Clipsal boss switches on to Olympics

Business Asia, Sept 13, 1999

Gerard Industries, makers of Clipsal electronic accessories and one of the leading brands in Asia, hopes to increase its home-country profile via a Sydney 2000 Olympics sponsorship.

The sponsorship, the biggest yet for Clipsal, involves an extensive commitment towards Olympic Games infrastructure in Homebush Bay and venues throughout the country.

Robert Gerard, chairman of Gerard Industries, said the South Australia-based company's involvement with the Games had attracted valuable exposure.

"It's one of the best moves we have ever undertaken in marketing and promotions," he said.

Clipsal first gained a foothold in the Asian market in the 1970s after a business licensing agreement was struck with Hong Kong businessman Victor Lo.

Clipsal provided technical expertise, tool-making and personnel from Australia while the Lo family looked after sales and marketing.

That same formula has subsequently seen Clipsal succeed in markets in China, Singapore, Malaysia, Indonesia, Sri Lanka, Vietnam, the United Kingdom, the United States, New Zealand, Argentina, South Africa and recently in India and Greece.

"We have done well by focussing on the benefits from royalties and licence arrangements," Gerard said.

"People make too many mistakes trying to run companies in countries where they don't even understand the business characteristics."

Today, factories in Hong Kong, Indonesia, Malaysia, Singapore, Sd Lanka and mainland China are making Clipsal accessories based on Australian designs.

The company also has a Ho Chi Minh City office, which opened in 1995.