Pointech Industrial founder Jean Mouret explains how Hong Kong’s business-friendly environment helped him get started on the road to success

A two-month traineeship in Hong Kong 20 years ago gave French entrepreneur Jean Mouret a taste of the opportunities here.

Instead of going home as planned in September 1984, he accepted a job offer and stayed. Five years later, in partnership with a French-based business, Mr Mouret set up his own company, Pointech Industrial Limited, initially as a small manufacturer of school bags, luggage and related goods.

Now, Pointech has grown to be a comprehensive manufacturing and consultancy business producing both its own brands and private-label indoor furniture, outdoor furniture and accessories, luggage and cooler bags for distributors and retailers worldwide. The firm employs 50 people in Hong Kong alone, and hundreds more in its offices and production plants in China, France, Japan and the US.

Though he didn’t initially intend to stay, Mr Mouret was struck by both the business and lifestyle advantages Hong Kong offers. As a sportsman (formerly a competitive sailor and later a runner and triathlete), he knew Hong Kong presented more options for international competition.

Business edge

The ease of doing business here also appealed. Mr Mouret set up his business "without any capital", sub-renting an office from his former boss. And while he admits the days of "arriving with your suitcase and opening up a company" are over, Hong Kong is still an easy place for start-ups.

"Business is more complex now, but Hong Kong is still very transparent and straightforward. If you are honest, hard working and have respect for people, the system is there to support you. Taxes are low, and there is less pressure in terms of laws, unions etc so you can get on with doing your core business.

"One is able to have amazing flexibility in Hong Kong. And it’s still the best place to create a brand for Asia, with a huge market of one billion consumers (in the Chinese mainland) behind you.

"I also enjoy quality of life in Hong Kong. It is a very cosmopolitan and safe city, where the people are dynamic and very active."

The right moves

Mr Mouret said a key business strategy has been to adapt. He said that over the years, as China's manufacturing industry grew from unprecedented technological advancements to WTO-mandated regulatory shifts, his "business adapted to new global realities".

When regional manufacturing in Taiwan and Korea shifted to China in the late 1980s, Pointech went with it, Mr Mouret said. "Ten years later, when the whole system of production splintered into numerous, specialised suppliers devoting themselves to one type of production only, Pointech went with that, too, learning the intricacies and inter-relatedness of each singular business."

The one constant has been recognising and leveraging Hong Kong’s strengths as a business hub, he said. "Hong Kong is a profit centre, whereas China is more of a call centre. In terms of administration, accounting laws and clear legal system, Hong Kong is straightforward. You cannot run a company like that in China – it just doesn’t happen," he said.

 "And Hong Kong people are (rightly) renowned for their flexibility, industriousness, reliability and capabilities. China offers a new generation of very qualified managers but at the moment they are still too individualistic and opportunistic."

Value-added service

Until 1999, Mr Mouret had one company and several different products. He decided to create a company for each category of product, to gain greater visibility and rationalise costs. The parent company, Pointech, dealt with the management of administrative and accounting tasks, infrastructure, logistics and marketing, freeing each manager to focus on the development of individual products. Each company has its own brand and runs its own market strategy.  Pointech now does all its manufacturing in the Chinese mainland, with offices and/or factories in Shanghai, Xiamen, Dongguan and Zuhai.

China is huge, Mr Mouret says, and it’s important to be able to move with what he terms the "three year product cycle".

"Every three years I ask myself: am I in the right place? Am I doing the right thing?

"These days in business when you have to be everywhere, you need to have a solid administrative base – and Hong Kong is a very good one. And with the service you get in return, it is still very affordable."

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Pointech Industrial Limited