One in 10 artificial Christmas trees going up around the globe is made by Hong Kong firm Boto

Thanks to its fast response to this worldwide trend, Boto has become the biggest global supplier of artificial Christmas trees.  With its headquarters in Hong Kong, and a production plant nearby at Shenzhen in the Chinese mainland, Boto supplies over five million trees a year to markets including North America, Europe and Japan.

Last year, the Wall Street Journal reported Boto exported HK$8 billion (US$1.1 billion) in artificial trees. Such is its global reach that an estimated one in every 10 artificial trees going up around the globe at Christmas is made by Boto.

Having a Hong Kong headquarters has assisted the company's growth, according to sales and marketing director Anita Au. "Hong Kong is an international business hub and geographically very close to our China manufacturing facilities. In addition, we have a team with management expertise here," she said.

The company was set up by entrepreneur Michael Kao in 1983. It was acquired in 2002 by US investment company Carlyle Group, with the Kao family retaining around one third.

Hong Kong based R&D

Led by a Hong-Kong-based R&D team, Boto has expanded its product line to over 1,000 different types of Christmas trees, and a wide range of ornaments. Over the years the research team has experimented with styles that have become industry standard, including a move from hook-on branches to easy-to-assemble, hinged models that snap open like an umbrella. Applying injection-mold technology, Boto has introduced branches with tips that replicate the springy feel of real pine needles. It has coloured trees in 30 different shades of green, high-tech, psychedelic fibre optic trees, and the new "Staylit", a tree that comes out of the box already hung with Christmas lights.

As Christmas trees are seasonal products, for six months of the year it switches to producing outdoor patio furniture. "It is a perfect match, as we can well utilise our space and work force, and our sales pitch matches perfectly for summer and winter seasons," Ms Au said.

The Hong Kong/PRD Plus business model (where companies utilise Hong Kong's expertise for their professional needs, and the cost efficiencies of the Pearl River Delta for production) has proven to be a successful formula for Boto. It makes for a highly vertically integrated business capable of producing quality products within a short lead time.

Fast turnaround

The Shenzhen factory has a total floor area of over 350,000 sq. ft. With a workforce of around 6,000 and modern production facilities, it can produce up to 50 forty-foot containers each day and handle orders of any size.

The production plant is easily accessible for the Hong Kong-based management team, enabling them to closely monitor product quality and ensure competitive pricing, outstanding service, timely delivery and on-going innovation.

"Boto is thoughtful in bringing new products to the market place," Ms Au said.  "This, paired with Boto's focus on market research, trends research and technology, allows us to bring the newest products in highest quality materials and competitive pricing to our customers.   Boto is customer-oriented and will continue to provide first class professional services to its clients worldwide."

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Boto Company Limited