The operation direction of The China Paint Manufacturing Company after the local paint industry moved to the north

After The China Paint Manufacturing Company moved its production to China, the sales had rocketed 10 times. In the past, the sales to Hong Kong users represented 99% of the company total sales. But now, it constituted only 10%. In the past, China Paint undertook the painting process in Hong Kong for its customers of Architectural paint. Nowadays, the customers placed order in China and thus the painting process was finished there and the final products would be shipped to Hong Kong afterwards.
Paul Lam described that previously the company was like a boutique store, which had limited and tailor made products, resulting in a high profit margin. In order to satisfy the current market demand in China, the company changed to mass production so that it could reduce cost of production and improve competitiveness. Mass production could also allow the company to ask for discount from raw material suppliers. When the production was undertaken in Hong Kong, transportation cost was low because the distance of product delivery was short. After the factory was set up in China, the distance of delivery increased as well as the transportation cost. Moreover, as the climate varied greatly from the south to the north in China, the company had to adjust the product properties to suit the local climate. For example, in the northern part of China the climate was dry in the winter while in the southern region it was more humid.

Company China Paint Mfg. Co. (1932) Ltd.
Subject Industry
Duration 5m19s
Language Cantonese
Material Type
Source Hong Kong Memory Project Oral History Interview
Repository Hong Kong Memory Project
Note to Copyright Copyright owned by Hong Kong Memory Project
Accession No. JL-PL-LIFE-005
Share Share