Ada Choi, the face of Hong Kong fashion label Moiselle, models one of the innovative designs for which the brand is renowned

Within five years of the brand's launch in 1997 - and using just three year's records - the company was listed on the Hong Kong stock exchange. Moiselle today has 22 outlets in Hong Kong, 30 in the Chinese mainland and eight in Taiwan, with an annual turnover of more than HK$200 million (US$26 million).

Executive director Keith Chan says Hong Kong is a proven platform to the region. "Hong Kong is one of the famous fashion cities of the world," he said. "Its people are willing to accept all kinds of new design. With the whole world focusing on the Greater China market, Hong Kong is the most effective platform for building a brand and starting a business in China."

Moiselle International Holdings Limited's business model leverages Hong Kong design strength, and the cost effectiveness of the Pearl River Delta (PRD). Designers at the Hong Kong headquarters have international training and experience, creating fashionable designs which are then produced at the company's factory in the PRD.

In addition to the mainland's competitive labour costs, workers there have the technique to do the intricate embroidery that is a hallmark of Moiselle design, Mr Chan said. "If you give them a design, they can produce the goods you want." Owning the factory also gives the company control over quality.

A stitch in time

The Moiselle branding strategy also relies on speed. "We are doing trendy fashion, and trends change so quickly," Mr Chan said. "A polo shirt you can sell every year, but fashion you cannot. You have to catch the time." The time from design stage to store can be as little as seven days, and no more than 20, giving the brand a competitive edge.

The company is able to produce many styles, and also small quantities. "Every shop has only two or three pieces, so people know if they want this item, they have to buy it today," Mr Chan said. "Of course, for really popular designs we can do repeat orders, but this way we don't have any pressure to discount."

Marketing is another important factor. This is achieved through joint promotions with all the main banks, and having the same interior design for all Moiselle shops and outlets. A recognisable face - Hong Kong celebrity Ada Choi - was also chosen as the Moiselle "image girl".

 Mr Chan says that as consumers in the Chinese mainland increasingly have more spending power, they also become more brand conscious. "Chinese people are willing to pay for a famous brand, rather than buying from a single, small shop," he said. "For them a brand is a kind of status symbol."

At the end of this year, Moiselle plans to open its first shop in Canada, followed one or two years later by stores in the US. By 2004, it expects to have a shop in Paris.

"You need to have a good platform first," Mr Chan said. "Hong Kong is ideal for this, as there is so much competition here. Many of the European and US brands come to Hong Kong to do business, so if you do well in Hong Kong, you will do well anywhere in the world."

Related link:
Moiselle www.moiselle.com.hk