Derrick Lo

Gifts & Decorative Accessories: What are Peking Handicraft's roots?

Derrick Lo: My parents, Dicky and Annie, founded the company in 1977. They were born in Hong Kong, then moved to Canada for college. After school, they came to the U.S. with little idea of what they wanted to do. So, they went back to China to source product.

Gifts & Dec: What were some of Peking's first products?

D.L.: They started off as lace people. That was our core business really. They also did souvenirs like parasols and fans. Over the years we expanded into linen products such as tablecloths, handkerchiefs, placemats, and napkins. Then we added glassware, hooked rugs, tassels, and needlepoint. We also got into bedding and quilts, which is where we do a large part of our business with stores such as Sears and Target. One thing China does better than anything is hand craftsmanship. It has a great value for our customers because a lot of stuff made in the U.S. is machine manufactured.

Gifts & Dec: Peking Handicraft also works with many licensing artists, doesn't it?

D.L.: When we started importing rugs and needlepoint, other companies started going to China too and came back with the same exact designs. We got into licensing to distinguish ourselves from other companies. Today, we have licenses with more than 20 artists, including Jane Keltner, Warren Kimble, and Tracy Porter. They are able to keep us on top of new designs and color patterns.

Gifts & Dec: When did you become involved?

D.L.: I can literally say I grew up with the business. Everyday after school my three younger sisters and I would go directly to the office. When I was a teenager, I started going to the gift shows. My summer camp was the New York International Gift Fair. I took a four-year break, and then I came back full-time in 1999.

Gifts & Dec: What are some of the challenges of doing business in China?

D.L.: Two major challenges are the lack of copyrights, and the required minimums. An order of 100 rugs may seem like a lot to a small company in the U.S., but not to the factories in China. They only want to handle large orders.

Gifts & Dec: What are some milestones for Peking Handicraft over 25 years?

D.L.: Satisfaction comes from getting new business, and we are proud of that. When my parents started, they were working from the house. Now, there are warehouses and offices around the world. For past three years we were named vendor of the year by Sears, and innovative vendor in 2002.

Gifts & Dec: What would you do differently if you started over again?

D.L.: We missed a few steps along the way. We used to sell silk dresses in San Francisco's Chinatown. We were doing a lot of business, so we thought we would sell them in China. But we didn't do enough market research. Chinese people are smaller than the American tourists we were selling to. When we took the dresses to China, they were the wrong sizes.

Gifts & Dec: What are your hobbies?

D.L.: I love to travel, which helps me develop product ideas. For example, I go to Paris to see a show and get a lot of inspiration because they are usually a step or two ahead of the U.S.

Gifts & Dec: What are you planning for Peking's silver anniversary?

D.L.: A lot of our people in San Francisco have never been to China to see our factory, and to connect with the faces of the people there. They just know each other through e-mails or phone calls. To mark our 25th anniversary, we took 30 people from the sales department to celebrate with our colleagues in Shanghai.