Monday, August 31, 2015
A Hong Kong entrepreneur has moved his garment production from the mainland back to the SAR, in a reverse trend under a new business model to address social issues and generate profit simultaneously.
The business model “Creating Shared Value” was developed by Harvard University. Adopting the model, Grandion Industrial chairman Alan Cheung Yick-lun launched his relocation earlier this year, with the mission to revitalize “Made in Hong Kong” brands.
Cheung set up an 80,000-square-foot garment manufacturing base in Tsuen Wan, where young local designers unleash their creativity and their designs are promoted to Grandion customers.
Designers collaborating with the company for the first time get to keep all the profits from the project after expenses are deducted. It also employs more than 100 retired workers and new migrants with textile experience.
“We mainly hire local designers, older technicians and migrants from the mainland,” Cheung said. “Instead of competing for cheaper labor in the mainland, I am looking for a way to utilize local resources.”
He said his company invested HK$10 million to develop the project, and expects to generate sales of HK$100 million to HK$200 million.
Three of the four production centers are now operating.
The Social Innovation and Entrepreneurship Development Fund will host a forum of 100 local business leaders on September 9 to kick-start the Creating Shared Value initiative in Hong Kong.
The fund, under a Commission on Poverty task force, said only four of the 50 Hang Seng Index constituent companies could be considered for practicing shared value, but none are homegrown companies.
“Corporations practicing CSV do not only serve the shareholders, but they are responsible to all stakeholders in society,” said task force chairman Stephen Cheung Yan-leung.