1 March 2002
Company Profiles(HKTDC Electronics, Vol 02,2002)
Quality Sound Tried & Tested
No Wires, More Fun
Loyal Rich Enterprise Ltd
|Already an accomplished maker of versatile audio items, Loyal Rich Enterprise Ltd seeks growth by aggressively expanding its product range.|
AUDIO manufacturer Loyal Rich Enterprise Ltd has a clear market-positioning strategy and a sound business plan. It turns radios into more than simply broadcast receivers by modifying designs and adding features to suit the specific needs of consumers.
Unlike most manufacturers for whom Western Europe and the US are priority markets, Loyal Rich's initial target audience was Eastern Europe and South America, where the demand for high-quality audio products was equally promising.
"Originally, we kept away from stiff competition in those well established markets," says director Cheng Ngai. "People in Eastern Europe and South America have a good ear for music. Our high-quality audio gadgets fit well into those markets."
This does not mean Western Europe and the US are neglected. After finding firm footing elsewhere, Loyal Rich is tuning into these two prized markets.
"Being a newcomer to these two markets, we have carefully positioned ourselves for niche sectors there," Cheng says.
The seven-year-old company sees tremendous growth opportunities while expanding aggressively to a wider range of audio-related products. Its main consumer electronics lines are portable radio-cassette recorders, AC/DC portable radios and alarm-clock radios. Yet its repertoire includes CD boom boxes, CD players with clock radios and VCD/DVD players. All products emerge from Ever Rich's two factories on the Chinese mainland.
"Our designers offer the markets about 10 new items per year. Building on the success of clock radios, we are making inroads in the CD and DVD sectors," Cheng says. "By 2003, our production line for DVD products will be in full operation."
While ODM projects account for the most business, Loyal Rich also offers high-end portable cassette recorders tailor-made for renowned brand names.
"We try not to rely too much on any specific market or any side of the business, so OEM accounts for about 30% of sales. "For OEM clients, we also offer such value-added services as product design," Cheng adds.
Loyal Rich runs multiple tests on products to ensure high performance while minimizing the defect rate.
"This includes a life test where gadgets play continuously for 200 hours to make sure the transformers, deck mechanisms and motors work properly," says Cheng.
"A temperature test helps to ensure that products function after enduring high temperatures, such as sometimes occur during sea transport. Even export cartons are tested on vibrating machines for 12 hours to ensure the packing can withstand bad road conditions," he adds.
"Quality is always our biggest concern. We conduct on-site quality control from the beginning to the end of production to ensure end-users receive the finest sound quality," Cheng says.
WRITTEN BY VANAPA ONGVISES
Loyal Rich Enterprise Ltd
BitsWave Hong Kong Ltd
|A range of cutting-edge wireless accessories from BitsWave Hong Kong Ltd enhances enjoyment, convenience and fun for electronic game players.|
AN expanding role in marketing, sourcing and manufacturing wireless products for the gaming sector allowed BitsWave Hong Kong Ltd to help launch accessories for Microsoft's new gaming device, the Xbox.
BitsWave, along with several associated enterprises, is heavily involved in developing products that use wireless technology. That includes making and marketing accessories for such gaming platforms as Sony PlayStation, Nintendo Game Cube and Game Boy Advance.
For PlayStation, the Bitswave group developed the first wireless joypad equipped with three different frequencies (868MHz, 915MHz and 920MHz) catering to diverse markets. It also developed the first adaptors enabling all wired PlayStation accessories to become wireless.
In August 2001, the group signed a licensing agreement with Microsoft to develop wireless gaming accessories for the Xbox. Resulting wireless devices will be launched soon.
"We are the first company to make wireless devices for the Xbox. We expect to sign a third-party licensing agreement with Nintendo soon. BitsWave is also launching the first Class 1 Bluetooth USB adaptor," says BitsWave (HK) Ltd chairman Raymond Lee.
Among the major BitsWave products are:
- a Wireless Joypad for PlayStations capable of controlling play at distances beyond 10 metres, costing US$23 FOB Hong Kong per unit;
- a Wireless Adaptor for PlayStations enabling consoles to play more than 10 metres from base, at US$18 FOB Hong Kong; and
- the USB Bluetooth Adaptor Class 1, functional at distances up to 100 metres outdoors and 30 metres indoors, at US$39 FOB Hong Kong.
BitsWave Hong Kong Ltd handles production at its factory in Dongguan on the Chinese mainland. The products sell mainly into the US, Europe and East Asia.
Market research indicates burgeoning demand for wireless products, especially gaming controllers. "Most companies lacked the technology and brought in infra-red products. At first, people had high expectations of these infra-red devices. However, the products failed the purpose and left the users frustrated at the limited distance and data rate," Lee says.
"BitsWave needed only six months to develop new and innovative products, that the markets wanted, using wireless technology," he adds.
The group focuses on developing items not only for gamers, but also for the small-office and home-office (SOHO) sector. "We aim for high-volume business in these sectors and will continue to develop products featuring the miracle of cable replacement at affordable prices," Lee says.
"Many buyers look for wireless products offering maximum mobility," Lee says. The gaming sector is an especially high-volume, low-profit-margin business with a steady craving for new products to create excitement.
With its wireless gaming accessories, BitsWave has created a healthy dose of
WRITTEN BY ARAVIND VIDYADHARANI
BitsWave Hong Kong Ltd
5/F, WKK Bldg,
414 Kwun Tong Rd,
Kowloon, Hong Kong
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