1 June 2005
Great Expectations(HKTDC Electronics, Vol 03,2005)
Yuen Shun Technology Ltd
Exceeding expectations is a surefire recipe for successful business development, as Sam Wong found when he established Yuen Shun Technology Ltd in 1995.
Wong began with just 30 workers in a manufacturing facility occupying a mere 250 square feet, but 10 years later the Yuen Dong Electronics Fty in Dongguan on the Chinese mainland occupies 60,000 square feet and employs 580 people.
Furthermore, Yuen Shun expects to start work shortly on building a second factory to accommodate a steadily growing workload. "Diversification has been the key to success," Wong says.
The company started out assembling PCBs and making simple gift and premium items, which remain core businesses, but today the company also makes toys, children's learning tools, home appliances and health and beauty products.
"Our FOB price range extends from about US$1 for some of the small gifts and premiums such as AM/FM radios to as much as US$3,000-5,000 per unit for more technologically advanced items," explains Wong.
The most advanced product Yuen Shun manufactures is a portable laser machine that removes unwanted hair, while a hi-tech electronic dental floss and toothbrush unit has also proved successful.
One new product that the company expects to perform well in several markets is a SIM-to-SIM card reader that enables mobile phone users to transfer data from one handset to another.
The reader will be positioned as a premium item, joining a product range that includes data books, remote controls for MP3 players and simple novelty items such as a musical electronic bottle opener.
Successful educational tools for children developed by Yuen Shun include toy "laptop computers", while the company's home-appliance range includes a kettle with an electronic timer developed for the German market.
"Our major market is Europe, including Germany, Slovenia and Spain," Wong reveals. "We also have clients in the US and Japan, some of which are major electronics companies."
Yuen Shun has also successfully sold its products to Eastern Europe, and intends to build on this achievement. "Our plan for the coming three years is to focus on developing business in Eastern Europe, which is a very big market," Wong concedes. "We want to pursue that business while staying with OEM/ODM, which we think offers us more flexibility."
Yuen Shun is accordingly looking at the option of establishing a second factory in Dongguan to handle the increased volumes. "By the end of this year or early next year we will have to build another factory, as there is not enough room for us now," Wong admits.
The new factory vindicates an early decision by the company to focus on handling a diversified product range for a limited number of major customers rather than seeking to build its own brands.
Concern for quality has also seen the company achieve TUV and ISO 9001 certification, while work has already begun on measuring up to the new environmental requirements for products sold to the EU.
"We want to comply early, so we are working to meet the new European regulations and are currently looking at areas like lead-free soldering to ensure that all our products will meet the new environmental directives from May this year," Wong explains.
Long-term relationships with larger regular customers have already allowed Yuen Shun to streamline its production processes, and the company takes pride in rapid turnaround times.
"Our manufacturing time is usually about three weeks," Wong says. "The minimum order for most products is 3,000 units, but for the portable laser machine it is approximately 50 units."
Building strong long-term customer relations and living up to the company motto "we will exceed your expectations" has definitely given Yuen Shun a firm foundation for future development.
WRITTEN BY ROBERT PIERCE
Yuen Shun Technology Ltd