Secrets of success

I believe there is no single magic formula but a combination of many factors leading to a recipe for success, in difficult times whether in business, work, or our daily life activities.

Before I endeavor to give any such formula, let me quote what Warren Buffet said, "Beware of geeks bearing formulas!” Well don’t worry; I don’t think I am a geek, despite what my children say. I believe Buffet was referring to the banking and finance industries.

Is the success formula a myth? No, it is a reality!

Why is Hong Kong (HK) so successful?

It is classified as the freest economy in the world with very few restrictions and an open invitation to entrepreneurial success. Its success is attributed to the strategy of simplicity. HK has a very simple tax structure as also a simple accounting and legal system with limited bureaucracy and little or no government intervention in business.

Financial management is probably the most important characteristic in any business during good and bad times. Because cash is king, and the stronger the credit of the company, the stronger the chance of survival during difficult times.

When businesses face tough times, one of the first things most businesses do is to reduce their marketing budget. However, it has been shown in prior recessions that businesses that continued to invest in marketing saw growth while those that cut their budgets saw a decrease in sales. You need to be smart in your marketing dollar to get the return on investment that you desire.

Innovation and uniqueness is the key to keeping yourself ahead of your competitors. For example our company had made a stainless steel teapot which was selling very well, and our competitor copied it.

So we decided to modify the design, keeping the main body the same. We changed the lid and handle slightly to differentiate the product copied by our competitors. Later, we further modified using silicon handles which turned out to be even more successful for us.

Neville Shroff (top left) and (alongside) samples of the shirts and stainless steel teapots his firm manufactures

Understanding the consumer culture is of extreme importance when looking to expand into different markets. The culture of doing business in America is completely different from Asia.

As is the case with China, a lack of market research in adapting to the culture and lack of persistence has resulted in the failure of many foreign companies trying to penetrate the local market.

For example one HK owned factory producing men’s suits in China was involved in worldwide exports. When it decided to tap into the colossal Chinese domestic market to sell their products and tried to open retail stores in 1995, it failed due to a lack of understanding of the local consumer market. They tried a few years later but failed again. After doing their market research, they found that the local market was actually looking for the latest European styles, whereas this company was tailoring their market strategy towards localized attire. They therefore restructured their marketing plan, re-entered the China market in 2007 and are now enjoying continuous success.

With marketing, it is crucial to develop a brand image in order to retain loyal consumers, even through difficult times.

To see the advantage of successful brand reputation and awareness here is an example:

Our company deals in the export of shirts to famous brands. One of the brands we sell to buys our shirts at US $ 12 a piece. They then retail the same shirts at US $ 120 dollars! This is 10 times more than the cost of the shirt. The reason they are able to sell with this huge mark up is because of their brand name!

Our employees need to be reassured that their contribution does have a huge impact on the company’s stability, growth, and even survival. My company was unable to give out pay rises this year. However, we have not had to let any employees go or issue pay cuts. By doing this and keeping honesty and communication open at all times with our employees, they were motivated to work harder and became more loyal for the betterment of the company.

In a UK study done recently, results showed that more than a third of the population would run out of money to sustain themselves adequately within two weeks if they were out of jobs. Some might argue that laying off staff could be an opportunity to restructure and reduce company costs.

I feel the strategy to battle these troubled times lies in minimizing unemployment levels and injecting confidence into the economy.

Cultivating new talent within the company can bring important competitive advantage and increase one’s market share.

Social capital or the use of social relationships can better facilitate one’s business. This will differ from country to country. The understanding of social relationships is a necessity, particularly when dealing with China, and its use should be heightened during difficult times to help a business succeed.

It is due to the long term social relationships or Guanxi, as it is known in China, and trust that has developed over the many years of doing successful business together that both my suppliers and customers have stayed loyal and provided other benefits such as credit.

In any business there needs to be an element of luck and entrepreneurship. It is fitting to tell you a story of true entrepreneurial success.

In 1984, a young American man in a T-shirt, jeans and trainers walked into a small textile trading company in HK, with a vision to start a watch business. This HK businessman was apprehensive as to whether to start a new line, knowing nothing about the watch business. However, he decided to take an intelligent and calculated risk. With some luck, a lot of determination and constant perseverance to succeed the business grew rapidly into a huge conglomerate, as it is today.

If not for this gentleman, there may not have been this US $ 2 billion corporation which currently employs 6,000 people. This public limited company I speak of is the watch giant, Fossil with over 350 stores that now sell its brand of watches and fashion accessories in over 100 countries worldwide. Well, interestingly enough, this humble HK businessman is a Parsi, and is with us here today.

He is also the president of the Hong Kong Parsi Anjuman and he is none other than Jal Shroff, founder and director of Fossil.

In every challenge, we need to seek out opportunities. The unexpected is inevitable but you can use certain tools keeping in mind that money alone is not the only key to success and happiness. We need knowledge, wisdom, and our family’s love and support. Living without a balanced lifestyle is living without success. To survive and thrive in an uncertain environment one needs enthusiasm, passion and the desire to succeed. Believe in yourself and be confident in what you want to achieve.

Remember, in times of financial crisis and uncertain economic conditions, it is instinctive to pull back on the services and value you offer, when actually now is the time to find ways to creatively add even more value and set yourself apart from others in your field. Once things turn around, you will be comfortably positioned as the leader in your field. The phrase "You snooze you lose” is applicable to any success, meaning be quick and receptive to react to any stimulus in order not to lose any opportunities.

And finally, the win-win formula for success in just one single word is whether it is your service, your product or yourself — you need to sell!