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  Innovation the key to building global brand
  
 
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Alain Li outlines a growing global market for Oregon Scientific's high-tech products developed in Hong Kong

 
Innovative Hong Kong electronics company IDT International is on the fast track to global recognition with growing interest in products under its own brand name, Oregon Scientific.

As consumers in Europe and the US increasingly seek out the brand, the company's strength in developing value-added electronic learning products is being recognised by leading US toy retailers. Mattel has selected IDT as  "licensee of the year" for its Barbie range, surpassing around 500 other licensees, while another coup was being named "vendor of the year" by Toys 'R Us.
 
The remarkable success story of IDT International Ltd began when the company was set up in 1977, with a core mission to develop innovative products featuring LCD and microprocessor technology. The same belief in innovation led the company to claim a world first in 1979 by developing an LCD stopwatch just two years after its inception, according to Alain Li, who is executive director, group chief financial officer and  president of Oregon Scientific Global Distribution.
 
"There have been many world firsts for IDT in its 26 years," he says. "The latest is the development of the slimmest digital camera, and the identification of the sector as a strong growth area."

Investment in research

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IDT claims to have invented the world's thinnest digital camera, affirming the company's commitment to developing innovative technology

IDT's success as an Original Equipment Manufacturing (OEM) and later Original Design Manufacturing (ODM) developer of innovative products is reflected in its four product divisions: LCD consumer products; personal information products; telecommunications products; and electronics learning products.

The company's track record as an innovator led to its initial association with the US-based Oregon Scientific in 1991, when the latter was "looking for a company to help them manufacture a product they had come up with," Mr Li recalls.

The association turned into a joint venture. IDT saw it as an opportunity to build a network in the US, eventually acquiring 100 per cent of Oregon Scientific and developing it as an in-house brand.

Oregon Scientific has been positioned as a lifestyle brand, associated with "very innovative, high-end products distinguished not only by their features and functions, but also by the design and quality of its products," Mr Li notes.
 
As part of this strategy the company has been working with designers in Italy to increase the appeal of its products among European consumers. Indeed, a strong European presence has been a hallmark of  IDT's global expansion and branding strategies since its first overseas office opened in Switzerland in 1982.

Strong overseas network

This decision by IDT's founder, Raymond Chan, was an unusual step for a Hong Kong manufacturer in the early 80s. It led to the establishment of a strong network of overseas sales subsidiaries. "We now have 14 sales offices which cover all the major continents," Mr Li said.
 
IDT, which launches about 150 new products every year, sees a strong potential to expand its Oregon Scientific brand in Asia, today accocunting for only about 15 per cent of turnover.

It strengthened its China operations last year, and opened a representative office in Singapore. "We are close to agreement with local distributors in key markets like Thailand, Singapore and Malaysia. Elsewhere, we are expanding our presence in Latin America, where we established a Brazilian office last year," Mr Li said.

"The pleasing thing is that we are now at a point where we have distributors who recognise the strength of our brand and product range and are asking for the right to distribute."

Related link:
IDT
www.idthk.com



  02/06/2003
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