Hong Kong is one of the most important players in the watch industry worldwide. It is the second biggest exporter of complete watches after Switzerland and the second largest exporter of clocks after the mainland. Exports of watches from Hong Kong reached HK$22 billion up to June this year.

Following decades spent establishing a manufacturing base for watches, the next step for the Hong Kong watch industry is to develop local brands, according to the Federation of Hong Kong Watch Trades & Industries chairman, Tse Wai-hang.

Mr Tse said Hong Kong needed to develop local brands within the next 10 years. He said companies could no longer expect to maintain their competitiveness on costs as companies on the mainland had developed rapidly - and suggested Hong Kong had to invest in areas where mainland companies could not easily compete.