Backpackers-turned-entrepreneurs Magnus McGlashan (left) Robert Schlipper have turned traveller security into a business

The company founders, Australian backpackers Robert Schlipper and Magnus McGlashan, met in Gibraltar in the late eighties and talked about the hassles of travel - particularly the need for security of luggage and valuables.

Mr Schlipper designed his first product - a stainless steel net cover for backpacks - while working in Hong Kong. He had a prototype made up in Kowloon, visited a trade fair at the Convention and Exhibition Centre and found a manufacturer who could arrange to have it made in his factory in Shenzhen, southern China.

He invited Mr McGlashan up to Hong Kong from Australia where he was finishing a marketing degree to help get the business going. They founded Outpac Designs in 1998.
 
Boosted by an award by US Backpacker magazine, the business has grown by 40 per cent a year over the past three years. In September this year, Outpac won the Australian Chamber of Commerce's annual Business Entrepreneurial Award.

Outpac's products have expanded to more sophisticated laminated and steel net backpack covers, neck wallets and hip packs (known as "bum bags" in Australia) as well as a special range of travel locks.

Fast, efficient sourcing hub

Mr McGlashan says Hong Kong is an excellent place to source products and to arrange for their manufacture in southern China.

"Product development is very fast in Hong Kong. You can work long hours and get samples made quickly. Hong Kong also has the agents for China. It is very hard for foreigners to go into China and work out all the customs and everything. You can deal in Hong Kong with people who have factories in China."

The partners have also found Hong Kong an ideal place for distribution. While selling their products in outdoor shops in Hong Kong, they always had the idea of setting up an international company, exporting around the world.

"The traditional model is to build a local market and then launch into the international market, but we went straight for the export market," Mr McGlashan said.

"Hong Kong is ideal for that. As a distribution centre it is second to none in the world. You can get products made in China and get them distributed to Europe or the US or Australia. It is very central as a distribution hub."

The company now has about five people at its head office in China, two people based in Los Angeles and one permanent quality control manager in Shenzhen where it has some 30 workers under contract making its products.

The partners now have plans to expand into motor cycle security as well as security for laptops and portable electronic gear.

Mr McGlashan adds that while he and Mr Schlipper, who are both from Perth, sometimes think about Australia's sunny beaches and their Wednesday afternoon sailing, Hong Kong's strong work ethic is excellent for getting them going.

They also feel the need to be based in Hong Kong to make sure their products are manufactured to the high quality standards they set.

Related links:
Outpac: www.pac-safe.com
HKCEC www.hkcec.com.hk
Backpacker www.backpacker.com