The outlook of the coming year is cautiously optimistic with continual single-digit growth in the traditional markets. Manufacturers are looking for new opportunities in the emerging markets, like South America, South Africa, Russia, mainland China etc. With continual increases in material prices and wages as well as the appreciation of RMB, customers start to accept mild price increases. However, retailer concentration and direct sourcing from retailers still place substantial pressure on price adjustment. For the electrical and optical industry to remain competitive, manufacturing excellence, design quality and innovation have become ever more important.
Factory audits to ensure ethical and environmental compliance by all major retailers have added considerable burden to manufacturers. Walmart has recently announced its acceptance and recognition of the ICTI (International Council of Toy Industries) Seal of Compliance. Should other major retailers follow this move, it will save manufacturers a lot of efforts in entertaining individual factory audits with different specific requirements by various retailers. The FHKI can play an active role in convincing major retailers to adopt ICTI Seal of Compliance to replace their own ethical and environmental audit program.
The FHKI should continue to coordinate with other major industrial organisations in Hong Kong to ensure that manufacturers are adequately consulted when major industrial policies and labour laws are being drafted. It should also urge both the Hong Kong and Mainland governments to provide assistance to facilitate manufacturers convert to wholly-owned foreign enterprises.
