19 April 2006
Glory Days(HKTDC Fashion - Leather Goods & Bags, Vol 02,2006)
Glory Industrial (HK) Co
|Glory Industrial (HK) Co concentrates on manufacturing customer brands for clients in Japan, Europe and North America|
"We concentrate on customer brands and have long-standing relationships with a number of clients who place regular big orders," explains assistant general manager Pauline Zhang. "It's a diversified client base - some only buy luggage, some only bags, some just leather goods and some a mixture of all of these."
Fortunately, Glory Industrial's product range is diverse enough to meet most buyers' requirements - thanks to two specialised factories on the Chinese mainland.
"We have split our manufacturing over two locations with the bags and leather goods made in Dongguan and the luggage in Shanghai," Zhang explains. "We have around 500 workers in Dongguan and another 300 in Shanghai."
The company has grown rapidly since it was founded in 1978 by managing director Paul Yang, and now brings almost three decades of experience to bear on a rapidly evolving business in which change is almost the only constant.
Some new products are manufactured to precise customer specifications, while others are developed by a five-strong, Hong Kong-based creative team to customer requirements.
"We have to develop around 100 new styles per month, because certain clients, particularly in Japan, demand them," Zhang states. "That market changes very quickly and wants something new every time, with very few repeat orders for a style."
Japan is an important market for Glory Industrial, whose other major focuses for business development are Europe and North America.
"More than 50% of our business is in Europe, but there is growing demand for leather goods from the US, although the quantities are still relatively modest," observes Zhang.
Glory Industrial's range of Shanghai-manufactured luggage includes trolley and tote bags, duffle and garment carriers, vanity cases and toiletry bags, as well as coordinated luggage sets.
"We manufacture about 10 FEUs of luggage per month in Shanghai and produce goods at three levels: low, middle and high," explains Zhang.
She says FOB prices depend on the level of quality required and the size of the order. "The usual minimum order is 1,000 pieces per item per colour, and we deliver 35-70 days after confirmation of order," Zhang adds.
However, Zhang says that order-processing time depends on the material - if the leather has to be bought in Italy it requires 30 days for shipping so orders can take 45-50 days. "If we can buy the leather on the mainland obviously that's much faster," she says.
Making samples is subject to similar constraints. "If we have the material to hand it can take as little as seven days, but if the material has to be sourced from afar it can be 30 days or more," Zhang explains.
Glory Industrial uses leather, PVC and fabrics such as canvas, nylon and polyester, partly sourced on the mainland but also in Taiwan, Japan, and further afield. "The source, again, is likely to depend on the appropriate quality level," she notes.
The Dongguan factory produces an extensive range of leather goods, including fashion handbags, cigar and metal cases, card holders, belts, backpacks, agendas, writing pads, purses, coin and computer cases, portfolios, laptop bags and key rings.
"Our output of bags and leather goods is dependent on the quality of the goods required, and the size of our orders," Zhang observes.
"Pricing for regular large orders is obviously lower, while orders for smaller quantities of very high quality items have to be higher-priced."
Glory Industrial has a number of steady customers in Italy, including Valentino fashions and automobile manufacturers Fiat and Alfa Romeo, who buy cases for their vehicle instruction manuals.
"We have had a presence in the Italian market for some years, and our business is increasing in Europe," Zhang notes. "The trend there had been away from leather bags but it started to switch back at the end of last year so we are addressing that fresh demand."
Glory Industrial has also established a representative office in Seattle, Washington, to expand its presence in the US gifts and premiums market with its low- to mid-range leather goods.
"We're looking to build our presence further in our established markets, particularly Europe, and also need to expand our workforce to increase production," Zhang concludes.
WRITTEN BY ROBERT PIERCE
Glory Industrial (HK) Co