With rising production costs and fierce competition from the manufacturing powerhouse in the Chinese mainland, Hong Kong's small and medium-sized enterprises are bracing themselves for tough challenges, particularly in respect of overseas expansion. For Triple Noodle Company, however, nothing is impossible with its determination and commitment to innovation. The support of HKTDC Business Matching has added fuel to its momentum, facilitating the company's expansion overseas and its successful penetration into the Japanese market.

Triple Noodle's original "Abalone Homemade Noodle", the first of its kind in the Hong Kong food market, was a great success immediately after its launch in 1997. With more than 20 years of experience in the industry, Mr Johnny Lam, Chairman and General Manager says the company has come a long way in perfecting the art of noodle-making for total consumer satisfaction - ensuring its products have the right crunch, the right texture, and the smooth sensation when sliding down the throat. Hong Kong people have become more demanding when it comes to food quality over the last 10 years, and noodles are not merely to fill the stomach but something they truly enjoy, he says. Earlier, Triple Noodle joined the HKTDC's business luncheon "Traders Meet", where they learnt about the business matching service.

Bridging opportunities
In the past, Triple Noodle adopted a traditional marketing strategy. "We went into talks directly with retailers, distributors and supermarkets to promote our products but it was really tough. Sometimes, long-time negotiations with potential partners would end up being a waste of time. It was very frustrating," said Mr Lam.

When reviewing the case of Triple Noodle, HKTDC's business matching specialists decided that the company's innovative noodles were in line with the Japanese food culture so they actively approached Japanese distributors on behalf of the company. Within a couple of months, an appropriate partner was identified and negotiations went underway immediately.

"We are very impressed with HKTDC's rich information resources and worldwide network including its traders' database and business matching specialists, who helped us identify Japan as a major foreign market to explore. It's great to embark on our overseas expansion through our business ties with the Japanese distributor," Mr Lam says. "Before that, we had never dreamed of selling locally-made noodles to Japan. There are already many high quality domestic brands in the Japanese market, raising the bar for new comers. With the help of the HKTDC, however, Hong Kong-made noodles could make their presence felt in Japan." In fact, he said the HKTDC took many initiatives including giving advice on market positioning and sales strategy throughout the process. As a facilitator, he said the HKTDC effectively matched the requirements of both sides and promoted the exchange of their business track records to close the deal.

Raising quality and profile
"Our Japanese partner has appointed a consultant to advise on our packaging design and distribution strategy. Our innovative noodles have also received very positive responses from the Japanese side for having the flavour and texture to excite the taste buds," says Mr Lam.

The Japanese distributor has already visited Hong Kong three times inspecting the products, as well as discussing ways to further improve the quality and taste of the noodles including the look and ingredients of flavour packs. A formal co-operation agreement is expected within the next two months to establish a long-term relationship between the two sides.

This successful business matching has helped Triple Noodle raise its corporate profile while revolutionising the local food market, which has long been dominated by imported Japanese products. Mr Lam reckons the partnership will bring up to 30 per cent growth to his business, adding that HKTDC Business Matching has provided his company a valuable opportunity to learn about global trends and promote its products into the international market. "I am confident that we will be able to go further and expand our presence in the world by incorporating the requirements of different cultures into our noodles," he said.

HKTDC Business Matching helps local and overseas companies look for potential partners for business development. For more information, email BusinessMatching@tdc.org.hk. You can also call (852) 1830 668, or the Hong Kong Trade Development Council office near you. For more information, click here.

Reprinted from Capital Weekly, Hong Kong, March 2008.