Let's hear it for homegrown goods

It is safe to say image is everything to Hongkongers. We wear logos like our grandmothers wore hats, as a fashion accessory. Whether logos are as tasteful as a tidy pillbox is a matter of opinion. But there is no denying they make an impression and tell us something about the person wearing them.

Displaying a logo is almost unavoidable when it comes to a blouse or handbag, but what about a ring, pendant, bracelet or earrings? Is there a way to climb the social ladder by wearing instantly recognisable, branded jewellery? Brands such as Cartier and Tiffany have been doing it for decades. International brands with instantly recognisable logos craft them into earrings, or develop iconic diamond settings, copyrighted figures and pendants that not only include the company's name but their address too.

How can homegrown brands compete with the heavy-hitting advertising campaigns and design-driven international ones? On copyrighted-designs, not at all. Yet, sales are not waning. Despite our city's brand-consciousness, when it comes to brilliant baubles, it seems that the price, selection, and relationships local jewellery stores offer are worth their weight in gold.

High street stores Chow Sang Sang, King Fook, Chow Tai Fook and Qeelin compete with international brands in sheer volume of sales and by serving a different customer. One is more price-sensitive, while the other is more design-driven.

'Our customers do purchase jewellery from international brands, but we believe they are more loyal to our brand,' says Victoria Lai, marketing director at King Fook. 'They look for quality, design, good service and product value for money.'

Emily Li, brand general manager of Chow Sang Sang, says: 'Local jewellery brands have an edge over internationals for their better understanding of local tastes and their flexible and rapid responses to the market.'

JJ Abram agrees. The scion of the family-run boutique Ronald Abram says local brands in any city cannot compete with international ones in terms of advertising and media attention.

As a result, local brands have to work hard to garner loyal customers by cultivating relationships that will last a lifetime.

'What makes local jewellers appealing is their ability to create intimate relationships with clients and offer better value,' Abram says.

Some local brands limit their advertising, preferring to rely on word of mouth and reputation.

'As a local brand, we are very familiar with Hong Kong's social climate, enabling us to utilise the power of networking and referrals as our alternatives to aggressive marketing in the media,' Abram says.

And, when local brands do advertise, it is not the name of the company they promote, but rather the merchandise.

This is different to international brands.

'While of course we still regularly advertise, it is more effective for us to market the specific products we deem the most desirable, rather than promoting the exclusivity and illustriousness of the brand,' Abram says.

Meanwhile, Qeelin has become successful on the international stage, with actress Maggie Cheung fronting the brand that was started by Hong Kong designer Dennis Chan and French jewellery mogul Guillaume Brochard.

Local brands benefit most from their intrinsic knowledge of the market, which begins and ends with one word. Pure gold. Okay, that's two words. However, it is the first word that differentiates the market. Local brands have a strong advantage in selling pure gold products over the international competition and understand the strong connection pure gold has to Hong Kong's traditions and culture.

'Pure gold, in terms of investment bars, gold figurines for gifts or gold bridal jewellery, all these are definitely a local-dominated market,' Li observes.

Jade jewellery is another Hong Kong strength. 'In terms of raw materials and designs, local jewellers will have an advantage in terms of product knowledge, design and sourcing,' Li says.

Overall, the advantages of buying from a local brand versus an international one are many.

Lai points out that prices are lower because material and labour costs are lower in Asia and that prices are not affected by the exchange rate.

She says there are more sizes available for rings, and less time is needed for alterations since there is no need to send jewellery overseas for repair.

In praise of local firms, she says: '[Local jewellery is] more wearable as the design caters more to Asian taste. We produce one-of-a-kind pieces, not mass production, and our staff are well-trained with good product knowledge.'

Name of the game

There has been a gradual shift in local brands' marketing strategies to appeal to more modern and luxury oriented customers. One of the more obvious tactics has been to change the name or to add a division.

Tayma Fine Jewellery opens Tayma Studio this month, featuring entry level, fresh pieces for those just starting collections.

Chow Tai Fook has a new brand CTF2, established for a younger female clientele.

At the other end of the spectrum, King Fook has created Masterpiece by king fook, a concept store for collectors and connoisseurs.

Chow Sang Sang is moving up a notch by establishing flagship stores and megastores. Not only are they launching a rebranding campaign on the mainland, but signature products are being further developed to heighten brand awareness.

Enhanced VIP programmes are increasing shopper loyalty and packaging is being taken to a new level, with King Fook using leather-made boxes.

Customer-service training is being improved too, with all stores enjoying the benefits of developing strong relationships with clients.