MadePartners - Case Study
From the Asialink Business Hong Kong Starter Pack
Many successful Australian businesses have proved Hong Kong is an ideal market for entrepreneurs. However, that opportunity needn’t be an opening in the Hong Kong market itself – it could be in Australia, China or elsewhere in the region.
For Andrew Steadson, former Executive Director, Asia, for ANZ, and AustCham Hong Kong past Chairman, Hong Kong was the perfect operational base to set up procurement consultancy MadePartners.
“Hong Kong is a logical place to set up a hub. It has a well-educated workforce, particularly in the area of administration and professional services. Our team are diligent, bicultural and usually tri-lingual. It is cost competitive with wage rates and staff are supported by modern high quality infrastructure,” outlines Steadson.
“The simple taxation and employer requirements are also relatively straightforward. We have strong rule of law, an independent judiciary and a very open market based business environment that is supported by a “low touch” approach by the Hong Kong government. We have low tax rates, with no tax on interest, dividends or capital gains and unless income is sourced in Hong Kong then it won’t be subject to tax here.” he continues.
“Hong Kong is such a supportive investment environment, I believe there isn’t really anywhere else in the world that is easier to establish or run a regional business.”
Steadson set up MadePartners in 2013 with Paul Belcher the former Asia Regional Operations Manager for United Group Limited. Steadson and Belcher have both worked in Hong Kong for over a decade. “MadePartners helps Australian companies procure and quality manage projects undertaken in China, ensuring on time and on budget, and most importantly – to specification,” he explains. “Paul and I started the business by focussing on industrial fabrication such as rail wagons for freight and bulk commodities for Australian mining and transportation companies then as the business has grown we have expanded our industry and product coverage to include such things as building elevators, semi finished steel and magnetic separators. In many respects, the product becomes less relevant because in the end we are all about ensuring international standards are met throughout the process up until the product boards the ship to Australia.”
Hong Kong is the operations base, working alongside an onsite team in China. “We are very fortunate to have built a team of 20 highly experienced Mainland Chinese engineers and inspectors working on the factory floor in China overseeing the projects and making sure appropriate standards of quality and compliance are maintained. “We have empowered our inspectors to resolve issues 1:1 on the factory floor. This not only saves time and money but also leads to better employee engagement and better quality outcomes. There are a lot of companies that do inspections however what makes MadePartners different is that we will always attempt to identify and correct issues at their source”. Steadson believes that this has also enabled them to develop new business opportunities by undertaking factory improvement programs for Mainland Chinese manufacturers looking at improving quality to tackle international markets.
MadePartners’ business model draws on the best of what Australia, China and Hong Kong has to offer and ensures that the clients’ needs and expectations are well understood. “The Australian client can speak directly with our China or Hong Kong based Project Managers who can ensure accurate interpretations of both information and objectives. This is supported by regular reporting and project updates to ensure a “no surprises’ outcome,” explains Steadson. “This, combined with continued high-quality delivery, means repeat business is the foundation of our success.”
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