21 Jan 2005
Built To Last(HKTDC Fashion - Leather Goods & Bags, Vol 01,2005)
Lloyd Pascoe Leather Craft (HK) Co Ltd
Keeping pace with the times has kept the company busy and profitable: at present around 50% of its business is done with North America, another 25% comes from Europe and the rest originates from Japan.
"Markets evolve, but expansion is mostly coming from Europe and Japan," says spokesman Ben Leung. "The Japanese economy is recovering, so this is an opportunity to further develop our business there."
More than 50% of Lloyd Pascoe's business is OEM/ODM and, although Leung prefers not to mention clients by name, he says they include some of the best-known logos in the designer bags and luggage businesses.
"We make travel luggage, tote bags, briefcases, pilot bags and ladies' handbags and small accessories," Leung explains. "Top European labels bring their designs to us, but other clients have limited resources and we sell our designs to them."
A strategy of continuous investment in staff and plant has established Lloyd Pascoe as a completely self-contained design and manufacturing facility able to handle the largest orders with ease.
"We now have two mainland factories in Dongguan with about 2,000 workers," Leung explains. "Our Hong Kong office handles design, sales, administration and shipping, and we also have four designers in Hong Kong and about 10 draftsmen on the mainland."
The company also has a factory in Guangdong Province with a further 1,000 workers and its own tannery joint venture with a Japanese partner, making Lloyd Pascoe one of the biggest operations of its kind on the southern mainland.
Output is divided into four divisions: Handbags, Business Bags, Travel Items and the Outdoor Division, which makes outdoor and casual bags.
"Materials represent half of our costs so the minimum orders we will accept depend on the material," Leung says, adding Lloyd Pascoe uses leather and environmentally friendly fabrics sourced worldwide.
"We source in Brazil, Korea, Taiwan, the mainland - even Italy and the US," Leung notes. "If a place produces quality materials then we will go there to buy."
Lloyd Pascoe has also been highly responsive to the growing demand from its customers for an environmentally friendly approach to manufacturing.
The company already has ISO 9001 certification, is working towards ISO 14001 and intends to have a Social Accountability System up to SA8000 standard within 2-3 years.
Customer demand has also driven the company to expand its capabilities from its traditional expertise in leather to environmentally sound materials such as canvas and high-end PVC. "Leather always has a market," Leung notes. "Tote bags are in fashion at the moment and people seem to be looking for pastel colours."
Handbags are an important part of Lloyd Pascoe's business, with orders for as many as 10,000 bags at a time. "We design for two seasons - Spring/Summer and Fall/Winter," Leung explains.
He maintains Lloyd Pascoe offers handbags with superior leatherwork, so the price depends on the designs its customers choose. "Normally it takes 50 days from order confirmation to delivery because we have to order the material from our suppliers," says Leung.
In addition to working for leading brands overseas, Lloyd Pascoe has been steadily building its own brand, marketed by subsidiary Lloyd's Enterprises.
"We have a house brand called Global Gear, which is focused on the needs of business travellers," Leung reveals. "As well as cases, we do conference pads, diaries and such."
He says the brand has been going for more than 10 years, and the intention was always that it should really be global. "We have sold to Europe, the US and Southeast Asia," Leung adds.
The company also sees potential for Global Gear on the Chinese mainland, where it has been marketing the brand since 2002, and is anticipating healthy demand for high quality bags and luggage following the recent reduction in duties on leather goods.
Lloyd Pascoe is obviously looking to the future and living up to its motto, "We give life to your products". Just like its luggage, this company is built to last.
Lloyd Pascoe Leather Craft (HK) Co Ltd