Managing director of Dream International Limited Young M. Lee has shipped product samples to New York for the convenience of customers who can’t make it to Hong Kong

Rather than sitting back and waiting for the outbreak to subside, manufacturers are using teleconferencing, the internet and courier services to take their business to their overseas contacts.

If buyers can't come to our showroom in Hong Kong, we'll take the showroom to them, is the attitude of Mr Young M Lee, managing director and chief financial officer of Dream International Ltd, the world's largest manufacturer of plush toys.

The Korean-owned and Hong Kong-listed company, has air freighted toy samples and sent staff to its New York showroom for the convenience of customers who have cancelled trips to Hong Kong.  
   
"We have had to modify our operation style to handle the orders from New York," he said.

Utilising technology

	OneWorld's Fred Newcomb says the internet has facilitated the transfer of business

Fred Newcomb, sales and business development director of gifts and premium company, OneWorld, agreed that the most significant help since the Sars outbreak is the internet. "We are dealing with the situation by creating a virtual catalogue which we are emailing to our large customer database. We also tend to use teleconferencing more to compensate for being unable to meet face to face."

Mr Li believes that the virus is not likely to shut down an entire production base. "We have a diversified production base in the Pearl River Delta cities of Zhongshan, Dongguan, Gaobu and Huangjiang and also in countries like Indonesia and Vietnam.

"This arrangement provides more flexibility to conduct business as we can switch production easily from one site to another, or from one factory to another. The wisdom of not putting all your eggs in one basket becomes more apparent at times like these."

Mr Li said so far Yue Yuen's business has not been affected by the Sars situation as the Asian market accounts for only 13 per cent of its total revenue. "We expect the possible impact of Sars to be minimal if the situation is well-controlled."

Taking products to the clients

Another Hong Kong company which "has not seen any order cancellations to date and does not expect to see any as a direct result of Sars" is electrical appliances firm, Euro Suisse International Ltd, which sells most of its electrical products to eastern and central Europe.

Group managing director, Anish Lalvani, took his samples "in a few suitcases" to London and together with a sales manager, set up meetings with key clients. "We decided that since the customers can't come to Asia, we would take our products to show them. We are also taking part in a trade show in Moscow and have invited several customers to meet us there. This is the equivalent of opening a showroom in Europe."   

Mr Lalvani is making regular use of his video conference facility, sending new product samples by courier to serious prospects, and posting sample photos on their website. "But there is nothing like a personal meeting to build relationships," he added. 

He has already put in place a contingency plan for key suppliers, in case his 50 sub-contractors in southern China have problems in their factories. "We are monitoring the situation regularly and our contingency plan will ensure there's no disruption to our supply chain."

Related links:  
Dream International Limited  www.dream-i.com.hk
Euro Suisse International Ltd  www.eurosuisse.com