Meeting customers’ expectation on quality and style and creating demand through new technologies and designs are crucial for the survival of the industry. Due to lowered tax rebate, appreciation of RMB and surge of raw material and labour costs, production cost has escalated, squeezing manufacturers’ profit margin and dampening competitiveness in the region. The Mainland’s long-term industry policy as well as the way it introduces policy adjustments are the major factors that determine whether the industry can sustain and grow.

Despite the abovementioned difficulties, we are backed by the enormous production capacity and consumer market of mainland China. We are recognised for the quality we produce and the assurance of prompt delivery. Yet if we improve our production technology, enrich our designs and use more novel fabrics, we can move up the value chain further. Indeed, for those developing their own brands, the scale of Mainland’s consumer market helps. In this commercial battlefield, management, experience, technology and sales network are our most useful weapons.

The prompt delivery of industry news and policy updates by the FHKI is crucial in preparing the industry for changes ahead. It is also important that the FHKI continues to reflect views of the industry to the Government. We hope to see more experience-sharing sessions on production management and brand building included on the FHKI’s list of activities.