At a time that many companies in this industry are reconsidering their promotional budgets, typically downwards, a few plan to move in the very opposite direction.

Luen Fung Leather Fty Trading Co. Ltd. (China - H.K. Leather Group), a Hong Kong-based tannery company with factories in China is looking to boost their presence at trade events. At the forthcoming APLF - Materials, Manufacturing & Technology (MM&T) in March they will increase their booth area from the 48 sqm they had previously in 2008, to 66 sqm for 2009.

That’s not all. Sales Manager Mandy Tang says she is prepared to spend extra to obtain a prime site within the exhibition. “We want to be the first booth people see when they enter the hall”.

There’s more. Underscoring the company’s readiness to invest in the future, at a time others are withdrawing, Luen Fung are also sponsors of the very successful APLF Design-A-Bag competition, which offers a high level of ‘visibility’ at both MM&T and the allied and concurrent Fashion Access exhibition.

This is not to suggest the company is complacent. Tang Yau Choi, the CEO and founder of the company, believes there will be a downturn in business, although not until after Chinese New Year. (Well, actually, that’s quite close now: Chinese New Year occurs unusually early in 2009, January 26 - 28.)

There are several reasons for Mr Tang remaining confident but one of the most important is that his company has long embraced new environmental issues. Whereas many in the tanning business look at these developments, which emanate from both overseas customers’ requirements, and tighter Chinese government diktats, Mr Tang’s companies had them already factored in.

Currently, Luen Fung has three tanneries, grouped around Foshan in Guangdong Province, with a new one in Guangxi on the way (due for completion around April next year). One of the existing factories, which specialises in glove leathers, will remain, while the two larger units will combine. The new site will return the number of factories to three again. Mr Tang’s personal views are reflected in the company’s literature, which stresses environmental protection. By combining the two existing sites with a modernised renovated factory, Luen Fung can now serve the customers better in a more centralised location. The new site has a system which costs … Mr Tang just says, “A lot”.

The new factory will also allow more flexibility in permitting established retail brands to work inside exclusive areas set aside within the site. The company works with many well known international brands.

Luen Fung works only with cow hide but, according to Sales Manager Mandy Tang, that is “All types of cow hide and sourced from all over the world.” That makes sense because, as she explains, “If the market is tight (and expensive) in one region it is usually more plentiful (and cheaper) in another.” Customers come from Europe, North America and Japan: all markets that have environmental protection regulations of some sort: with more possibly on the way. Mr Tang loves leather. That might well be something else that has bred success. He says he has always been fascinated by how many things one can do with a piece of raw material leather by shaping it, by colour and embossing, and the array of potential uses.

It’s something that Mandy Tang takes up. The company’s exhibition booth will include a wide selection of made-up products. Not for sale (although customers are welcome to copy them if they wish) but to demonstrate possible uses, colours and design. The company will not be moving into selling finished products: “We don’t wish our customers to see us as possible competitors”, Mr Tang says. “It’s a possible conflict of interest.”

“When times are hard, increase your promotional spend” is one of the best known management rules. The problem is that it’s easier to say than do. Luen Fung is a company prepared not only to say it - but do it too.

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