Colin Davidson, Managing Director of Custom Asia, services customers worldwide using the effective Hong Kong/PRD business model

British architect and entrepreneur Colin Davidson is leveraging Hong Kong as a sourcing hub for innovative building products from China.

His products, ranging from bathroom fixtures to metal fabrications (latches, hinges, furniture parts and the like) come in every stage from components through to fully finished items. They are exported to a growing client base worldwide. 

The idea to form his business Custom Asia Limited came in 2001, after a decade of working as an architect in Hong Kong. "Most of my projects were for multinational companies setting up production facilities in China, and I saw first hand how complicated and very expensive the whole process could be," Mr Davidson said.

Mr Davidson also wanted an alternative career, but one in which he could use his existing skills and experience. "Sourcing of building materials was logical as I had already been doing this for 10 years for foreign clients in China. I wanted to set up a company which could provide the benefits of Chinese production, without all the hassle I had previously witnessed. After some research, I was convinced I had a good chance of success."

Service hub

The company was formed at the beginning of 2002. British Airports Authority became an early customer, and Custom Asia advised them on the purchase of building materials for various airports, including Terminal 5 at London Heathrow.

All operations are controlled from the company's head office in Hong Kong. With the city's proximity to factories in the Pearl River Delta (PRD) and unmatched global connections, Mr Davidson found he could easily service buyers in the UK, Ireland, Denmark, Hungary, Canada and New Zealand.

Custom Asia has evolved to become a "virtual manufacturer", which is an organisation that manages, in depth, the entire production process. It no longer has ownership in any manufacturing facilities, but rather organises and directs this function using factories which have been carefully selected.

"One of our great strengths is our network of factories with which we have excellent relations," Mr Davidson said. "Not owning or being directly involved in a factory means we are much more flexible and adaptable.  We have the choice of a wide range of different resources."

Convenient location

Most of the factories in Custom Asia's network are in the PRD, which Mr Davidson says is "very convenient for us".  The factories are identified by process - metal fabrications, plastic injections, tooling, carpentry, glass works, printers and the like. Quality is controlled by the firm's Hong Kong-based engineers, supported by quality control inspectors it employs in China.

"Hong Kong is an ideal operating centre for us. Not only for the well known reasons – fantastic transport hub, great communications network, banking and financial systems," Mr Davidson said. "In our case, its geographical proximity to the PRD and widespread use of English help two of our key selling points: our excellent level of communications and our very strong East/West connections. Customers enjoy coming to Hong Kong and feel comfortable using it as a launchpad."

Custom Asia employs over twenty people in Hong Kong and China covering administration, marketing, engineering and quality control.

Scope for growth

"I believe we have a good business plan so I am very keen to grow along our present lines," Mr Davidson said. "I would rather maintain ownership and control so I intend to do this step by step."

His focus is on the UK and Ireland, describing them as "still a very big market with plenty of scope for new business". It is also convenient to have a focal point for overseas visits, as this gives an opportunity to carry out research and arrange presentations.

"Hong Kong is the best location for serving the UK for all the reasons mentioned," Mr Davidson said. "Brits feel particularly comfortable doing business through Hong Kong."

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Custom Asia