Sales of watches and clocks will be propped up by the prevalence of fashionable and elegant timepieces. Toy exports to the EU are likely to be steady, with high-tech toys doing well, along with traditional and educational toys. For clothing, casual looks, embodied in the concept of business casual, will remain the main theme. Basic items will also be subject to keen competition in terms of price and the services required, exacerbated by the weakness of the euro. As competition intensifies in the US market, Hong Kong's exports to the EU are being increasingly challenged by manufacturers in Eastern Europe and the Mediterranean Poon says.
Clothing is again the most affected product.
Many EU companies, especially German manufacturers, have invested heavily in Eastern European and Mediterranean countries such as Poland and Turkey - much like Hong Kong companies have invested in the Chinese mainland and Southeast Asia. Progressive dismantling of restrictions on garments originating from these regions has helped promote sales of these items to the EU, whereas those from Hong Kong and the mainland remain under quantitative controls. Regulatory developments in the EU will continue to affect Hong Kong companies who hope to expand their sales there. All rights reserved.