Changes in the Number of Establishments and Employment in the Manufacture of Under Garments and Night Garments Industry

ENGG 1009
Industrial Management and Logistics
Exercise One

Changes in the Number of Establishments and Employment in the Manufacture of under garments and night garments Industry

141104 Manufacture of under garments and night garments

Items | 2004 (JUN) | 2009(JUN) | Percentage of changing |
Number of establishments | 62 | 29 | -53.2% |
Number of persons engaged | 2183 | 682 | -68.8% |
The above statistics are compiled based on the Hong Kong Standard Industrial Classification (HSIC) Version 2.0.

The intimate apparel industry has been playing a significant role in the local clothing industry, which has gained for Hong Kong the reputation of being a leading production centre and an international sourcing hub for textiles and clothing.
However, according to the graph, both the number of establishment and the persons engaged in the manufacture of under garment and night garment in June decrease significantly from 2004 to 2009. Actually, this is expectable because of the following the reasons:

  1) The vigorous competition
The manufacture of wearing apparel used to be the major industry in Hong Kong. As Hong Kong being flourished, the operation cost becomes very high. Moreover, the exit strategy was employed, so most of the establishments move to other developing countries such as China, India and Thailand in order to reduce the producing cost. With the great competitors, such decline is unavoidable.

  2) Shortened delivery time and the fewer in quantity of goods
As time on processing and quality of goods are essential nowadays, no one can stand alone in this competitive situation. At the same time, the number of fashion seasons is increased and the number of demand of a single item is decreased. Since workers need time to familiarize the procedures of making a single product, such frequent changes leads to 2 problems --- fast learning employees are needed and the workers should work for longer hours. Some establishments cannot...