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exciting, but obviously becomes harder as you get bigger. Handling this growth has been a challenge as we've wanted to avoid any outside investment and really grow this internally off of our own cash flow. This proved to be a huge struggle in the early years and we had to be incredibly frugal, aware and business savvy to get through those tough times. We are now in a very strong position, which allows us great flexibility and opportunity. Q: What are the key differences you have found between business operations in New Zealand and China? A: As I was only in a corporate role in New Zealand for a few months, this is difficult for me to answer. That being said, I can firmly say that the work ethic, dedication and commitment from Chinese employees is amazing. Change and business development happens incredibly rapidly here, not just through employee dedication but also government policies that encourage foreign investment and provide an infrastructure targeted to manufacturing. I find the pace in New Zealand incredibly slow by comparison and not as malleable. Q: Given the ever increasing levels of inflation and local labour rates is China still an attractive country to outsource production to? If so, why? A: Yes I still see China as an attractive outsourcing ground, the increasing labour rates and inflation haven't completely diminished the appeal of China yet! The country is still very low cost compared to the majority of the world, and it also has an amazing infrastructure as well as 'know-how' dedicated to business and manufacturing. This means that it is still a highly beneficial 'cheap' manufacturing option. It will take time for other developing countries to get to a point where they are competing on manufacturing infrastructure, knowledge and efficiency. Even more so there are options within China that are cheaper such as in northern areas or those less developed, this is where we now see a trend of factories moving. Q: How many employees did you start with? How many do you have now? Who manages these people? A: When I first came to China we had two office staff and around 20 people in the factory. Six years on we have offices in Gunagzhou/ Shenzhen/Hong Kong and the United States. We have 80 employees spread over these offices and are incredibly vertically integrated with teams focused on Design, Sales and Marketing, R&D, Engineering, Account Management and Customer Support, Finance, Logistics, Manufacturing, Quality Control and HR. We also have our own factory with 200 workers that we use for new product development, quality control and a small amount of manufacturing. We outsource within China approximately 80% of our production, thus I would assume at any one point in time we would have between 1,000 and 1,500 workers making ZURU goods. The overseeing of our staff and day-to-day operations forms the bulk of my responsibilities. Q: Would you recommend other SMEs move their production to China? What advice would you give? A: I would recommend this, but only if you are dedicated to this move being a success by being hands-on, on the ground, ensuring quality and continuity of your brand and identity. Q: Is knowing the language and customs of China essential to doing business there? A: I think it's beneficial, but not entirely necessary. I think it helps to build and maintain relationships and aids in quick results and understanding. It is interesting to note that all university graduates in China now need to pass CET 4 testing on English, so the country is streamlining itself to being very user friendly to the English language. What factors came into choosing Guangzhou as your base? The strong supplier base for toys providing for a huge knowledge base of the industry, and of course the well developed infrastructure tailored to manufacturing. Q: How long do you plan to continue this operation in China? A: I see China as always being a part of our long term business strategy. I don't foresee us moving away from the huge benefits China brings. Q: Do you have succession planning or an exit strategy in place? A: I'd like to be able to spend more time in New Zealand within the next few years. As such succession planning is something I am working on continuously. That being said, I will always be spending a good portion of my time here on the ground ensuring all is running smoothly. Q: How supportive have your friends and family been of your life in China? A:Incredibly supportive. I'm very lucky to have an amazing group of friends who are always there for me even through the long absences. On the family front they understand the importance and gravity of what we are doing here, so whilst they miss us they are incredibly supportive. Q: How often do you come back to New Zealand and your hometown, Cambridge? A: Each of us, Mat, Nick and I try to get back at least once a year. It's amazing to come home and bring the pace down for a while. Q: Many successful people have origins in Cambridge. What is it about this region that creates such success? A: Ha ha ha! I've never thought about this. Perhaps you can tell me what attributes we have that makes us successful? I think maybe it's that we grow up very grounded and are pushed to prove ourselves. www.hermagazine.co.nz | 39