Aoyagi (HK) Ltd's chairman and CEO Mizuho Tanaka (right) and executive director Crimson Chan with the award-winning refrigerators which would pave the way for their ODM marketing strategy

A winning combination of Japanese quality, Hong Kong design and China production has produced a "compact, attractive and environmentally-friendly" product that clinched a top award for its Hong Kong-based company.

Aoyagi (Hong Kong) Limited invented the energy saving, 18 litre absorption type refrigerator to clinch the Consumer Product Design Award in the 2004 Hong Kong Awards for Industry. It is marketed under its own brand name Enseki and made its debut in the Japanese market in 2003.

"The product is ideal for hotels, hospitals, homes for the elderly and personal use as a second fridge as it is compact, noise and vibration free, energy saving and environmentally friendly," said Aoyagi's chairman and CEO Mizuho Tanaka. The refrigerator measures 310mm (1ft) by 385mm (1.2ft) is 505mm (1.6ft) high and weighs only 12 kg (26.5lbs).

Sleek, slimline profile

It does not have a compressor (the bulky machine found at the back of mainstream refrigerators) and does not emit a gas called Freon which can be harmful to health. Because of its small size, it can be used in cars and yachts, for storing cosmetics and for outdoor activities such as picnics and barbecues.  

Mr Tanaka described the winning product as a mix of three elements: Japanese quality, Hong Kong design and Chinese production. "We have an R&D team consisting of Japanese and Hong Kong staff and our products are made in our two factories in Shenzhen, southern China. Our test market is in Japan. If our product can survive the Japanese market, it means the product's technological level, quality, safety standard and stability are in good shape."  There are plans to market the product in Hong Kong this year followed by other Asian countries and Europe.

Aoyagi started its Tokyo office in 1976 with three staff, and now has 13. The Hong Kong office was set up in 1985 and has since expanded to 20 staff.

"The company would not have been so successful if it had just stayed in Tokyo," Mr Tanaka said. "Hong Kong has helped us to survive and grow. It is a good place to do business with its sound legal and financial systems and efficient supply chain management. Hong Kong's proximity to Guangdong is also very easy for sourcing electronic components. We now buy 60 per cent from China, 30 per cent from Japan and the rest from Thailand and Malaysia."   

Onward and upward with ODM

Executive director Crimson Chan said the award would strengthen the company's marketing strategy which in the past had concentrated more on Original Equipment Manufacturing (OEM) for clients such as Matsushita, Panasonic, Toshiba, Hasbro and Bandai. "We will develop more Original Design Manufacturing (ODM) rather than focus only on OEM electronic and toy products," Mr Chan said.

Aoyagi has adopted the patented far infrared ray heat transmission technology to come up with a wide range of interesting self-developed products including the Far Infrared Album Heater, foot, glove and pet warmers.

Business was good last year - "the best so far" - with a 30 per cent increase as compared to 2003. Sales turnover was HK$330 million (US$42 million). The path to ODM has just begun.

"Once started, we can't turn back. We are committed to our brand development," said Mr Tanaka.

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Aoyagi (HK) Ltd