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SCMP Reporter

PAULINE NGAN'S LIFE reads like a classic rags-to-riches story - that of a penniless immigrant who came to Hong Kong and made it into the league of the mega-rich.

From toiling in the fields of Fujian and having a meagre HK$500 in the bank when she married in 1984, Ms Ngan has seen and experienced the rough and tumble of life.

Today, she is the co-founder and deputy chairman of the only listed headwear company in the world, Mainland Headgear Holdings, which designs, manufactures and sells baseball-style caps.

Mainland Headgear is also one of the largest licensed headwear companies in the world, with a market capitalisation of more than HK$400 million, employing 2,000 workers in its factory in Shenzhen.

The company has come a long way since it began in 1992 with just five workers in a cramped mainland office.

Today, it manufactures caps on contract for Walt Disney, most teams in the National Basketball Association, National Football League and the baseball leagues in the United States, famous English Premier League football sides such as Manchester United and sporting brands such as Nike, Timberland and Reebok.

The company has more than 15 licences, and accounts for about 10 per cent of the US market for licensed headwear products, worth US$1 billion.

Last year, Ms Ngan, 43, was awarded the Young Industrialist of Hong Kong award.

Recounting her early days in Hong Kong, Ms Ngan said as a new immigrant she had difficulty being understood as she spoke in heavily accented Cantonese and mediocre English. 'We had newly arrived in Hong Kong and we felt there was some discrimination. I didn't know much Cantonese. It was a big problem in the first few years,' she said.

In 1985, Ms Ngan decided to start a trading company to take advantage of the open-door policy in the mainland.

At first, she started dealing in umbrellas, clocks, toys and watches but soon found she was spreading her resources too thin.

So in 1989, in consultation with her husband, she decided to carve a niche for herself in headwear.

'I found it too tedious to do other products. Every product has different safety requirements. But caps have been the most successful product as a promotional item and they were cheap [to manufacture] but generated high advertisement returns,' said Ms Ngan.

Another turning point for the mainland entrepreneur came in December, 2000 when her company sought a listing on the Hong Kong stock exchange. Many people told her it was the wrong time to list because the market was not doing well.

'Many people questioned me and said I would not be able to raise money,' Ms Ngan said.

'However, my intention was not to raise funds, it was to attract more talent and create more awareness of my business in the industry here.'

She said many Hong Kong entrepreneurs shied away from manufacturing caps because they thought the business lacked prospects.

'Hong Kong people were narrow-minded about the industry. Hence, many people who came looking for jobs [with us] changed their mind after knowing the line of work we do,' she said.

The company received an average of about HK$200 million worth of orders in a season,  Ms Ngan said.

It is continuing its expansion programme with new projects under way. By the end of the year, a new factory and commercial complex will be completed in Shenzhen, raising production capacity by 80 per cent from 100,000 pieces per day at present.

Mainland Headgear is one of few hat-making firms that puts emphasis on technological development, giving it an edge over competitors.

This month, at the annual Las Vegas trade fair, the company's US-based clients will be the first to be able to use a computerised, Internet-based platform to buy Mainland Headgear caps.

Computerisation will also help cut production time - from designing the item to choosing the fabric from the warehouse in Shenzhen - from about 50 days to 10 days. Her husband is the chairman of the company and oversees production and operational aspects of the business, while Ms Ngan focuses on strategic planning and business development.

Ms Ngan said she and her partner had to overcome strong objections from her parents before they could marry. It was a battle that lasted seven years and laid the foundation of a very strong marriage.

Her parents objected to the marriage because, according to Chinese tradition, couples that have the same name are forbidden to marry.

'It was like seven years of war, those were the toughest years of my life,' she said.

The strong bond between them extends to their work, where they have a good partnership.

Ms Ngan admits she is a workaholic and never tires of the long days, averaging 15 hours a day.

But unlike many modern career-minded women, she plays the role of a traditional wife in a Chinese household.

The 'chef mum', as her sons call her, goes to the market every Sunday with her family.

'I am the idol of my kids. I insist on doing the cooking despite having three maids at home,' she said.

To her, education is the most important asset that a parent can provide a child, not wealth.

'No matter how much money I give them, if they are not capable, they'll squander it away.

'I would rather help them build good foundations. The money I earn now, I'll contribute to society,' she said.

An active member of charitable organisations in Hong Kong and the mainland, Ms Ngan last month contributed HK$6 million to the building of education and recreational infrastructure for children and the elderly in her home town.

Graphic: hour17gwz



Headgear chief pulls success out of a hat