Jebsen chairman Hans Michael Jebsen says China’s growth will have a positive impact on Hong Kong

Far-sighted Danish Jacob Jebsen, who co-founded his then-shipping company Jebsen & Co in Hong Kong in 1895, always knew his chosen location would be the best platform to China.

 

Even though it was "a dot on the map at the time", says current company chairman Hans Michael Jebsen, his great-grandfather spotted the fundamentals that would assure Hong Kong a pivotal role in China's opening up and later development.

 

Today Jebsen & Co Ltd is a diverse global enterprise with 4,000 staff, 10 divisions and a presence in 16 countries, dealing with everything from luxury brand consumer goods to industrial chemicals and machinery. The company is still family-owned, and one of the few foreign firms to have had such a long and continuous involvement in Hong Kong and China. It believes Hong Kong retains all the strategic advantages that have allowed it to keep a competitive edge.  

 

Mr Jebsen said China's current political stability and its steadily developing economy made it now possible for European firms to "go it alone" in China without the need for a mainland partner, provided they proceed with caution. "This is the real open door," he said. "Before, when we went through the door we were still semi-dependent. Now, we are only dependent on market forces."

 

Hong Kong poised to benefit

 

Jebsen believes that China's domestic growth will hold and that, as long as the world economy is performing reasonably, China will out-perform because it has all the conditions right. This will have a positive impact on Hong Kong, Mr Jebsen said.

 

"Firstly, for psychological reasons. The boom in China means opportunities for Hong Kong and this makes people spend and invest. Secondly, it means foreign investors will flock to China - "follow the Chinese" as the old investment slogan went. What in a way is Southeast Asia's loss in investment dollars will be China's gain. The centre of gravity is shifting north and with it Hong Kong will catch the wind of positive energy."

 

There are two caveats, Mr Jebsen clarified: never be too sure that any trend will last, "because we have seen dips in the past and there are still air bubbles in the system". Further, China is still a country of the unexpected, where you can for example see legal changes occur overnight.

 

"China is certainly not a place to come and be an instant success overnight by competing with the mainland players," he said. "They are tough, they are fast, and they are everywhere. For anything that looks like a business there are many takers. So, this leaves Hong Kong as the best place to do business in China."

 

A 'natural' headquarters

 

For Jebsen, Mr Jebsen continued, Hong Kong is "a natural headquarters".

 

"China as a continental market is just too vast to be centrally administered and as a company we would be naive to think we would be the exception. We need strong local teams that identify with and have a network in the local markets, but as the strategic centre of our operations in China, Hong Kong has many advantages.

 

"One key factor is Hong Kong's role as a physical hub. A large portion of China's exports and imports still move through Hong Kong. Also, Hong Kong has manpower that is both experienced and reliable; that has cultural reach, and global exposure. Hong Kong people are more at ease on an international scale, whereas mainlanders are still finding their feet.

 

"Hong Kong is still, in comparison with the 19th century, probably the largest city in terms of importance to China.  China needs many locomotives, and no doubt Shanghai is a key locomotive, but usually competition is the best incentive to retain a competitive edge."

 

Experienced business partner

 

Jebsen believes in stimulating business by attending trade fairs, investing in staff training and through various team-building activities. "We want to be a family business but not in a cosy sense. It is also challenges that make a family strong."

 

China accounts for about one third of Jebsen's activities. A powerful player in the industrial sector, the group also has a stable of branded consumer goods including Porsche cars, high-end wine and soft drinks (Bollinger, Red Bull, Blue Girl, Pellegrino), and Pentax cameras. 

 

Because of its long tradition in the East, Jebsen is also the ideal partner for overseas firms entering the mainland - hence, 20 per cent of its business involves joint ventures in Asia and Europe.

 

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