Kitchenware supplier forecasts 100 pct sales growth with Sands China

Anthony Yip

Sales turnover of a few thousand patacas to some MOP2.5 million is a staggering revenue shift for a local enterprise in just two years with its partnership with Sands China.

In just two years’ time, Chon Wa Catering Equipment Supply Co. Ltd has seen a boost in its sales revenue with Sands China, as the gaming operator has been keen on purchasing from local suppliers.

Established in Macau several years ago to provide engineering and design for kitchen equipment, the local enterprise only began to supply heavy-duty kitchenware, catering utensils and equipment to local clients in 2015.

With the support of Sands China, this Small and Medium Enterprise (SME) has successfully entered the market, with the gaming operator contributing to nearly 30 percent of its overall revenue.

Anthony Yip, director of Business of Chon Wa Catering Equipment Supply noted that the firm only started with three staff and has increased to its current 12 due to this sudden boost to its business.

“I would like to send my thank you to Sands China because they gave us very good support since starting our business, [giving] us a chance to make offers and orders,” Yip remarked.

According to him, the first deal with the gaming operator was only a few thousand patacas, yet this has grown massively with the support of Sands China.

“The first deal was a few thousand. There are many brands that we did not know but [based on Sands China’s] inquiries, the brands we wholesale now have increased,” Yip added.

The local SME is currently the sole agent in Macau of many kitchenware brands and a distributor of some 100 well-known brands.

The entrepreneur sees this as an advantage as the enterprise can present a wider range of products and brands to other gaming operators.

The entrepreneur mentioned that at the beginning of the business, they did not have many brands to offer to clients.

“In the beginning, I would say that there were zero brands we were offering but after two years of effort and good relationships with suppliers, some brands granted us a license to be a sole agent or distributor,” he noted.

Given the aim of the business to offer high quality products to the local market, the company introduced its business to the procurement team of Sands China hoping to establish good relationships with the gaming operator.

Yip mentioned that the business with Sands China has “has continuously grown from moment to moment.”

Currently, the local enterprise is expecting to see its revenue with the gaming operator double by the end of the year as it continues to expand its product range.

With the opening of The Parisian Macao in September 2016, the director acknowledged that its contracts with Sands China have contributed to significant growth in its sales volume in 2016.

“We did a lot of business with The Parisian Macao. We sold a lot of products,” the director confirmed.

With the continuous partnership with Sands China, Chon Wa has strengthened its credibility with local restaurants, hotels and gaming operators, paving the way for further business prospects.

The enterprise is also benefiting from Sands China’s commitment to purchase goods and commodities from local suppliers to further support its procurement base and SME growth.

Thus with this commitment, Sands China offers more business opportunities to local SMEs, micro-enterprises, young entrepreneurs, and “Made-in-Macao” enterprises.

Sands China’s Local Small, Medium and Micro Suppliers Support Program – a scheme in line with the MSAR’s initiative to “buy local” – has been providing local enterprises with greater prospects to remain successful in the market.

Heavy duty equipment

As Sands China views its suppliers as its strategic partners, the entrepreneur noted that the gaming operator’s procurement team have also been assisting them in sourcing quality products to add to its wide range of product and brand selections.

“The procurement team [has assisted] in [rejuvenating our range of] quality products and [the] content of [our] products.  That’s why we are going to set up our new show room and demo kitchen,” he explained.

“In this way, we have more chance to introduce our new products, including to Sands China’s procurement department,” the director added.

Chon Wa provides before- and after-sales service to aid its clients in choosing the right machine with advice for equipment customization.

The supplier also values after-sales maintenance services to reach high standards in quality heavy-duty kitchenware.

Yip noted that the company is still developing its business and looking for ways to grow. Adding that Sands China has contributed to nearly 30 percent of the supplier’s overall revenue receipts, Yip remarked that the firm will further depend on the continued support of Sands China and its local customers.

“I don’t think there is problem for us in [terms of] financing [the growth] but the main thing left to us to do is to [further] develop our business and make it grow, but of course this depends on the support [of our customers],” said the director.

“We will continue to work with consistency and integrity to win their trust,” the director pledged.

Currently the company is seeking reliable new foreign brands to fit the Macau market.

Utensils and equipment supplied by Chon Wa

According to Yip, the group will also focus on acquiring cleaning equipment to supply to its local clients to improve their food hygiene standards.
“I think it’s a trend and maybe there’s a potential market opportunity. That is why we are going to deal with a cleaning machine supplier whose factory is situated in Europe,” the entrepreneur noted.

Yip also shared that there are some plans to participate in the Macao International trade and Investment Fair (MIF) held annually at The Venetian Macao in October, to showcase the group’s new products.

The entrepreneur stressed that projects such as acquiring and supplying high-end catering equipment and heavy-duty equipment were all due to the support of its local clients, particularly Sands China.

“They [Sands China] have given us a lot of time … and made offers to us, and in this period of time, we learned and gained much. That is why we want to express our gratitude to them for giving us a lot of support,” Yip voiced.

“If, at the moment, we are successful, this is coming from the support of Sands China,” the entrepreneur acknowledged.

This article is sponsored by Sands China Ltd.