comScoreTag
Eng |
FancyBox
FancyBox

Others

Making a mark with high-tech products

by Carmen To

Paul Yin, vice president, The Chinese Manufacturers' Association of Hong Kong

With the shift of most of Hong Kong's industrial production to facilities on the mainland, relatively few factories remain.

Those that do have to contend with rising labour and rental costs and, in many cases, have learned to rely on innovation and high-tech solutions in order to compete effectively.

"We need to keep rethinking the choice of products made in Hong Kong in order to stand out in the international market," says Paul Yin, vice president of the Chinese Manufacturers' Association of Hong Kong.

The government's traditional policy of non-intervention has been questioned in recent years in view of the challenges faced by the local manufacturing sector. "Everything is much cheaper in China, especially the cost of production," says Mr Yin. "If Hong Kong enterprises are to remain competitive, they must find ways to create more value-added products and use their creativity to invent new items that will sell well."

He says that the government is well aware of the situation and has been actively involved in safeguarding local interests by supporting and subsidising research and development initiatives with the universities. Since the Creativity and Innovation Council was set up, companies can cooperate on research projects to upgrade their products and test new technology.

"We need to put more effort into our choice of materials, product design, brand development and patent protection," Mr Yin adds. "Most of all, manufacturers must concentrate on achieving the highest quality standards and make full use of advances in technology. That's the only way to compete effectively with mainland-based companies."

With the shift of most of Hong Kong's industrial production to facilities on the mainland, relatively few factories remain.
Those that do have to contend with rising labour and rental costs and, in many cases, have learned to rely on innovation and high-tech solutions in order to compete effectively.

"We need to keep rethinking the choice of products made in Hong Kong in order to stand out in the international market," says Paul Yin, vice president of the Chinese Manufacturers' Association of Hong Kong.

The government's traditional policy of non-intervention has been questioned in recent years in view of the challenges faced by the local manufacturing sector. "Everything is much cheaper in China, especially the cost of production," says Mr Yin. "If Hong Kong enterprises are to remain competitive, they must find ways to create more value-added products and use their creativity to invent new items that will sell well."

He says that the government is well aware of the situation and has been actively involved in safeguarding local interests by supporting and subsidising research and development initiatives with the universities. Since the Creativity and Innovation Council was set up, companies can cooperate on research projects to upgrade their products and test new technology.

"We need to put more effort into our choice of materials, product design, brand development and patent protection," Mr Yin adds. "Most of all, manufacturers must concentrate on achieving the highest quality standards and make full use of advances in technology. That's the only way to compete effectively with mainland-based companies."

Strengthening the manufacturing base

On government:

  • establish infrastructure for the convenience of manufacturers in terms of factory sites and such
  • organise overseas promotional campaigns to introduce Hong Kong's products to the world
  • support and subsidise research and development projects in technology
On the manufacturers:

  • work on brand building for sophisticated high-tech products
  • to attract customers from around the world
  • explore and expand the mainland market bearing in mind considerations such as the legal system and cultural differences
Responding to competition

  • Lower cost base in mainland China means Hong Kong companies must focus on value-added products
  • Opportunity to pursue R & D initiatives with the help of local universities
  • Hong Kong manufacturers should target the
    mainland market



Taken from Career Times 09 June 2006

Share


Free Subscription

Email