If not for Hong Kong, Sonya Madden believes she could never have made the quantum leap from investment banker to international fashion designer.

Basing her business close to the supplies enabled the celebrated Canadian accessories designer to produce small runs – enhancing her eponymous brand’s exclusivity – and provide the fickle world of fashion with a fast turnaround.

Famous for her luxurious, cashmere cardi-wraps that are now sold internationally, Ms. Madden says Hong Kong’s favorable business environment is another reason why the city helps turn entrepreneurial dreams into reality.

Ending up as an investment banker, Ms. Madden spent seven years working in London, Hong Kong and New York before realizing design was her passion. She left banking in 2000, returned to Hong Kong, and after taking some design classes set up her own business.

Close to the source

‘I’d always loved Hong Kong, but the decision to base my business here was taken for much more pragmatic and practical reasons,’ Ms. Madden explained. ‘It made sense to be close to so many manufacturers and suppliers, and I’d also made some strong connections with people I knew would support me.’
‘The wonderful thing about Hong Kong is that it’s next to China, the factory of the world. All of the major manufacturers have offices in Hong Kong, and there is no other place in the world where you would be able to source, for example, yarn from Italy, fur from Canada, and beads from India, all in one day.’

‘The other advantage is access to factories. I am only half a day away from my factory (in the Chinese mainland) which is important in the fashion business, where lead times are shorter and on-time delivery critical.’ ‘I’m also in Hong Kong for the same reason so many large corporates are headquartered here: the legal, technical, financial and administrative infrastructure gives one a confidence that you wouldn’t get in any other Asian city. The favorable tax environment is a huge plus, and it’s very conducive to doing business in general. Any time I ask for support, the knee-jerk reaction is yes, I can do that; yes, we want to do business with you. For a start-up, this is incredibly compelling. A lot of other, more mature parts of the world don’t have that eagerness.’

Celebrity clientele

Within four years of starting her business, Sonya Madden’s wraps were being sold in all Kate Spade boutiques, and US department stores Saks Fifth Avenue, Henri Bendel and Nieman Marcus. Hollywood celebrities picked up on the trend, with Catherine Zeta-Jones reported to own a dozen of the brand’s luxurious, made-in-China cardi- wraps. And it’s all largely through word of mouth.

Having reintroduced the wrap as fashion’s must have, Ms. Madden continues to build her brand and is planning offices in New York and Los Angeles. She believes the wrap is here to stay. ‘When I was first designing, I called my wraps security blankets for adults,’ said Ms. Madden, who was inspired by the pure pleasure of cocooning oneself in luxurious yarns.
‘With today’s lifestyles, versatility is so important and the beauty of the wrap is that you can wear it during the day, evening or weekend. A wrap gives the ability to accessorize an outfit in a way you can’t with a coat or jacket.’

Question

Evaluate Sonya Madden’s decision to locate her business close to where she has her products produced.