Driven to succeed in SME world capital (hktdc.com)


	Christian Rommel started ROX Asia Consultancy on a shoestring – today it is a global operation

German entrepreneur Christian Rommel came to Hong Kong in early 1997 and opened his first office, ROX Asia Consultancy, in 1998. It was just after the Handover* and most of his expatriate friends carried on business as usual.

Mr Rommel's sourcing, printing and packaging consultancy started with one staff member – himself – and a decade later is a 10-man team with headquarters in Hong Kong, and offices in Emsdetten, Germany and Guangzhou in southern China. His international clientele is impressive and is comprised of different sectors – Audi, Huber Group, WMF, Wella, Merck and Pelikan, to name a few.

"I started with no reputation, no clients, no staff and very little funds. In those days, it was the trend for expats to come with big salaries and house packages but I had nothing except a chance to make something," he explained. "The Hong Kong banks said it was a German company and I should borrow from Germany, whereas the German bank said I was operating in China so therefore I should get my loan from there," he said. Undaunted, he persevered.

He met his first client at a trade show in Nuremberg, Germany. The client had just set up his company and could not speak any English but was looking for competitively priced quality packaging for his cosmetics and health care products. "He is still a client and (his business) has expanded to over 300 people now. Whether in cartons, wood, acrylic or fabrics, we do quality control and product development and typically provide the client with tailor made solutions," explained Mr Rommel.

Challenges overcome

The 10 years have been a rollercoaster ride. He says he must have faced every crisis which any businessman would want to avert, from political to economic, social to monetary. The years were marked by fluctuations in the Euro, the Asian financial crisis, Sars, bird flu, deflation, 9/11, but through it all, he has never seen people anywhere in the world who are so driven as those in Hong Kong.

"It's such fertile ground for entrepreneurship as everybody seems to be busy, active, full of dreams and involved in some sort of side business," said Mr Rommel.

The city is so geared up for business that it is with good reason that Hong Kong is so successful, he said.

"Hong Kong is an important entry point as it is a hub for multinational corporations and great for contacts. It is a good buffer zone for Western companies trying to access China as the city is such a perfect combination of East and West. It is excellent for its infrastructure in finance, administration, communication and legal services. I have been visiting and working in many Asian cities like Bangkok, Jakarta, Tokyo and Singapore but to me Hong Kong is the best place and everything works for me."

His new office in Central is a juxtaposition of the old and new, the best place for his personal and business life, he said. "I love my office, a typical modern highrise which overlooks all the other highrises, small shops and the rooftops of other buildings."

Quantum leap

A printing and packaging engineer by profession, an adventurous Mr Rommel came overland to Xian, China, by jeep via the Himalayas in 1989. "I was the first foreigner to work in one of the country's state owned enterprise in Xian as I was trying to get an idea of quality control in China. It was almost non-existent in those days but now you have world-class, well-equipped factories existing side by side with some backward ones."

Hong Kong, he said, has contributed a lot to the success of mainland companies. "Without Hong Kong, many mainland companies would not be where they are now. Many of them are run, managed or financed by Hong Kong people and that is the key to their success," said Mr Rommel.

"Most Hong Kong people have an eye for details and are consumer oriented. My quality controllers are from Hong Kong and I rely on them. They speak Putonghua, understand the mindset of the mainlanders and yet are Western educated so it is a very good combination."

Like most small and medium sized enterprises (SMEs) in Hong Kong which have gone up the value chain, he said his company cannot compete purely on prices. Luckily, most of his clients do not just want cheap.

"My European clients want quality assurances, just-in-time delivery, reliability and creativity. I give them all that and our quality is compatible with German standards. Competition is huge but it all pays back when the client is happy with our value added service," he said.

Going forward, Mr Rommel said he will continue to keep his headquarters in Hong Kong while diversifying "more general research" on the mainland with an eye on costs.

"If you had told me 10 years back that I would have my business here with the clientele list that I have now, I would not have believed you. I think my hard work has paid off as I continue to build up my business," said the one-time adventurer.

* "The Handover" refers to Hong Kong's return from British to Chinese rule on July 1, 1997.