China: eyewear makers focus on strong rise in 2005
Chinese eyewear manufacturers expect exports to jump by up to 40 per cent this year as European and United States customers increase their orders. The only blur on the horizon for the eyewear makers appears to be the high price of oil, which has driven up the cost of raw materials by more than 20 per cent in some cases.
Leading eyewear manufacturer Arts Optical International said it would be likely to end 2004 with its export orders up 20 to 30 per cent from the year before. The listed company said the rebound in the global economy has encouraged American and European buyers to place more orders.
Speaking at the Hong Kong Optical Fair on Wednesday, Arts Optical International chairman and presidente of the Hong Kong Optical Manufacturers Association Michael Ng said he was also optimistic about the business outlook for next year. According to Ng, the whole industry could see single-digit growth in export orders during the first quarter of 2005.
Another listed optical manufacturer, Elegance International, also expects export orders to increase by 10 to 20 per cent this year. Chairman Hui Leung-wah said the strength of the euro has prompted European buyers to place bigger orders this year, as Hong Kong's currency peg to the US dollar makes local products relatively cheaper. Elegance International, which is the licensee of brands like Fx Creations, Harry Potter and Hello Kitty, said it is equally confident about the outlook for 2005.
Medium-sized producer Hoi Tat Optical Manufacturing said export orders were up 20 per cent this year. According to director Patrick Lok, the company expects further 10 per cent growth in 2005.
Sunglasses maker Micron Eyewear Manufactory, a specialist in plastic frames, said its sales would grow as much as 40 per cent this year, thanks to the vogue for imitation tortoise-shell frames and big round frames.
Producers said, though, that high oil prices, affecting the costs of plastic and transport, could compress profit margins. Elegance International said its overall cost of raw materials went up by 10 per cent when rising oil prices lifted the cost of metal by more than 20 per cent. Arts Group's cost of raw materials had also risen by 15 to 20 per cent, but Michael Ng said he hoped to shift that burden on to overseas buyers with a price rise next year.
Total exports of spectacles, lenses and frames reached US$695 million (HK$5.42 billion) in the first eight months of 2004, up 18 per cent from a year earlier. All major markets saw good growth during the period, with sales in the US, Italy and mainland China up by 10 per cent, 58 per cent and 45 per cent respectively. Globally, Honk Kong together with mainland China is the world's second-largest exporter of spectacles and frames, just after Italy.
(Source: The Standard)
