13 June 2018
More and more manufacturers are adding design elements to their products to enhance competitiveness. A Hong Kong company that specialises in product development has recently acquired Thai and Japanese character licenses for its series of anti-slip, anti-spill ceramic suction mugs. The licensed products have successfully catapulted the company into new markets in ASEAN and Asia.
Tom Choy, founder of Hong Kong product design company Zaciwork Limited, said: “Character brands from around the world are featured at the Hong Kong International Licensing Show. We have already met with more than a dozen brands and have reached cooperation agreements with Thailand’s 2Spot Communications Co., Ltd., for two of its hottest brands, Unsleep Sheep and Bloody Bunny, and with the licensing agent of Japan’s Kumamon.”
Cartoon ceramic suction mugs target overseas youth
Choy visited the Hong Kong Trade Development Council’s (HKTDC) Hong Kong International Licensing Show as a buyer earlier, and successfully acquired Thai and Japanese character licenses for his anti-tumble ceramic mugs that target young consumers.
With a background in manufacturing, Choy now focuses on the development, production and distribution of products, such as tableware and kitchenware. Many of his innovative designs have won international accolades. Last year, he founded Zaciwork Limited and established the brand Zaci to specialise in the development of high-white ceramic suction mugs.
The product is touted for its practicality: “The suction pad at the base can prevent the mug from tumbling. Users can lift the mug only vertically, not even at an angle. The design has been granted a utility model.”
Repeat R&D to achieve higher quality to win at licensing
Competition in the ceramic mugs market is fierce. To stand out, Choy went to considerable effort during R&D to enhance the features of the ceramic mugs to make them difficult to forge. These included fine-tuning the colouring, controlling the size of finished products and adding manual finishes. Additionally, Choy acquired licensing rights from Thai and Japanese brands to print popular cartoon characters on the products. This has helped Zaci to open new international markets.
Choy said: “Many Thai character brands stand out in the ASEAN markets. Unsleep Sheep and Bloody Bunny are very popular in Thailand, Malaysia and Singapore. The company that owns these brands, 2Spot Communications, offered highly flexible terms on the licensing period, product category and fees, making it easy for us to cooperate. As for Kumamon, the character is well-recognised in Asian regions such as Korea, Hong Kong and Taiwan. We can leverage its licensed products to develop the Asian markets.”
Meeting a distributor through the Design Gallery and foraying into the Thai market
With the help of a distributor, Hong Kong Asia Distribution, Zaci’s ceramic mugs have opened new markets in the ASEAN. Zaci’s basic and patterned ceramic mugs were previously featured at the Design Gallery, where Hong Kong Asia Distribution’s founder – Lee Chi Fung (Mr Lee) is a regular “treasure hunter”. It was there that Mr Lee identified the ceramic mugs for cooperation.
Hong Kong Asia Distribution is a company formed by a Hong Kong and Thailand joint venture. The company specialises in introducing Hong Kong brands into the ASEAN. It has exported close to a thousand types of products from more than 20 Hong Kong brands into Thailand. The company’s distribution network in Thailand spans more than 100 retailers and includes B2S, Loft, and the Central Department Store. The licensed ceramic mugs of Unsleep Sheep and Bloody Bunny are already being sold in the country.
“Thailand’s import regulations for ceramic mugs are relatively relaxed. For bowls and plates, we will need certifications that make importing more difficult. Ceramic mugs hold great potential as well: they can be sold at a wide variety of retail channels, such as gift shops, stationery shops and shops that sell household goods.” Mr Lee said that his company plays not just the roles of an importer and a distributor, but also that of a coordinator between parties, a facilitator of shop displays and inventory management, and even an organiser of promotional events to expedite product sales.
The 10 countries of ASEAN are markets that many Hong Kong companies are eager to develop. Mr Lee said these companies can leverage the HKTDC’s services to capture local business opportunities. Using his own company as an example, Mr Lee said the HKTDC’s representative office in Thailand provided him with the contact information of Thai media outlets and bloggers and introduced him to local trade organisations and event organisers. The connections helped his company to promote Hong Kong brands and stage events. In addition, his company was referred by the HKTDC’s Kuala Lumpur office to a Malaysian logistics company that helped his company enter the local market. “The Malaysian logistics company took care of importing and we sent representatives to facilitate retail management.”
