Hong Kong is the largest exporter of spectacle frames in Asia and second in the world after Italy. The majority of Hong Kong manufacturers have relocated their labour-intensive manufacturing to southern China to take advantage of the low labour and land costs. Factories that remain in Hong Kong concentrate on key functions such as marketing, product design and development, mould-making and quality control. Hong Kong's spectacle frame industry, mostly OEMs and ODMs, is able to cope with small orders and can offer a variety of frame designs. The big players have diversified into licensing and retailing in mainland China.
Some manufacturers export under their own brand names as well.
Thanks to low production costs on the mainland, Hong Kong suppliers have long been able to offer competitive prices. However, they now rely on top-notch design and advanced technology to stay ahead. Regions like South Korea or Taiwan can produce even cheaper goods than Hong Kong. Therefore, Hong Kong manufacturers should produce goods of higher added value. Moulin Optical is a prime example of a Hong Kong company that recognizes the value of technology transfer.