Hong Kong Clothing Industry
Textile quotas were eliminated among WTO people at the very first day of 2005 in compliance using the Agreement on Textiles and Clothing (ATC). However, potential to deal with quota removal spread in america and EU. Subsequently, China arrived at contracts using the EU and also the US in June and November 2005 correspondingly. The China-US agreement, effective from The month of january 2006, governs the exports of as many as 21 groups involving 34 groups of Chinese textiles and clothing products towards the US during 2006-2008. The China-EU agreement, effective from June 2005, covers 10 groups of Chinese textiles and clothing exports towards the EU during 2005-2007.
However, the landmass and Hong Kong agreed in October 2005 to help liberalise the landmass marketplace for Hong Kong companies underneath the third phase from the Landmass and Hong Kong Closer Economic Partnership Arrangement (CEPA III). As well as other products of Hong Kong origin, the landmass decided to give all products of Hong Kong origin, including clothing products, tariff-free treatment beginning from 1 The month of january 2006. Based on the stipulated procedures, products without any existing CEPA rules of origin, will love tariff-free treatment upon applications by local manufacturers and upon the CEPA rule of origins being agreed and met.
Hong Kong clothing information mill trustworthy for ODM and OEM production. They could deliver quality clothing articles in a nutshell lead time, as foreign importers and retailers request clothing suppliers to firm up logistics management to guarantee the purchased merchandise reaching the shop floor in the proper time. More and more, Hong Kong clothing companies, the established ones particularly, have proven enthusiasm for brand promotion.
Hong Kong’s total exports of clothing rose year-on-year by 9% within the first 11 several weeks of 2005. While Hong Kong’s re-exports of clothing rose by 20%, domestic exports fell by 14%. Within the first 11 several weeks of 2005, Hong Kong’s clothing exports towards the US and EU rose by 11% and 18% correspondingly. While Hong Kong’s clothing exports to Japan levelled off, individuals towards the Chinese landmass declined by 11%.
The clothing market is a significant manufacturing sector of Hong Kong. Its gross output is among the greatest of all manufacturing sectors, amounting to HK$35.9 billion in 2003. It’s the largest manufacturing employer in Hong Kong, with 1,673 establishments hiring 28,752 workers by June 2005. It’s also the key earner when it comes to domestic exports, taking on 40% from the total within the first 11 several weeks of 2005.
Hong Kong’s geographic boundary hasn’t restricted the introduction of the forward-searching clothing industry. Nearly all clothing manufacturers have setup offshore plants so that they can reduce operation costs. Moving of plants offshore has however led to a stable loss of the amount of clothing manufacturers in Hong Kong.
Hong Kong isn’t just a number one production center but additionally a hub for clothing sourcing globally. Companies doing outfit exchange Hong Kong are familiar with fabrics procurement, marketing and advertising, qc, logistic plans, clothing designs and worldwide and national rules and rules. The professionalism they command and also the combined services provided aren’t easily matched elsewhere. With as many as 15,190 establishments hiring 95,889 workers, they make up the largest group involved with import-export exchange Hong Kong.