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| Daka's executive chairman Pat Mah says his company's unique business model and passion for innovation are the keys to its success |
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Hong Kong based design and product development company Daka Designs Limited fuses innovation with a unique business model to stay ahead of competition and achieve global success.
Daka's executive chairman Pat Mah says the company set up in 1993 is the brains behind some innovative products sold under world famous names such as ACDelco, Bombardier, CNN, National Geographic, General Motors and Hummer.
"We are the licensee for other brands," explains Mr Mah. "We put their names on our products, marketing them under their names and we have complete control over the marketing."
Leveraging brand recognition
Daka approaches only leading global names to leverage on their brand recognition. "Our strategy is to partner with the best global brand in that category and negotiate with them for a licensing agreement. We offer them R&D, design, engineering, manufacturing through outsourcing, marketing and sales to customers," adds Mr Mah, who's a computer science engineer.
So for Canadian company Bombardier, better known for its propeller jets, Daka has come up with four different models of a dive propulsion vehicle called the SEA-DOO SEASCOOTERTM, great for kids and adults. Under licensing agreement with Bombardier Recreational Products since 2001, it is sold in North America, Asia, Europe and Australia.
For US brand HUMMERTM, "a brand synonymous with affluence", Daka has designed a line of timepieces and radios while for global adventure brand NATIONAL GEOGRAPHICTM, Daka is planning to design a line of navigational equipment and travel goods. ACDelco, famous for automobile accessories, has a range of Daka designed multi-function shake flashlights. To coincide with content provider CNN's 25th anniversary in 2005, Daka is coming up with a hand held trivia game with enriched content on news coverage.
Innovation and quality
What sets Daka apart from other Hong Kong companies is its total abstinence from OEM (original design manufacturing) and ODM (original design manufacturing). "If I had decided to be one of the Hong Kong companies using pricing to compete, I don't think Daka would have been so successful," Mr Mah says.
Instead, the company competes on innovation and quality. Leveraging on its strong strategic and licensing partners, Daka is focused on developing and marketing products in the lifestyle, sports and leisure and marine electronics categories and services customers in over 50 countries around the world.
Mr Mah says he relies on his design team of 80 based in Hong Kong, the UK and the Chinese mainland "to come up with products which no one else can do." The company has won a string of awards over the years, the latest being a Consumer Product Design Award from the Federation of Hong Kong Industries for its SEA-DOO SEASCOOTERTM DOLPHIN and the Mosquitovac (an innovative mosquito killing device) and also the Export Marketing Award for its excellence in export marketing.
Tapping a market niche
"We have enjoyed a decade of sustained growth because of our ability to identify niche consumer markets," says Mr Mah.
Eventually Daka will create its own brand products "although there is no time frame for a research project like this." Meanwhile, Daka will continue with its unique business model and a profitable one at that as its profit before tax rose by 77 per cent to HK$23 million (US$3 million) in the financial year 2004.
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Daka Designs Limited
