6 July 2004
Wired For Success(HKTDC Electronic Components & Parts, Vol 03,2004)
Vol 3, 2004
Wired For Success
Holly Hand Enterprise Co Ltd
Committed to reliablity and quality, Holly Hand Enterprise Co Ltd specialises in making a wide range of popular cable assemblies, including its best-selling CATV, LAN and PUMP series
Holly Hand Enterprise Co Ltd is a fast-growing company that specialises in cable assemblies for a wide range of products, including computers, local area networks, home appliances and audiovisual equipment.
Based in Taipei, with a subsidiary office in Hong Kong and a 10,000-square-foot factory in Shenzhen on the Chinese mainland, the company has been in business since 1981 and enjoys a reputation as a leader in its field.
Committed to reliable, quality products and to developing strong customer relationships, the company's clients include major domestic firms as well as prominent international companies such as Motorola, according to sales manager Linus Lee.
The firm has obtained ISO 9001 certification as well as UL and CSA certification for its wire harnesses. In 1995, it was honoured with a quality award from Philips Electronics Industries (Taiwan) Ltd.
Holly Hand offers a choice of up to 18 cable assembly products that can be ordered in sizes from six inches to 200 feet. "We can customise the size to whatever a customer wants," Lee says.
Among the best-selling lines are its CATV, LAN and PUMP series. Individual products include HDMI cables, USB & IEEE 1394 cables, optical patch cords, DVI cables, audio and video cables, PCMIA cables and SCART cables.
The cables are normally made of PVC or PU, which is purchased directly from suppliers. Plastic housings or metal connectors are then added to the cables at the factory.
"Our focus is cable assembly but some of our cable suppliers have become our competitors. So, from this year, we have begun assembling our own metal connectors that we are using in our own products and also selling to foreign customers who need them.
"By the end of this year, we want to be able to assemble all of our metal connectors," Lee notes, adding that the shift to self-manufacturing should help boost profit margins.
The company's main export markets include the UK, the US, Denmark and Germany. The UK claims the largest share, with 40%, but Lee believes that the US (at 15%) is the market with the greatest potential for growth. The company is actively seeking customers in the US and Europe, as well as other markets worldwide.
"At this stage, we're not planning on selling within Asia other than Japan. Most of our competition comes from Asia, so we will stick with the US and Europe," he says.
Although 90% of Holly Hand's business is OEM, it hopes to further develop its ODM capabilities in the future. The company also plans to expand its R&D department, which currently numbers less than 10 members.
"Ideally, we would like to have 20-25% of our business from ODM over the next year," Lee says.
With keen competition for OEM orders nibbling away at profits, Lee believes putting more emphasis on ODM offers more opportunities to add value to the company's products.
Holly Hand's three-pronged strategy for success addresses quality, cost and delivery. "We compete on cost. We achieve cost competitiveness by making our labour force more efficient than our competitors, by reducing our overheads, and by offering better management and brainstorming sessions," Lee explains.
To remain competitive, the company has selectively absorbed recent price increases for PVC instead of passing them on to customers, Lee says.
In terms of quality, the company has a policy of serving customers who have a variety of needs. Some want products at the lowest cost yet with acceptable quality, while others desire higher quality products that are more expensive. "We supply both," Lee says.
Strict on-time delivery is another hallowed rule. "This is as important as cost when entering any new market," Lee observes.
For the future, there are plans to open a Shanghai sales office and to enhance and improve existing products. "Most of our new products come from customers' ideas. We add modifications to overcome the limitations of original specifications. For instance, we have put printed circuit boards inside our cable assemblies to increase and enhance their value and to make them more profitable," he says.
By keeping a step ahead of the competition, Holly Hand has carved out an enduring niche in a rapidly changing technological field. "We have to expand and transform ourselves," Lee concludes. "If we didn't, we would end up falling behind.
WRITTEN BY ANDREA PAWLYNA
Holly Hand Enterprise Co Ltd