Rejuvenating the Rice Legacy with Entrepreneurship & Time-Honoured Wits
Statistics from Hong Kong's Trade and Industry Department in 2021 showed that the average annual rice consumption per person in HK was 37kg, about 17% less than 8 years ago. Facing the downsized rice sector and uncertain market conditions, the second-generation leader of Murray Rice, General Manager, Julia Chu, said the company is developing new brands and product lines drawn on the company's 20+ years of solid experience, hoping to attract the health-conscious customers. Murray Rice is also relying on the experience and wisdom of the seniors and veteran staff, led by a "in good times and bad" mentality to overcome these challenging times.
Diversify to Retail x Entrepreneurship Spirit
Started as a logistics firm, Murray Rice later grew into a rice stockholder by chance when the liberalization of rice trade in HK befell, and become a major OEM supplier of packaged rice for a sizable supermarket. In addition to OEM, it has also launched its own branded packaged rice, aimed to expand into the retail market.
“Despite Thai rice popularity in Hong Kong, some Hongkongers would go extra miles to Japan to buy rice because of their purities and qualities. So we obtained the exclusive dealership to the rice from Tottori prefecture government in Japan, where light pollution is absent in the rural area and the paddies are irrigated by fresh water running from Japan’s third tallest mountain, yielding the highest quality of rice. My old folks once thought OEM business was good enough, but I tried to let them know we can mitigate risks if we put our eggs in multiple baskets. Luckily the products are taking off nicely so far.”
The company also procures rice from Miyagi and Shiga prefecture for sale on HKTVmall and its own e-shop. It offers gift set containing 9 rice packs from different prefectures in Japan, tapping into the gift market.
Julia is planning for the launch of a new brand called the "Institute of Light", sourcing globally for sustainable, natural health food products to bring to market. Alluding to products illuminated under sunlight, the brand name implies its merchardises are of minimal environmental impact and processing. Julia believes this aligns with the preferences of most consumers today, who opt for quality foods over processed products.
Get Upper Hand x Veteran Experience
The company's core logistics business has remained steady, serving major clients like Japan's major rice merchant, as well as various local small and medium suppliers. The company’s fleet, which takes up most of the company's manpower, delivers to over 500 buyers every month, covering restaurants, hotels, local groceries, supermarkets, etc. The cold storage and warehouses for rice also enable Murray Rice to provide cold chain management services. “Business is about sharing yields, my father told me, so we take on a number of clients even their margins are low to us. We thus developed an extensive network with diverse clients, and we stayed supportive with them through thick and thin.”
“2 years ago, we sold half of our 300,000 sqft. factory, and looked to find place for expansion again. Business has continued to scale back however, so we decided to move the production line to Thailand. This helps us reduce costs and meets the ‘Made in Thailand’ product description requirement. We are indebted to the foresight of our leaders, so we can brave out the current adversity in an easier way.”
Embracing Tech x New Prospects
Murray Rice was among the first batch of GS1 HK “ezTRADE” member since 1996 to trade with supermarket, which has improved ordering and invoicing efficiency over the years. The launch of its own brand later has prompted the company to use barcode, which accelerated product listing at supermarkets and online stores, and sped up inventory management in the warehouse.
“We’ve introduced digital systems like vehicle scheduling, cloud collaboration, etc. to complement our veteran staff experience – who knows the secret parking spots, best cargo loading times like the back of their hands – these help with our manpower shortage issue.” Referring the senior staff as invaluable assets, Julia is striving to promote integration of the new and old and co-dependence of tradition and innovation. “Our company accountant in his 70s worked until he wanted to retire, and we got an assistant to get him on board with the IT system. We also hire young fellows to manage online shopping and digital stuff, to which their efficiency and capabilities really amaze me.”
The company was its first GS1 HK Caring Company title, precisely because of its caring for employees while embracing innovation, as well as its collaborative style of sharing success and benefit with the environment, partners and customers, bringing high-quality foods to the market. “Rice yield is highly sensitive to any changes of the environment. Past crises like the bushfires in Australia and floods in Thailand underline why we pay close attention to climate change and extreme weather events. This also explains why our company is passionate about sustainably-sourced food ingredients.”
“I am hopeful of the future of the local rice market, despite the current ‘cut carb’ or ‘rice makes you fat’ narratives. I believe what matters most is to find what suits your own dietary needs. Traditional wisdom says drinking rice water enhances circulation, benefits the spleen and stomach with high nutritional value, so I believe rice will continue to be the food staple, though perhaps in new forms or new ways,” said Julia.
