Turning Point of Hong Kong Apparel Industry: Knowledge for New Challenge

Abstract

The apparel industry is a major GNP contributor within Hong Kong’s manufacturing sector and has been the second largest supplier to the global apparel market. The phasing out of the quota system in 2005 and the emergence of the fast fashion business model has increased competition in a new environment. The industry therefore developed a vision to become a forward-looking industry responding vigorously to Hong Kong’s aspiration to rebuild a strong industrial base and become a world-class fashion and design centre providing agile manufacturing service to the world apparel market. To materialize this vision of the industry and to ensure its successful repositioning, the key factors are the embracement of new technology and management expertise. An industry study was carried out using a knowledge management approach to determine the commitment of the industry and the required knowledge to sustain its position as the leading apparel manufacturer in world markets. In addition, an in-depth industry interview was also conducted. A one-stop buying service is identified as the new business strategy for OEM firms seeking to transform their service to an ODM business mode. Factor analysis was employed together with apparel product knowledge, which embraces the properties and technology of textiles and clothing, and is still the most important and desired knowledge in the industry. This application, nevertheless, uses a different aspect. Marketing knowledge composed of product development, marketing concepts, and research practice has become the second most desired type of knowledge. Agile manufacturing, which the industry needs in order to respond quickly to unanticipated market changes with the capability of integrating organisation, highly-skilled and knowledgeable people, and advanced technologies, is the solution to offering high quality customized products. The study also highlighted that the industry, which includes manufacturers and trading firms in the apparel business, is highly committed to pursuing the new knowledge for this change.