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Logistics woes generate home brands

March 6, 2024
Logistics woes generate home brands

Struck by supply chain snags, a Hong Kong beauty products distributor launched its own line of products.

The pandemic and associated supply chain disruptions caused headaches for firms importing and distributing branded products from overseas, with consignments delayed and increased logistics costs.

Crisis brings opportunity, however. The One Consultancy, an agent selling other firms’ branded health and beauty products, decided in 2020 to develop and market its own brand of products, creating BHL International Group in 2021 using the retailer brand Believe Healthy Living (BHL).

BHL Director Kit Wong said: “We had accumulated a group of loyal customers over the years, so set about establishing our own-branded products. In 2021, we established another company,  BHL International Group, to build our own brand based on raw materials available in Hong Kong, which can be processed to yield a natural, non-harmful and safe products.”

Products include ginseng cream and propolis essence.

The firm met the challenge of multiple pandemic control restrictions by actively promoting online purchases and delivery services as well as innovative online-physical retail models.

When BHL exhibited products at the GS1 Hong Kong Summit in November 2022, a Hong Kong Trade Development Council (HKTDC) representative recommended the firm join its Transformation Sandbox (T-box) business support programme to help them achieve their transformation goals.

 “T-box suggested that we join the hktdc.com Sourcing platform to capitalise on its extensive potential for exhibiting our products and bolstering our brand. They also introduced us to the international cross-border e-commerce store of the HKTDC’s Design Gallery on JD.com, so our own-branded products were launched in July last year, helping attract some domestic customers spending.”

The T-box team recommended us to utilise the HKTDC’s GoGBA one-stop platform to facilitate our  expansion into the Guangdong-Hong Kong-Macao Greater Bay Area (GBA). Showcasing both comprehensive online and in-person support, this platform has proven extremely beneficial for us.

“I have also participated in a number of GoGBA activities, group discussions and workshops, including the GoGBA Greater Bay Area Development Day, to find out about practical issues, such as tax measures, regulatory changes and business guidelines. These helped me understand the process of starting a company in Mainland China, and the Synergize GBA Forum allowed me to strengthen my understanding of the GBA,” Ms Wong said.

This practical information helped BHL successfully open a product experience store in Baiyun District in Guangzhou, allowing mainland customers to experience products offline before making online purchases.

BHL also plans to open a branch in the innovation hotspot of Qianhai in Shenzhen, near the planned Northern Metropolis in Hong Kong

The domestic market would remain the priority, but BHL would also conduct research on setting up in Qianhai after the GoGBA team helped the firm contact the Qianhai Administration Bureau.

In early March BHL finalised a deal to rent space at the Qianhai Shenzhen-Hong Kong Youth Dream Factory and set up an office plus product experience area there.

"We are grateful to the GoGBA team for connecting us with the Qianhai Administration. Thanks to their organisation, we recently had the opportunity to visit various local parks and start-up bases, including the Qianhai Shenzhen-Hong Kong Youth Dream Factory. This has also helped us gain a deeper understanding of Qianhai’s support policies for Hong Kong businesses, which will assist us in speeding up our establishment in Qianhai."

T-box and GoGBA  referred BHL to HSBC for a 100% SME loan service, which gave the company enough funds to complete a previously approved Dedicated Fund on Branding Upgrading and Development sales (BUD) project.

HKTDC introductions also helped BHL open an HSBC business account. HSBC access to Payme widened the firm’s user base.

Having found out about the product experience store in Baiyun District, HSBC supplied two easy remittance accounts, solving transfer problems.

The comprehensive support HKTDC provided BHL helped boost the company’s exposure to both domestic and overseas consumers and ease its expansion into the GBA.