4 Oct 2006
Concentration Counts(HKTDC Fashion - Leather Goods & Bags, Vol 04,2006)
Super Point Industrial Ltd
|Super Point Industrial Ltd is a specialist in the the manufacture of quality ladies' fashion PVC/fabric wallets|
Specialisation has paid handsome dividends for Super Point Industrial Ltd, which has become a leader in the manufacture of quality ladies' fashion PVC/fabric wallets and clutches since it was founded in 1993.
"Companies seldom concentrate on one or two items, but we think this has helped our business because our workers are very well-trained in these areas," claims managing director Herman Lam. "Our products require a lot of workmanship - we don't only rely on machines."
Super Point caters to both the classic and fashion wallet market, Lam says, noting that older consumers prefer rectangular women's wallets in classic styles while girls want square shapes and fashionable designs. "Girls see a new fashion and right away they buy it," Lam observes.
The firm's eight designers on the Chinese mainland meet the demand by producing several thousand designs each year, many including popular features such as metal fittings, rivets and eyelets and extras such as mirrors and key rings. "An antique look for metals is gaining in popularity, along with brighter colours for girls' wallets," Lam notes.
Although PVC and nylon are the mainstay materials, Super Point also uses denim, canvas and corduroy - sometimes in combination. "Thinner material can be substituted to meet demand for lighter-weight wallets," Lam adds.
Ladies' and girls' wallets and clutches account for more than 85% of the nearly 800,000 pieces Super Point produces each month, while other products include handbags, mini-bags, cosmetic bags, men's items and travel kits.
Exports go primarily to the US - which absorbs 60% of Super Point's production - while Europe takes 25% and the remainder is snapped up by Australia and South Africa.
Production is equally divided into two lines: low- to medium-priced products that cost US$1.50-2.80 FOB Hong Kong per item and are sold in US chains such as Wal-Mart and Target, and medium- to high-end brand-name products in the US$2.50-4.00 FOB Hong Kong unit-price range that are destined for department stores.
Super Point's current success is a fitting reward for the 17 years Lam spent working at his uncle's firm producing similar products before establishing his own company. "I thought it was time to start my own business - I could see the potential," he explains.
But while Lam's past experience came in handy, it was hard to find skilled workers at its production base in Zhongshan on the Chinese mainland and there were also initial quality and delivery problems. "We had to sort out a lot of things," Lam admits.
However, Super Point's 300 workers were soon producing 60,000 pieces per month. "In the beginning, we kept the production small because we wanted to focus on quality," Lam explains. "Designs and styling were simple, and we added more complicated decorations and detailing later."
Now with 1,600 workers and three factories each covering about 150,000 square feet, Lam is confident Super Point has found its niche. "It's easy to work with the government in Zhongshan, and things have gone smoothly," he says, adding that production capacity can easily be doubled if necessary.
Super Point also prides itself on quality, on-time delivery and fast-cycle production. "We can handle large and small quantities - the smallest would be 800-1,000 pieces and the largest about 500,000 units," he declares, adding that shipments are delivered 45-60 days after order confirmation.
Another plus is the company's ability to source packaging and accessories for its products. "We do more than just produce the wallet - we can find accessories like a watch, a knife or a calculator and put them all together for our customers as a package," Lam adds.
Looking to the future, he expects the trend towards more decorative wallets to continue, adding that he plans to put more emphasis on medium- to higher-priced items and leave low-end merchandise to mainland and Indian competitors.
"We want to make more fashion-oriented products and keep our level of workmanship high," he says. "We want people to know they can rely on us and that we can work together with our customers to help build their brand name."
WRITTEN BY ANDREA PAWLYNA
Super Point Industrial Ltd