Local retail chain for high-end children's wear survived economic crises thanks to the owner's astute leadership skill
After working in the corporate world for more than 10 years, Herbert Chow Siu-lung decided it was time to be his own boss. So it seemed fortuitous that a local retail chain for children's wear, Chickeeduck, became available for sale in 1998.
Chickeeduck was established in 1990 and was a profitable business, specialising in quality, high-end children's clothing. However, just a year after purchasing the business the Asian economic crisis caught up with the retail sector and in 1999 the business took a big hit. That's when Mr Chow, the company chief executive, had to get creative.
'Because there was no growth possibility at the time, we had to [tighten] costs. We not only had to reduce our head count, but we had to cut salaries as well. However, for the sales staff, we increased their commission percentage, which encouraged people to continue to work hard,' he said.
One way that Mr Chow was able to keep his business afloat was by taking away departments such as administration and human resources. By doing so, he not only saved money but he gave more entitlements to the store managers, as they were solely responsible for hiring their own staff. This system proved so successful that it is still in place today.
'We ran the company as several mini companies, with the department heads responsible for everything. I thought, if there's trust, let's decentralise things,' Mr Chow explained.