As the 18th edition of the Hong Kong Watch and Clock Fair opens its doors at the Hong Kong Convention and Exhibition Centre from September 7 to 11, the fair has evidently developed and expanded along with Hong Kong's watch and clock industry since its inception in the late 1970s.

At its infancy, the industry had relied heavily on Original Equipment Manufacturing (OEM) and transformed into a keen competitor emphasizing Original Design Manufacturing (ODM), the volume of which grew steadily as Hong Kong design and marketing reached international standards. Applying combined expertise in OEM and ODM, Hong Kong ranked as the world's leading supplier of watches and clocks. Exports in 1998 were worth $5.67 billion.

Similarly, the Hong Kong Watch and Clock Fair has become the world's largest trade event of its kind gathering as high as 800 exhibitors from 80 makers recorded in the first year. Exhibitors from 15 countries and regions are expected to visit, housed in pavilions representing the Chinese Mainland, France and Taiwan. Growth in the number of Korean exhibitors is especially strong.

In 1998, a record breaking attendance of 15,818 trade visitors signified the truly international nature of the fair. Fifty-seven percent of the overseas visitors came from Asia, with 20 percent from Europe, 11 percent from North America, 5 percent from the Middle East, 3 percent from Central and South America, and 2 percent each from Australia and Africa.

More than a display venue for maker's products, the fair provides market intelligence, business services and buyer activities.

At this year's fair, the Asian Watch Industry Conference will provide excellent chances to collect and exchange the latest market information. The conference will feature prospects for Asian timepieces in major markets like the United States, Japan, the Middle East and Europe. Experienced market players will be sharing their expertise.

The fair itself acts as a world-class venue for collecting all types of market intelligence and previewing product trends. Watches have become a fashion item, with different colors, graphics and functions incorporated into the latest designs.

Fashion and sports watches are popular among youngsters and for leisure purposes. Theme watches tied to movies and characters remain strong. This year should also see a wave of new-era electronic watches with LDC displays for games or with voice announcement functions. For maximum convenience, the fair is organized by product categories, with exhibitors grouped in appropriate sections. The major categories include complete watches and clocks, parts and components, and packaging materials.

Forging relationships is another important aspect of the fair. Special functions like the Gala Evening and a Watch and Clock Fair Golf Classic provide extra networking chances in a relaxed setting outside the more formal business atmosphere of the exhibition.

A full range of services available is housed in the business center which offers email, fax, photocopy, courier and mobile phone facilities. Electronic locators in the the fair grounds help visitors to find specific booths. Free shuttle buses travel between the venue and key MTR stations.

A recent innovation was the buyer pre-registration through the Internet. Needless to say, customer response is positive.

The Hong Kong Watch and Clock Fair promotes and utilizes Hong Kong's strategic position between the East and the West, and its status as Asia-Pacific's leading business hub. It further reinforces Hong Kong's position as Asia's distribution Centre for watches and clocks.

Watch and clock exports in 1998 declined six percent compared to 1997. Recent Asian economic adjustments are part of the reason, as are the increasing trans-shipments through Shenzhen ports that never appear in Kong Kong statistics. The statistics also reflect a decline in prices, rather than quantity. Order sizes remain static.

Major export markets such as the United States, Europe and Japan, are expected to show steady performance while efforts are being made to promote trade with emerging markets like South America, the Middle East and Mainland China.

Looking ahead, I believe Hong Kong manufacturers must further enhance their competitiveness by continuing to invest in product research and development. Modern production technologies must be applied to enhance quality and productivity. Many manufacturers have already upgraded their technologies in die-casting, mould-making, plastic manufacturing and metal stamping. Continuous upgrading is needed to outpace the competition.

In addition, Hong Kong companies should devote more effort to establishing their own brands to win international market share. Like ODM, Original Brand name Manufacturing (OBM) will help the industry to upgrade. Participation at top international trade fairs, like the Hong Kong Watch and Clock Fair or the Basel Fair, is a perfect way to promote Hong Kong brands. Only by participating will Hong Kong companies reach genuine international buyers and establish good sales networks for future expansion. This again reflects the significance of the Hong Kong Watch and Clock Fair in the global timepiece industry.

With improved market sentiment in 1999, the 18th Hong Kong Watch and Clock Fair should achieve good results.