Hongkong Textile And Retail Giants Are Optimistic About China'S Economy

Kenneth Fang, a giant merchant in Hongkong, knows from experience how much money it can bring to meet the needs of Chinese consumers. In 1998, Fang Kun and his two brothers set up an era supermarket in mainland China and expanded the chain to 65 stores, most of which were in wealthy Jiangsu Province, and then sold it to Lotte Shopping in 2009 for 630 million dollars. Fang brothers, who had 72% of the company's shares, was able to include $450 million into their pockets. "The capital and energy needed to run it are beyond my scope." He said in a recent interview.

But this year, Fang Keng and other members of the family have not been complacent, nor have they been shrinking because of the recent slowdown in China's economy and the high cost of labour that led to a poor business situation. "People have purchasing power, especially in luxury." Fang Keng said. China's "stage" is actually the stage before Japan became a large consumer goods market. I am not worried about the recent slowdown in China, he said firmly. Fang Keng remains optimistic about the Chinese market.

Fang Keng did not give up a more profound business than Fang's family chain: "I am still concerned about the textile industry." Fang Keng said. He has various titles and honors in this industry, including the honorary president of Hongkong Textile Association and chairman of the board of directors of Hongkong textile and garment research and development center. In 2007, he was awarded the title of "outstanding industrialist" by the Federation of Hongkong industries of Hongkong's top industrial and Commercial Association. This month, Hongkong Star Island News Group awarded it the title of "outstanding leader".

"My manufacturing business has been shrinking, but there is still a difficult road for China to usher in the era of quality products." Fang Keng said. He also has a special liking for clothing retailing. "Entering the Chinese consumer market is about brand name," he said. "But building brand is a very expensive process."

Fang Keng's father Fang Zhaozhou moved from Shanghai to Hongkong on the eve of the change of Chinese regime in 1948, where he founded S.C. Fang & Sons, and became one of Hongkong's largest textile manufacturers. For many years, Fangshi group has been a supplier of many brands including Gap, Liz Claiborne and Martha & Marks (Spencer). In this process, Fang Zhaozhou spares no effort to cultivate children's leadership. Fang Kun returned to Hongkong and joined the management of family business after receiving his master's degree in chemical engineering from Massachusetts Institute of Technology (MIT).

Today, the export factory of Fang family, located in the former Hongkong textile industry center, is still operating, but its surroundings are changing. Real estate developers are dismantling warehouses that are not fully utilized today. Manufacturing costs have been squeezed out of Hongkong's manufacturing costs for many years, and the cancellation of global textile quotas over the past few years has further consolidated China's related industries. Old factories near the streets of Fang Kun's headquarters were demolished and replaced by offices for banks and service companies, which fled the thriving Central Financial District of Hongkong in order to avoid high rent. Today, Fang Kun's manufacturing activities are mainly concentrated in Jiangsu Province, where competition is still fierce. "Hongkong is just my headquarters." He said with a smile.

Just a few years ago, the steady rise in manufacturing costs in Hongkong and the mainland made Fang Kun first think of trying to enter the Chinese retail industry and resort to the local ultimate consumers. In the 60s of last century, when the textile industry in Hongkong focused on the US and overseas markets, the Chinese market was developing at an incredible speed, he said.

In 1988, Fang brothers founded the time supermarket. However, they did not stop there. Fang Keng's second brother, Jeffrey Fang and his third brother, Fang Gang Vincent Fang, a Hongkong Retail Management Association, has been running the Toppy International of Fang's group and clothing retail business for many years, selling five brands including Episode, Jessica and Color Eighteen, and has more than 200 stores in the world. Fang Fang graduated from University of Wisconsin at Madison (University of Wisconsin-Madison), now in charge of GRI Global (Retail Inc.), the distribution of the brand Anne Klein New York and Klein. Jones Apparel of New York has a 25% share in GRI.

Even the third generation of Fang family has begun to set foot in the field of clothing retailing. Fang Keng's son is also a master of Massachusetts Institute of Technology. Fang Rende (Douglas Fang) Active participation Pringle (Pringle of Scotland) Brand supervision. The brand was bought by Fang Keng in 2000 and changed to creative director last year. Now that Chinese and Hongkong enterprises are seeking to buy western fashion brands, Fang family is looking for pioneering enterprises in relatively early stage. Novo, a retail chain based in Shanghai, is controlled by Fang Renjie, AlanFang. Despite the ups and downs of Fang's enterprises and their families over the years, according to Forbes, the value of Fang's businesses and family wealth is about $1 billion, making Fang family one of the most successful business families in Hongkong.

Looking ahead, Fang Kun said he is working with several sons to actively establish new retail stores in China as a succession of family textile manufacturing businesses. He did not disclose details of the overall strategy, such as the opening time and location of these stores. He pointed out that the prospect of China's textile manufacturing industry is still broad, but the road is not easy to go. "You must improve your grades. I remember when I first entered this industry 40 years ago, Hongkong was very cheap, and we could survive on the basis of price advantage, but this strategy is not working. "

However, the textile and retail industry is not the same. Massachusetts Institute of Technology The only interest of engineers is. He holds a stake in China Auto System Technologies Limited, a maker of converters listed in Hongkong in 2011, and now includes Chinese automakers including BYD and Geely. A few years ago, when the company started, its target customers were China's air conditioning enterprises. In addition, Fang Kun has long held shares in the electronics manufacturer Yeebo of Hongkong.

But in general, the blood relationship between Fang family and clothing industry is closer. As China's consumer spending continues to grow, it is hard for the fangs to succeed.