The fashion industry is looking forward to seeing more "Made in Hong Kong" labels, following the signing of a free trade agreement which allows many Hong Kong-made garments duty free access to the Chinese mainland.
The remarks were made in a survey conducted at the twin exhibitions, Hong Kong Fashion Week and World Boutique (13-16 January).
The Cepa (Closer Economic Partnership Arrangement) free trade agreement between Hong Kong and the Chinese mainland came into operation on 1 January 2004 and allows many garment manufacturers to export their products to mainland markets, duty free. Non Hong Kong-made products are taxed by up to 15 per cent.
Cepa also allows easier access to the mainland for Hong Kong-based retailers, agents and logistics providers, offering new and easier distribution and retail channels for Hong Kong and overseas garment companies.
Almost 1,000 exhibitors from around the world attended Hong Kong Fashion Week and World Boutique (12-16 Jan) organised by the Trade Development Council (TDC). Many were seeking new selling opportunities in China.
"These events offer a global marketplace for importers, distributors, leading store buyers and potential licencees," said Christopher Cheng, Chairman of the TDC Garment Advisory Committee.
"The fairs also offer a special opportunity for international buyers, fashion houses and brand owners who can benefit from Cepa by doing business with Hong Kong companies," he said.
Mr Cheng said Cepa would help Hong Kong manufacturers produce quality clothes at a more competitive price for the mainland market. It would also encourage overseas companies, interested in the mainland market, to outsource production to Hong Kong manufacturers.
The survey of 437 exhibitors and 759 buyers also indicated that most were factoring Cepa into their business plans. 42 per cent of interviewed exhibitors and 39 per cent of buyers said they have stronger interest in the mainland market after Cepa.
More details in "Made in Hong Kong" clothing more competitive under Cepa
Cepa - a simple guide
