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Design and Applied Technology (Secondary 4-6)
70
example, many Mickey Mouse products are manufactured in this way.
As Hong Kong companies’ design level advances, some local companies adopt ODM, i.e.
Original Design Manufacturing now. An ODM company, in addition to manufacturing,
designs products for a brand company to sell under the latter’s brand.
An ODM company may design the entire or part of a product, or complete the design of a
product with a rough description of the product from a brand company. Instead of being
approached for ODM, some ODM companies may even proactively design and sell their own
products to brand companies. The design work of many OEM companies are increasing,
reflecting their transformation from OEM to ODM.
A company with a strong design team may choose to design, manufacture and sell under its
own brand name(s). Such approach is called OBM, or Original Brand Manufacturing. OBM
companies may be rewarded with higher returns, however subject to the heavy investment
concern as mentioned previously. Nevertheless, some OEM or ODM companies may be
reluctant to become OBM: Due to potential competition, an OEM or ODM company may lose
its existing customers before its successful transformation to OBM.
Regardless of the mode adopted for manufacturing, one point is for sure production in the
Mainland and design, management and marketing in Hong Kong. Such a situation has been
termed by the Massachusetts Institute of Technology (MIT) in 1997 as ‘Made by Hong Kong’.
The MIT report suggests that Hong Kong should invest more in research and development. A
Lingnan University report issued in 2001 says that local enterprises of Hong Kong’s toy
industry consider creativity in product design as important as cost effectiveness, implying that
local manufactures are, at least mentally, ready to invest for becoming designers.
Given the business environment, typical manufacturers face a decision of ‘do or not do’
design. If ‘do’, they face another decision of ‘in or out’: establishing in-house design teams or
outsourcing design jobs. A company new to design, not familiar with its target new market,
or not willing to invest in an in-house design team may choose to subcontract design jobs to
or even buy designs from external designers. Those designers sell their designs are also
known as ‘inventors’.
3.3.3 Enterprising Behaviour
Trustworthiness is another important asset of Hong Kong’s manufacturers. Hong Kong’s
manufacturers are renowned for their punctuality on delivery of goods to, for example, the
USA, Europe and Japan, no matter it is in low or peak seasons, such as Easter and Christmas.
Also, the goods manufactured are of high quality, complying with agreed safety standards and
specifications. One more point is that workers of Hong Kong manufacturers’ factories are
treated in a humane way.
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