Lawrence R. Vicini of Blair Corporation says Hong Kong has bridged the gap between overseas companies and the Chinese mainland

The company ranks as the eighth largest apparel cataloger in the US with annual sales exceeding HK$4.35 billion (US$580 million). Based in Pennsylvania, the company selling fashion apparel for women and men, and a broad range of home products primarily through direct mail, also finds that Hong Kong's companies have been able to keep the lid on costs. 

"First and foremost, Hong Kong has a long, rich history of textiles and fashion," said Lawrence R. Vicini, vice-president and managing director of Blair's international trading division.

"Our company derives the advantage of remaining close to the pulse of the apparel industry and also providing our buyers with increased product development opportunities."  These attributes are crucial for a catalogue company which has to make its product selections far in advance of each selling season.  Mr Vicini also appreciates the "very business-friendly atmosphere in Hong Kong for corporations with its favourable tax laws".

"Hong Kong has always been, and will remain, a very unique international city," Mr Vicini added.  "It has the infrastructure to function well as a marketplace for trade shows.  A large number of Hong Kong companies have invested in offshore manufacturing facilities. This has enabled Hong Kong companies to meet the challenge of controlling costs by providing viable options."

It is difficult for many companies to source from China because they do not know how to navigate through its waters.  Hong Kong companies, with a first mover advantage in the mainland, have successfully married their high quality standards with the low production costs.   Indeed, sourcing through Hong Kong gives foreign companies the crucial, cutting-edge advantage. 

Another huge advantage for foreign companies is Hong Kong's role as a conduit for doing business with companies in the Chinese mainland.  Due to the sheer size of China and the fragmented manufacturing centres, travelling around China to visit all of these areas is impossible, says Mr Vicini.  "Hong Kong has bridged that gap and allowed US buyers the opportunity to take advantage of sourcing from China without having to do the necessary travelling throughout the country."

Related link:
Blair Corp www.blair.com