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SCMP Reporter

Esquel Holdings is reaping the benefits of past investments in technology as its business continues to grow, according to chairman Marjorie Yang.

The privately held company had a turnover of about US$500 million last year and operates 16 factories in eight countries.

The company is a vertically integrated manufacturer of clothing from cotton farming, spinning and weaving to the actual manufacturing of clothes and accessories.

Esquel employs 43,000 people worldwide, of whom 19,900 work in China.

Ms Yang refused to disclose the company's earnings but claimed profits were doubling every two to three years.

While Internet and telecom-related businesses dominated last year's DHL/SCMP Businessman of the Year awards, Ms Yang stresses that Esquel has long been adopting technology into its business to cut costs.

Esquel employs about 200 engineers in its factories to reduce costs by cutting down on waste and similar measures.

'What we are trying to do is reduce total wastage in the system and we're not talking about 5 per cent or 7 per cent - we're talking about quantum jumps,' Ms Yang said.

'I feel that not enough engineering is used in the traditional manufacturing sector.'

Esquel is also keen on trying to encourage more innovation from its employees.

The aim is to find areas in which it can introduce further efficiency gains - even though experimenting with new methods will sometimes result in mistakes.

'The trick is to continuously try to make more accurate decisions and tolerate some mistakes,' Ms Yang said.

She is eager to change the reputation of the clothing business in Asia from being the home of cheap production towards being known more for higher-end production and design.

'We are beginning to break away from the myth of Asian industry being only in sweatshops and only selling cheap labour,' Ms Yang said.

Hugo Boss began developing and producing goods in Asia through Esquel instead of conducting all its sourcing from European mills.

This move by a prominent brand name shows that Asian production is becoming more highly regarded, according to Ms Yang.

Esquel also convinced clothing retailer Marks & Spencer last year to sell products created by local designers.

'We are utilising local creative talent to combine with industrial capability and to me that shows Hong Kong's strength,' Ms Yang said.

Graphic: hkbabglo



Esquel's Marjorie Yang puts faith in technology