The global financial crisis in 2008 has made a certain impact on China’s real economy, dealing a blow mainly to its exports yet consumer confidence remains stable. The financial crisis has also forced countries around the world to refocus their attention on the issue of unbalanced global trade. Asia, in particular China, has to transform from an export-led economy to one that is driven by domestic demand. It is believed that state policy in China will continue to support and encourage domestic consumption.
As a matter of fact, China’s economy is still growing at a relatively fast pace. People’s income continues to rise and their pent-up consumption power has yet to be unleashed. As people’s living conditions improve, their requirements for the quality and style of consumer goods (such as clothing, shoes and leather goods) are becoming higher. Since in an affluent society, leather goods are not merely a daily necessity but also a symbol of quality of life, it can be expected that leather goods consumption on the mainland will further increase. To many mainland consumers, Hong Kong brands stand for guaranteed quality, trendiness and taste. Hong Kong companies should take advantage of such good reputation to develop the potential of the mainland leather goods market.