RFP Magazine - www.rfpmagazine.com

FACILITIES

Contact the editor	Print this article	Email this article

Fit For Fit-Out Issue 43 - July 08 2008 has already seen a number of corporate design and build companies set-up new operations in Asia's regional hubs. RFP asks what benefits can these new organizations offer, and how are established companies are adapting themselves to meet the challenge. The corporate interior business in Asia is a cut-throat one, with tight margins, difficult clients and a myriad of localisation issues. Yet the allure of the region's growth story has long seduced international design companies, leading many to set up in Hong Kong or Singapore with a view to cornering the market. "In the past, some large international companies have entered the market with a lot of fanfare, got a couple of jobs and then within a year or so are gone," recalls Elton Battersby, Vice President - Corporate Real Estate, Lehman Brothers. Why now? So, what is tempting the directors of international design and build firms to ignore the past results of others? For some, it is the maturation of Hong Kong and Singapore into relatively stable markets, for others it is the continued emergence of cities such as Shanghai and Bejing as centres of global importance. "It is being recognised that the standard of design and fit-out in Hong Kong is equal to, if not superior, to the standard in international markets," says Paul Borrett, Managing Director, tda interiors. Another important motivation is the client demand, with requests coming from multinational headquarters for projects happening in Asia. "Every time we were doing quality fit-outs for clients in London or Sydney they were asking: do you do projects in Hong Kong?" Borrett explains. Of course, the sheer quantity of work is also an attraction, "Asia has been for many years, and continues to be, a vibrant business centre," says Richard Worrall, Director, Visual I's, pointing to an increasing volume of commercial office space in the region. Old vs new So, how do existing fit-out companies see the arrival of new competitors in their own backyard? For John Sellery, Group Managing Director, M Moser, the idea of old and new organisations is "incomplete or at least inaccurate." He notes that even long established Asian firms such as his own are constantly reinventing themselves. "In some of our markets we have only recently established a presence, and therefore face the challenges an organisation faces in new circumstances but also get toenjoy the benefits from these new experiences, new colleagues and new market environments," he says. The arrival of new faces on the market also helps to keep existing players on their toes. "New companies can spark innovation in established firms," says Paul Dingley, Managing Director, HBO+EMTB. He also notes that to remain competitive, companies have to be flexible and offer a range of different services. "Gone are the days when a firm could come in and charge significant fees for pure design work."		At the end of the day you have to ask, can they really deliver on the project?
Advertisement


A client's view "Today, nobody can just come in and take over the market, there's just not enough room," believes John Bowden, Regional Workplace Manager, Cisco. He explains that Cisco work with designers at two levels, one at business theatre level who works on conceptual design and one on a local level at each location. For the conceptual level, "we work with established firms with regional coverage," Bowden reveals. "Newly set-up design and build companies generally wouldn't be considered, in fact there's very few established firms who can truly support regional work." That said, Bowden admits that at the local level Cisco are open to choosing relatively new companies, as long as they have the right background. For his part, Battersby says that Lehman Brothers are always open to working with new firms. "In terms of design and project management, there are always opportunities for new firms with fresh ideas to come in to the market," he says. "We work with a mixed group of design and project management consultants. We tend to work with firms which have established reputations, or with whom we have developed relationships. That said, we're always looking for new firms who are willing to think out of the box." Experience counts Sellery concisely summarises the benefits for established firms: "In markets where we have set up a presence much earlier, the overall organisation gets to enjoy the benefits associated with this maturity - namely our focus on deepening our professional skill sets and services offerings, the development of training systems for all of our colleagues globally, the development of tools and systems to improve the professional excellence of our colleagues and the work they do for our clients globally, and ultimately the opportunity to develop deeper more meaningful relationships with our existing clients." Dingley notes that beyond the obvious track record and regional exposure, organisations with a more mature background can offer a developed set of core values. While to some this concept of values might seem vague, they can often form a foundation for procuring new clients and protecting existing relationships. For example, initially HBO+EMTB was very successful in bridging clients in Asia from its Australian base. Having established a reputation in the region it is now a recognised brand, with the benefits that brings. A fresh approach So, what do start-up organisations offer? For Borrett, "It's the enthusiasm of our team, the fresh approach to design and a fresh approach to managing projects and communicating with clients and people within the industry." This fresh approach, coupled with the personal touch and the backing of international networks can be a big contract winner with clients looking for something different. Cost can also be a factor, conceded Worral, "From the client's perspective a new company is inevitably likely to provide a cost saving as it seeks to get as many jobs under its belt as possible, thus increasing its name awareness. However, more important even than cost saving, is the fresh approach which may be lacking from a potentially complacent incumbent supplier." Selling people The biggest challenge facing all players, new and established, is getting the right people both to win and deliver projects. For established companies, their expansion plans seem only limited by the access for talent, while for new ones, their success will be determined by the people they have on the ground. "It's 90 percent the person and 10 percent the firm," says Battersby when asked how he selects service providers. "We hear lots of really great pitches, it doesn't matter if the MD flies in to sell the concept, we need to know that the person who is tasked with the delivery is up to it." Start-ups from design firms that have the back-up of multinational firms in the U.S. or U.K. need to have a principal with the right background," says Bowden. "They need somebody who speaks our language. But at the end of the day you have to ask, can they really deliver on the project? Even projects by big, established design and build companies can fail really badly if the right people aren't on the job." RFP

ISSN 1994-9464
Key title: RFP magazine
Abbreviated key title: RFP mag.

Search the web
	Print Edition
	NOMINATE NOW Subscribe Now Sign Up for Ezine Past Issues