business · SingTao

Century-Old Qipao Shop Stands Firm Against Mainland Competition, Keeps Production in Hong Kong

about 1 hour ago2 MIN
Century-Old Qipao Shop Stands Firm Against Mainland Competition, Keeps Production in Hong Kong

Summary

Koon Nam Wah, a century-old Hong Kong traditional wedding qipao shop, is weathering industry headwinds by refusing to undercut mainland competitors on price, instead maintaining triple the production costs to keep post-manufacturing work in Hong Kong. The third-generation proprietor outlined a strategy emphasizing quality over cost competition as marriage rates decline citywide.

Key Points

  • Hong Kong's annual marriage count has fallen from approximately 60,000 couples a decade ago to around 40,000 today, pressuring traditional wedding service providers
  • Koon Nam Wah closed its Wan Chai branch on May 1 when the landlord declined to reduce rent sufficiently, consolidating at its Yau Ma Tei flagship which the company owns outright
  • The shop maintains a three-stage production model: embroidery completed in Suzhou, with all final cutting, alterations and maintenance performed in Hong Kong by one of only two remaining local operators
  • Despite total costs running three times higher than competitors who import finished mainland garments, Lam Cheuk-yi emphasized that pre-made garments cannot achieve the same finish regardless of alterations
  • With a production cycle of 9 months to 1 year per set and individual costs between HK$10,000 to HK$20,000, the company has built substantial inventory that buffered supply chain disruptions during COVID-19
  • The business has expanded into Western wedding dresses since 2008, with Chinese and Western lines now each representing 50% of operations, up from Western's initial 20% share

Why It Matters

The survival of traditional Hong Kong craftsmanship in the wedding industry underscores a broader tension between cost competitiveness and quality preservation as the city's consumer base shrinks and mainland e-commerce reshapes market expectations .
The survival of traditional Hong Kong craftsmanship in the wedding industry underscores a broader tension between cost competitiveness and quality preservation as the city's consumer base shrinks and mainland e-commerce reshapes market expectations .

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