Optimistic Outlook for Watch and Clock Market: Fair Survey
Chinese Mainland Market Expected to Post Fastest Growth
10 September 2010 – A survey conducted during the HKTDC Hong Kong Watch and Clock Fair has found that most buyers and exhibitors expect a stronger timepiece market in 2011.
The Hong Kong Trade Development Council (HKTDC) survey, which assesses market trends and the global sales outlook for the watch and clock industry, was released at a media conference today, the last day of the fair. Researchers gathered opinions from 405 exhibitors and 700 buyers during the five-day Watch and Clock Fair.
Asked about market growth, 50 per cent of exhibitors said they expect the Chinese mainland market to grow the fastest, followed by the United States (21 per cent) and India (18 per cent). Some 62 per cent of buyers said they consider the mainland to be the most promising, followed by Southeast Asia (15per cent) and India (13 per cent).
Enthusiasm about the mainland market was also reflected by survey results about company sales plans. More than 60 per cent of exhibitors interviewed said their companies have already developed sale channels to the mainland market, or have plans to sell on the mainland. Among exhibitors who already have mainland sales channels, more than 60 per cent predict increased sales revenue in 2011.
Industry concerns about rising production costs on the mainland were also addressed by the survey. Many exhibitors who have mainland production lines are facing rising costs for labour, raw materials, precious metals and other metals. Asked how they cope with the increases, nearly half (47 per cent) said they must increase product prices.
Rising product prices do not appear to be dampening buyer incentive. Survey responses regarding sourcing activities revealed that more than 80 per cent of exhibitors received orders, or are negotiating orders, during the fair.
Among buyers, more than 60 per cent said they are sourcing watch and clock items that cost more than US$15. The most popular colour choices were black and white, along with metallic hues. About half the buyers interviewed said they will increase order numbers, while 47 per cent said they will boost individual order quantities and unit price.
Shorter product cycles and a need to minimise risk make buyers more likely to ask suppliers for faster delivery times. The survey found that 18 per cent of buyers require products to be shipped within one month. Regarding brand sales, 26 per cent of buyers said they have sourced brand watches. More than 70 per cent said they currently source, or are considering sourcing, Hong Kong brands.
More than 50 per cent of the buyers interviewed said they believe the Hong Kong watch and clock industry supplies products of high quality, while 34 per cent think Hong Kong’s timepieces have innovative product design.
“The Hong Kong Watch and Clock Fair provides great global business, particularly with the Chinese mainland,” said Benjamin Chau, Deputy Executive Director of the HKTDC. “This is the largest fair of its kind in the world and, as the mainland market gains prominence, the Hong Kong Watch and Clock Fair will play an increasingly important role for companies who want to establish their brands and launch new products,” he said.
Commissioned by the HKTDC, the industry outlook survey is part of a larger survey conducted by an independent research company.
Survey Report PowerPoint
||At a press conference today, the Hong Kong Trade Development Council (HKTDC) revealed findings of a survey on market trends in the watch and clock industry. The HKTDC Hong Kong Watch and Clock Fair ended today
Speaking at today’s press conference were (left to right): Managing Consultant of Actrium Solutions (HK) Ltd Christine Kwok; Deputy Executive Director of the HKTDC Benjamin Chau; HKTDC Watch & Clock Fair Organising Committee 2010/11 Co-Chairmen Joseph Chu and Peter Sin
||“The Hong Kong Watch and Clock Fair provides great global business, particularly with the Chinese mainland,” said Benjamin Chau, Deputy Executive Director of the HKTDC
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A statutory body established in 1966, the Hong Kong Trade Development Council (HKTDC) is the international marketing arm for Hong Kong-based traders, manufacturers and service providers. With more than 40 global offices, including 11 in the Chinese mainland, the HKTDC promotes Hong Kong as a platform for doing business with China and throughout Asia. The HKTDC also organises trade fairs and business missions to connect companies with opportunities in Hong Kong and on the mainland, while providing information via trade publications, research reports and online. For more, please visit: www.hktdc.com.
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