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Disc Packaging & Storage(HKTDC Packaging, Vol 01,2003)


Vol.1 2003




HK Enterprise Internet

Product Features

Adding Value
Jewellery Packaging

Disc Packaging & Storage
Packing Plenty Of Appeal

Child's Play
Toy Bags & Boxes

Disc Packaging & Storage

Packing Plenty Of Appeal

Lucky Door Industries Ltd's aluminium CD holders with neon-coloured spines open like books and contain 10 pockets for 20 compact discs

The US technology boom sent sales of compact disc cases soaring as these handy helpmates became indispensable storage devices around the office and home. Sales also benefited from the fact that cases could be made from a variety of materials ranging from nylon to aluminium, making them as attractive as they are useful.

Manufacturers such as Lucky Door Industries Ltd were quick to realise the benefits of producing a product with international appeal. The 15-year-old company's marketing manager Kathy Wong says the company's biggest client base is in Europe and Asia because the US market has been hit by the downturn.

"US customers are looking for low-end products," Wong says. "We charge about US$2 up so it's not suitable for the US market, which tends to buy in bulk but cannot pay much because the economy is slow and our products are targeted at the medium-high end."

Lucky Door's factory in Guangzhou on the Chinese mainland employs more than 200 workers, who produce an average of more than 100 models and 40,000 pieces a month.

FOB Hong Kong prices range from US$1.8-2.5 for CD holders. Delivery time is 30 days and the minimum order size for CD holders is 1,000. The holders, which are supplied to retailers and also used for product promotions, are manufactured from aluminium, acrylic, PVC and metal sheeting sourced from Taiwan.

Changing product materials and emerging market trends are important for Christy Wong, marketing coordinator at Posez Production Co Ltd, who says it is vital to stay ahead of the competition.

"We are always designing different kinds of products and asking for suggestions from customers to improve our items," Wong says. "The design trends now seem to be more simple and streamlined."

She says simple designs are easier to produce but "the quality becomes more important" because there is nothing to detract from the basic design.

Posez Production specialises in sleek, stylish aluminium CD, camera and beauty cases. Established in 1989, the company's main markets are Germany, Belgium, England, Japan and the US. It manufactures about 100 different products with output reaching 100,000 units a month at its 150,000-square-foot factory in Shenzhen on the mainland. FOB Hong Kong prices are available on request, the minimum order size is 300 pieces and delivery time is 35 days.

Co-Rich Enterprises Ltd director Michael Pan, meanwhile, says his company will target the European market this year to reduce its reliance on revenue from the US.

"We will try to give more weight to Europe because in the past we have concentrated too much on the US market so we need to balance it out," Pan explains.

The company has two types of customers - buyers for large retail chains such as Wal-Mart, Target and Samsonite, and promotional companies.

Its products include CD cases, cosmetic and jewellery pouches using nylon as the base material.

"The market nowadays is under pressure with prices but we try to use or select our own material which we combine with different designs to make it more saleable to the customer," Pan says.

"Everyone is asking for cheap prices so we offer them better quality material and work together with customers to make designs and shapes according to their needs."

The products are made by more than 300 workers at Co-Rich's 54,000-square-foot factory in Shenzhen, using nylon 600D from the mainland, Korea and Taiwan.

The 10-year-old company also exports to Japan and the Middle East with a delivery time of 25 to 45 days. Minimum order is 2,500 pieces.

Prices for CD cases, not including holders, are approximately US$0.40 per piece FOB Hong Kong.

Wallmark Enterprise Co Ltd chairman Simon Wong also says his company is planning to expand into Europe at the expense of traditional main markets such as the US and the mainland.

The 16-year-old company, which listed on the Hong Kong stock exchange in 2001, specialises in fabric CD cases and bags. "The advantage of a fabric product is that we can produce more," Wong says.

Wallmark was ISO 9002:1994-certified in 2000, which was later upgraded to ISO 9001:2000. At present, they have three factories with a total of 2,500 workers - two in Huizhou on the mainland and one in Cambodia.

Most products are manufactured on an OEM basis with a minimum order size of 20,000 CD sleeves and a delivery time of 10-15 days. Materials used are PP in 0.11mm thickness and 60 gram nonwoven fabric from Taiwan and the mainland.

WRITTEN BY SUSAN SCHWARTZ

Contact Details:

Co-Rich Enterprises Ltd
Rm 302
Join-In Hang Sing Centre
71-75 Container Port Rd
Kwai Chung
New Territories, Kowloon
Hong Kong
Tel: 852-2406-0808
Fax: 852-2419-9045
Email: corich@asiansources.com

K & F Enterprises Co Ltd
Rm 1706
Landmark North
39 Lung Sum Ave
Sheung Shui
New Territories, Kowloon
Hong Kong
Tel: 852-2672-3659
Fax: 852-2672-6312
Email: info@kandf.com.hk

Lucky Door Industries Ltd
Rm 1207, Blk A
Hi-Tech Ind Centre
5-21 Pak Tin Par St
Tsuen Wan
New Territories, Kowloon
Hong Kong
Tel: 852-2492-7789
Fax: 852-2415-5533
Email: sales@luckydoor.com.hk

Posez Production Co Ltd
Rm 1303A-05
Landmark North
39 Lung Sum Ave
Sheung Shui
New Territories, Kowloon
Hong Kong
Tel: 852-2675-7336
Fax: 852-2669-3767
Email: posez@hkstar.com

Wallmark Enterprise Co Ltd
Unit 301
Fook Hong Ind Bldg
19 Sheung Yuet Rd
Kowloon Bay, Kowloon
Hong Kong
Tel: 852-2799-0515
Fax: 852-2796-3712
Email: general@wallmark.com

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