Daniel Vilamil found export success selling China-made bags to Europe

Italian entrepreneur Daniel Vilamil came to Hong Kong in the late 1980s in search of opportunity.

His idea for selling China-made leather bags to fashionistas in Europe did seem ambitious at the time, and Mr Vilamil admits his potential buyers were sceptical. Yet he has found success, and through his company Quintana (Hong Kong) Ltd, exports original design leather fashion, sports and leisure bags to over 15 countries worldwide.

"I came from Italy planning to start my own business, but found myself facing an obstacle: I was trying to produce in China and sell to Italy, and everyone was scared of the quality," Mr Vilamil said.

At that time, he recalled, Italy and indeed most of Europe didn't have any idea of how production in China was improving. Based in Hong Kong, it was easy for Mr Vilamil to see the change, but how did he convince buyers? "With a lot of patience, and by facts," he replied. "I accepted small contracts to prove the quality, and this gave me a structure to build on."

Integrated approach

He adopted a three-pronged strategy. The company headquarters is in Hong Kong, overseeing the business operations and export logistics. Production is achieved cost effectively at a factory sub-contracted by Quintana in Shenzhen in southern China. A team of designers based in Italy works on the R&D, and Mr Vilamil frequently visits the China factory to oversee the quality.

Hong Kong's role is essential to the company's success, Mr Vilamil says. "I know companies that have set up the whole show in China – some are doing OK, and others are not. To me, Hong Kong is essential, not only from the logistics point of view, but because of its speed and efficiency. I can pick up the phone and call a (sourcing) agent and he'll be in my office in 20 minutes – that makes all the difference."

The city's status as a global logistics hub brings further advantage to the fashion business, where fast turnaround gives a competitive edge. "If I'm expecting a sample or colour reference from a client overseas, they can put it on Fed Ex that day and I'll get it overnight."

Quintana sources its raw products – mainly leather – from a number of places, including Italy, Argentina, Brazil and the Chinese mainland. The company produces its own label, Kinta, as well as supplying other brands' products throughout Europe and Asia.

Market niche

Running its own factory, Quintana is still able to produce smaller orders utilising its existing set-up. While this is a distinct advantage for an SME (small and medium-sized enterprise), Mr Vilamil says the main advantage is the quality he is able to achieve.

Changes he has seen in over 18 years of business include a "dramatic improvement" in the quality of goods made in modern-day China, and ease of access to and from the mainland via Hong Kong. "The days of old fashioned factories and inefficient customs are gone – China today is a different story," Mr Vilamil says.

He also stays within his market niche. In terms of prestige leather goods, Mr Vilamil remains respectful of Italy, and says that "nothing will ever beat Tuscany". "For me, I am trying my best to create a little Italy inside my industrial zone."

His advice to other SMEs is to align themselves with the right partners overseas. "In the past, you could start a business trading in Hong Kong and producing in China thinking, ‘let's set it up and see what happens'. Today that wouldn't work. You really need to assure yourself you do have a market out there for your products that can grant you a stable business."

Related link
Quintana (Hong Kong) Ltd