The Apparel Digest Report
Hong Kong’s garment industry has moved from large-scale manufacturing to a leading role in managing regional supply chains. Its continued influence now comes from industry expertise and research that support the future of apparel production across Asia.
Hong Kong was once one of the world’s leading garment manufacturing centres. Its factories supplied clothing to Europe, North America and Commonwealth markets for decades. Although much of the production later moved overseas, the city did not leave the industry. It changed its role and became an important centre for sourcing, product development and supply chain coordination.
The Rise of Hong Kong’s Garment Industry
Hong Kong’s garment industry began to take shape in the early twentieth century. Clothing was initially produced within larger weaving mills, but independent garment factories began appearing during the 1930s.
Before the Second World War, factories mainly produced basic garments for nearby Asian markets and British territories. The industry expanded rapidly after the war as migrants from mainland China brought capital and manufacturing knowledge. The growing demand for Western-style clothing also supported the production of shirts and trousers.
During the 1950s, Hong Kong gained wider access to overseas markets. Its manufacturers first built a strong presence in Commonwealth countries and later expanded into Europe and the United States. As demand increased, factories moved beyond shirts and began producing more varied garments.
By the 1960s, Original Equipment Manufacturing (OEM) had become a central part of the industry. Hong Kong factories produced large orders for international retailers while meeting strict requirements for quality and delivery. These contracts helped companies expand and build long-term relationships with global buyers.
The industry continued to develop during the 1970s. Denim became an important export product, while local textile mills supplied a growing share of the fabric used by garment factories. Some manufacturers also began creating their own brands instead of depending only on contract production.
Production Moves Beyond Hong Kong
Rising operating costs and export restrictions gradually changed the structure of the industry. From the late 1970s, Hong Kong manufacturers began opening factories in other Asian economies. Bangladesh was among the countries that received investment during this period, and joint ventures with Hong Kong and South Korean firms helped launch Bangladesh’s export-oriented garment industry in 1978.
China’s economic reforms brought another major change in the 1980s. Many Hong Kong companies moved production to the Pearl River Delta, where costs were lower and factories remained close to the city.
Hong Kong companies continued to manage their businesses from the city. They handled buyer communication and made key production decisions while factories operated elsewhere. This model later expanded across Asia.
By the end of the twentieth century, Hong Kong had moved away from large-scale garment production. However, it retained control over many of the functions that connect factories with international brands. This allowed the city to remain important even as sewing and assembly shifted beyond its borders.
The Industry Today
Hong Kong’s local garment manufacturing base is now much smaller than it was during its industrial peak. In 2024, the city had 390 clothing manufacturing establishments employing about 1,930 workers.
The trading side of the sector is much larger. More than 10,450 clothing import and export companies employed around 52,100 people in the same year. The difference shows how the industry has moved from factory production toward international business and supply chain management.
Hong Kong companies now connect global brands with production facilities across Asia. They help buyers select suppliers and oversee the movement of orders from design to delivery. Their knowledge of international trade rules also helps brands manage production across several countries.
OEM remains part of this system, but many companies have expanded into Original Design Manufacturing. This allows them to contribute to product design instead of only producing garments based on instructions from buyers.
Some Hong Kong businesses have also built their own fashion brands and retail networks. Bossini is one example of a local company that expanded across markets outside the city. This shows how the industry developed from contract manufacturing into a broader fashion business.
RMG Exports and Regional Links
Hong Kong continues to export large amounts of clothing, but most shipments are re-exports rather than garments produced locally. Clothing exports remained an important part of Hong Kong’s trade, although they continued to face pressure in 2025. According to recent industry data, clothing exports fell by 13% year on year in 2025.
The United States remains an important market, while mainland China and ASEAN economies also account for a significant share of trade. Southeast Asia has become increasingly important because many Hong Kong companies now operate production networks in the region.
Hong Kong’s textile exports also support garment factories outside the city. Bangladesh is among the destinations receiving textile products from Hong Kong. These materials connect the city’s textile expertise with the wider regional RMG industry.
The growth of production across Asia has therefore not removed Hong Kong from the supply chain. Instead, it has placed the city in a coordinating role between buyers and manufacturing countries.
From Factory Work to Industry Expertise
Hong Kong’s present strength comes from its knowledge of the garment business. Local companies have spent decades working with retailers and manufacturing partners across different markets.
They understand how to manage orders and maintain product standards across several locations. This experience is especially important when brands need faster production or smaller batches.
International fashion companies continue to maintain sourcing offices in Hong Kong because they can manage regional production from one location. The city also hosts events such as Hong Kong Fashion Week and CENTRESTAGE, which connect designers with buyers.
Several major companies show how Hong Kong’s RMG industry now operates. Li & Fung manages supply chains for international retailers, while Crystal International Group runs garment factories across Asia. Other companies have built their reputations through product development or specialised apparel manufacturing.
These firms may operate factories outside Hong Kong, but many important decisions are still made through their offices in the city.
Innovation in the RMG Sector
Technology has become more important as Hong Kong moves further away from cost-based competition. Companies are using digital systems to improve production planning and customer service. Automation is also helping factories reduce delays and maintain consistency.
The Hong Kong Research Institute of Textiles and Apparel has become a major part of this shift. HKRITA works with industry partners to develop technologies that can be used commercially.
Its Green Machine separates cotton from polyester in blended fabrics so that both materials can be recovered. The Good to Good system turns discarded garments into material that can be used for new clothing. These projects give Hong Kong an important role in the development of circular fashion.
HKRITA and the H&M Foundation also opened the Open Lab in 2024. The facility allows researchers and companies to test sustainable textile technologies before wider industrial use.
These developments connect Hong Kong’s research capacity with RMG production across Asia. Manufacturing countries can benefit from technologies developed in the city, while Hong Kong strengthens its position as a source of technical knowledge.
Sustainability and Supply Chain Responsibility
Environmental requirements are changing the global garment industry. Buyers now expect greater transparency about materials and working conditions. New regulations have also increased the need for companies to track products through the supply chain.
Hong Kong firms are responding by improving traceability and investing in cleaner production methods. They are also working with recycled materials and technologies that reduce waste.
This transition creates new costs, especially for smaller companies. Equipment must be upgraded, and staff need training to work with new systems. However, Hong Kong’s research institutions and industry networks give the sector a strong base for meeting these demands.
The city’s role is therefore not limited to managing orders. It can also help shape how garment supply chains respond to environmental pressure.
Challenges and Future Direction
Hong Kong’s RMG sector faces strong competition from lower-cost manufacturing economies. Global demand has also become less predictable, while trade disputes have made sourcing decisions more difficult.
The city cannot compete by rebuilding the same labour-intensive factory system that once drove its exports. Its future depends on creating value through knowledge and technical support.
A report released in July 2026 proposed a set of policy measures for the textile and apparel industry. It called for Hong Kong to strengthen its role as an international procurement centre and fashion hub, while also giving more attention to supply-chain management, design, branding and professional services.
For the RMG sector, this means improving the services that connect brands with factories. It also means using research to solve production and sustainability problems.
Hong Kong’s garment industry has changed greatly since its factory-driven years. Production has moved across Asia, but the city remains connected to the decisions that shape the industry. Its experience with global buyers and its growing research capacity give it a continuing role in the future of RMG.
