The beauty sector describes the industry that manufactures and distributes cosmetic products.
These include colour cosmetics, like foundation and mascara, skincare such as moisturisers and cleansers, haircare such as shampoos, conditioners and hair colours, and toiletries such as bubble bath and soap.
The manufacturing industry is dominated by a small number of multinational corporations that originated in the early 20th century, but the distribution and sale of cosmetics is spread among a wide range of different businesses. The largest cosmetic companies are Johnson & Johnson, L’Oreal Paris, Procter & Gamble, Unilever, LVMH, Beiersdorf, Estée Lauder, Shiseido and Chanel.
Some things are starting to change. The beauty industry as we know it was built on western beauty standards. Now it has to cater to black and other ethnic minority standards as well due to changing market and political realities.
Western country populations are aging. This means that the product mix needs to change for these companies and aesthetic standards need to evolve.
South East and East Asia has gone from being the poorest parts of the world to hosting the fastest growing economies. The ranks of the middle class have exploded in Asia as they declined in the western world due to globalisation.
This also means a very different aesthetic and expectation of what it means and looks like. These are also the the markets were the next generation of industry manufacturing giants will hail from. Shiseido from Japan has an early mover advantage, although others like Innisfree from Korea are expanding across Asia and beyond.
The BBC had Darren McGarvey on, reading is own book The Social Distance Between Us. Something is added to the content through McGarvey’s own voice reciting his own book adapted for the ‘book of the week’ slot. His Glaswegian accent and experience recording Scottish tinged rap helps in his delivery. Darren McGarvey is better known in music circles as Loki and his two albums published in the 2010s before he became an author and fronted documentaries (like working-class Londoner Professor Green). This is McGarvey’s second book after Poverty Safari, which was released in 2018. Both of the books deal with the realities for the British working class.
Revlon files for bankruptcy – CNN – one would normally expect a brand like Revlon to be resilient in a recession for being an affordable luxury a la Esteé Lauder. Ron Perelman overburdened Revlon with too much debt and its impressive that it lasted this long
China
Chinese courts flex intellectual property muscle across borders | Financial Times – Chinese courts have issued four key cross-border “anti-suit injunctions” following claims made by the country’s massive telecom equipment and smartphone groups — Huawei, Xiaomi, ZTE and Oppo — in disputes against Germany’s Conversant, US group InterDigital, and Japan’s Sharp. These rulings have essentially sought to block non-Chinese companies from enforcing IP rights in other jurisdictions, meaning Chinese companies cannot be sued for alleged infringements.They are enforced via daily penalties on a foreign company’s local operations in China, if that company insists on pursuing a case. According to Rieko Michishita, a veteran China IP lawyer at Bird & Bird, the rapidly mounting penalties make the injunctions akin to “taking a hostage”. And the cases are an indication, she warns, of how Chinese companies and courts will become more confident in deploying such legal manoeuvres as the country’s technological prowess steams ahead
Fears of data abuse as Chinese health code turns red for financial scandal protesters | South China Morning Post – Victims of what could be one of China’s largest financial scandals found themselves unable to step outside to join planned protests because their health QR codes had turned red, reigniting fears that the large-scale data collected for contact tracing would be abused for other uses. Since late May, hundreds of people have taken to the streets in China’s central Henan province, calling for authorities to ensure the return of their deposits that were frozen in four rural banks in the province.
What’s next for Glossier as founder Emily Weiss steps down after eight years | Vogue Business – Glossier is famous for popularising millennial pink in its stores, its zip-lock bubble pouch and for pioneering everyday beauty in an industry obsessed with perfection. However, signs of internal shifts began earlier this year when the beauty brand laid off nearly one-third of its staff, according to an internal email obtained by Modern Retail. It also enlisted the singer and Gen Z favourite Olivia Rodrigo to promote the brand in April, after years of relying on its own community. There have been other bumps in the road. Two years ago the sub-brand Glossier Play closed, and the brand was also called out by former store employees who made allegations about racist behaviour and a toxic work culture. Glossier publicly apologised. – for many marketers in the beauty and personal care space Glossier was the poster child of a ‘new way’ of brand building. It looks as if it wasn’t the new way at all and its had to pivot to more conventional means.
Glossier is moving from scrappy start-up to a mainstream beauty brand. Will Weiss stepping back mean that Glossier will be up for sale?
Consumer behaviour
How Labour lost the Indian vote in the local elections – New Statesman – new Indian immigrants have more in common with Rishi Sunak than with the 1970s East Africans. Born to a wealthy, upper-caste Hindu family, this immigrant is likely to have attended one of India’s most prestigious private schools, aspiring to attend an Ivy League university. They were raised by domestic help who cooked and cleaned for them. Sunak embodies the Indian upper middle class. He understands the new wealthy India. Hell, he’s a card-carrying member of the new wealthy India: the Stanford educated son-in-law of one of the biggest Indian tech families, born to middle-class Indian doctors. This means that when Labour draws attention to Sunak’s elitist background, it makes him more appealing to both Indian demographics. He achieved the social mobility the 20th-century immigrants hoped for for their children, and he is a member of the family that encapsulates the new elite India
Economics
All the reasons why so many near-retirees are going back to work — Quartz – the pandemic may have been an even bigger setback to this age group than the current data suggests. There may be many older workers who want to return to work right now and are facing well-established obstacles, such as age discrimination, that make it much harder for an older employee to be rehired after leaving or losing a job, Davis suggests. Going back to work after retirement? It’s complicated. The data also don’t indicate how many of the people who went back to work would have preferred to retire, but couldn’t—a sign that the system could be failing them
Is British science aiding and abetting the Chinese human organ trade? – Last month, for example, a government bill was passed banning British citizens from travelling overseas to purchase an organ. Accompanying this awareness is a growing unease in western academia. Eminent medics are starting to look back uncomfortably on decades of “constructive engagement” with the Chinese medical establishment – those all-expenses-paid trips to lecture budding surgeons, and the profitable arrangements to train batches of them in the west. Meanwhile editors of academic journals are scouring their back issues for too-good-to-be-true studies on organ transplants, that may have arisen from experimentation on human guinea pigs in places such as Xinjiang. In October last year a world-renowned Australian transplant doctor, Professor Russell Strong, called on all Chinese surgeons to be banned from western hospitals to prevent them using the skills they pick up there in the organ harvesting market. Now, a leading human rights body has warned medical equipment manufacturers – among others – that they might be prosecuted if their kit is found to be used in the illegal Chinese trade. – this is going to expand areas of decoupling
Unilever’s Samir Singh: Sustainability shouldn’t burden consumers with guilt or expense | Campaign Asia – existential threats to the personal care business wouldn’t just come from being innovation laggards, but could also come from feisty D2C brands or strong local rivals eating into market share. Here, Singh is more concerned about one over the other. “Despite the noise, D2C brands have made no impact on market share charts in the personal care business,” he contends. “You will hear a lot about them for the first six months to a year, (then) they will peak and then in two or three years, they tend to disappear.” Instead, it is strong homegrown local brands that worry Singh more. He points out that across categories ranging from deodorants to skin care and across markets ranging from India to Indonesia, Unilever has felt local threats to its storied global brands. These brands have been able to compete on price, innovation, distribution and brand recall. “While we have been winning with our global names, these local brands have taken market share from us previously,” he admits. – this looks like headstone for the DTC CPG boom, other comments about sustainability are interesting as well
Chanel profits skyrocket 171% on price hikes, Americas gains | Vogue Business – Chanel famously increased the prices of its iconic handbags last year (the small Classic Flap bag rose by an average 21 per cent in 2020 and a further 30 per cent in 2021, according to Jefferies analyst Flavio Cereda) and said a twice-year price adjustment is the norm for the brand. Price increases “depend on product categories and countries because it depends if the currency in one country has moved in a direction. There is not a single pricing decision which has been made in January. Usually, we revise, we adjust prices when we have to, twice a year.”
Joint Venture Between High-Tech Rheinmetall AG and DEMALOG, Germany’s Biggest Biometrics Company – Soldier Systems Daily – The strategic objective is to integrate biometric technology, artificial intelligence software, and digitization solutions in three different areas: driver monitoring, security, and industry. For Rheinmetall, the joint venture marks an important step in the transformation to digitization technology and expanding into driver monitoring solutions. Furthermore, the new joint venture enhances the Düsseldorf-based technology group’s future-oriented diversification into biometrics applications geared to the security sector and industry. The move also adds to its existing digitization and software expertise. Importantly, the partnership reinforces Rheinmetall’s capabilities in five strategic technology clusters: automation, sensors, digitization, alternative mobility, and artificial intelligence
Virtual clubbing points to future profits from the metaverse | FT – Hybe, the agency behind K-pop band BTS, was hit by a 98 per cent plunge in sales from its core live concert business in 2020 as tours were cancelled. But total annual revenues and operating profit still rose over a third, as it was quick to offer VR concerts and content. With such digital content repurposed at a fraction of the cost of live shows, operating margins rose to nearly a fifth higher than pre-pandemic levels. CJ ENM, which started using the latest VR and augmented reality technology for its virtual concerts in 2020, has also enjoyed a boost to content sales. These have since risen steadily, more than doubling in the latest quarter, as did operating profits from its music division. For Sony, sales from its music segment rose a fifth in the year to March
Making the metaverse – Smart2.0 – its odd, or disingenuous the way Meta is outlining an open metaverse rather than a walled garden, rather like a turkey voting for Christmas
Will supply chain technology facilitate problematic global supply chain management?
Investors Are Piling Into Supply-Chain Technology – WSJ – Newly minted unicorns, or companies that exceed $1 billion valuations, in the logistics sector in 2021 include e-commerce fulfillment specialist ShipBob Inc., digital warehouse and distribution provider Stord Inc. and Flock Freight, a platform that matches shipper loads to trucks and is backed by a venture arm of Japan-based conglomerate SoftBank Group Corp. Backers including big investment funds are pumping money into logistics technology at a rapid pace, driving up valuations for digital-focused ventures across freight, delivery and warehousing. The influx of cash is giving startups in a once-overlooked sector expanded access to capital to build out their businesses, particularly for the top companies that have already developed their core products, according to venture-capital executives who focus on logistics and supply chains. Supply-chain technology startups raised $24.3 billion in venture funding in the first three quarters of 2021, 58% more than the full-year total for 2020, according to analytics firm PitchBook Data Inc. Besides venture-capital firms, backers included global investment managers like Tiger Global Management LLC and Coatue Management LLC and the venture arms of large corporations such as shipping giant A.P. Moller-Maersk A/S and Koch Industries Inc. And then you have Venture capitalists chase industrial tech start-ups as supply shocks widen | CNBC – this reminds me of the B2B dot com frenzy around companies like GoIndustry, i2 Technologies and JDA Software / Blue Yonder.
Supply chain technology underpins supply chain management (SCM). SCM as a term sprang out of management consultancy Booz Allen Hamilton in 1982. But the originals of supply chain technology go back much further. Railway companies were experimenting with barcode type readers with British Rail having a system that read the codes on trains passing at 100mph error free. This system was eventually shut down when British Rail was privatised. In the US they were using KarTrak in the late 1960s, but that was later abandoned. The codes were incorporated into the computer software used to schedule freight rail transport. Shipping containers sprung out of work done for the US military and were proved successful in Korea. The standards for the ‘intermodal’ container where hammered out from 1968 through 1972 covering everything from the containers themselves to safe handling. So you had a standard box and a method of tracking it, which is at the core of supply chain technology.
Containers did a number of things:
It helped prevent ‘shrinkage’. Seiko no longer had to worry about shrinkage due to dockers kicking in the corner of a crate to steal a watch or ten and sell them down the pub.
It encouraged automation of docks and handling, reducing the amount of unskilled labour required
Simplified freight forwarding and handling through standardisation
Facilitated easier global supply chains. Goodyear would know how many tractor tyres it could fit in a 40 foot trailer and ship from Singapore. The ports of Singapore and Hong Kong managed to parlay their use of logistics management software to move containers faster, which proved to be a competitive advantage for a number of years, even after Hong Kong deindustrialised with the mainland opening up
Once logistics management was in place, attention could be turned to sourcing, procurement and the integration of enterprise resource planning to provide an end-to-end picture through supply chain technology. The Japanese developed a lot of management practices designed to master supply chain management and these practices drove a wider demand for supply chain technology.
Packet network infrastructure provided a way to connect systems from channel partners, intermediaries and third party suppliers with a company through a standard interface for supply chain technology to work. What is called EDI or electronic data interchange. The rise of the web made it even easier which is why you had a plethora of supply chain technology companies to simplified the process of EDI. They democratised supply chain technology.
It also allowed retailers like Tesco to use supply chain technology to become vertically integrated from upstream suppliers and downstream customers.
Divergent views on China’s investment landscape | Financial Times – JPMorgan last month called China’s internet sector, once an engine of growth, “uninvestable”. Many big investors have headed for the exits. This week we revealed that Weijian Shan, the chair of PAG, a $50bn fund and one of Asia’s biggest investors, has diversified away from China.
The age taboo in workplaces means we miss out on talent | Financial Times – Research by two Harvard psychologists, Tessa Charlesworth and Mahzarin Banaji, suggests that negative stereotypes of ageing are actually more persistent than those about race and gender. Drawing on data from more than 4mn tests of conscious and unconscious bias, they have found that attitudes to sexual orientation, race and skin tone have improved during the past decade, compared to stubborn biases about age and disability, and increasing negativity about people who are overweight. Charlesworth and Banaji predict that anti-gay bias could reach “neutrality” in 20 years’ time, but that on current trends it will take 150 years for the same to happen to ageism. The raw reality is that older workers tend to be more expensive than younger ones, and are more vulnerable to cuts to middle management. But it may be a false economy to lower initial salary costs by hiring the young, if familiarity with procedures and teamwork are lost
FMCG
Investigating the Pink Tax: Evidence Against a Systematic Price Premium for Women in CPG by Sarah Moshary, Anna Tuchman, Natasha Bhatia :: SSRN – We find that women’s products are more expensive in some categories (e.g., deodorant) but less expensive in others (e.g., razors). Further, in an apples-to-apples comparison of women’s and men’s products with similar ingredients, the women’s variant is less expensive in three out of five categories. Our results call into question the need for and efficacy of recently proposed and enacted legislation mandating price parity across gendered products. – so there is actually a ‘blue tax’ rather than a pink tax
British Historian Antony Beevor: “Putin Wants to Be Feared – Like Stalin and Hitler” – DER SPIEGEL – the liberal West is now facing a decline, and even possibly a collapse, in confidence in parliamentary democracy. The heroic resistance of Ukraine is perhaps the only hope that we will recognize in time the dangers of the general slide towards authoritarianism in an increasingly Manichaean world – that is to say, a new dualism of two power blocs confronting each other: one with a free and liberal stance, and one without.
The cognitive dissonance of corporate life | Financial Times – employers’ efforts to drag people back into the office by offering them “perks” from free snacks to company swag. One particularly eager (and rich) organisation offered workers who were willing to trek back in the chance to win a Tesla. But Spiers, like me, isn’t biting. “I’ve come to think of these corporate toys and rewards as the work equivalent of the cheap prizes you win at a carnival after emptying your wallet to play the games,” she writes. “The difference is that the point of the carnival is to have fun and the prizes are incidental. In the workplace, this is just a laughably terrible trade-off. Who wants to give up the two hours a day they gain by not commuting for a free coffee mug? – interesting challenge that probably only a recession will right
Indonesia’s new law removes redtapes for foreign investors | DigiTimes – With abundant natural resources and young labor, Indonesia attracts – and needs – more foreign investment. The three largest foreign investors in Indonesia are Singapore, China (including Hong Kong), and Japan. Data provided by Indonesia’s Ministry of Investment (BKPM) showed that in the first three quarters of 2021, Singapore accounted for 32% of the total foreign investment, Hong Kong 13.8%, China 10%, and Japan 7.7%. – its also a great option for the move away from Chinese manufacturing
Crypto crackdown stifles China’s ability to offshore cash | Financial Times – With the government applying more scrutiny to digital asset transactions, one of the oldest and most conventional methods to bypass capital controls is gaining popularity: the luxury collectible trade. While it’s difficult to bring suitcases filled with cash through customs, a Tang dynasty-era vase or a couple of Patek Philippe watches can easily pass as personal belongings. Rich buyers can purchase them in China and resell outside the country. Indeed, demand for designer time pieces is taking off, high-end watch sellers in China told the FT. One wealthy Chinese heir also told the FT about another existing loophole, in which Chinese developers building condo projects in Thailand or Malaysia market them at home, and accept renminbi. Once properties are purchased, they can be sold locally into currencies that can be more easily exchanged into dollars – this probably explains why auction houses Sotheby’s and Phillips have expanded their Hong Kong operations
RupertMurdoch’s Sky realised that you could buy football rights for far more than anyone had ever thought of paying before, and you could make your money back by selling the games on subscription instead of pay-per-view or advertising, and you would be able to deliver that subscription using encrypted satellite channels. This was a big deal, both for Sky and for the UK Premiership league, and it was the beginning of something much bigger.
Skyused technology as a crowbar to build a new TV business. Everything about how it executed that technology had to be good, and by and large it was. The box was good, the UI was good, the truck-rolls were good, and the customer service and experience were good. Unlike American cable subscribers, Sky subscribers in the UK are generally pretty happy with the tech. The tech has to be good – but, it’s still all about the TV. If Sky had been showing reruns of MASH and I Love Lucy no-one would have signed up. Sky used tech as a crowbar, and the crowbar had to be good, but it’s actually a TV company.
I look at Netflix in very much the same way today. Netflix realised that you could spend far more moneyon far more hours of scripted drama than anyone had ever spent before, and you could (hopefully) make your money back by selling it on subscription directly to consumers instead of going through aggregators, using a new technology, broadband internet, that both gave you that access and made it possible for people to browse that vast selection of shows – and this: Ads are coming to Netflix: What do top media buyers and analysts think? – It’s plausible that Netflix will play a key role in driving the roll out of hybrid AVOD/SVOD around the world. Today, such models are mostly found in the U.S. and in Asia, but should Netflix add this on a global basis, it could be the next big thing. It’d force others to move beyond pure paid-for streaming models. I’ve long argued that it is unsustainable to expect customers to buy more than five SVOD services — so hybrid models are part of the solution as it eases the pressure on consumerwallets.
Ad agencies have persistently asked Netflix over the last few years to start running ads on the service. But they’ve been firmly against this until now. However, as Netflix management said on the investor call, what has changed is that this is a proven model that works: Hulu, HBO Max and Disney+ are doing it, so ofcourse
Singaporeans must benefit’: expats fleeing Hong Kong meet rising resentment | Financial Times – Chia is not alone in holding anti-expat beliefs. Over the past decade, perceptions that international employers have discriminated against locals have placed increasing pressure on the government to clamp down on immigration. While some anger has been directed towards manual labourers from elsewhere in Asia, Singaporeans are also frustrated by the significant proportion of westerners that make up the city’s elite workforce. After the recession triggered by the coronavirus pandemic refocused attention on employment and inequality in Singapore, the discontent has intensified. Experts warned that an influx of white-collar staff from Hong Kong risked deepening tensions, complicating Singapore’s bid to attract foreign money and talent. – Singapore’s answer to populism?
The military race for low Earth orbit satellites – and why China is behind | South China Morning Post – LEO satellite broadband projects going on in addition to Elon Musk’s StarLink – In Europe, Germany-based Airbus Defence and Space has teamed up with satellite internet firm OneWeb to provide services to the military. Canadian firm Telesat, partly funded by Ottawa, is eyeing the US Defence Department as a customer for its global LEO internet service, which is expected to start in 2024. Amazon’s Kuiper project also has been approved to launch 3,236 satellites but has been tight-lipped on its plans in the defence market. In China, LEO satellite internet is a fledgling industry working to connect remote parts of China and countries involved in the Belt and Road Initiative. GalaxySpace, a private start-up in a field of state-owned giants, launched China’s first LEO broadband constellation comprising six satellites in March. But state media reports have described them as commercial and made no reference to military services. Separate state-owned enterprises also launched test satellites for the Hongyun and Hongyan LEO broadband projects in 2018 but little has been said publicly about them since. Another state-owned company, China Satellite Network Group, aims to create a Chinese version of Starlink but was only formed last year
An interesting essay on the nature of scientific slow down that applies as much to applied innovation as well – Scientific slowdown is not inevitable – Works in Progress – The most popular version of the low-hanging fruit model is that we are picking fruit at a slower rate because the higher-up fruit are harder to get to. You can only invent fire, the wheel, or a flint axe once. This story says that declining research productivity is inevitable. The fact that we once saw increasing scientific progress is because we were continually increasing inputs: adding more researchers, more research tools and technology. But now research is getting so much harder that even this is not enough. But another explanation for falling innovation ‘yields’ is that we are getting worse at picking it, despite the progress in picking methods that has happened. We’ve handed in our stepladders for footstools, without realising it. Our recent decline in innovation vibrancy might be explained by ideas becoming inherently harder to find, but it may just as easily be explained by us becoming worse at finding them. – The scientific slow down is real and is occurring across disciplines:
Pharmaceutical research is taking longer and there is a patent cliff on blockbuster drugs
Each process change in semiconductors costs more money and takes more time
Software takes more lines of code
But the scientific slow down might also be down to problems with incentives. Technology executive and engineer Judy Estrin talked about the way ‘hard innovation’ is no longer invested in compared to ‘soft innovation’. Innovation itself has become financialised with blockchain being like a snake eating its tale. The scientific slow down could be as much related to the incentives and choices that drive research. The scientific slow down could also be down to the divorce between developing and making things. Silicon Valley is no longer making silicon. So it is harder to foster an eco-system to deal with scientific slow down.
China Will Be Deglobalization’s Big Loser by Minxin Pei – Project Syndicate – China was headed toward at least a partial decoupling with the United States well before Russia invaded Ukraine. And it has been seeking to ensure that this process happens on its terms, by reducing its dependence on US markets and technology. To that end, in 2020 China unveiled its so-called dual-circulation strategy, which aims to foster domestic demand and technological self-sufficiency. And yet, last year, China was still the world’s largest exporter, shipping $3.3 trillion in goods to the rest of the world, with the US its leading export market. In fact, overall trade with the US grew by more than 20% in 2021, as total Chinese trade reached a new high. Trade with the European Union also grew, reaching $828 billion, even as disagreements over human rights torpedoed a controversial EU-China investment agreement.
Cleaning Up Streetwear’s Act | High Snobriety – the European Commission are proposing new standards which would dictate how durable apparel would need to be in addition to bans on the destruction of unsold materials. This comes at a time when a cavernous dichotomy exists between the cohort of people who require their products to be sustainably minded and the growing number of consumers who succumb to the whims of fast fashion led by retailers like Shein mushrooming to a $100 billion valuation
Japan has had a small but vibrant Chicano culture scene for years. The Japanese have had a community on the west coast of the US for over a century and a love of the detailed sub-cultures of the US. Japan also influences cultures and consumers in Taiwan, Thailand, Hong Kong and even China. Add to that, the fact that Chicano culture is portrayed in shows that are streaming internationally like Mayans MC.
In the west, this would be called cultural appropriation; but I don’t think that really captures what’s going on here.
It is interesting that it is happening now, while Thailand is ruled by a military government; there is a sub-culture flourishing that probably looks rebellious and anti-authoritarian is very interesting.
Korea
Vice News did an episode on the families behind chaebols – Korean business empires called South Korea’s Untouchable Families. None of the content will be of any surprise to anyone who has read this blog or has an appreciation of modern Korean culture. The tale of how the chaebols where largely creations of the Korean government and in time managed to capture the country after the 1997 financial crisis is largely a matter of public record. The extra-legal nature of chaebols are the stuff of Korean dramas.
The ‘chaebol negotiation rule’ of a three year sentence commuted to five years probation is also well known.
What I found curious is how much emphasis they have put on Samsung, who have the most international reach and advertising spend. The Samsung semiconductor experience with workers suffering from cancer mirrors the experience of workers in fabrication facilities when they were based in Silicon Valley. So the risks involved in the chemicals and the need for protection would have been well known.
Asianometry has also recently published a video on the Chaebols that takes a slightly different take on the rise of the companies, linking their rise with weak and financially challenged political parties.
Japan – Tokyo Girl’s Collection
I have written about Tokyo Girl’s Collection in the past. It is interesting to see that it was extended into the metaverse this year. The formula is still largely the same:
A large live event with entertainment
Models and dokusha-models. (These are chosen among actual readers of the magazines as “representatives”. They are more attractive than average readers but not pretty enough to be actual models).
Online shopping and m-commerce of looks that the audience wouldn’t be able to buy locally if they live outside Tokyo
Hong Kong deindustrialisation
By the time I got to Hong Kong, the city’s industrial base had migrated north to the mainland. But I did get to see the massive packaging and printing factory that had been converted to the home furnishing shopping centre now called Horizon Plaza in Ap Lei Chau. As a child many of my clothes and toys had ‘Made in Hong Kong’ written on them.
I got to see the massive buildings that used to have clothing factories in Fo Tan and the Sui Fai Factory Estate – a multi-storey building full of light industrial units. De-manufacturing encouraged the rent-seeking oligarchs that dominate Hong Kong today, for instance Li Ka shing started off manufacturing plastic flowers and other light industrial processes, but pivoted to rent seeking businesses property, telecoms and retailing.
