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China gateway opens door to global growth (02/07/2008)

  Robert Wall
  Managing Director Robert Wall says Jeb has flourished since focusing its development on Hong Kong
A business that started out selling OEM (original equipment manufacturing) office partitions has grown into a successful global ODM (original design manufacturing) enterprise for Australian business partners Robert Wall and Terry Jordon.

The partners opened the Hong Kong office of Jeb Greater China Ltd in 1996. In 2000, they did a management buyout of Jeb in Singapore and have since opened offices in Kuala Lumpur, Bangkok, Dubai and Shanghai. The firm employs around 80 people and also works with partners in India and the Philippines.

Turnover and staff numbers are growing by 20 to 30 per cent year on year. The company exports to every country in Asia except Japan, and is now tapping opportunities in the Middle East. 

"Being in Hong Kong has really changed the face of the company," said Mr Wall. "It has given us ready access to factories and fabricators in China, and it has enabled us to go from a company that makes other people's products to a company that designs and manufactures our own brands."

Unlocking potential

From the original office partitions, Jeb's product range has expanded to include customised glass products (Infinity by JEB, set up in 2003), office furniture (BW Furniture, established 2006), and luxury door and window systems under the brand names Elegant Wood and Technal. Mr Wall said Hong Kong's effectiveness as a business platform has been a key factor in the company's growth.

He was working at Jeb in Singapore before realising that the Hong Kong market offered the greatest development potential. Like Singapore, Hong Kong is an international city, but it has an added advantage as the gateway to the Chinese mainland.

 "Being on the doorstep of China has allowed us to design and manufacture our own products and at the same time, supplement some of our furniture offerings – such as adding a locally made filing cabinet to a US or European-made desk, thereby reducing the cost. It has also allowed us to source and find great products that we sell under our own trade names."

As a company producing for the architectural industry, Jeb enjoys a further bonus. As part of the push for more environmentally friendly building materials, suppliers strive to achieve a Leadership in Energy and Environmental Design (LEED) or Green Star rating. One criteria is that the production source should be within 500 miles of the project. Since Jeb's factories are in the Pearl River Delta and within the 500 mile radius, materials used in all of its Hong Kong projects qualify for points.

HK/PRD business model

Mr Wall said the Hong Kong-Pearl River Delta business model has been "a fantastic business model for us." 

"The mainland manufacturing is not so much a cost effective one for us but it is very accessible.  The Chinese have a 'can do' attitude and are very quick to react. We have had some issues with quality, but they have been quickly resolved but also we have had to push hard to set the standards.  We are now designing products that will stand up to any product worldwide, and we are having fantastic results internationally."

Mr Wall agreed Hong Kong has been "absolutely" the best platform for his business. "It has given us a path into manufacturing our own products and not just representing other companies. It has also allowed us easy access to the mainland and some of the great products that are available, which we sell under our own banner.

"The local business environment is challenging, so it prepares us for the rigours of other international markets, in terms of quality expectations and speed of response. Hong Kong is an international hub so travel to business destinations and the shipping of goods is easy."

Related link
Jeb Greater China Ltd


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