Chan Kwok Man

Biography Highlights Records
How Chan Kwok Man joined the electrical trade and his early entrepreneurial experiences. The foun...

Chan Kwok Man entered the electrical appliances industry in 1972 and started selling appliances in a small-scale family business three years later. Chan Kwok Man describes Hong Kong in the 1970s as not yet being fully part of the electronics era. As a result, electrical appliances used by the average household tended to be nothing more than a washing machine, a refrigerator and a colour TV. Chan Kwok Man and his partners believed that Hong Kong would sooner or later become a fully ‘switched on’ city and so conceived the idea of starting their own business to sell appliances. In doing so, they began to look for a product that could be cost-effectively manufactured to high quality. This process involved understanding the usefulness and practicality of individual electrical appliances and the popularity and quality of the raw materials needed to produce them. At that time, Chan Kwok Man and his partners had recognised the fact that everyone likes to feel fresh and so needs to wash regularly. As a result, they were confident that water heaters would be indispensable in the future development of Hong Kong. As local people back then tended to use kerosene stoves rather than LPG or town gas, they spotted a gap in the market for electric water heaters.

Essential components needed to manufacture electric water heaters such as heating tubes, thermostat buttons and stainless steel were not readily available in Hong Kong. As a result, Chan Kwok Man and his partners had to liaise with raw materials suppliers in Germany. They subsequently used German-made accessories and Japanese stainless steel to make their electric water heaters. Back then, the first floor of most buildings in this area had a light well. As a result, the company’s first plant occupied the light well of a Chi Kiang Street building where one partner lived on the first floor. As many production processes at that time were handled by sub-contractors, Chan Kwok Man’s team simply assembled sourced parts from suppliers into finished products in their factory. In 1976, Chan Kwok Man and his partners expanded their business, renting the 8,000-square-foot rooftop of an industrial building in Chi Kiang Street which was converted by the building’s owner to become their factory and office.

In 1982, Chan Kwok Man broke way to start his own company, by founding German Pool (Hong Kong) Limited (‘German Pool’). Co-operating with European suppliers of raw materials, he went on to market German Pool-branded electrical appliances. While the new company’s plant was located in Kwai Chung, its office remained in To Kwa Wan. With the decline of Hong Kong industries after the 1980s, Chan Kwok Man moved his production lines into China, but continued to use raw materials from Germany, Britain and Japan. He initially set up his mainland factories in Zhuhai, but moved to Shunde in 1994 where his operations remain today. Despite the move to China, German Pool’s head office continues to remain in To Kwa Wan.




Title How Chan Kwok Man joined the electrical trade and his early entrepreneurial experiences. The founding and development of German Pool
Date 31/05/2013
Subject Industry
Duration 10m1s
Language Cantonese
Material Type
Collection
Repository Hong Kong Memory Project
Note to Copyright Permission for use is given by Chan Kwok Man
Accession No. TKW-CKM-SEG-001
Changes in To Kwa Wan since the 1970s

Chan Kwok Man has worked in To Kwa Wan for many decades, witnessing developments there with interest but thinking how little things there have really changed. For example, although the area near the old gas holder is now home to many high-end residential buildings, the two rather dilapidated gas holders still stand there today. There have also been hardly any changes to the Thirteen Street area in the past 40 years. Perhaps the biggest development has occurred at Kowloon City Ferry Pier where the once-busy vehicle ferry terminal has now been demolished. There are now also more eateries in the neighbourhood than there were a few years back.

Chan Kwok Man points out that the period before Kai Tak Airport was replaced by Chek Lap Kok in 1998 was something of a ‘Golden Era’ for To Kwa Wan. Back then, all buses and vehicles departing from the airport, including those carrying tour parties of foreigners, had to pass To Kwa Wan if they wanted to travel to Mong Kok or Tsim Sha Tsui. As the MTR had yet to operate in those days, most people knew about To Kwa Wan. However, the area’s development has been lagging behind other districts. Since Kai Tak’s closure, the development here has come to a standstill. In recent years, what most Hongkongers remember about To Kwa Wan are the negative news stories about the collapse of a building at Ma Tau Wai Road. Although now in Newport Centre, German Pool’s present office used to be known as the Global Electronics Factory before it was demolished and redeveloped into the Newport Centre back in 1981.




Title Changes in To Kwa Wan since the 1970s
Date 31/05/2013
Subject Community
Duration 4m
Language Cantonese
Material Type
Collection
Repository Hong Kong Memory Project
Note to Copyright Permission for use is given by Chan Kwok Man
Accession No. TKW-CKM-SEG-002
Chi Kiang Street’s home factory for electric water heaters. How the partners divided their labou...
 

Chan Kwok Man joined the electrical appliances industry after graduating from secondary school. At first, he worked in the installment payment department of an appliances company, handling cash settlements from customers who had bought items on hire purchase. In 1975, he joined forces with four partners and co-founded a company that produced electric water heaters. The partners included former colleagues, relatives and people who were familiar with factory operations. Each of the five partners had their own specific duties: one shareholder was responsible for administrative and financial matters; Chan Kwok Man and a relative were responsible for market planning; another shareholder was responsible for managing the plant; and yet another shareholder was responsible for installing the water heaters. Initially, the partnership set up a plant in the light well of a partner’s home.

Covering an area of less than 1,000 square feet, the plant accommodated the paint baking room and machinery for assembling the heater’s top and bottom covers. Back then, Chan Kwok Man and his friends used to outsource main production processes such as material preparation, metal cutting and pressing because these processes required the use of large machines. The sub-contractors involved in these processes were mostly family-run mould factories located nearby. In those days, many small factories in To Kwa Wan operated out of the back of grocery stores, with a few large machines placed around their ‘plants’. Each of these processes was handled by different factories. (Editor’s note: From the late 1960s to the 1970s, most plants in To Kwa Wan were small family-run businesses which mainly engaged in outsourced processing. Many of them were garment factories which tended to be concentrated in the area of what is now Wyler Gardens. At that time, To Kwa Wan was also home to a lot of spinning mills. As Hong Kong’s spinning industry went into a downward spiral, most of these mills have now vanished.)

Although assisted by around 10 experienced male workers they had hired, Chan Kwok Man and his partners did much of the paint spraying and assembling of the water heaters themselves in their light well plant. Chan Kwok Man points out now that it was very easy for employers to find workers at that time; rather, it was very difficult for workers to find a job. Whenever it needed to hire workers, the company could take its pick of those working at other electrical appliance manufacturers. As Chan Kwok Man oversaw marketing, he was responsible for visiting electrical shops all over Hong Kong to sell his and his partners’ products. Back then, most staff in electrical shops knew very little about water heaters and listened dubiously when Chan Kwok Man told them of a machine that consumers could put in their home and obtain hot water automatically. As a result of his marketing efforts, the water heaters became a must have item as more and more people bought them. At that time, Chan Kwok Man and his company purchased raw materials from Germany. The German suppliers therefore especially flew someone to Hong Kong to teach him and his partners about the application of the technologies. Such increased communication between the two parties was what eventually laid the foundations for Chan Kwok Man’s future setting up of his own business. He points out now that at that time the reason his company established its base in To Kwa Wan was that the location made their work easier as many small outsourcing plants were located nearby.




Title Chi Kiang Street’s home factory for electric water heaters. How the partners divided their labour and decided on production process outsourcing
Date 31/05/2013
Subject Industry| Community
Duration 10m53s
Language Cantonese
Material Type
Collection
Repository Hong Kong Memory Project
Note to Copyright Permission for use is given by Chan Kwok Man
Accession No. TKW-CKM-SEG-003
How Chan Kwok Man founded an electric water heater factory on a Chi Kiang Street factory building...

In 1975 Chan Kwok Man joined forces with several partners to set up an electric water heater factory in Chi Kiang Street. They subsequently moved their factory to the rooftop of an industrial building on the same street. The company found its plant via street bills. As the rooftops tended to be cheaper to rent than lower floors, the partners decided to use the roof as a factory. The new plant was only six street numbers away from the company’s previous plant! The front end of Chi Kiang Street back then was largely full of residential buildings, while the back end near Hoi Sham Temple mainly consisted of factory buildings which have now been converted into office towers. Space was the biggest difference between the new and old plants. Located in the light well of a residential home, the old factory had a smaller area. Not only was production volume very low, the old site had difficulties in serving as a warehouse. As it was located on the rooftop of a factory building, the new plant had more space and thus handling raw materials and large-scale production was easier and more efficient.

Although their plant had relocated, the company’s operation had not left To Kwa Wan. Chan Kwok Man and several of his partners had been accustomed to working in To Kwa Wan which was close by to where the partners lived and found it very convenient. (Editor’s ote: Their chosen site was also handy for the large number of mould factories that operated out of the district. As Chan Kwok Man and his partners often had to visit these factories to evaluate their work progress and quality, their plant could not be located too far away from them.) After relocation, the plant expanded and its workforce grew from about 10 to approximately 40 people. By 1982, the company had only two shareholders left – one of them Chan Kwok Man himself. He and the other shareholder had differing ideas about the company’s future development. As Chan Kwok Man now had enough capital and know-how to start out on his own, the two eventually parted ways. After looking around for a new base, Chan Kwok Man eventually found a relative who had a factory in Kwai Chung and took the man on as his new partner.

During the new enterprise’s early days, Chan Kwok Man was responsible for providing techniques, specifications and parts which his relative’s factory then used to produce water heaters. Such a division of labour and expertise in operation was then very rare in Hong Kong. As Chan Kwok Man believed that his professional strength involved publicity and marketing, he felt leaving the production processes to other manufacturers would allow him more flexibility to build up the business. While there were many mainland, European and American suppliers the new business could choose from, Chan Kwok Man was most concerned about reasonable prices and guaranteed quality.




Title How Chan Kwok Man founded an electric water heater factory on a Chi Kiang Street factory building rooftop. The splitting of German Pool’s production and marketing functions
Date 31/05/2013
Subject Industry| Community
Duration 8m5s
Language Cantonese
Material Type
Collection
Repository Hong Kong Memory Project
Note to Copyright Permission for use is given by Chan Kwok Man
Accession No. TKW-CKM-SEG-004
Chan Kwok Man’s role change after founding German Pool. The new company’s branding and producti...

Chan Kwok Man began his career as an entrepreneur by managing a family style factory before establishing a company marketing its own brand products in 1982. Such a change in his working pattern was probably all down to his ability to understand his own strengths as they related to circumstances at that time. Immediately after setting up the family-style factory, Chan Kwok Man had to take on a lot of work, including looking for buyers, delivering goods, and supervising his workers. As he was still young at that time, he found it easy to handle the extra responsibilities. He even loaned a hand on the production line to get orders out on time himself. He still displays a scar from where he accidentally cut his finger on a drill bit during one of these hectic sessions. Chan Kwok Man stresses that back in the 1970s, entrepreneurs like himself were not afraid of hard work and were happy to muck in and do things themselves rather than rely on others. Strictly speaking, bosses in those days worked far harder than their employees. In those years, employees dared not ask for, and would not have, any special requests from their boss as they all knew well that he was as familiar with the production processes as they themselves were. At the end of the day, if a boss treated his employees well and the working conditions were also reasonable, employees would remain dedicated to work for the boss.

Chan Kwok Man now points out that when he set up German Pool in 1982, he was keen to focus on promoting products, rather than overseeing the internal and external plant matters as he had in his earlier company. During the early days German Pool’s plant was located in Kwai Chung in premises provided by Chan Kwok Man’s relative cum partner. Not long after, the factory moved to Zhuhai. After his relative emigrated in 1989, Chan Kwok Man had to set up his own factory. He stresses that a businessman needs to understand his own strengths in order to make a go of his venture. Chan Kwok Man feels that if one is good at producing, say, water heaters and have sufficient technologies and resources, then the products should be made at one’s own plant. Rather than being over-confident and attempting to assemble electrical appliances one is unfamiliar with, such work should be outsourced to factories that have the capability with that area. For example, German Pool currently produces its own kitchen cabinets as the company owns the best German-made fully automated machines. By simply entering the dimensions and other data, the machines will automatically assemble the finished products. Electrical appliances that require more complex technological requirements (e.g. water heaters and boilers) are also handled by Chan Kwok Man’s plant. As for other electrical appliances, German Pool is just like any other foreign company which identifies processing factories with whom to sub-contract production. The real difference between German Pool and other foreign companies is that most foreign companies are looking for accessories and factories in China, whereas Germany Pool is doing the same thing but in Europe. (Editor’s note: Chan Kwok Man adds that at the beginning German Pool’s applied production technologies from Germany.  The company brand has been registered in Germany. Today, the company’s instant hot water heaters are all produced in Germany.)




Title Chan Kwok Man’s role change after founding German Pool. The new company’s branding and production strategie
Date 31/05/2013
Subject Industry
Duration 9m10s
Language Cantonese
Material Type
Collection
Repository Hong Kong Memory Project
Note to Copyright Permission for use is given by Chan Kwok Man
Accession No. TKW-CKM-SEG-005
Chan Kwok Man’s reasons for maintaining his company’s base in To Kwa Wan after the creation of ...

Since first opening its doors for business in 1982, German Pool’s office has never moved out of the Newport Centre. The building stands on the former site of the Global Electronics Factory. When Chan Kwok Man planned to start his venture, Global Electronics sold its site to Newport who redeveloped the premises into a factory cum office building, where German Pool rented and set up its own headquarters. To avoid the burden of rent increases or being forced to move out, Chan Kwok Man purchased the unit in 1987. He points out that over 30 years after initially starting his venture, To Kwa Wan remains German Pool’s base because he was already familiar with the area.

Compared to other districts like Central, land and shop prices in To Kwa Wan were also far cheaper. Chan Kwok Man has now also purchased other units in the Newport Centre. From the two units he bought just after the company’s establishment, he now owns 15 units. Currently, more than 200 German Pool employees work out of Newport Centre. Although To Kwa Wan’s development has rather lagged behind other districts, the slow pace poses no problems for Chan Kwok Man. From the period he started up with his partners to after founding German Pool, he and his colleagues had to travel all over Hong Kong to find buyers. As a result, the actual location of the plant or head office was never really an issue. When German Pool later opened a showroom next door to the office to showcase its expanding product range, Chan Kwok Man still feels happy to work out of To Kwa Wan. As his customers come from all over Hong Kong and are not concentrated in the offices of any one district, parking in To Kwa Wan is also more convenient than other business districts whenever his clients visit his showroom to inspect samples.




Title Chan Kwok Man’s reasons for maintaining his company’s base in To Kwa Wan after the creation of the German Pool brand
Date 31/05/2013
Subject Industry| Community
Duration 6m8s
Language Cantonese
Material Type
Collection
Repository Hong Kong Memory Project
Note to Copyright Permission for use is given by Chan Kwok Man
Accession No. TKW-CKM-SEG-006
Career review and keys to success. German Pool’s brand marketing strategies

Chan Kwok Man points out that as there were inadequate production spaces in Hong Kong in the 1970s, it was common for local manufacturers to set up factories in residential units. As there were many grey areas about doing business back then, he stresses that the most important quality was having the vision and courage to try something new. Being fair, reasonable and lawful to customers and staff were other key steps in ensuring success. Faced with a constantly evolving market, Chan Kwok Man believes that one must rely on one’s own exploration and adapt to market changes in order to succeed. He is also of the opinion that there are no hard and fast rules about how to succeed in business or brand development. Having started his professional life in a small family manufacturing firm, Chan Kwok Man later founded his own factory and business. Due to insufficient funds, he could not hire too many workers and had to devote a lot of effort on production issues himself.

When Chan Kwok Man later created his own brand, he knew that the area he needed to focus on most was the building up of a strong image. He knew that establishing a brand personality is a very long-term investment. When Chan Kwok Man founded German Pool in 1982, he provided each new customer with an unprecedented 10-year warranty in order to establish creditability. He continues to believe that optimal product quality must be maintained. Businesses that do shoddy work and use inferior materials in production will end up losing customers’ confidence in their products. Chan Kwok Man remains a believer in the fact that investment in branding takes time and a full range of publicity materials to establish and that related costs cannot be haggled about in the short-term. He continues to ‘put his money where his mouth is’ by advertising German Pool’s products on leading local TV stations. Every year, the company also invests over HK$5,000,000 in participating in the Hong Kong Brands & Products Expo.

In the past, whenever Chan Kwok Man wanted to display and sell his products in department stores, he needed to go through many hurdles. If the goods were not selling well, the store’s buyers would scold him for wasting valuable display space. Today, however, all leading local department stores wish to display German Pool products. As a result, Chan Kwok Man can pick and choose which stores they want to do business with. Chan Kwok Man points out today that this is all down to his investment in advertising and image building. He also notes that his company’s products are now also being sold by airlines as duty-free goods as carriers understand that their passengers prefer to buy proven quality brands.




Title Career review and keys to success. German Pool’s brand marketing strategies
Date 31/05/2013
Subject Industry
Duration 16m21s
Language Cantonese
Material Type
Collection
Repository Hong Kong Memory Project
Note to Copyright Permission for use is given by Chan Kwok Man
Accession No. TKW-CKM-SEG-007
Review of working life in To Kwa Wan. German Pool’s office location and brand image

Although Chan Kwok Man has now been working in To Kwa Wan for over three decades, he admits that he has seldom moved around there. During the stage when he ran his factory, lunch times were very short. In addition, Chan Kwok Man spent most of his days travelling all over Hong Kong to find buyers and seldom spent long periods at the To Kwa Wan office. After founding German Pool in 1982, he rarely had time to do more than clock in and out of work each day. As a result, Chan Kwok Man was never really able to go to popular local attractions such as the library or the open-air theatre. Chan Kwok Man says now that he also does not tend to socialise with many other manufactures in To Kwa Wan. That said, as a member of The Chinese Manufacturers' Association of Hong Kong (CMA), he has plenty of opportunities to come meet the owners of small to medium enterprises such as the many jewelry manufacturers who operate in To Kwa Wan. Chan Kwok Man points out that, like German Pool, the jewelry industry has nearly 30 years of history in the area and Hung Hom. In addition tothe CMA, Chan Kwok Man has participated in several other associations. These are territory-wide and not district organisations.

Having firmly taken root in To Kwa Wan for over 30 years, Chan Kwok Man owns  German Pool’s headquarters outright and has no intention of moving. At the end of the day, unlike high-end finance companies, German Pool does not need a high-profile office in a prestigious but expensive business district. The company’s three decades of stability also leave it perfectly placed to ride out any sudden market changes. So unless the Newport Centre is scheduled for demolition, Chan Kwok Man is happy to stay there. Although the office building’s close neighbours include some dilapidated-looking gas holders, Chan Kwok Man does not think that this downgrades German Pool’s image as customers’ confidence in company's overall performance is far more important. The company’s current headquarters occupy a total of 12 shops, an area spacious and comfortable enough to receive and serve customers of all types. Further underlining the fact that office location does not affect others’ judgment, German Pool had also won all of the major brand awards available in Hong Kong. For Chan Kwok Man all that really matters are reasonably priced, top quality genuine goods. (Editor’s note: At present, German Pool’s mainland plants have a total area of around 2,000,000 square feet. The halogen cooking pots which the company started producing in recent years are now selling about 100,000 units annually.)




Title Review of working life in To Kwa Wan. German Pool’s office location and brand image
Date 31/05/2013
Subject Industry| Community
Duration 12m8s
Language Cantonese
Material Type
Collection
Repository Hong Kong Memory Project
Note to Copyright Permission for use is given by Chan Kwok Man
Accession No. TKW-CKM-SEG-008