Casual wear retailer U-Right International is looking to boost its margins through value-added products while price competition in the retail sector remains tough.
Chairman Leung Ngok said the economic downturn had forced Hong Kong casual wear retailers to cut prices, leaving only a thin margin.
However, a range of water and dirt-resistant garments that the company launched this year in Hong Kong and China was providing better returns.
The garments were processed using a technology which made them stain resistant while retaining the natural quality of the fibre.
U-Right had acquired a formula called 'Texcote' through a joint venture with two Swedish scientists.
'A lot of casual wear retailers have cut their prices but it cannot boost their sales. The price of our conventional products dropped 10 per cent, but the price of [our new] products is 80 per cent more. We are increasing the price [of Texcote processed products] . . . we are not entering price competition,' Mr Leung said.
Pairs of khaki trousers were selling for HK$60 during the winter sale before the Lunar New Year, but similar trousers treated using the Texcote formula were selling for HK$130, he said.