"How to Ensure Your Business is Not a Trade War Casualty"
Starting from the left: Mr. Sam Chan - Chairman of Express LUCK Group, Mr. Nicolas Kwan - Director of Research of Hong Kong Trade Development Council, Ms. Tatman R. Savio - Partner, Registered Foreign Lawyer, Hong Kong Office of Akin Gump Strauss Hauer & Feld LLP, Mr. Eddie Lee, CEO - Southeast Asia Region, ECMS Express
Mr. Nicolas Kwan, Director of Research of the Hong Kong Trade Development Council (HKTDC), said with the US ramping up trade tensions with mainland China, the TDC Exporters' Confidence Index fell dramatically from the 2nd quarter 54.1 to the 3rd quarter 35.8. This was the biggest decline since 2006, which was even worse than the financial tsunami a decade ago, and it is rare in recent years.
Left: Mr. Sam Chan - Chairman of Express LUCK Group
Right: Mr. Nicolas Kwan – Director of Research of Hong Kong Trade Development Council
Nicolas continues: "Hong Kong's export performance in the past decade was better than the world average, not only relied on its own competitiveness, it also benefited from the globalized and diversified investment strategies of the merchants.”
Sam also shares the risk management philosophy on investment strategy
“In the early years, we have already started to set-up sales and production facilities in different continents and aim at diversifying our global investment at overseas production hub and sales operations to minimize the risk. To ensure effective management and cost control, a dedicated team will be stationed locally. This helps to speed up the local sales activities, also it is the most efficient and effective way to magnify the recent corporate expansion. “Put the eggs in different baskets” can reduce the risk of relying particular country for imposing any trade barriers and also enjoy the local tariff exemptions. To end users, they can enjoy the quality products but at a relatively competitive price. This becomes the key drive to our sales growth,” Mr. Sam Chan denotes, Chairman of Express LUCK Group during the press conference.
Sam shares his risk management global branding strategy in the seminar
The Seminar is full with SME merchants
In addition to diversify the overseas investments to minimize the risk, Express LUCK Group is actively for acquiring famous brands internationally. “Acquisition of well-known global brands like Sansui in US; licensing of popular local brands like RCA in Mexico are some of our succeed references. These directly reduce our internal costs, accelerate new market penetrations and expand distribution channels. In the long run, it can be the favorable factor to attract other strong brands. Thus, it’s very effective measure not only add value to the business, but also enhance the corporate image internationally and social status within the industry," Sam concludes.
Owing to the local operations of production facilities or sales offices can have better understanding of the local customer requirements and regulations, it enables to provide more responsive services. This is an effective way for customers retention and improve sales performance, ultimately win the local market share. Mr. Chan also stresses that careful site selection is important. The top priority is having good local market potential as well as can serve neighborhood countries. Other elements such as the cost and supply of local workforce, well-established infrastructure are critical to ensure the finished products can conveniently ship to nearby countries.
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