To delve into the latest sourcing behaviours, product trends and the future market prospects of the home products, fashion and gifts industries, comprehensive surveys were conducted among 967 trade buyers attending the Home InStyle, Fashion InStyle, and Hong Kong Gifts & Premium Fair organised by the Hong Kong Trade Development Council (HKTDC) in 2024.
Diversified Sourcing Channels
1. Major Objectives for Trade Fairs Remain Finding New Products and Suppliers
In terms of main objectives for attending the trade fairs, the survey results show that 72% of buyers wanted to source new products while 57% looked to identify new suppliers.
2. Buyers Adopt a Combination of Physical, Online, and Hybrid Sourcing Channels
While physical channels remained essential for 44% of buyers, 41% of buyers utilised both online and physical channels to source, and 15% of buyers relied exclusively on online channels, highlighting buyers’ prevalent adoption of omnichannel sourcing strategies.
3. Buyers Anticipate Increased Online Sourcing in the Future
Among buyers who leveraged hybrid channels, 35% reported that over half of their sourcing activities have been conducted through online channels in the past 6 months.
Looking ahead, 55% of buyers anticipated that over half of their sourcing activities would occur via online channels in the next 2 years. The finding shows buyers’ strategic move to integrate online channels more extensively, complementing the physical sourcing methods.
Sourcing Behaviours
4. Buyers Expand Sourcing Variety with More Suppliers and Increased Budgets
The current buyer sentiment is positive. Close to two-thirds of buyers have sourced a greater variety of products this year. 55% of buyers have engaged with more suppliers and 53% of buyers have increased their sourcing budgets.
5. Buyers Balance Rising Sourcing Costs with Retail Price Adjustments
When it comes to sourcing costs and retail prices, 52% of buyers faced rising sourcing costs, while 47% were able to raise retail prices. The finding indicates that despite the overall upward trend in costs and prices, buyers seem to be more conservative in adjusting retail prices and have absorbed part of the increased costs.
Market Prospects
6. Buyers’ Optimism Spans Both Developed and Emerging Markets
In terms of target markets, North America and Western Europe accounted for the major selling markets of about a quarter of buyers. Meanwhile, ASEAN countries emerged as a rising market of 21% of buyers.
The finding resonates with the previous International Sourcing and Beyond 2024 survey report, indicating buyers’ diversification in global sourcing and sales destinations.
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In assessing the growth prospects of their target markets, buyers expressed a generally optimistic outlook. Over half of buyers considered most target markets as having promising sales prospects for the next 2 years. Notably, ASEAN countries have garnered significant interest, with 68% of buyers forecasting growth in the markets.
7. Buyers Foresee a Brighter Business Outlook in the Short and Medium Term
More than half of buyers expected an uptick in overall sales in the short term. This positive sentiment extends to the medium term, with 62% of buyers foreseeing higher sales in the upcoming 1 to 2 years.
The top three business opportunities perceived by buyers this year include the recovering purchasing power from customers, the rising demands from emerging markets, and the business leads driven from e-tailing. Despite the optimism, buyers remained mindful of broader major challenges such as the global economy’s fluctuations, the impact of inflation, and the fluctuating exchange rates.
Upcoming Product Trends
As we asked about buyers’ preferences across the home products, fashion, and gifts industries, several popular products have emerged, driven by key trends such as smart technology, sustainability, and a preference for trendy and minimalist design.
8. Home Products and Furniture Driven by Smart and Eco-friendly Features
In terms of home products and furniture with the biggest growth potential, buyers’ interests covered a diverse range of categories. Kitchenware & Tableware were considered to have the greatest growth potential by 19% of buyers, followed by Home Appliances at 17%. Interior Decoration and Handicrafts, Eco-friendly Products, and Furniture each drew the focus of 16% of buyers.
Buyers also pinpointed the most popular houseware and furniture trends in 2024. Smart Home Products (26%), Simple Design (24%), and Environmental-friendly / Energy-saving Products (23%) topped the list.
9. Home Furnishings Sector Shows Promising Growth
For textile products, over half of buyers saw Home Furnishings as the most promising segment. This is followed by Bathroom and Kitchen Textiles at 33%.
When it comes to textile trends, Simple Design (33%) and Environmental-friendly / Energy-saving Products (27%) were the most popular.
10. Urban Clothing and Womenswear Lead the Way
For fashion products, buyers’ top choices were Urban Clothing (34%) and Womenswear (29%). Sportswear and Swimwear (21%) were also seen as promising categories.
Buyers highlighted Pricing (51%) as the most critical factor in facilitating business deals, while Trendy Design (41%) and Simple Design (36%) were also important considerations.
11. Gifts Market Sees Diversification in Trending Products
Buyers expressed a balanced interest across various gifts categories. Sustainable Gifts led the way, with 18% of buyers rating it as the most promising segment. Packaging was closely behind at 17%, and Cultural Gifts accounted for 16%.
Sustainability has been in the spotlight in the gifts industry. 56% of buyers identified Environmentally Friendly Products as the leading trend in the gifts and premium market for 2024. This is followed by preferences for Chic and Fashionable Products (39%), High-tech Products (34%) and Durable Basic Designs (31%).
Summary
The survey conducted during the Home InStyle, Fashion InStyle, and Hong Kong Gifts & Premium Fair in 2024 revealed a collective sense of optimism among buyers, with expanded sourcing activities and a bright business forecast in the short and medium term. Ongoing diversification of sourcing channels is evident, with buyers complementing physical trade fair visits with increased reliance on online sourcing channels. Buyers’ positive outlook also extends across both developed and emerging markets, especially in ASEAN countries. The various popular products and trends of the home products, fashion and gifts sectors reflect the vibrancy and responsiveness of these dynamic markets.
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