Hong Kong

While considered to be part of the explosion in importance of the Greater China market, Hong Kong has significant importance in its own right because it is both a hub for overseas brands’ sourcing and because Hong Kong-based trading companies (such as Li & Fung) are increasing their ownership of and influence through brand acquisitions. It is also the number one shopping destination for mainland Chinese purchasing luxury goods. Potential luxury market size is 2 million consumers.

Market Size

  • The local population is just over 7 million, with a further 23 million in Taiwan.
  • This region is not just an OEM apparel manufacturer’s hub in south China & SE Asia but also moving into ODM and OBM manufacturing.
  • Hong Kong will also be a main economic zone under China’s five-year plan, where the buying power of 60 million people across Pearl Delta Zone and South China, Guangzhou, Shenzhen, Hong Kong, Dongguang, Foshan, Jiangmen, Zhongshan, Huizhou, Zhuhai, Macau is aggregated into a China–Asian Free Trade Zone.
  • Hong Kong has a robust stable of local apparel brands, which is expected to expand strongly on the mainland and in South East Asia.

Insights

  • Traditional in-store purchase is still strong in Hong Kong and Taiwan. Brand, fashionability, colour, style and fit are the key drivers in buying luxury apparel.
  • Online purchasing is growing among young people; however it is more successful at lower and medium price points. We anticipate that online apparel retail will emerge as a major retail segment in the next few years.

Opportunity for Wool

  • In consumer marketing, we must enhance the awareness and understanding of wool and the benefits it delivers in apparel to the final consumer.
  • Consumer education is also required at brand and retailer levels.
  • An increasing use of the Woolmark logo will attract the awareness of quality perceptions, especially through association with programs such as the Campaign for Wool and International Woolmark Prize.