Page 33 - Sphere No.8 (Mar 2003)

SPHERE
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Once the prototype has been developed, HHR can call on
Hutchison’s global capabilities to source the ideal customer and
market the product effectively. The product is then
manufactured at the Technology Division’s state-of-the-art
Guangzhou manufacturing facility, enabling the customer to take
advantage of HHR’s efficiency, productivity and economies of
scale, which translates into cost savings for both the customer
and the end consumer.
As a new entrant to the market, the Technology Division
engaged in a major business development drive during 2002.
The company has formed alliances with technology partners to
further upgrade design capabilities. It has also embarked on a
policy of making select acquisitions to speed up growth,
beginning with a 65% shareholding of games control
manufacturer Try Electronics Japan Ltd., which was acquired in
the fourth quarter of 2002.
With it’s proven “one-stop services” capabilities, the
Technology Division has already entered into MOUs with
several leading companies.These include deals to co-operate on
R&D, manufacturing and marketing of Bluetooth-enabled
mobile phone accessories, game controllers, computer
accessories and other related products. In several cases,
purchase of goods agreements and equipment supply
agreements are already in place with blue chip customers,
including Motorola and NEC.
It is not external customers alone who benefit from HHR’s
technological expertise but also Hutchison Group companies.
With HWL’s widespread retailing interests under the A.S.
Watson Group (ASW), HHR is extremely well positioned to
develop and manufacture products for ASW’s extensive global
network of health & beauty chains, supermarkets and consumer
electronics stores.
Furthermore, Hutchison 3G is expected to be a major
customer as it launches its new services and products under the
3 brand. Many of the products in development are being
designed specifically for 3G handsets and devices, and promise
significant synergies for the Group’s global mobile multimedia
communications arm.
As a company that precisely marries the benefits of advanced
technology, manufacturing expertise and global connectivity,
HHR’s Technology Division looks set to prosper in the
information age.
companies that holds a coveted
Management Award in the “People
Development and Management”
category from the Asian Institute of
Management.
Hutchison’s management expertise
has created a win-win playing field for
both companies, Mr Lai believes. “You
need investment in people to expand the
company. We have put our Hutchison
system and culture in place, enabling
HHR to grow its business in the global
marketplace.”
A restlessness to succeed is readily
apparent at the company’s Hong Kong
offices as well at its southern China
manufacturing facilities, which employ
some 20,000 workers.
The energised attitude seems more
in keeping with a new market entrant
than a 20-year industry veteran.
Even during the slow season, the
company is anything but idle, sending
senior management – most of whom are
southern China-based specialists in
manufacturing, R&D and engineering –
to other facilities to conduct com-
prehensive benchmarking exercises.
As a result,“we have a track record of
attracting the best and brightest staff,” says
Mr Luk.
OPPORTUNITY KNOCKS
It all adds up to a company that is poised
to benefit from the numerous
opportunities available in China’s post-
WTO marketplace. HHR has already
begun to see the rewards of the Group’s
blue-chip global profile, inking deals with
several major players. If all goes according
to the game-plan, the toy and technology
operations should make an equal
contribution to turnover within five
years, and HHR should become a major
global manufacturing player within ten
years, not just in the toy business but in
consumer electronics as well.
“The opportunities for HHR are
huge, as it evolves from an OEM
manufacturer into an ODM one,” notes
Ms Chan. “Our management is very
involved in the company’s progress.”
As HHR continues to develop into a
global behind-the-scenes powerhouse
manufacturing brand name toys and
electronics, it is in the shopping malls
where its ultimate success will be realised.
“In terms of product development,”
says Ms Chan, “it’s the consumers who
really give us the cues and show us
the way.”