TNAG-0939-FCO40-1158-Visit-of-John-Nott--Secretary-of-State-for-Trade--to-Hong-Ko-1981 — Page 44

TROUSERS

App II

It is estimated that in 1979 Hong Kong produced a total of 14 m doz. pairs of jeans, trousers, slacks and shorts. It consumed an estimated quantity of 280 m sq. meters of fabrics. These fabrics included heavy denim, stretched denim, corduroy, stretched corduroy and velve- teen of high quality. Presently quality fabrics for the manufacture of trousers etc. are imported from Japan, USA and the Federal Republic of Germany. Japan and USA alone supply about 40% of Hong Kongs total imports of denim or 12 m sq. meters, and 20% of corduroy or 6 m sq. meters. regards velveteen, one-third of imports of 1.5 m sq. meters are from Japan and the Federal Republic of Germany. Demand for heavy fabrics was small; textured polyester and polyester viscoe were not in fashion. The two most popular fabrics for the production of jeans for the last decade, denim and cord- uroy, should be good for the next ten years. Duck and twill are also in demand. Stretched denim, which Hong Kong presently bought from the F.R.G., could be the fabric of the future.

As

2. As Hong Kong is trading up, there is a growing demand for quality fabrics and it is expected that more and more quality fabrics will be imported into Hong Kong in the years to come. UK investment was not in 14 oz. denims but in high quality and therefore high priced fabrics. Price should not be such an inhibiting factor since Hong Kong produced high quality garments which could absorb a higher cost of material input.

3. The Americans are selling more and more quality fabrics to Hong Kong. This is because many local trousers manufact- urers are shifting their orders from Japan to the USA. For example, one manufacturer used to purchase all his require- ment of quality fabrics from Japan a few years ago. But since 1978 he has been purchasing much more quality corduroy and velveteen from the USA than Japan. The US fabrics are of better quality and they are competitive in price. Apart from quality and price, the Americans are now also capable of offering much better follow up services. It is done through a local sales office. The existence of the sales office also enables the company to do a better marketing job.

4. Japan which has been the customary source of supply of heavy denim of about 14 oz. is not meeting fully the demand in Hong Kong any more. This is because of increasing demand within Japan itself. As a result some manufacturers in Hong Kong are having difficulties in obtaining their supplies of heavy denim.

5. As regards woolen fabrics, in 1979 Hong Kong imported about 13 m sq. meters of woollen fabrics valued at about HK$270 million (£23 million). While UK is the principal supplier in terms of value, it is the third largest supplier in terms of quantity. Apart from denim, corduroy and velvet- een, woollen fabrics is one area where UK should really take a hard look. There could be tremendous potential for develop- ment in this area.