Scope for UK textile fabrics
30 In the clothing and textile sectors, Hong Kong is faced by pressures from inflation, from competition by less developed countries (LDCs) and from quotas based on units exported. For these reasons, the industry is involved in a process of 'trading up'. This means using its experience and workmanship to produce better quality garments which can be sold at a higher price. This in turn would increase profit margins and soften the restrictive effect of quotas.
31 It was thought by some that, as Hong Kong traded up, better garments would need better textiles at higher prices, and that this would benefit UK and other European textile sales. Others contended that firstly, many garment manufacturers expected the same price even for an improved material; secondly, it would take some time for the standard of fabrics required, in the mass production sector at least, to reach UK price and quality; and thirdly, this might well occur too late because of the cheaper price and rapidly improving quality of Chinese fabrics.
32 However, it would appear from those interviewed that many garment manufacturers would like to diversify their sources of fabrics. Given this open-mindedness therefore, there appears no basic reason why British fabrics should not occupy a larger share of the market, provided that the right quality/price mix could be achieved, ie even if more expensive, the fabric was of considerably better quality. Although this would apply in all fabric categories, it was of course unlikely that British fabrics could compete in the traditionally inexpensive Asian ranges. However, it should not necessarily be assumed that this limited the range of garments for which British fabrics would be suitable. One firm commented that jeans were being made of a variety of materials nowadays, including silk.
33
As previously mentioned, although faced by the same shipment disadvantages as Britain, some European suppliers have had considerable success in Hong Kong with sales of high quality or special materials. One way of identifying such materials would be to discover which fabrics can only be bought locally or from neighbouring countries at relatively high cost. Some which may fall into this category were velour, lycra and melton. In addition, some customers were prepared to pay more for garments with individuality. The cost of materials for such fashion items was relatively unimportant. One example suggested in Hong Kong was the present 'tweed look'.
34 On the suitings side, a woven selvedge showing that the fabric was made in Britain still had cachet. Agents contended that it was important here to maintain and improve quality and design. One suggested that there might be a market for special blends (eg including some sable or cashmere).
35 Although slightly outside the scope of this report, the series of interviews revealed a considerable market for garment accessories. British firms had already enjoyed some success in selling interlinings. One customer using UK interlining said that it was cheaper than German and, although 10 per cent more expensive than Japanese, it was of better quality. Other possibilities were lace, buttons, buckles and thread.
Suggested methods of promoting UK fabrics
36 In the mass production sector the most common form of buying appeared to be that of the end customer specifying garment design and material. The first point of attack is therefore for British textile manufacturers to identify and approach the major British, European and American buyers of clothing who place bulk orders in Hong Kong to try to interest them in specifying UK textiles. Many Japanese textile firms were said to have adopted this method. One advantage which could be stressed to UK garment buyers is the greater ease of controlling textile quality if UK fabrics are specified.
37 It would also help if the advantages of the Outward Processing Relief (OPR) scheme could be drawn to the attention of customers in the European Community (EC) particularly to those in
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