Sourcing with confidence (hktdc.com)


	Manoj Motwani, Diadora HK director, explains how the Hong Kong advantage helps brands succeed in China

Diadora Hong Kong Ltd is the sourcing and distribution hub of one of the world's leading sportswear brands.

Established in 1997 as the brand's Asia Pacific headquarters, the Hong Kong operation is a wholly owned subsidiary of Italy's Diadora Group. It is responsible for 75 per cent of the group's manufacturing operations as well as critical partnerships with suppliers, distributors, and licensees.

According to company director Manoj Motwani, conducting the supply chain management from Hong Kong has produced a highly effective business model.

"Our parent company sources throughout the Far East - Indonesia, Vietnam, India, but mainly the Chinese mainland – and having Hong Kong as our sourcing hub is critical to our success," Mr Motwani said.

"It is very important to be us in the region, and other possible locations are not as attractive. Hong Kong is a faster, well co-ordinated city, where the whole system works well. From Hong Kong it is easy to co-ordinate with all cities in the region and around the world."

Trusted licensing platform

Hong Kong's reputation as a trusted licensing platform is another contributing factor. "Hong Kong's banking system is audited; its systems are clear and transparent," Mr Motwani said. "The strength of Hong Kong's international image sends a message of confidence to our global partners and stakeholders."

From Hong Kong, Diadora's team of 27 is able to oversee production at various factories around the region. Even though Diadora has quality controllers on the ground in the factories it sub-contracts to, Hong Kong's convenience ensures that management can be onsite quickly if need be. This is an advantage that couldn't be achieved anywhere else, Mr Motwani says.

As the company grows its Greater China network, Hong Kong's role will continue to expand. Diadora's distribution partner is a Hong Kong listed company and a second listed partner will soon come on board to further extend the brand's reach into China.

"China is a huge market – success there takes time, manpower and knowledge," Mr Motwani said. "International brands need a reliable local partner with a quality set-up and a strong network, especially if you want to generate results directly from market entry."