A
SUNDAY, SEPTEMBER 4, 1988
HOUSEHOLD ELECTRICAL APPLIANCE INDUSTRY STUDY COMPLETED
A STUDY REPORT ON HONG KONG'S HOUSEHOLD ELECTRICAL APPLIANCE INDUSTRY SUGGESTED THAT HONG KONG SHOULD IMPROVE ITS MARKET SHARE BY REMAINING COMPETITIVE IN LOW MARGIN, LOW TECHNOLOGY CONTENT ITEMS WHILE CONTINUING то EXPAND ITS PRODUCTION OF UPPER-END PRODUCTS.
QUALITY
SELECTED
BY THE PRESENT
THE STUDY IS THE FOURTH OF A SERIES OF STUDIES OF MANUFACTURING INDUSTRIES IN HONG KONG BRING UNDERTAKEN INDUSTRY DEPARTMENT, WHICH AIMS TO GIVE AN INDICATION OF THE STATE OF THE HOUSEHOLD ELECTRICAL APPLIANCE INDUSTRY AND TO SUGGEST LIKELY FUTURE TRENDS.
IT POINTED OUT THAT LOCAL MANUFACTURERS STARTED TO SHIFT THE MORE LABOUR INTENSIVE PORTION
OF THEIR MANUFACTURING PROCESSES TO CHINA WHERE LABOUR AND LAND ARE AVAILABLE AT LOW COSTS.
LIKE
BUT IT ALSO CALLED FOR GREATER CONSIDERATION TO DE OIVEN TO DEVELOPING HONG KONG AS A SERVICE AND SUPPORT CENTRE FOR THE HOUSEHOLD ELECTRICAL APPLIANCE TRADE WHICH PROVIDES SERVICES RESEARCH AND DESIGN, FINANCING, MARKETING, INFORMATION MANAGEMENT PRODUCTION OF MORE SOPHISTICATED PRODUCTS.
AND
IN
THE REPORT ATTRIBUTED THE IMPRESSIVE GROWTH OF THE INDUSTRY THE PAST DECADES TO THE ABILITY OF LOCAL MANUFACTURERS TO MEET EVER CHANGING MARKET NEEDS AND TO TAKE QUICK ADVANTAGE OF MAJOR MARKET OPPORTUNITIES.
IN THE STUDY, A NUMBER OF PROBLEMS FACING THE INDUSTRY WERE IDENTIFIED. THEY INCLUDE LABOUR SHORTAGE, OVER-DEPENDENCE OF MATURE PRODUCTS, LOW VALUE-ADDED CONTENT, INADEQUACY OF SUPPORTING INDUSTRIES AND INSUFFICIENT INTERNAL CO-OPERATION.
TO COPE WITH THE PROBLEMS, LOCAL MANUFACTURERS HAVE KEPT DOWN PRODUCTION COSTS BY SHIFTING THE LESS SOPHISTICATED PRODUCTION PROCESSES TO CHINA AND PRODUCT DIVERSIFICATION WAS FOUND TO BE A VERY POPULAR MEANS TO ACHIEVE GREATER SALES TURNOVER.
PRODUCT DIVERSIFICATION WAS LARGELY MADE. POSSIBLE BY ADVANCES IN PLASTICS PROCESSING TECHNOLOGY, WHICH RESULTED IN AN EVER WIDENING RANGE OF HOUSEHOLD ELECTRICAL APPLIANCE USING PLASTICS INSTEAD OF METAL AS THE MAJOR MATERIAL.
WITH REGARD TO THE MARKETS, THE DEVELOPED COUNTRIES HAVE ABSORBED ABOUT 80 PER CENT OF THE INDUSTRY'S EXPORTS, WITH THE USA ACCOUNTING FOR 52.1 PER CENT.
THE STUDY