Hong Kong, a market to be unveiled

For years Copper pipes have been dominating Hong Kong market. There are probably two reasons. Firstly, for historical reasons, consumer concepts in Hong Kong are under considerable influence of United Kingdom, (abbreviated as U.K.). Hence, Hong Kong and U.K. share the same characteristic of high volume copper pipe consumption.

Secondly, premature launch has ruined weak confidence of market. In the nineties of last century, multilayer pipes and PEX pipes was once introduced into Hong Kong. Nevertheless, the result was not satisfactory. Due to nature of the product, a successful piping application requires sufficient communication, adequate training and proper installation. The absence of any of the above elements may cause a quality product to collapse. Despite all possible reasons, premature product launch was the key.

Ten years ago multilayer pipes were not very popular in Asia. In U.K., whose culture remains certain influence in Hong Kong, coverage of multilayer pipes in plumbing systems was zero in the early nineties*. Let alone customer awareness in local market. Nowadays, multilayer pipes can be seen around Asia. In U.K. this product has occupied market share from zero to 3.5% in plumbing systems. Further, more links in the value chain, such as designers and plumbers in Hong Kong are now more familiar with multilayer pipes and local government has granted qualified products market entry. With above environmental changes, multilayer pipes companies have higher possibility of success than ten years ago. Such motion in the market has turned into motivation which drove Foshan Rifeng Enterprise to enter Hong Kong in late 2002. After two years operation, Rifeng pipe is now approved to be sold in Hong Kong by water authority and entered architectural services department list of acceptable materials. In “ASIAN BUILDING TECHNOLOGY 2004” exhibition, more visitors showed interest to multilayer pipes from Rifeng. In fact, besides Foshan Rifeng Enterprise, certain pipe extruders have also joined the group of pioneers. Some company has been developing Hong Kong market for ten years and won building contracts from time to time. While copper pipes are still the mainstream choice of the market, the potential for multilayer pipes in Hong Kong is yet to be unveiled.
(*According to KWD 2003-03 report.)
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