-shape-panels, the principal process is linking of knit-to-shape panels into garment. If stitching is required, it must also be done in Hong Kong.
Trade Measures Affecting Exports of Outfits
In keeping with the ATC, textile quotas were being removed amongst WTO associates within the to start with day of 2005. Even so, resistance to quota elimination distribute while in the US and EU. Particularly within the US, China-specific safeguards on 10 categories of apparel objects from China ended up invoked. Against this background, China attained agreements together with the EU and also the US in June and November 2005 respectively.
The China-US arrangement, successful from January 2006, governs the exports of the full of 21 groups involving 34 categories of Chinese textiles and clothes merchandise towards the US all through 2006-2008. It allows an annual advancement of 10-15% in 2006, twelve.5-16% in 2007 and 15-17% in 2008. The China-EU arrangement, powerful from June 2005, provides for an annual progress of 8-12.5% in 10 categories of Chinese textiles and clothes exports towards the EU throughout 2005-2007. In addition, both EU and US agreed to exercise restraint in invoking China-specific safeguard against Chinese textiles and outfits that aren't covered during the agreements.
Item Trends
Formal Dressing: While casual wear accounts for the bulk of garments revenue, a general pattern towards stricter corporate dress codes has led to a mounting demand for formal dressing, particularly suits. In accordance with a survey by Cotton Incorporated in late 2004/early 2005, 38.5% of respondents believe that people dressed too casually at work. This is really a six.5 percentage point increase over exactly the same year-ago.
Teenager: Considered one of the big driving forces of clothing market appears to be the teenagers during the coming years. The quantity of teenagers from the US expects to increase from 31.six million in 2001 to 34.one million in 2010. A current survey by Teenage Research Unlimited found that teens are saving money by benefit shopping. Though JCPenney is their favourite office retail outlet, Target and Wal-mart are their favourite hypermarkets. In addition, Old Navy is their choices between specialty clothing stores.
Silver Sector: Ageing population becomes a widespread phenomenon in lots of developed countries in Europe as properly as Japan and the US. Elderly people constitute a major current market segment called 'silver market'. Supported by savings, social security benefits and pensions, numerous elderly people have rather solid investing power. It can be estimated that the age group of 65 year and above accounted for about 21% of Japan's consumption expenditure in 2000. A survey conducted from the Japanese government also shows that people who are 60 years old and above possess almost three times the financial assets of all those in the 40-50 age team. Within the US, people aged at or above 65 amounted to eighteen.1 million in 2001, along with the selection is expected to swell to 26 million in 2015.
Plus-size Marketplace: The plus-size industry continues to be an area of advancement for several years, as well as the pattern is expected to continue from the coming future. It can be estimated that 65 million women of all ages during the US use size fourteen or above. This group represents one-half of the US female population. It truly is reported that some renowned brands have already responded to your craze by offering goods of larger size; these providers involve Liz Claiborne, Ralph Lauren and Tommy Hilfiger.
Easy-care Clothes: Clothes created of stain-resistant and wrinkle-free fabrics are properly received within the sector. It can be estimated that about a quarter of attire is now manufactured of easy-care materials, and its popularity is expected to continue from the next number of years. While major attire brands like Dockers and Liz Claiborne have already marketed extensively easy-care clothes, key hypermarkets, like Wal-Mart, canada goose snow mantra parka.html also offer more products of this kind of high quality.
Source: Hong Kong Trade Advancement Council
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