ECCO managing director Michael Hauge Sorensen says increasingly affluent and brand-conscious Chinese consumers have contributed to the company’s phenomenal sales figures

Managing director of ECCO Asia Limited Michael Hauge Sorensen said the Hong Kong Asia head office serves several major functions - sourcing, wholesale and retail in Hong Kong, as well as regional management. The firm's prime markets in Asia include Hong Kong, China, Japan, Taiwan, Korea and Singapore.

"When we decided to have a regional office in the Asia-Pacific, we wanted a market where we could explore opportunities and test new concepts," Mr Sorensen said. "To us, Hong Kong is the gateway to China and it is well located for travelling around Asia. The local staff are of high quality and well educated.  Hong Kong's infrastructure, taxation system and the absence of import duty are all beneficial to business operation."

He attributes the phenomenal rise in business growth to a combination of factors, including building partnerships with key retailers.

Asia-Pacific branding strategy

"Our strategy for the Asia-Pacific market is to build prominent presence for the ECCO brand. In China and Japan, we have upgraded some existing outlets to ECCO shops and introduced the concept of 'shops in shops'. Since we've set up a full-scale office in Hong Kong, we are able to introduce a wider range of products to the region where we see fit. More marketing support and replenishment opportunities have been given to retail partners in the region," Mr Sorensen said.

ECCO started its Asia operation in Japan about 20 years ago, and its Hong Kong office in 2000. Last year, sales from Hong Kong increased by 50 per cent, accounting for 15 per cent of the total sales in Asia.  Business from China recorded the same growth rate.  Compared to 2001, total exports to Asia soared by 80 per cent.

Mr Sorensen said mainland tourists have contributed to the growth of sales in Hong Kong.  He says that as the Chinese become more affluent and have greater disposable income, "they are willing to spend money on the brand and on good quality products".

Another opportunity Mr Sorensen sees in the region is the growing interest in golfing. In response, ECCO will launch a range of golf footwear onto the Hong Kong market this spring.

ECCO has 9,100 employees worldwide and produces 11 million pairs of shoes each year. It has one "concept shop" in Hong Kong and plans to open more stores this year. 

Related link:
ECCO www.ecco.com