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A Polished Performance(HKTDC Fashion - Leather Goods & Bags, Vol 01,2004)


Vol. 1, 2004



Company Profiles

Quality In The Bag
Adson Group Ltd

A Polished Performance
Evergreen Handbags Fty

A Polished Performance

Evergreen Handbags Fty

Leather wallets and handbags are specialties of Evergreen Handbags Fty, which exports to Europe, Japan and South America

An aggressive approach to international marketing coupled with a commitment to meeting client needs has helped Evergreen Handbags Fty flourish for more than a quarter of a century. "You have to keep coming up with new ideas and designs," says marketing executive Claudia Chan. "That's how you survive."

Evergreen has been in business since 1976, when it began operations as a trading company sourcing products for clients overseas. However, as the Pearl River Delta began to develop industrially during the 1980s, managing director Paul Yu saw the opportunity to break into manufacturing and maximise the company's profitability.

"There are now two factories in Shenzhen on the Chinese mainland and the company employs about 600 workers altogether, making all kinds of handbags, wallets and many other items," Chan explains. "We have an office in Hong Kong, and our design work is also done in Hong Kong."

Although the majority of Evergreen's business is in the OEM area - it has its own Sini and Style brands that do only relatively small volumes of business at present - it originates most of the designs it manufactures. "Our design inspiration comes from international fashion media, and through consultation with our clients on their specific requirements," Chan notes.

She explains that Evergreen believes in being proactive by offering new product designs to the brand owners and department stores with which it does business. "This approach obviously works as we have managed to keep our order books full during a challenging time for many others in this field," she adds.

Diversifying its markets has also served the company well, with Evergreen products now being exported to Europe, Japan and South America, where its business is developing at a brisk pace.

"We have to produce different levels of quality at different prices for different clients," Chan reveals, noting that the company manufactures in leather, PVC and nylon. "Some customers in South America don't have so much money, so we have to be able to offer some cheaper goods."

Evergreen mostly uses Korean leather for its products, which can be plain black, brown or beige although brighter colours are used for fashion bags. Japanese department stores in particular like patterned leathers and more sophisticated finishing and trimming.

Product lines are equally diversified: Evergreen produces small leather goods, fashion handbags, leather briefcases, organisers, laptop computer bags and various gift and premium items and has recently added printed fabric bags to its range. "It's important to be able to offer something new," Chan observes.

Prices have also been kept under control in order to maximise Evergreen's appeal to as many international markets as possible. The company's cheapest small leather goods sell for US$0.10-0.20 FOB Hong Kong, although more expensive leather bags range in price up to US$20-30.

Orders for goods worth US$5,000 or more are accepted and generally delivered within 30-45 days of order confirmation, while the company's twin factories give it the ability to turn round large orders quickly when necessary.

Quality is fundamental to Evergreen, whose factories enjoy ISO 9001 certification and are visited by Yu virtually daily to ensure the highest production standards are maintained.

This dedicated approach should pay handsome dividends in future when Evergreen implements its plans to develop the Sini and Style brands on the mainland. "It's a very big market and obviously everybody wants to be there," says Chan.

One advantage of operating in different markets worldwide, Chan points out, is that fashions move at different speeds and while a colour or style may be out in one country it can easily be back in vogue in another. "Fashion is cyclical," she concludes.

WRITTEN BY ROBERT PIERCE

Evergreen Handbags Fty

Units 8-10, 42/F,
Tower 2, Metroplaza,
223 Hing Fong Rd,
Kwai Chung,
New Territories, Hong Kong
Tel: 852-2423-3828
Fax: 852-2480-5933
Email: eversini@evergreen-sini.com.hk
Web: www.evergreen-sini.com.hk

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