As wage and other costs rise in China, mainland factories are finding themselves at a disadvantage versus cheaper neighbors in the region when it comes to securing contract manufacturing orders from global firms.
Meanwhile, entities that have been targeting the domestic market are also confronting some new realities in the marketplace.
Companies are realizing that Chinese consumers are no longer willing to settle for basic quality, and that they want better design and more functions.
With the backdrop of a slowing China economy and slack global demand, mainland firms are under mounting pressure to step up their game, create new products and compete in the higher-end market.
As a fund-raising center, Hong Kong has been drawing many Chinese companies to the city’s financial, legal and accounting services.
In recent years, Hong Kong’s pool of product design professionals and marketing experts have also been much sought after by Chinese firms as they embark on upgrading initiatives.
In a Hong Kong Trade Development Council survey, 65 percent of respondents in Pearl River Delta named Hong Kong as their first choice in terms of seeking outside support in product development, branding and promotion.
Fifty-six percent of respondents in the Yangtze River Delta and 60 percent of the respondents in the Bohai also pointed to Hong Kong as the first port of call.
Designed in Hong Kong and made in China could become the winning formula going forward. Being familiar with the international markets, Hong Kong should be able to play a bigger role in helping mainland companies to build up their own brands.
Garments, toys, household appliances and consumer electronics are some sectors where Hong Kong and China can work more together.
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