The Boston Trading and Manufacturing Co. Ltd. (HK): Hemp, Fashion and the Environment

The Boston Trading and Manufacturing Company (Hong Kong) or (BTC-HK) highlights some of the dilemmas facing an entrepreneur who is operating in a multinational and multicultural context and who is differentiating a major product as being environmentally-friendly. The core idea behind the Boston Trading Company was simply to access low-cost labour and materials in Mainland China in order to manufacture backpacks for sale within Germany. Later, Andree conceived the idea of using hemp material and designs that would reduce waste and permit the products to be marketed as being environmentally-friendly. This "PURE®" product line timed the market well and has been very successful — allowing much higher mark ups than had been possible with the more traditional nylon product line. However, the hemp content in this product line had been permitted to drop to questionable levels and it was clear that its appeal had as much to do with its relationship with marijuana as its ecological advantages. Andree is also aware that his products are being marketed to two very different types of customers — environmentalists and marijuana users. The case touches on multiple themes, but is probably best used either in a business ethics subject or to highlight international management issues in an entreprenuership subject.