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Overview of Hong Kong Lighting Industry from January to June 2016
Hong Kong exports a wide range of lighting products, including table lamps, bedside lamps, floor lamps and hand-held lamps. Other major products include wall and ceiling lights, chandeliers, lighting equipment and decorative lighting, such as complete sets of lighting for Christmas trees, lampshades and so on. In the first half of 2016, total exports of lighting products in Hong Kong fell by 12% year-on-year. During the period, although Hong Kong’s exports to the United States rose, exports to the EU fell. Industry Features Hong Kong lighting manufacturers export a variety of lighting products, generally used in residential decoration and home lighting. The largest export categories include battery-operated hand-held luminaires such as flashlights, lanterns, portable incandescent lamps, and outdoor, sports and/or diving LED lights. In addition, many companies operate table lamps, desk lamps, bedside lamps and floor lamps. Other export categories include wall and ceiling lights, chandeliers, lighting equipment, and decorative lighting, such as complete sets of lighting for Christmas trees, lampshades, and more. The materials for the lamp housing and lampshade are plastic, die-cast metal, crystal, glass, ceramic and polished copper. Some companies also produce neon lights, light signs and lighting brands for advertising or interior use. Most of Hong Kong's lighting products manufacturers have moved their factories to mainland China. The Hong Kong office is mainly responsible for product development, marketing and logistics support. They usually carry out product design, plastic injection molding, vacuum coating, enamel plating and assembly. In view of the rapid changes in the market and the continuous advancement of technology, Hong Kong companies have responded promptly to provide efficient services to customers. Many Hong Kong companies have further strengthened their quality assurance and environmental management systems and obtained ISO 9000 certification and ISO 14000 certifications, which are internationally recognized quality management system standards and environmental management system standards. Hong Kong's lighting products export performance In the first half of 2016, Hong Kong's total exports of lighting products fell by 12% year-on-year. Exports of major products, including electric lights and lighting equipment, discharge lamps and battery-operated hand-held lamps, all declined. Both the EU and the US are among the largest markets, and the products exported to the two places account for about half of the total exports of Hong Kong's lighting products. In the first half of 2016, although Hong Kong’s exports to the United States have risen, exports to the EU have been eclipsed. Distribution Channels Most of the lighting manufacturers in Hong Kong produce for overseas importers and distributors, including well-known brands in Europe and the United States. Due to the increasingly fierce competition, the expansion of ODM has surpassed OEMs and become the main business of Hong Kong lighting companies. A small number of manufacturers and traders also sell their own brand or trademark lighting products. The Hong Kong Lighting Company also directly sells products to overseas importers and regional distributors of hardware and daily groceries. Some companies also trade with overseas buyers' Hong Kong procurement offices. Some of the larger Hong Kong companies sell products directly to large retailers in North America and Europe, such as hypermarkets, supermarkets and chain stores, as well as purchasing groups or cooperatives consisting of smaller retailers to reduce distribution levels and related costs. . In recent years, overseas importers and distributors have tended to issue small orders more frequently and require delivery of goods in a shorter period of time to reduce inventory. Some Hong Kong companies have therefore restructured their procurement and production management systems to reduce manufacturing cycles and cost savings to meet market demand. Some large trade fairs provide opportunities for Hong Kong companies to promote their products, such as the International Home and Housewares Show in Chicago, the Cologne International Hardware Fair and the Japanese DIY Housewares Mall. Exhibition (Japan DIY Homecentre Show). The Hong Kong International Lighting Fair organised by the Hong Kong Trade Development Council is another important event for Hong Kong businessmen to showcase their products to overseas buyers.