Stationery Industry in Hong Kong

Overview

• Stationery and office supplies encompass a diverse range of product categories. Glues and adhesives, and pens and pencils constitute the major export categories.
   
• As well as making products for OEM (original equipment manufacturing) clients, some Hong Kong manufacturers also market their own branded items. Hong Kong companies also accept ODM (original design manufacturing) orders that require substantial design input from suppliers.
   
• The stationery industry is exploring new growth areas by modifying traditional stationery items with new technologies. Computer consumables is another growth area.
• Stationery products made from environmentally-responsible materials and that comply with product safety standards are gaining traction among consumers. 

Industry Features 

Hong Kong's stationery manufacturers offer a wide range of products, including paper stationery, plastic office/school supplies, writing ink, writing utensils, staples, crayons, letter openers, pencil cases, chalk boards, memo boxes, file rings, push pins and adhesives. These products are available in a variety of finishes and surfaces, such as chrome (gold, silver or bronze in colour), plastic, imitation leather and genuine leather. 

Prepared glues and other adhesives dominate Hong Kong’s stationery export mix, accounting for over half of its stationery exports last year. Ball point pens manufactured in Hong Kong are targeted at the premium market. Most manufacturers rely heavily on imported ink, refills, brass ball points and barrels. Only a few companies make their own refills. Various parts are then assembled in‑house. 

As well as producing for OEM customers, some Hong Kong exporters also market their own branded items. Hong Kong companies also accept ODM orders that require substantial design input from suppliers. 

Performance of Hong Kong's Stationery Exports [1]

Source: Hong Kong Census & Statistics Department

* insignificant
Source: Hong Kong Census & Statistics Department

* insignificant
Source: Hong Kong Census & Statistics Department

Sales Channels  

Stationery products are mostly exported directly by manufacturers, although some are handled by general trading firms which may also deal in other kinds of products. In Hong Kong, stationers, office supply shops and bookstores are the major distribution channels, such as Eslite bookstore and CN Square European brands such as Montblanc dominate the upper end of the market, while Japanese and German products both have a strong presence at various levels. Well‑known stationery brands such as Moleskine, kikki.K and Staedtler have established a physical presence in Hong Kong. Besides, the online market has also become a convenient one‑stop shop for all types of stationery, school and office supplies. 

Marketing and promotion efforts usually include advertising in related industrial publications and through participating in exhibitions. To expand business networks, explore new market opportunities, and promote products and brands abroad, Hong Kong stationery makers may choose to participate in some well‑organised and influential international trade fairs. Since stationery items are very often dispensed as souvenirs and gift items, stationery manufacturers and traders usually take part in gift and premium fairs too. 

Marketing and promotion efforts usually include advertising in related industrial publications and through participating in exhibitions.

List of Major Stationery Trade Fairs

Industry Trends 

Developments in technology have affected the traditional stationery business. Computerised electronic devices enable paperless work and provide digital methods for documenting and storing information. The rise of electronic communication forms such as e‑mail has also reduced demand for traditional stationery products. Responding to this trend, manufacturers have begun looking to market traditional stationery as gifts or luxury items, offering unique designs with stylish alternatives to the mainstream gold, silver or lacquer finishes. 

In most developing countries, however, stationery is still a necessity rather than a luxury, as people there have fewer electronic devices. The demand for all types of stationery increases moderately with a rise in the working population and with increased literacy in general. These customers tend to be price‑sensitive, which means that reducing prices through mass production of similar products continues to be the main strategy for most companies. 

Competition in the stationery industry is keen, which adds pressure on prices. As well as taking cost‑cutting measures, such as relocating to less expensive production bases, suppliers need to counter this pressure through innovation, making use of striking designs and attractive colours, and by reaching out to new target groups. Manufacturers can no longer regard themselves as just the sellers of a product. Increasingly, products must be sold along with a concept. 

Amid the workplace disruptions caused by the Covid-19 pandemic, there has been a decline in consumption of office stationery such as printer supplies, filing and binding stationery. With business meetings now preferred to be held online, there was also a drop in consumption of supplies used in conference rooms such as pen, notepads and whiteboards. Looking forward, demand for stationery is shifting from traditional offices towards home offices. Businesses are migrating most paper work to digital platforms and increasingly investing in at‑home office supplies to equip employees to work from comfort of their homes. 

CEPA Provisions 

Under the Mainland and Hong Kong Closer Economic Partnership Arrangement (CEPA), the mainland gave all products of Hong Kong origin, including stationery, tariff‑free treatment from 1 January 2006. For more details, please refer to Product Specific Rules of Origin Under CEPA. 

Trade Measures Affecting Stationery Exports 

Some stationery items originating from mainland China are facing anti‑dumping charges in the US and the EU. For example, cased pencils, paper clips and certain paper products such as lined paper and crepe paper are subject to US anti‑dumping duties, while certain ring binder mechanisms are charged against by the EU. These anti‑dumping charges may affect Hong Kong businesses with production facilities in mainland China. 

There is also rising concern about product safety. Certain stationery products, such as pens, pencils and drawing instruments, are required to meet international safety standards before entering overseas markets, particularly the US and the EU. For example, EU’s Toy Safety Directive lays down safety requirements for products designed and intended for use in play by children below 14 years old, including colouring or painting articles, chalk and finger paint.

Although compliance with Japanese Industrial Standards (JIS) is not mandatory, Japanese consumers tend to insist that stationery and office supplies meet such standards, or even more stringent ones. 

Buyers have also started to show concern about production processes. They prefer ethical manufacturing characterised by fair labour treatment, a healthy work environment, and enforcement of environmentally‑friendly practices. 

Product Trends 

Technology-Driven Stationery  

The proliferation of computers and mobile devices has had a definite impact on the development of stationery products. The stationery industry is exploring new growth areas through modifying traditional stationery items with new technologies. For example, the combination of smart pen technology, digital ink, cloud storage and artificial intelligence (AI) enables handwriting and drawings on paper to be converted into text and image formats on screens. One example is the Smart Planner by Organicer, which enables users to convert handwritten notes, checklists and plans to digital text and view on its mobile app. Another growth area is the sale of computer consumables such as printing papers, labels, mouse pads, printer inks and USB devices. 

Green Stationery

Green office products, such as notebooks made from recycled paper and biodegradable pens, are gaining popularity, thanks to advances in technology and manufacturing processes that have lowered the cost of producing recyclable stationery. Paper products certified by the Forest Stewardship Council (FSC) are increasingly in demand. FSC certification ensures that paper products are made from wood taken from responsibly managed forests, providing a guarantee of a high level of environmental and social responsibility from forest to manufacturer to merchant. In addition, there is greater emphasis in plastic‑free or compostable packaging in stationery products. For example, Mitsubishi Pencil Company UK, known for its Uni‑ball brand, launched cardboard packaging to fully replace plastic as part of its back‑to‑school campaign. 

Personalised Stationery  

Whilst demand for traditional stationery is declining as companies move to paper‑free environments, personalised stationery is becoming more popular. This can be seen on the e‑commerce site Etsy.com, which has multiple stores selling personalised products such as customised note cards, business card holders and monogrammed leather notebooks. Brands such as Typo, kikki.K and Moleskine also offer personalised stationery to stimulate sales across the category. 

Renewed Interest in High-end Writing Instruments  

In recent years, a growing number of consumers have sought creative and meditative activities, such as western calligraphy, as a means of taking a break from the digitalised world. Despite niche demand, such activities are likely to drive sales of high‑end writing instruments and stationery supplies such as branded fountain pens and inkwells, particularly in developed countries. High‑end writing instruments also continue to signify craftsmanship and quality and remain popular as gifts for both personal and corporate occasions.