Tsui Lung Group (Far East) Co Ltd
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- HKT0455
Tsui Lung Group (Far East) Co Ltd
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Leong Pak Keong, CEO of Tsui Lung Group, was inspired to strike out into the nail clipper business after reading an article in a local paper written by journalist Shen Xiaoping.
In his article, "Of Nail Clippers," he quoted then Vice Premier Zhu Rongji during his meeting with the representatives of the Joint National Light Industrial Enterprises in November 1997. Using nail clippers as an example, Mr Zhu said industrialists must be more responsive to market demand and to be more pro-active in developing new, quality products for consumers.
Strides in Quality
Tsui Lung's entry into the manufacturing of nail clippers and beauty accessories gave birth to the St. Allen range, and inadvertently set a new benchmark for the standard of nail clipper production in China, according to Frankie Kung, General Manager of Tsui Lung.
Before teaming up with a mainland state-owned enterprise to manufacture nail clippers, the company had been a manufacturer of imitation jewellery and souvenirs in Hong Kong for 20 years.
The company conducted extensive research which showed that the most popular nail clippers in mainland China were the 555 brand. The brand held its no. 1 position because of its low price, rather than quality, and also due to the fact that there were very few competing products on the market.
This showed there was definitely room for higher quality products on the market, but the new partnership was concerned that upgrading the group's factories would require a substantial investment which could only be recouped over the long term.
Managers from the new joint venture visited over 30 factories in China that made nail clippers, as well as factories in Germany, Japan, South Korea, Taiwan and the USA to understand the global structure of the nail clipper market. Their research persuaded them to invest RMB 8 million to develop and produce nail clippers on a par with South Korea's 777 brand.
The Recognition
Soon after going into production, the St. Allen range won a number of awards, including the Certificate of Quality, Endorsement and Compliance awarded by the National Metal Products Quality Supervision Inspection Centre. St. Allen products were also chosen by the State
Bureau of Light Industry for exhibiting in the
Light Industry Area in the 50th National Day Industrial Achievement Exhibition and were the official souvenir for guests of the Exhibition.
'Extraordinarily marvellous
small utensils'
Mr Kung attributes the success of the St Allen range to the design and quality of the product, but is quick to point out that the extensive market research and marketing of its brand name played a vital role in its success.
One notable example was a slogan competition held in the Guangzhou Evening Post throughout March 1999. The company encouraged readers to write in with a suggested slogan, and offered a cash prize of RMB 10,000 to the winning slogan. Mr Kung said the response was overwhelming, and the entry "Extraordinarily marvellous small utensils" was chosen as the winning slogan.
Mr Kung said the St. Allen range now accounts for 60 per cent of nail clipper production in China. The company plans to invest RMB 20 million to enhance the design and quality of its products.
"The nail clipper line will keep us busy for the time being," Mr Kung said.
