XN000022-1986-06-10 — Page 2

TUESDAY, JUNE 10, 1986

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QUALITY COUNTS FOR PLASTICS CONSUMERS

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A $1.8 MILLION STUDY WHICH LOOKS AT HONG KONG'S PLASTICS CONVERSION INDUSTRY HAS FOUND THAT OVERSEAS CONSUMERS ARE

INCREASINGLY ATTRACTED BY QUALITY GOODS RATHER THAN LOW PRICES.

THE STUDY COMMISSIONED BY THE INDUSTRY DEPARTMENT WAS PUBLISHED TODAY (TUESDAY).

TAKING ALMOST A YEAR TO COMPLETE, THE STUDY WAS CARRIED OUT BY SRI INTERNATIONAL, AN AMERICAN CONSULTANCY FIRM, WITH THE ASSISTANCE OF THE HONG KONG PRODUCTIVITY COUNCIL.

THE STUDY, THE FIRST IN A SERIES OF MARKET RESEARCH AND TECHNO-ECONOMIC ANALYSES OF THE MAJOR MANUFACTURING INDUSTRIES, BEGAN IN APRIL LAST YEAR AND WAS COMPLETED IN MARCH.

THE CONSULTANTS FOUND THAT +A TREND COMMON TO HONG KONG'S MAJOR MARKETS IS THAT QUALITY IS INCREASINGLY BEING GIVEN GREATER IMPORTANCE THAN PRICE.+

+CONSUMERS IN THESE MARKETS ARE AGEING AND BECOMING MORE AFFLUENT, AND ARE BECOMING MORE DEMANDING IN TERMS OF PRODUCT SAFETY AND RELIABILITY, FORM, FUNCTIONS AND IMAGE, THE REPORT SA ID.

AGAINST THIS BACKGROUND, THE REPORT URGED PLASTICS MANUFACTURERS TO STRENGTHEN THE IR TECHNOLOGICAL BASE SO THAT THE INDUSTRY CAN MOVE UP-MARKET AND DIVERSIFY TO HIGH VALUE-ADDED PRODUCTS.

THE STUDY CONCLUDED THAT HONG KONG'S PLASTICS INDUSTRY IS

+A VERY SUCCESSFUL INDUSTRY+ BY ALL MEASURES.

ALMOST 7 000 FIRMS EMPLOY MORE THAN 10 PER CENT OF HONG KONG'S INDUSTRIAL POPULATION TO PRODUCE PRODUCTS RANGING FROM THE SIMPLE TO THE COMPLEX.

PLASTICS RANK THIRD IN HONG KONG'S MANUFACTURED PRODUCT EXPORTS AND HONG KONG IS THE WORLD'S LARGEST TOT EXPORTER, A MARKET DOMINATED BY PLASTICS.

BUT ALTHOUGH THE INDUSTRY IS STRONG, THE CONSULTANTS WARNED THAT IT FACES PROBLEMS THAT HAVE TO BE ADDRESSED IN THE COMING YEARS IF THE INDUSTRY IS TO KEEP PACE WITH ITS COMPETITORS.

PROBLEMS IDENTIFIED IN THE STUDY INCLUDE THE FOLLOWING: THE GENERAL TECHNICAL LEVEL IS LOW EQUIPMENT QUALITY AND MAINTENANCE ARE POOR MOULD QUALITY IS POOR QUALITY CONTROL IS POOR PRODUCT AND RESEARCH AND DEVELOPMENT IS ALMOST NON- EXISTENT.

/* FACT