INFO & ACTIVITY
-【HKAS X A.N.G Event - April 28 2025 Lunch Chit-Chat Gathering Postscript】
-[HKAS x ANG February 2025 Cambodia Exchange Tour] – Postscipts
2025-04-30
Thanks to all the members and guests who attended the event. We fully understand that they are heavily tied up, but still squeezed the precious time to support the event.
The topic is: What can be done with such crazy tariffs?
After the meeting was ordered by our Chairman, Mr Banny Yu, the participants gave a brief introduction to their company
Then came the main project: the president formulated three core questions according to the theme, discussed in groups, and summarized the main points by the representatives of each group. Since the members of our Society are from different fields, such as producing different product types or providing different services, so the participants have different responses, which are summarized as follows:
Q1. Sharing your customers responses and requests, both voluntary or mandatory?
- Some participants said that there was no impact in the time being because they mainly did the European market
- However, some participants in the European market said that although they did not agree, some large customers had forcibly canceled their orders without any reason
- Participants who were mainly supply to US market advised that large customers asked not to ship, and those who were ready to ship would need a 25% discount, and the voluntary reduction could only be 2-6% . Smaller customers asked to discuss sharing the extract costs.
- Some participants also said that large customers would divide the tariff cost into 3 parts, 1/3 would increase their selling sales price, and 1/3 would be absorbed by the customers themselves. However, the manufacturer is required to absorb the remaining 1/3
- The participants with overseas production said that the customer requested to shorten the production time and urged the shipment as soon as possible
- - but the production in Bangladesh is divided into two poles
- The factories that were doing only CMT would keep on,
- but those that were doing FOB had basically been stopped
- The prototype samples and development were still in progress, customers had no idea how to place orders
- Some of the participants who are fabric makers say that customer had divided their current orders into three parts: those that were ready to ship should keep processing the shipment; the quantity of the unshipped batch was reduced, and customers requested that those in the shipment to reduce the price by 8-10%
- The participants who are freight forwarders say that business is very prosperous at the moment, but it is only until May, and is unknown for June and thereafter.
- The participants who do the barcode say that Amazon has reduced the order
Q2. Think about the real difficulties of the guests
- one participant concluded the present situation with the song by a famous local singer, Danny Chan – Wait. It had summed up everyone's current predicament.
- Because Trump's policies and attitudes are so uncertain, everyone is very passive and cannot make any long-term plan
- Walmart said that business is good at the moment, because everyone is rushing to buy the goods before prices substantially increase due to the tariffs, but once the current inventory is sold, no one knows what will happen.
- Some customers understand that they need to increase the sales price, but they keep waiting the others to do it first
- The most concern is that after the customer pays high taxes, there will be problems with the flow of funds
- There is too much uncertainty, and some US customers themselves understand that some manufacturers have lost faith in them.
- It may result in the situation that manufacturers tend to make European orders and there will be vicious competition
Q3. What should be done
- It is recommended that the United States will take three steps to pressure China:
- The first phase is to increase the tax on the goods currently manufactured in China
- The second phase is for products of Chinese raw materials will be heavily taxed
- The third phase is for the products produced by companies with a Chinese background, which will need to be heavily taxed
In such case, it is estimated that China will not take the initiative to negotiate
- Because there is a chance that many customers will have financial problems, it is strongly suggested to handle customer payments carefully. Try to ask for a deposit upfront
- Need to buy export insurance
- Disperse the distribution of customers, don't just rely on large customers, should also focus in more medium-sized or even small customers
- Disperse the market, develop more different markets and different sales channels, such as online
- Develop different production bases
- Keep united to strengthen the bargaining power
- Reduce production costs with automation as much as possible
- Localize logistics work to reduce operating costs
Banny concluded by saying that, actually, the third point is whether or not there is this tariff incident. Everyone should take the same action, It is just that the incident has accelerated the transition.
The meeting was full of animated discussion that resulted in the postponement of meeting – it was originally scheduled to end at 2:00 p.m., but at the end later than 3:00 p.m.
In addition, sharing photos of that day
Want to be one of us to join the events? Please contact Mr. Leung of the Secretariat by email to secretariat@hkapparel.com.hk for more information. Thank you...
2025-02-28
Although participants had different commitments so they started or ended their journeys on various dates, we strongly believe that everyone gained the insights they needed during the visits. At least, over the few days we spent together, we had deepened our understanding of each other and also met new friends from different fields.
During the trip, we visited eight factories - six garment factories both knit and woven, one denim washing plant, and one knitting, dyeing, printing, and finishing factory. In addition, we conducted site visits and exchanges at a local real estate project, and a logistics company, and had the dinner with the China Hong Kong and Macau Business Association of Cambodia and the Hong Kong Business Association in Cambodia.
Of course, the trip was also filled with delicious food and drinks. We tasted diverse cuisines and, towards the end of the journey, visited the city and rural orchards.
In summary, this study featured a tightly scheduled itinerary, balanced with moments of relaxation, enjoyable meals, and comfortable accommodations. All participants were satisfied with the arrangements.
For those who missed this opportunity, don't worry, be sure to join our Society’s next event.
To share our journey experience, we made a short video. Please access the link below:
Video:
Also, share the video and post links of the dinner with Cambodia associations below –
Video -
https://www.douyin.com/video/7473500106835184933
Post -
https://www.aseantop.com/post/10879