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Local Business Stories - Sun Shuk Fuk Foods (Sau Tao)

How do Hong Kong businesses embrace changes and flourish in the new normal?

To us, what we do is about more than just noodles. It’s about delivering quality and affordable daily meals for the Hong Kong community.

Carrie Cheng | Deputy General Manager, Sun Shuk Fuk Foods Company Limited
See how Sun Shun Fuk stayed agile and maintained food supply in response to customer needs when pandemic crisis arose.

Chapter 1: Reinventing tradition

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The culture of noodles has deep roots in Asia. To Sun Shun Fuk Foods Company Limited (Sun Shun Fuk), a major Hong Kong food supplier that started out on the idyllic island of Cheung Chau with its Sao Tao brand, noodles are tightly intertwined with its brand story, which has been developing for over half a century.

Over its 60 years of development, Sun Shun Fuk has witnessed a continuous evolution of consumer tastes and needs. “Consumers are now looking for more time-efficient and diversified types of noodles, and they are far more accepting of new flavours,” stated Carrie Cheng, Deputy General Manager at Sun Shun Fuk. Driven by the company’s quest to keep on top of market trends and constantly innovate, Sun Shun Fuk has launched more than 300 kinds of noodle and seasoning products to date, with a diverse range of flavours and styles available.

Chapter 2: Putting customers first

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Businesses all around the world have been impacted by the COVID-19 pandemic. Sun Shun Fuk is no exception and has faced challenges arising from the havoc in its supply chains. “Most of our factory workers in mainland China went back to their hometowns during the Lunar New Year holiday. When lockdown measures were introduced, they were unable to return to the factories to work. This resulted in a shortfall in manpower, which, together with a shortage of supplies, added to the rising costs of raw materials,” Cheng recalled. “When the outbreak peaked locally during February and March 2020, there was a rapid increase in public demand for food and at one point our inventory was completely emptied.”

As the crisis loomed, how did Sun Shun Fuk remain agile and capable of meeting customers’ needs?

“Providing the local community with high-quality and affordable food is at the heart of our values. In spite of the pandemic, we have maintained this focus. Therefore, even though the cost of ingredients soared by 15 to 20 per cent during the early stages of the outbreak, we continued with our purchasing and manufacturing processes regardless in order to stabilise supply,” stated Cheng. “While resuming production, we also implemented active precautionary measures and kept the deployment of resources flexible to increase the supply of frozen and quick-cook products in view of the rising demand in both the domestic and overseas markets.”

‘Eating at home’ has become the new normal for consumers during the COVID-19 pandemic. Many households have also shifted their food shopping online. To tap into this emerging trend and better engage with different consumer groups, Sun Shun Fuk has increased investment in its digital sales and promotion channels across websites, mobile apps, social media and live broadcast platforms in an effort to establish an innovative brand image.

Chapter 3: Streamlining operations with digitisation

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Harnessing innovative and comprehensive digital banking solutions is crucial for improving corporate resilience in the face of adversity. “We have been a client of HSBC since 1998. HSBC’s digital banking solutions have significantly helped us enhance our operational efficiency. During the pandemic, it has been almost impossible for us to travel to our offices in mainland China. With the help of HSBCnet, we’ve been able to stay on top of our finances in both Hong Kong and mainland China simply by using a mobile app or website. This has largely facilitated our cash-flow management.”

“PayMe for Business from HSBC also provides us with a hassle-free online-to-offline (O2O) instant payment-collection solution. It connects us to over 2 million users and allows us to keep track of our transactions and business performance more easily. HSBC also swiftly granted us credit facilities as back-up in the wake of the outbreak, which further strengthened our existing liquidity and financial flexibility,” Cheng added.

Chapter 4: Continuing the legacy

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Looking ahead, Sun Shun Fuk is committed to embracing innovation while staying true to the key aspects of its brand heritage. “We will devote more resources to product research and development. We’re looking forward to maintaining our good relationship with HSBC as we explore more business opportunities and strengthen our market advantages. Noodles are of great importance in Chinese food culture, and we will continue to celebrate and promote that as we enter a new chapter in our brand story.”

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