One key asset in doing business in Asia is to have a strategic alliance with an Asian company whose core competency lies in product development.
Farrell Sports Concepts is a prime example: this US customer was able to leverage its expertise with the help of one of OTTO International's Hong Kong-based joint ventures.
Farrell is a three-year-old start-up which owns a patented technology for protective sports equipment. For years, Farrell's founder Dan Farrell has been manufacturing his protective hockey vests and arm bands in the US and through a small trading company based in Korea.
Over the past year, OI has not only significantly reduced his production costs, but has also set up a cooperation with a non-related manufacturer in China to customize an assembly line for manufacturing Farrell's patented cube technology.
The new setup has enabled Farrell to pursue line extensions, adding more than 24 new products in various related sports categories within six months.
Without the expertise of professional Asia staff who understand manufacturing, outsourcing and product development, this process would have taken about two years. The other major advantage has been the mentality and understanding of our Asian based staff in their product development work with OEM name brand customers.
Farrell has been supplying its products to professional hockey and football players for over two years, during which time the number of players who wear its products has tripled. A full retail merchandising program has now been launched as well.