HKTDC Hong Kong Means Business

Hong Kong Means Business Hong Kong Means Business
  • Login / Register

Languages

  • EN
  • 繁
  • 简
SUBSCRIBE
  • EVENTS
  • MY FEED
  • CONTACT HKTDC
  • ABOUT HKTDC
  • hktdc.com

Section Menu

  • multimedia
  • market spotlight
  • first person
  • Venture Hong Kong
  • heads-up
  • inside china
  • life & style
  • hktdc research
  • Login / Register

Languages

  • EN
  • 繁
  • 简
SUBSCRIBE
Hong Kong Means Business

Section Menu

  • multimedia
  • market spotlight
  • first person
  • Venture Hong Kong
  • heads-up
  • inside china
  • life & style
  • hktdc research

https://hkmb.hktdc.com/en/1X0A2X90

market spotlight
SAVE FOR LATER
SHARE / SEND

"Scan QR Code" in WeChat and tap "..." to share.

Sustainable Sourcing

Hong Kong provides an ideal base for companies responding to growing demand for ethical sourcing.

07 July 2015


Andrew Steadson (left) and Paul Belcher
MadePartners founders Andrew Steadson (left) and Paul Belcher receive their AustCham award

For decades during China’s economic transformation, trading companies based themselves in Hong Kong to source the most cost-effective China-made goods for dispatch through the city’s duty-free ports.

Buyers today, however, not only want competitive pricing, they also look for goods that have been sourced ethically and sustainably. The trend, which requires close monitoring of global supply chains, is best carried out through Hong Kong, which offers buyers close access to the Chinese mainland and other manufacturing countries in the region.

For companies such as MadePartners Ltd, a rapidly growing provider of procurement, project management, auditing and quality inspection services of manufactured industrial products, primarily for the mining and rail sectors, ethical sourcing is a business imperative. Founded in 2013 by Australians Andrew Steadson, the Executive Chairman, and CEO Paul Belcher, the company recently won the 2015 Australian Chamber of Commerce Business Excellence Award for Start-up Enterprises.

Quality now a KPI

Rail wagons manufactured in China for use in Australian and Middle East mining
Rail wagons manufactured in China for use in Australian and Middle East mining

Mr Steadson was in banking and Mr Belcher was engaged in the railway and manufacturing sectors before they decided to set up the company. “We focus on industrial fabrication: rail wagons, metro passenger cars, and mining plant and equipment, on behalf of clients in the Middle East and Australia,” Mr Steadson explained.

The stringent requirements of leading companies today are exemplified by two of the company’s major clients; an Australian mining company for which MadePartners procures and manages the quality of rolling stock for its iron ore and coal operations, and a major supermarket chain for which it procures China-made roll cages.

“The Chinese can now manufacture [to a] really high standard, but we are still finding major non-conformances,” Mr Steadson said. “Quality is a critical criterion for our clients, but many of the companies we engage with have significant ethical sourcing requirements as well, such as the assurance that no child or forced labour is used in the production process.

“So in addition to looking for a price advantage, the goods must be delivered with quality and ethics in mind. Our philosophy at MadePartners is to ensure that we do this by working with the manufacturers in a very constructive and positive way.”

Though a young company, Mr Steadson said that the business is already profitable. “We’re fortunate that we’ve been able to make money in our first year, and expansion more than doubled that profitability from year one to year two.” Hong Kong’s low overheads and ease of doing business, he said, have helped to make that possible, combined with a well-educated and flexible labour force. “Technology, transportation, air fares and employment costs are all relatively low, and the low tax rate has enabled us to reinvest larger after-tax profits back into the business. The Hong Kong Government has a very light touch, which helps as well. We are not employing people to do things to support bureaucracy.”

China Gateway

Andrea Niess
Andrea Niess, Global Sourcing Director, Helly Hansen

Norwegian sports apparel manufacturer Helly Hansen has been in business for well over a century. And while the company has various sourcing offices in Asia, it opened a regional sourcing office in Hong Kong in December 2012. “This was based on a need to work closely with vendors in mainland China, but also to have a central hub for the rest of our Asian operations,” said Andrea Niess, Global Sourcing Director.

Established in Norway in 1877, Helly Hansen produces 50 per cent of its garments in the mainland, but is working towards a more even sourcing split across other countries in the region, including Vietnam, Bangladesh, Sri Lanka, Cambodia and Myanmar. “The advantage of Hong Kong,” Ms Niess said, “is that it’s an ideal hub for travelling to all the other places quickly and comfortably whenever necessary.”

Sustainability Matters

Helly Hansen’s high-quality sportswear
Trusted partners help build brand loyalty for Helly Hansen’s high-quality sportswear

Ethical sourcing is a priority, she said, noting that the company only works with factories it regularly monitors. “We assign independent teams to inspect all factories with compliance audits once a year. All garment vendors sign the Helly Hansen Code of Conduct and we are a bluesign member [a measure of sustainable textile production], which helps us to make sure that all our materials are produced without using any harmful substances. Additionally, we are proud to say that we’ve been working with most of our vendors for 10 years or more; our top-three vendors have been with us for more than 25 years, which leads to a partnership based on trust.”

In today’s highly competitive apparel environment, Ms Neiss added, it’s important to know what’s going on, and where, at all times. “We think that consumers do not mind paying a slightly higher price, if knowing that products are the best possible quality, respecting and treasuring the human being and taking care about necessary environmental policies. Hong Kong is a good place to ensure this and also offers good access to talented people within the apparel world.”

Related Links
Helly Hansen
MadePartners

Follow HKTDC on Facebook, Google+, LinkedIn, Twitter @hktdc

BACK TO TOP ^
CONTENT PROVIDED BY
    Topics:
  • Australia,
  • Hong Kong,
  • Australasia,
  • sourcing,
  • ethical sourcing,
  • sustainability
  • Australia
  • Hong Kong
  • Australasia
Home

Article Topics

ARTICLE TOPICS

AUSTRALIA35534
HONG KONG36026
AUSTRALASIA35532
SOURCING80974
ETHICAL SOURCING75008

ARTICLE TOPICS

AUSTRALIA35534
HONG KONG36026
AUSTRALASIA35532
SOURCING80974
ETHICAL SOURCING75008
SUSTAINABILITY85910

Social Share

FOLLOW US

GET WEEKLY UPDATES

newpaper-img

GET OUR WEEKLY EMAIL UPDATES

banner-img


I acknowledge that the above information may be used by the Hong Kong Trade Development Council (HKTDC) for incorporation in all or any of its database for direct marketing or business matching purpose (and may therefore become available to the public within and/or outside of Hong Kong for use by them), and for any other purposes as stated in the Privacy Policy Statement; I confirm that I have the consent and the authority of each individual named in this form to release their personal data for the purposes stated herein.


*For non-EU/EEA customers, please skip this box which is solely for EU/EEA customers as required by the relevant data protection law in the EU.

THANK YOU

Thank you for registering.

interest_article

YOU MAY BE INTERESTED IN

26 February 2021

Lawmakers Introduce Various Bills Aimed at Mainland China

24 February 2021

WTO Panel Will Consider U.S. “Made in China” Marking Requirement for Hong Kong Goods

22 February 2021

Navigating Covid-19: An Eco-jewellery Designer

16 February 2021

Hong Kong Start-Up Survey: Strengths and Weaknesses of the Ecosystem

Related Events

RELATED EVENTS

17 March - 29 July 2021

HKTDC International Sourcing Show 2021

17 March 2021

International Sourcing Outlook

18 March 2021

What’s In for Fashion: Sustainability is the New Normal?

22 March 2021

Create Business Opportunity with Sustainability Profile for Digital Printing
FIND AN EVENT

User login

  • Create new account
  • Request new password

Footer Menu

  • hktdc.com
  • ABOUT HKTDC
  • MEDIA ROOM
  • TERMS OF USE
  • PRIVACY POLICY
  • SITEMAP
  • 京ICP备09059244号

Footer Logo

Copyrights

Copyright © 2021 Hong Kong Trade Development Council. All rights reserved.

SHARE THIS STORY

EMAIL
LINKEDIN
WeChat
FACEBOOK
TWITTER
WHATSAPP

ID: HKTDCofficial

Don't have an account?

Create An Account

successfully added on your preferences.