Pearl trader Rene Hodel identified Hong Kong as the best base for his business, and has never looked back
	Exquisite, branded pearl jewellery by Hodel of Hong Kong is in demand around the world

Swiss luxury pearl brand Hodel has leveraged Hong Kong's trading strengths to develop as a pioneer in the pearl industry, with a worldwide export business.

Originally a behind-the-scenes wholesaler, Hodel (Hong Kong) Ltd now has teams operating globally from Tahiti to Western Australia. The business is rapidly expanding across Asia, with offices in Hong Kong (its global headquarters), Taiwan, Singapore, Indonesia and Kuala Lumpur.

Managing Director Rene Hodel says Hong Kong's competitive advantages have been critical to his success. Could he have achieved so much if he had set up his business anywhere else but Hong Kong?"Never, impossible," Mr Hodel replied.

Mr Hodel was sent to Hong Kong in 1981 to run the pearl department of his then employer, a Swiss jewellery company. A few years later, he approached Schoeffel, the largest pearl company in Europe, and proposed a partnership in Hong Kong."This is what we did, and the company (Schoeffel HK Ltd) grew over 20 years to one of the most respected pearl specialists in Asia," Mr Hodel said. In September 2005, Mr Hodel bought out Schoeffel Stuttgart's 50 per cent share and the company was rebranded as Hodel.

Economic edge

Mr Hodel said choosing Hong Kong made economic sense."Hong Kong, with its laissez faire attitude, is the greatest trading place on earth. You buy a company in the morning and can be doing business in the afternoon. There is no other place like that. On top, Hong Kong allows you to build up a business. We pay only 17 per cent tax, so profits can be re-invested and companies have a chance to grow. This is not possible in Europe, America or Australia, where you pay hefty taxes."

Mr Hodel also used his own connections to help grow the company."Having been in the industry for more than 25 years, of course I know all the important suppliers as well as competitors," he said."Pearl business is a people's business and has a lot to do with personal relationships. Thanks to these connections, we were able to establish offices Asia-wide, and we have very close associates worldwide who are selling our branded products."

In addition, he cites Hong Kong's world-class trade shows as an effective business tool."We have attended the Hong Kong International Jewellery Show since day one," he said."I started to exhibit in 1981 and have supported all jewellery shows since."

Over time, Mr Hodel has seen many changes."When I started in the business, Kobe, Japan was the pearl city of the world. This has changed over the past 10 years, and nowadays, all pearl producing countries hold their major auctions here, in the Hong Kong Convention and Exhibition Centre."

Industry vanguard

He is also regarded as an industry pioneer. While working with Schoeffel HK, Mr Hodel helped establish the first Chinese Akoya processing company in Hong Kong. Some time later, the firm pioneered the first freshwater pearl company in China specialising in pearls sized from 9 mm up. He participated in the first South Seas pearl auction held in Darwin in 1989, and was among the first to import black pearls directly from Tahiti.

Hodel produces jewellery in Hong Kong, China and Thailand, and sells it in Hong Kong, Europe and Asia."The US (market) is fast growing, but so is China," Mr Hodel said."China will be our market of the future." The firm's biggest growth area is branded jewellery, which is overseen by Mr Hodel's wife, Linda.

Mr Hodel says there is no question where the hub of his business will remain."Hong Kong is the centre of the world (or so we think). It's a vibrant and bustling place, where people come to buy and do business."