In the US and EU, large-scale clothing retailers are undergoing drastic restructuring and consolidation, in particular, the growing prominence of hypermarkets such as Wal-Mart. To strengthen competitiveness, Sears and Kmart have merged to form the third largest retail group in the US.
Growing Importance of Private Labels:
Private labels, in essence, have become an increasingly effective clothing marketing tool among garment retailers. In order to differentiate as well as upgrade the image of their products, major clothing retailers have started to put a stronger emphasis on their own labels. Private labels accounted for 45% of total US apparel sales in 2003, up from 39% in 2001. In some adult apparel categories, such as skirts, private labels accounted for as high as 76% of the total sales. Renowned clothing retailers such as H&M have owned their private labels. Now the doors are also open to the supply of these clothing items to private label owners.
Growing interest in China's domestic clothing market: The rapid expansion of mainland's economy has attracted great interest of Hong Kong clothing companies to explore the new clothing market. A TDC survey on mainland's garment shoppers indicates that Hong Kong brands are ranked number one by the respondents in the mid-range segment. In addition, Hong Kong companies are very strong in casual wear, as they are generally of good design and quality. Hong Kong's casual wear has successfully projected a positive image to mainland consumers.
CEPA
On 18 October 2005, the mainland and Hong Kong agreed to further liberalize the mainland clothing market for Hong Kong companies under the third phase of the Mainland and Hong Kong Closer Economic Partnership Arrangement (CEPA III). Along with other products of Hong Kong origin, the mainland agreed to give all products of Hong Kong origin, including clothing items, tariff-free treatment starting from 1 January 2006. But non-Hong Kong made clothing products will remain subject to tariff rates of 10-25% when entering the mainland.
The promulgated rules of origin for clothing items to benefit from CEPA's tariff preference are basically similar to the existing rules governing Hong Kong's exports of these products. Generally speaking, the principal manufacturing process of cut-and-sewn garment is sewing of parts into garments.
If the piece-knitted garment is manufactured from knit-to-shape-panels, the principal process is linking of knit-to-shape panels into garment. If stitching is required, it must also be done in Hong Kong.
Of Hong Kong University
Hong Kong's clothing manufacturers have forged strong relationships with their customers. They are able to understand and cater for the preferences of very broad customer bases. Exporters also have good knowledge of international and national rules and regulations governing clothing exports, such as rules of origin, quota restrictions, tariff rates and documentation requirements. Cut, make and trim (CMT) arrangements are common although many Hong Kong manufacturers have moved to higher value-added activities such as design and brand development, quality control, logistics and material sourcing.
A few well-established local manufacturers have entered into the retailing business, either locally or in overseas markets. Many of them have retail networks in major cities around the world including Beijing, London, New York, San Francisco, Shanghai, Singapore, Sydney, Taipei and Tokyo. Some well-known manufacturing retailers include Baleno, Bossini, Crocodile, Episode, Esprit, G-2000, Giordano, JEANSWEST, Moiselle and U-2.
As a global sourcing hub in Asia, Hong Kong attracts a number of international trading houses and major retailers. Buyers sourcing from Hong Kong include American and European department stores (e.g. Macy's, JCPenney, Federated, Karstadt Quelle, C & A), discount stores (e.g., Sears, Target and Carrefour), specialty chains (e.g., The Gap, The Limited) and mail order houses (e.g. Otto and Great Universal Stores). Many international premium designer labels -- such as Calvin Klein, Donna Karen, Ralph Lauren, Tommy Hilfiger and Yves Saint Laurent -- source clothes in Hong Kong through their buying offices or other intermediaries.
Hong Kong's fashion designers have been gaining worldwide reputation for their professional expertise, sensitivity to current trends and ability to blend commercialism with innovation. Medium to high-priced fashion clothing bearing Hong Kong designer labels is being sold/have been sold in renowned department stores overseas such as Bloomingdale's, C & A, Harrod's, Isetan, Macy's, Marui, Mitsukoshi, Nieman Marcus and Seibu.
Trade fairs and exhibitions remain common places for buyers and suppliers of clothing to congregate. To establish connections and explore market opportunities, Hong Kong manufacturers and traders have involved themselves actively in international shows led by the Hong Kong Trade Development Council (TDC), including the ones in Beijing, Chengdu, Dalian, Dubai, Dusseldorf, Hong Kong, Moscow, Mumbai, Paris and Tokyo. 'Hong Kong Fashion Week' is organised twice a year and attracts international suppliers and buyers to participate in the exhibition. Organised by TDC, 'World Boutique, Hong Kong' is the first independent event in Hong Kong dedicated to promoting designers' collection and brands from around the world.
Dylan Sun has sinced written about articles on various topics from Astrology, Organizational and Gardening. News.tootoo.com (http://news.tootoo.com/), which is the shortcut to China's industrical resource belonging to China's leading B2B Portal and Vertical Search Engine, tootoo.com.. Dylan Sun's top article generates over 90500 views. to your Favourites.
Consolidate Credit Card Loans Although there are alternatives to repay your credit bills at a low interest rate, the point here is that you must have discipline in using your financial resources to prevent debt trouble later on