Effective Business Hub Gets Deals Done
The Great American Hanger Company founder Devon Rifkin (center) regularly flies into Hong Kong to deal with his mainland suppliers
U.S. businessman Devon Rifkin is building a multi-million dollar company using Hong Kong as a bridge to the Mainland of China.
Mr. Rifkin is President and CEO of Miami-based The Great American Hanger Company. Using Hong Kong as his sourcing hub, Mr. Rifkin travels to Hong Kong several times each year to meet suppliers and view products. The ease with which Mainland suppliers can now visit Hong Kong makes doing business even more effective for an out-of-town executive, he explained.
"The air that we breathe, so to speak, has everything to do with our suppliers and our supply from China, and our relations through Hong Kong as the door that opens for us to the rest of our supply world," said Mr. Rifkin. "I give Hong Kong and China single-handedly the credit for allowing me the opportunity to grow my business as successfully as we have thus far."
Mr. Rifkin founded the company seven years ago, determined to stay focused on just one product – clothes hangers. Unlike others who diversify their product range, he believes that more becomes less, and that with "a mish mash of products", you "become known for nothing."
"I think we've been able to make a name for ourselves by excelling and being a leader specifically in hangers – all roads now lead to us in many different channels," he said.
Gateway to the Mainland of China
Hong Kong's gateway role has increased over the years, Mr. Rifkin says. Most of the company's Mainland suppliers are now permitted to travel to Hong Kong to meet with overseas businessmen prior to on-site factory visits, and many have offices or showrooms in the city for viewing products.
"This makes starting relations a lot easier than traveling 15 hours somewhere to see if you want to do business with somebody, and it's something we've taken a great advantage of."
Acknowledging price pressures of recent years, Mr. Rifkin said such instances had been localized and each example was different. Some suppliers might changes their prices five times in a year, while others remain unchanged for three years. He says the media tends to cast a negative blanket on what is perceived to occur in Hong Kong and China, while the realities "are a lot brighter than that."
As for product recalls of Chinese-made goods, Mr. Rifkin said that "these types of things happen in all countries." He anticipates such potential challenges by "choosing an ethical route." "From the beginning, we have only dealt with factories we have visited, where there is no child labor."
Expansion plans for Hong Kong
The company's growth strategy includes a newly launched mail order business and a different approach to its customer base by targeting residences rather than hotels and retail. There are "other moves coming up" and plans to open more offices.
When people tell Mr. Rifkin he should also look to other countries and not only Hong Kong and China, he is firm in his response.
"I can tell you that in the next three years we will strengthen our presence more permanently in Hong Kong, we will come here more, and look to expand our manufacturing base in China.
"If supply is the air that we breathe then we need to really further grow roots into the ground in China, and use that as a stepping stone to grow into the future. I will contend that in the next six to seven years we will be a US$100 million business."
The Great American Hanger Company: http://www.hangers.com/
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