Belgian company has success in bag after takeover

Belgian bag maker Hedgren has bucked the trend in a sector with little growth since being taken over by Chinese investors in 2011, according to its global CEO.

Emmanuel de Blommaert says his company's sales revenues have risen 25-30 percent year-on-year for the past three years, and he is confident this bullish momentum can be maintained through to 2020, despite slow growth in the bags and suitcase market.

"In spite of flat performance in this sector, we've reaped faster growth in many countries," he says, although he declined to provide detailed figures because they are confidential.

Hedgren was established in Antwerp in 1993. League Group, an enterprise based in the eastern Chinese city of Hangzhou, purchased the bag maker in 2011 at a time when Europe was still reeling from the global financial crisis.

De Blommaert says the success of the Belgian bag and suitcase maker in recent years stems from smooth cross-cultural communication with its parent company. He says his staff today consists of people from Hong Kong and Taiwan who are good at teamwork.

"Better understanding and recognition of this Belgian brand by League Group made the transition easier," he says.

The company employs 30 people at its Antwerp headquarters, mostly for design, marketing and administration. Its products are manufactured in South China.

"We're now considering production in Vietnam," the CEO says, suggesting that the company may follow other firms in opening factories in countries with cheap labor.

This month, Belgian Prime Minister Charles Michel is expected to visit League Group's headquarters during a trip to Hangzhou. "This is a huge recognition for us," De Blommaert says.

The Chinese company's acquisition was part of efforts to expand its partnership with global brands such as Samsonite, Targus, Delsey, and Case Logic.

Yet while similar takeovers resulted in overseas companies instantly attempting to break into the Chinese mainland market, De Blommaert says Hedgren initially focused on consolidating its European markets, expanding in Paris, Berlin and Rome, as well as in Belarus and Russia. In 2012, the company also started selling in the United States.

Despite having a long-term presence in Hong Kong and Taiwan, Hedgren launched a large-scale sales promotion in the mainland only last year.

De Blommaert says League Group opened more than 100 stores selling Hedgren bags and suitcases across the mainland in 2015. He adds that target customers are aged 25 to 40 and that 70 percent of buyers are female. Prices range from 80 to 200 euros ($87-$217).

To achieve further progress, he says, innovation is key. He says his design team is working on a line of bags with integrated battery packs that will allow wearers to charge tablets, smartphones and other devices.

Belgium's advantage in design has sharpened the company's competitiveness, he says. "By combing this with China's advantage in manufacturing and (its large) market, we're sure efforts to make Hedgren an international brand will have a bright future."

fujing@chinadaily.com.cn