COMMERCIAL IN CONFIDENCE
THE HONG KONG TEXTILE FABRICS MARKET.INFORMATION DERIVED FROM TALKS WITH HONG KONG GARMENT MANUFACTURERS
General Introduction
1 In terms of net trade, Hong Kong is the world's largest net importer of textiles, ie yarns and fabrics. In 1979 Hong Kong imported 64% of its requirement of cotton fabrics, 98% in respect of mmf and mmf blended fabrics, 99% in respect of woollen fabrics and 94% in respect of wool yarns.
2 Hong Kong's imports of textiles in 1979 amounted to slightly over one billion sterling. However, UK was an insignificant source of supply except for woollen fabrics for which UK was the largest supplier by value. As Hong Kong trades up, there must be a growing demand for quality fabrics and wool yarns. The growing demand is at present met by supplies from Japan, USA, Italy and FRG. However, there is no lack of interest in Hong Kong in buying from the UK. The Hong Kong garment industry would like to see Britain having a greater share of this expanding market. They do not however discriminate against particular sources of supply.
3
Price, quality and delivery are the criteria but with Japanese prices rising substantially the UK should be more competitive. Delivery is sometimes a problem because of distance. However, delivery should be planned at least two months in advance of actual use.
4
The attached Annexes cover the various sectors of the industry.
The statistics are those supplied by the individual Hong Kong manufacturers.
Miscellaneous points not covered in the attached Annexes
5
(i) Rainwear
Fabric supplies for raincoats made in Hong Kong are obtained from the FRG and Japan. It was not clear that the UK had approached Hong Kong manufacturers about getting into this market.
(2) Dyers
There is no dyer in Hong Kong capable of finishing nylon taffeta lining. There might be an opportunity here for a joint venture.
(3) Suits and Jackets
Hong Kong's suit market is in America. The EEC represented a very small market where East European suits were selling at prices lower than those of Hong Kong's. Demand for suit fabrics in Hong Kong would therefore change in accordance with suit requirements in the USA. Hong Kong got into the mass production suit area late. The prospects for increasing sales of suit materials to Hong Kong for mass production are not bright. There is however a market for quality fabrics in the single jacket/skirt sector which was moving up market. This market, however, is difficult to predict.
COMMERCIAL IN CONFIDENCE
No comments yet.
Private notes are available after approval.