A REPORT labelling Hong Kong one of the world's leading footwear exporters has, at the same time, shown the demise of one of the territory's labour-intensive industries. A Federation of Hong Kong Industries report shows major products exported by the Hong Kong footwear industry are women's shoes, house slippers and children's shoes. The report, compiled from Hong Kong Census and Statistics Department figures, lists men's casual shoes, sandals, loafers and oriental-embroidered shoes as some of the territory's prominent exports. More than 90 per cent of these products are made in China. Domestic exports accounted for just 0.4 per cent of the $53 billion of total exports last year. The territory's advantage is its position as a communication and transport hub which enables manufacturers to keep track of latest trends and offer fast delivery, the report says. The outlook for the footwear industry is positive, it says. The United States and the European Union, which together account for 70 per cent of the territory's footwear exports, are expected to sustain a moderate economic growth of around three per cent this year, the report says. The economic downturn in Japan, Hong Kong's second-largest export market, has caused cost-conscious shoppers to look for value-for-money goods. Hong Kong's footwear manufacturers, who are relatively strong at quality products in the medium-to-low price range, are well-positioned to meet these demands. A spokesman for the Hong Kong Hide and Leather Traders' Association, Wong King Hang, said the Hong Kong International Footwear Fair and Handbags and Leather Goods Fair created 'excellent' circumstances for industry traders to exchange information and develop business.