1 Sept 2003
Tuning in to new markets(HKTDC Electronics, Vol 05,2003)
Vol 5, 2003
Tuning in to new markets
Tsuen Shing Enterprises Ltd
|Toy walkie-talkies, home security devices, health monitoring equipment, sound and video baby monitors and two-way radios are big sellers for Tsuen Shing Enterprises Ltd|
The cell phone may have taken over as the most popular mobile communications device, but at least one company believes that new markets can still be carved out for walkie-talkies on the Chinese mainland and in Russia.
Tsuen Shing Enterprises Ltd, which is doing healthy and growing volumes of business in both countries, believes there is a niche for small two-way radios.
Assistant marketing manager Evon Chow explains that the company is trying to educate people on the mainland about the advantages of using a walkie-talkie when they also have mobile phones.
"You have to pay to speak on the phone while you only need to pay for the batteries for walkie-talkies and you can talk one-to-one or one-to-many at the same time," Chow reasons.
"Walkie-talkies can be used outdoors, indoors, in offices, production plants and restaurants - in fact there are so many areas in which they can be used effectively."
A specialist in radio frequency-based products, Tsuen Shing has long-standing relationships with leading brand names all over the world, but has begun to build its own Tsuen Shing and Dr Walkie Talkie brands in emerging markets over the past four years.
"The company has been established for more than 21 years, and in the past we have done mostly OEM/ODM business," Chow explains. "Hong Kong is our base, but we have two mainland production facilities at Zheng Cheng and Ningbo, and we are licensed to sell our own products there."
Tsuen Shing currently enjoys annual turnover of around US$20m, and attributes its success to quality design and manufacturing. The company has ISO 9001 certification, as well as ISO 13488, UKAS and EN46002, and expects to earn its QS9000 certificate this year.
"We believe quality is the key to attracting customers," Chow adds. "We don't emphasise low costs, but we work to establish long-term relationships with customers."
She says the company also values its people, believing that good staff relations result in equally good customer relations, and has even invested in sports and leisure facilities for around 1,500 employees at the larger of its two production facilities in Zheng Cheng, Guangdong Province.
That investment in human resources has helped Tsuen Shing develop into a full service facility that handles everything from concept to mass production. "We have 200 people involved in quality control because we have to be sure products can withstand tough conditions," Chow adds.
More than 30 tests are carried out to ensure that products are resistant to shock and both high and low temperatures - an important consideration given that Tsuen Shing exports to such diverse markets as the US, Europe, Japan, the mainland and the Middle East.
That quality consciousness extends to all areas of production from components - many of which the company manufactures itself - to packaging.
In 2002, Tsuen Shing won the Hong Kong Electronic Industries Association Gold Award For Outstanding Innovation And Technology Products in the Industrial Design/Packaging category for the packaging of its Baby Monitor.
The latter is just one of the company's diverse product range that includes toy walkie-talkies for children, radio frequency home security devices, health monitoring equipment, sound and video baby monitors, two-way radios for different countries, gas detectors for the home and electronic scales and electronic blood pressure monitors.
"We have ISO 13488 for health products because quite a lot of our OEM/ODM products are health care devices for Japanese customers," she adds. "The blood pressure monitor and the electronic scales require a very delicate production process."
Japan is the primary market for Tsuen Shing's health care products while the US buys toys and two-way radio products, and Europe purchases mostly two-way radios plus some toys.
"We're confident about Europe and also the US because we have innovative products, even though we do face price competition," Chow concludes. "Russia is growing for walkie-talkies with a two-mile range."
WRITTEN BY ROBERT PIERCE
Tsuen Shing Enterprises Ltd
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