Taiwan manufacturers in challenging market

Three Taiwan-based fashion jewellery manufacturers shared their insights with Asia's Fashion Jewellery and Accessories Review on their business perspectives, current challenges and solutions for the harsh competitive environment. Despite anticipated difficulties, they show no fear in the face of the fierce financial tsunami, some instead looking for a market transformation.

Nice Match International

Nice Match International has been involved in the fashion jewellery industry for more than three decades, being previously focused on semi-precious stones in the 1970s and shifting solely to the fashion jewellery business from 1990 onwards. The company's monthly production capacity reaches 30,000 to 50,000 pieces. As managing director of Nice Match, Jocelyn Chang, stated, June and August are the peak buying months for the Autumn and Winter season.

Nice Match's fashion jewellery is in the medium to high-end range, wholesaling at from US$1 to US$100. Copper, alloy and silver are the main staples. "Our rings, necklaces and brooches decked out with a pearl and metal combo are always the best sellers of all. The current collection is full of colours mixed with pearls, targeted at office ladies in European countries, America and Japan. Our European customers are very fond of classic cubic zirconia set rings or brooches, while colourful glass beads always work well in the Japanese market. The Cupid silver and other high-end fashion jewellery series are also quite well received, even during the economic crisis." Ms Chang thinks Taiwan manufacturers nowadays have become more aware of quality control for products. Owing to the financial setback, buyers do not want to maintain any inventory: they tend rather to look for the best quality at the lowest price.

In the face of economic recession, Nice Match came up with two ways to lower its production costs: material-wise, more lower-priced materials like resin are employed in place of semi-precious stones, for example; design-wise, the company has launched some detachable charms for its jewellery, allowing wearers to mix and match their own styles.

Ms Chang conceded the global influence of the slump, and she expected the turnover of Nice Match in 2009 to be down by 3%. On the other hand, the negative situation has given a boost to the fashion jewellery industry, and the buying pattern has also shifted to the higher-end fashion jewellery. Such changes are reconstructing the whole industry, and serve as a real challenge to the company in its manufacturing process and in the relationship between customers and production plant.

"Europe and the United States are our major export markets; but we may consider further expansion into Brazil if sales there continue to rise. Also, we plan to boost our research and development, getting ready for our transformation of the nature of the business, such as the introduction of tailor-made services," she added.

Ponal Trading Corporation

Established in 1978, Ponal Trading Corporation has its factory in Yiwu, China. Its monthly production capacity is 180,000 pieces, with a new collection launched every three months. Normally, the collections with antique silver, antique brass, coin pendants, semi-precious stones, crystal, glass and long necklaces are very popular among customers. David Tu, general manager of Ponal, expected chandelier necklaces and earrings to be in vogue for Autumn/Winter 2009/10

Ponal's products are colourful and full of passion, targeting 16- to 22-year-old wearers. Its wholesale price ranges from US$1 to US$1.5 for chains; US$0.8 to US$1 for earrings and US$0.9 to US$1.1 for bracelets. France is the company's major target, accounting for 40% of its total business. Germany, Spain and Italy account for 30% and America and Asia for 10% each, Mr Tu said.

"The fashion jewellery market keeps changing. Buyers now tend to look for alternative styles with a unique flair. Materials employed cannot be very complicated. We have to search for lower-priced material with a touch of luxury: for example, acrylic mixed with glass instead of merely glass." Mr Tu also pointed out that higher-end fashion jewellery may be very adversely affected by the financial tsunami, while the influence on fashion jewellery in the lower-end to medium range is limited. As an example, the company's higher-end collections wholesaling at from US$10 to US$15 for the Middle East market have been negatively affected. However, all in all, he still expects the company's business will increase by 15% in 2009.

Ponal plans to further develop the Germany and Spain markets. Mr Tu noted that German customers prefer geometric shapes, modern designs, rather than fancy ones. He will also strengthen the company's design, research and development team and hopes the Taiwan fashion jewellery organisation or the Chinese fashion jewellery association can hold meetings or visiting tours for industry practitioners to exchange fashion jewellery product information, technology and marketing strategies.

Dickacce Co Ltd

Dickacce Co Ltd is one of the very few fashion jewellery manufacturers with its plant still based in Taiwan. Founded in 1974, the company's factory is located in Nei Hu district in Taipei, producing 2,500 to 3,000 dozen necklace sets and 20,000 to 30,000 earrings or brooches a month, depending on the peak season and the designs.

Tin alloy is the company's core material. Dickacce's pieces wholesale at from US$0.5 per item to US$50 per set, and the fashion jewellery sets in all the collections are actually very popular. "Our recent collection highlights a natural ambience, simple geometric shapes and totem series etc. In fact, fashion jewellery cannot be independent of fashion attire; the design of jewellery pieces has to follow trends. For example, we take our inspiration from fashion shows in Paris, Milan and Basel," Dick Chiang, president of Dickacce, said.

Mr Chiang has his own incisive insights regarding the current economic downturn. He agreed that offering buyers exquisite quality at a reasonable price is always the key to business deals, and pointed out loyal customers stay. "Actually, the setback is not having much impact on us. We guarantee customers quality; every piece of Dickacce's jewellery is ‘Made in Taiwan.' Every buyer has his own needs and requirements: some prefer larger quantity at lower prices; some look for smaller quantity but greater sophistication in design and quality, so it is difficult to comment on other countries' products. We strive to provide customers with market-oriented services. Therefore, Dickacce will continue focusing on its own advantage, which is quality, to win over its competitors," he said.

Most of Dickacce's fashion jewellery is exported to department stores and boutiques in the United States. As sales in the East European market have been growing in the last two years, the company has started exporting products to this market. Mr Chiang further asserted, "We hope manufacturers would be proud of ‘Made in Taiwan' products, and enhance the overall brand image by shifting to market-driven sales services, in order to avoid a negative image brought about by fierce, cut-throat price competition. After all, quality is the key to success."

Source: Asia's Fashion Jewellery & Accessories Review