Page 30 - Sphere No.8 (Mar 2003)

M A N U F A C T U R I N G
efficient manufacturing facilities in the
Mainland, putting it in a perfect position
to reap the benefits of China’s accession
into theWorld Trade Organisation.
The four factories – located in
Dongguan, Guangzhou and Zhongshan
in southern China – develop and produce
hard, soft and electronic toys for some of
the toy world’s biggest names. Strong
relationships with leading companies is
a recurring theme in the company’s
success.
“Our approach is to focus on
our customers and build long-term
partnerships with them,” explains Deputy
Chairman Lewis Luk. “To give these
customers world-class service, you have
to be innovative.”
UP THE VALUE LADDER
This commitment to innovation is
manifested throughout the company, and
has led to one particularly important
development – the establishment by
HHR’s subsidiary i.Tech Dynamic
Limited of the company’s Technology
Division, which focuses on electronic,
premium and ODM products.
“Such a progression was natural in
light of HHR’s existing strengths, says
HHR Executive Director Michelle
Chan, who is also General Manager,
Group Business Development of HWL.
“It is one example of the fundamental
growth that is occurring under HWL’s
stewardship.”
Mr Lai elaborates: “To boost HHR’s
efficiency and productivity, we are
focusing our efforts to increase the use of
high tech in the production process to
make high-value retail products. HHR’s
toy product portfolio already included
many electronic components, and we
believe that the move into high-value-
added products is a reflection of the
company’s natural adaptation and
engineering capabilities.”
HHR’s Toys Division has long-
established expertise in manufacturing a
range of products like digital cameras,
video game controllers and educational
electronic toys. The establishment of
the Technology Division enables
the company to bring this expertise to
the lucrative arena of electronics and
telecommunication accessories.
The evolution from an original
equipment manufacturer (OEM) into an
original design manufacturer (ODM)
represents an awareness of the company’s
strengths. Rather than acting solely as the
manufacturing power behind the brand
name, as an OEM does, an ODM also
designs the complete product, based on
customer requirements. This allows for
the greatest level of customisation and
product differentiation, and enables
HHR to fully capitalise on the Hutchison
Group’s blue-chip customer portfolio.
Accordingly, the Technology Divi-
sion applies itself to the research,
manufacturing and marketing of a
selection of high-tech premium products
such as accessories for mobile phones and
PDAs (see sidebar, p.30). In this respect,
HHR is leveraging not only on its vast
operational experience, but also on
ALFRED KO (11)