Last updated at: (Beijing Time) Friday, December 19, 2003
Hong Kong companies developing brand names
Hong Kong has started reversing the decades-old trend of producing goods for other countries, with many of its manufacturers making products that carry their own brand names and testing them on the Chinese mainland and other emerging markets.
Hong Kong has started reversing the decades-old trend of producing goods for other countries, with many of its manufacturers making products that carry their own brand names and testing them on the Chinese mainland and other emerging markets.
Fierce competition in the manufacture of "no-name" products forother brand holders has prompted companies to adopt new strategies,one of which is the development of their own brands through original brand manufacturing (OBM).
According to a survey carried out by the Hong Kong Trade Development Council (TDC), more than 40 percent of the companies interviewed were involved in OBM, with more expected to follow suit.
The survey revealed that 22 percent of existing no-name producers planned to establish their own brands in the next few years. Among the respondents who are engaged in OBM, 69 percent said they expected their business to continue to grow from now until 2008. Of the same group, 75 percent expected further growth in the period between 2008 and 2013.
While the outlook for brand development is promising, customized tactics are needed. There are already a whole slew of brands available in mature markets. To stand out from others, HongKong companies need "to go niche," the report said.
The report pointed out that both the Chinese mainland and otheremerging markets are at present not crowded with brands, a situation Hong Kong companies should exploit.
The survey described as a booster the recently concluded mainland-Hong Kong trade pact called CEPA (Closer Economic Partnership Arrangement). It said CEPA will help step up the sale of Hong Kong-made lifestyle and brand name products on the Chinesemainland.