Travel solution goes global (hktdc.com)


	Nearly ten years after founding their business in Hong Kong, Robert Schlipper (left) and Magnus McGlashan have captured a worldwide market

Two Australian entrepreneurs who turned a common travel problem into a global business opportunity are soon to notch up their first decade in Hong Kong.

Australians Robert Schlipper and Magnus McGlashan began hatching the idea for a way to secure their valuables while backpacking around the world. Outpac Designs, their business manufacturing original design luggage and travel security products, was launched in 1998, and has grown exponentially to 16 staff now.

Today, the company's extensive range of Pacsafe-branded tamperproof, snatchproof and splashproof travel products has a worldwide following. Designed in Hong Kong, and manufactured in the Chinese mainland, the brand's 50-plus products are sold in 30 countries. Global sales are increasing by 50 per cent annually, while in the US, it's as high as 100 per cent. The partners say investing heavily to protect their intellectual property is a core component of their business.

Cost efficiencies

A decade of research and development has enabled the business partners to address the changing needs of travellers. While a version (albeit more sophisticated) of the original backpack security device still features in the product range, the brand also produces "safe houses" for equipment such as laptop computers and cameras, to a complete day safe designed to hold all of a traveller's belongings. And thanks to cost-efficient Chinese manufacturing, product pricing is kept low.

As one travelling scientist notes on their web site, Pacsafe products kept her notebook computer, digital storage devices, high end camera, Ipod and wallet safe during a lengthy field trip. It was "worth spending US$100 to feel more confident when packing US$5,000 worth of equipment", the traveller noted.

Outpac co-founder Robert Schlipper said the decision to start their business in Hong Kong was an easy one. "Hong Kong is great for sourcing, close to the Chinese mainland manufacturers, and is an ideal logistical centre with Europe to the left, and US to the right," Mr Schlipper said.

Hong Kong's fast and reliable distribution network was another key factor. "We only had one product when we started and needed volume sales off the bat, so our only choice was to go straight to export in as many countries as possible," Mr Schlipper said.

Bouncing back

Like most small and medium sized enterprises (SMEs), the business had its trials. While the Asian financial crisis of the late 1990s actually worked in their favour, as it made Asian destinations cheaper and therefore more attractive for travellers, 9/11, Sars and the war on terror had the opposite effect.

But the partners "always had confidence in Hong Kong, especially with what's happening in China," said Mr Schlipper. Resilient as ever, Hong Kong quickly bounced back and is now enjoying consecutive years of robust economic growth.

Though this is reflected in rising wages and overheads, Mr Schlipper says Hong Kong still represents value due to its human talent, export strengths and ease of transportation. Besides, he says, there's a buzz in the air. "At this point, the Hong Kong economy is looking good, and there is definitely strong consumer confidence - it's just a great place to be."