Exports of complete watches fell a year on year 16 per cent to HK$10.4 billion in the first six months of this year, according to statistics released yesterday by the Trade Development Council (TDC).
An adviser to the Federation of Hong Kong Watch Trades and Industries, Wu Ku-chuen, attributed the fall to more Hong Kong manufacturers producing watches on the mainland and shipping them directly to overseas markets.
'To reduce transportation fees, and to shorten the time [it takes for the watches to reach their destination] a lot of companies carry out their logistics directly from the mainland to overseas markets,' he said.
Mr Wu, who is also managing director of Dominion Watch and a member of the committee organising the Hong Kong watch trade fair, said that mainland watchmakers had continued to seize market share from Hong Kong's manufacturers.
However, he emphasised that the quantity of watch re-exports passing through Hong Kong ports remained unchanged during the first half compared with the equivalent period last year.
Mr Wu also said local watch companies should seek to compete on qualities other than price, such as design and branding, in their bid to fend off cost-focused Chinese watchmakers.
He was speaking at the release of a survey polling exhibitors and buyers who are attending the Hong Kong Watch and Clock Fair.