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Tag: jewellery

  • Tse Sui Luen Jewellery sales rise boosted by tourist

    Tse Sui Luen Jewellery sales rise boosted by tourist

    Tse Sui Luen Jewellery sales and profit both rose in the first half year – but the company has tempered the good news by expressing concerns about the impact of the US-Sino trade war. Chairwoman Annie Yau said in a stock exchange filing that the improved retail sentiment in Hong Kong since September last year due to increased numbers of mainland tourists and growing consumption appetite of local customers, the city’s retail market has continued to progress “in an L-shape”.

    “However, the recent outbreak and escalation of trade dispute between China and the US has cast some doubts on the economic outlook for both the global and local economies going forward. One consequence has been the devaluation of Renminbi during the period, which could bring certain influence to our business in Hong Kong and Mainland China during the remainder of this financial year.

    “While it is still too early to conclude the actual impact on the group’s performance, we will continue to take a cautiously optimistic approach in our major operating regions, namely Hong Kong and Mainland China,” said Lau.

    Tse Sui Luen Jewellery sales increased by 10.2 per cent to HK$1.91 billion in the six months to July (the company has changed its financial year to September, so comparative figures are based on the six months to August 31 last year).

    Profit attributable to owners of the company increased by 38.9 per cent to $24.3 million.

    Sales in Hong Kong and Macau rose by 15.3 per cent during the half year, while same-store sales growth for all businesses in the territories rose 14.8 per cent. Retail rentals in Hong Kong remained static and “at a more reasonable level than that experienced in past years”, allowing the company expand its retail business in the city and enlarge the shop area of some of its existing stores, including those in Times Square in Causeway Bay and Plaza Hollywood in Diamond Hill.

    “We will continue to identify other suitable high-traffic shopping arcades and on-street stores in order to further penetrate tourist and residential precincts as applicable,” said Lau. “Nevertheless, the ongoing manpower shortage situation in Hong Kong remains a concern in setting the pace of expansion. In respect to Macau, due to a steady increase in tourists from Mainland China and their spending powers, our business in Macau achieved an increase of 8.7 per cent in turnover during the period.”

    In Mainland China, where its self-owned stores account for 37.3 per cent of Tse Sui Luen Jewellery sales, sales rose 4.2 per cent, but fell 3.5 per cent on a same-store basis. The company is expanding its network of franchised stores, adding 25 during the period taking the number to 207. After adding 197 self-run stores, Tse Sui Luen now has 404 outlets on the mainland.

    In Malaysia, Tse Sui Luen has five stores, including the latest to open in Genting. Sales rose 13.9 per cent.

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  • Lee Hwa Jewellery experiential concept store has opened

    Lee Hwa Jewellery experiential concept store has opened

    Lee Hwa Jewellery has introduced a new experiential store inviting customers to “get intimate” with jewellery. In a bid to meet millennial “experience economy” market demand for immersive retail experiences, Lee Hwa’s Jewelspace – a bespoke design concept launched at its newly re-opened boutique at Suntec City – has broken away from the traditional look and feel of jewellery boutiques, resulting in a more contemporary instore experience for customers.

    Built around a gallery-like atmosphere, the brightly-lit new boutique does away with traditional glass counters, instead featuring modern elements such as themed display walls and vertical glass displays, a maker space and interactive countertops that let customers get closer to its range of fine jewellery.

    The store’s layout and concept is inspired by the experiences of visiting an art gallery, spending a romantic day out, and creating bespoke pieces at a workshop.

    Lee Hwa Jewellery’s business director Mavis Toh said today’s retail scene is vibrant, sophisticated and innovative, and the same can be said for today’s consumers, especially the millennials, who are driven by a desire for deeper and differentiated brand experiences.

    “Customers will continue to visit brick-and-mortar stores as long as there are new and interesting reasons to go. As retailers, we aim to provide these reasons with a brand-new bespoke boutique concept that will not only excite them, it will allow them to experience jewellery shopping in an entirely new way.”

    A statement from the brand highlighted retail expert predictions that the personalisation of customer experiences will continue to be a key retail trend as consumers seek out highly personalised shopping experiences that cannot be replicated online. It posed that the trend of personal service is also expected to reshape the retail landscape as brick-and-mortar retailers compete with online retailers for the consumer dollar.

  • Pandora sales declining, relies on China

    Pandora sales declining, relies on China

    Jewellery retailer Pandora is looking to China, India and Latin America to arrest a decline in global sales. The Danish company has unveiled an initiative that it hopes will reignite sustainable revenue growth, Programme Now, after group revenue dropped 3 per cent in the third quarter of this year.

    Under the program, Pandora will significantly reduce its franchise acquisitions and scale back new store openings. For the stores it does open, it will concentrate on growth markets, such as China, India and Latin America. It hopes the move will grow like-for-like sales, if not total sales.

    To achieve this, the business plans to enhance its marketing, personalisation, digital and e-commerce capabilities, as well as the in-store customer experience.

    Pandora also noted that part of its success moving forward lies in execution in all parts of the value chain, as well as more closely coordinating parts of the business to work in tandem, to reduce costs.

    The implementation of the program, as well as the weak third-quarter results, however, have led the company to revise its full-year earnings guidance. It has cut its annual revenue forecast from between 4 and 7 per cent to between 2 and 4 per cent, or DKK 1.2 billion to DKK 1.4 billion (US$184 million to $214 million).

    “The third quarter results were unsatisfactory and we adjust our full year guidance,” Pandora CFO Anders Boyer said.

    “We have taken the first major step in the programme today by changing our network expansion plan. We have confidence in a strong future for Pandora and will use this year and next to reset the business.”

    Pandora expects revenue and total like-for-like growth to be impacted through to 2020 by the planned reduction of mark-downs, though this is likely to cause a margin neutral result on the group level.

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  • DFS launches exclusive TIFFANY T Collection worldwide

    DFS launches exclusive TIFFANY T Collection worldwide

    DFS Group, the world’s leading luxury travel retailer, is excited to announce the launch of four exclusive Tiffany T pendants, available exclusively in DFS airport and T Galleria stores from November 1, 2018 until April 2019. Inspired by the iconic New York skyline, the new DFS x Tiffany T Collection features two pendant necklaces in 18K white gold with blue sapphires, and two pendant necklaces in 18K rose gold with pink sapphires, each with an adjustable 16-18 inch chain.

    The Tiffany T Collection embodies everything Tiffany stands for – freedom, happiness, love and strength. Designed with the letter T, as tall, true and iconic as the New York City skyline, a place of courage and reinvention that constantly sparks creativity.

    The strong, graphic form of the letter T is simplified, deconstructed and extended to form the chic necklaces with clean lines and modern angles. The Tiffany T designs are meant to complement each other; they can be boldly stacked and layered or can be worn alone for a sleek and elegant look.

    “The exclusive collection reflects the confident customer who takes a fearless approach to style and we are thrilled to partner with DFS to bring Tiffany & Co.’s signature take on luxury to travelers globally,” said Wong Wei Ling, Vice President, Asia Pacific, Tiffany & Co.

    “At DFS we continually seek to offer our traveling customers new, exclusive and memorable product selections, in partnership with some of the best-known brands in the world. We are delighted to join with Tiffany & Co. to provide first access to the beautiful Tiffany T pendant collection for our discerning customers worldwide,” said Matthew Green, DFS Group Senior Vice President, Watches and Jewelry.

    As graphic and linear as the city that defined this design, the Tiffany T collection is a timeless symbol of modernism and self-expression.

    The Tiffany T collection range will be available exclusively for purchase at DFS and T Galleria by DFS stores worldwide until April 2019.

     

    T Galleria by DFS, Hong Kong, Canton Road

    T Galleria by DFS, Hong Kong, Tsim Sha Tsui East

    T Galleria by DFS, Macau, City of Dreams

    T Galleria by DFS, Macau, Shoppes at Four Seasons

    T Galleria by DFS, Singapore

    DFS, Kansai International Airport, Osaka

    T Galleria by DFS, Okinawa

    T Galleria by DFS, Saipan

    T Galleria by DFS, Bali

    T Galleria by DFS, Angkor

    T Galleria by DFS, Guam

    T Fondaco dei Tedeschi by DFS, Venice

    T Galleria by DFS, Sydney

    T Galleria by DFS, Auckland

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  • Pandora opens fifth concept store at New Delhi Terminal 1D

    Pandora opens fifth concept store at New Delhi Terminal 1D

    Pandora has recently opened its fifth store at New Delhi Terminal 1D. This will be the third store opening in 2018 for Pandora. The brand launched its first store at DLF Mall of India, Noida in April 2017, followed by Select Citywalk in September 2017, DLF Promenade in April 2018 and Galleria Market Gurgaon in June 2018.

    The contemporary and aesthetically designed concept store is located on the ground floor of the domestic airport in the departure holding area of Terminal 1D, New Delhi. The new store carries the entire Pandora jewellery collection available worldwide, including the moments collection, the essence collection, Pandora Rose collection; the all-new 18k gold plated sterling silver-Pandora shine collection.

    Pandora has always encouraged women to empower themselves by celebrating their achievements. These collections are designed to capture life’s unforgettable moments at affordable prices.

    Speaking on the opening, Kanika Bakshi Talwar and Devika Bakshi, Managing Director, say, “We are proud to enter a different format of a concept store, our first in any airport in the country. This store will cater to a large variety of domestic shoppers outside of Delhi NCR and spread the excitement across various cities. Accessibility to our products would be easier now for travelers and we hope to expand further and provide an opportunity for all Indian consumers to acquire their Pandora products in the near future.”

    The Terminal 1D store is a medium size concept store, with all collections available in-store, and is aesthetically designed to give customers ample browsing space to make their shopping experience very comfortable in-transit.

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  • Kataoka’s First U.S. Store Opened

    Kataoka’s First U.S. Store Opened

    Japanese jeweller Kataoka has opened its first store in the US. In stark contrast with the firm’s 700sqft shop in Tokyo, the new 1600sqft New York flagship has been located in the trendy Tribeca neighbourhood to reflect Kataoka’s brand identity with its historic look.

    The store has been distinctively designed with a blend of Japanese and Manhattan sensibilities to convey an exotic industrial context for the brand’s delicate jewellery designs, displayed in vintage Japanese casings.

    Company COO Anis Boudraa said the company founder and designer Yoshinobu Kataoka “only wanted display cases that are antique that have a beautiful patina… they really reflect the theory of Kataoka – working with something that’s old”.

    “Our designer hates fast fashion and everything that’s related to fast consumerism.”

    The firm makes its pieces using only recycled gold, which it salvages from the Japanese semiconductor industry. All pieces are hand made.

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  • Chow Tai Fook sales rises

    Chow Tai Fook sales rises

    Chow Tai Fook sales soared 25 per cent in Hong Kong and Macau in the September quarter.  On the mainland, sales rose by a solid 15 per cent. Same-store sales rose 23 per cent in Hong Kong and Macau and by 6 per cent on the mainland, according to a stock exchange filing by the company.

    But same-store volume growth told a different story: down 2 per cent in Hong Kong and Macau and up 1 per cent on the mainland, reflecting weaker gold prices which correspondingly drove more customers into stores.

    Chow Tai Fook’s sales of gold products grew by 41 per cent in Hong Kong and Macau and by 11 per cent in Mainland China

    Chairman, Dr Henry Kar-Shun, described the Hong Kong and Macau market growth as “impressive” during the quarter, “benefitting from buoyant consumer spending and resilient mainland visitation”.

    He said the same-store sales performance of gold products in both markets was driven by the increase in weight per piece sold. The company’s same-store average sale value on the mainland was HK$4000 compared to $3600 in the preceding quarter, while in Hong Kong and Macau, it rose from $7100 to $8500.

    The average international gold price declined by 5 per cent year on year during the quarter to September 30.

    Chow Tai Fook opened a net 162 points of sale in Mainland China during the quarter, which

    included 158 new Chow Tai Fook Jewellery spaces, three SoInLove spaces and one Chow Tai Fook T Mark space.

    In Hong Kong, Macau and other markets, the group opened one Hearts On Fire space and closed two CTF Watch stores in Hong Kong, and opened one Chow Tai Fook Jewellery space in South Korea. As at September 30 the company had 2822 points of sale globally.

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  • Bvlgari’s cinema themed pop-up at Singapore’s ION Orchard mall

    Bvlgari’s cinema themed pop-up at Singapore’s ION Orchard mall

    High-end Italian jewellery house Bvlgari has opened a pop-up retail place this month in Singapore. Located on level one of the ION Orchard mall, the “Pop (Up) Corn” shop is decked out in saccharine pink and blinking neon lights and takes inspiration from 60s Italian theatre.

    It is also a mini-reproduction of the Italian luxury brand’s Via Condotti boutique in Rome where Hollywood icons such as Audrey Hepburn and Elizabeth Taylor would shop when in town.

    Inside, the pop-up offers limited-edition Bvlgari handbags including Serpenti and Divas Dream bags in calfskin leather, as well as sparkling jewellery pieces and watches.

    The standout piece is the limited-edition matching set of a Bvlgari-Bvlgari necklace and bracelet in rose gold, which is an ION Orchard exclusive. Not to mention a series of cinema-themed objects such as glitzy popcorn boxes, rectangular ticket stubs and dazzling neon lights.

    The Pop (Up) Corn store is open now until December 31.

    The new pop-up serves as a precursor to the official store opening in ION Orchard from Bvlgari in December, joining the store in Marina Bay.

    It’s not the first time Bvlgari has opened a pop-up store in a key capital city.

    In 2017, Bvlgari opened a pop-up store inside France’s Galeries Lafayette department store on boulevard Haussmann in Paris.

    Bvlgari operates flagship stores in most Asian cities including Singapore, Taipei, Shanghai, Beijing, Hong Kong and Macau.

    Founded in 1884 in Rome Sotirios Voulgaris, Bvlgari is now majority-owned by French luxury conglomerate LVMH Group.

    For the first-quarter 2018, LVMH’s watches and jewellery category, which Bvlgari is a part of, witnessed 8% growth in revenue terms and 14% organic growth in the category, totaling 9.5 billion euros. Overall revenues tipped 33 billion euros for the three months ending September 30.

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  • Easing price of gold gives Luk Fook sales some shine

    Easing price of gold gives Luk Fook sales some shine

    Luk Fook achieved same-store sales growth of 14 per cent in its latest quarter, thanks to lower gold prices, good market sentiment and a successful sales strategy. In a note to shareholders, chairman and CEO Wai Sheung Wong said same-store sales of gold products rose by 23 per cent and of gem-set jewellery by 5 per cent.

    Luk Fook Hong Kong and Macau sales led the way, rising 17 per cent, with gold products up 30 per cent, during the three months to September 30.

    However, depreciation of the Renminbi led to a higher tendency for customers to purchase lower-value items, resulting in a single-digit drop in the average selling price of gem-set jewellery products.

    The jeweller’s fortunes appear to have endured after the quarter ended.

    “In the first two weeks of October, the growth momentum of Hong Kong and Macau market

    continued, with same-store sales sustained at a double-digit growth. As for the mainland market, because of the large number of outbound travellers during the long holiday period and a high base, same-store sales of self-operated shops recorded a double-digit drop in the first two weeks of October,” said Wong.

    During the quarter, there was a net addition of 57 Lukfook shops on the mainland: 62 more licensed shops and five fewer self-operated shops.

    At the end of the quarter, Luk Fook had 223 self-operated shops, including 151 in Mainland China, 50 in Hong Kong, 11 in Macau and 11 overseas. It had a further 1500 licensed shops on the mainland, one in Cambodia and one in the Philippines, taking the total network to 1725.

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  • Profit skyrockets for TSL Hong Kong

    Profit skyrockets for TSL Hong Kong

    Profit attributable to the owners of Tse Sui Luen Jewellery International (TSL Hong Kong) doubled for the 12 months to the end of February.

    Favourable business conditions plus cost-saving measures were cited as the reason when the company announced its second interim results for the period, reviewed by its audit committee. Also contributing to the 100.9 per cent increase to HK$46.6 million was the growth in tourist numbers into Hong Kong and Macau.

    The company says this was an encouraging and a welcome relief to the region’s entire retail industry following a downward trend for many years. “Driven by a relatively favourable consumption sentiment across all the festive seasons, the average sales per invoice improved resulting in a year-on-year increase in the revenue of our Hong Kong retail business.”

    This, together with the steady performance of the group’s other retail businesses in Mainland China, Malaysia and on its e-commerce platform, saw overall performance stay in line with expectations.

    Consolidated turnover for the period increased by 11.8 per cent to $3.8 billion.

    Cautious approach

    TSL says it has started to benefit from its cautious approach to expansion in Hong Kong and Macau over the past few years. This, together with the rise in tourism, improved consumption sentiment and enhanced product range, has resulted in sales turnover rising 10.3 per cent with stable same-store sales overall.

    “Accounting for 39.3 per cent of the group’s total turnover, our retail business in Mainland China continues to play a vital role as the group’s growth engine,” says the company. With the shift away from department stores to shopping malls, TSL is optimising its retail network accordingly. It is hoping this will improve same-store sales figures, which have continued to slip 3 per cent.

    Its retail network on the mainland grew by 50 stores to 380, including 187 franchised outlets.

    Sales on the group’s major e-commerce platforms surged by more than 20 per cent from last year.

    In Malaysia, TSL had an “encouraging boost” of 37.5 per cent in sales, reinforcing its belief in the market after many years.

  • YNAP Clicks with Customers By Launching First Dedicated Platform For Fine Jewellery

    YNAP Clicks with Customers By Launching First Dedicated Platform For Fine Jewellery

    YNAP, the world’s leading online luxury fashion retailer, has today launched its first dedicated online destination for fine jewellery and luxury watches to serve a fast-growing customer base seeking to purchase high-value items in a single click.

    The destination – part of NET-A-PORTER’s website – features an extensive fine jewellery collection from more than 40 brands, including Piaget, Cartier, Pomellato, Tiffany & Co. and Buccellati, and select items priced at over €100,000. New and extensive content will be available for customers including “how to” on topics such as fine jewellery storage and care, diamond education, as well as style inspiration. Customers will also be able to speak to personal shoppers who have been trained by the Gemological Institute of America.

    Fine jewellery and watches is a key part of YNAP’s five-year strategy to grow its high-end luxury category in response to strong customer demand. The Group has pioneered the category online, leveraging its first mover advantage to establish itself as the leader in online sales of hard luxury products.  The success to date on both NET-A-PORTER and its stablemate, MR PORTER shows that many customers now have no hesitation in making these exclusive luxury purchases online.

    Speaking at a luxury industry conference in Portuga, Federico Marchetti, CEO of YNAP, said: “This explosion in fine jewellery and watches shows there’s no limit to what customers will buy online with us. And we are now getting a fascinating insight into who these hard luxury customers are and what they are prepared to buy online.”

    Mr Marchetti said: “Fine jewellery and watches are the perfect complement to high fashion and the category is expected to create an opportunity for sales of 100m euros by 2020 for YNAP. We surprised the sector by introducing this successful category, and the potential of our online platforms for branded jewellery and luxury watches is huge.”

    Key customer insight on fine jewellery and watches from NET-A-PORTER and MR PORTER includes:

    • Two thirds of fine jewellery and watch sales on NET-A-PORTER now come from the Group’s most loyal customers, known as Extremely Important People (EIPs)
    • A quarter of NET-A-PORTER’s sales come via personal shoppers, demonstrating the importance of service, while the majority of customers are buying either as a gift for themselves or to wear for a special event
    • The majority of fine jewellery and watch customers for both NET-A-PORTER and MR PORTER are from the US, with the UK and Hong Kong the next biggest markets
    • Cartier launched on MR PORTER earlier this month, complementing its array of existing fine watch brands. MR PORTER also recently unveiled an exclusive Bell & Ross sapphire watch retailing at €400,000, the most expensive item the Group has ever carried across its sites
    • NET-A-PORTER EIPs typically own around 35 pieces of fine jewellery and watches in their collection and they enjoy benefits such as EIP previews (providing early access to pieces) and one-to-one appointments with Personal Shoppers. Customers also buy after seeing something they love, even when it comes to fine jewellery
    • When NET-A-PORTER introduced Cartier in 2017, it sold a £113,000 pavé limited-edition Panthère de Cartier watch on the day of launch – the most expensive item sold on the e-commerce fashion site so far
    • On MR PORTER, which first started selling luxury watches in 2013, the fine watches offering is generating new customers. They are initially attracted by the watches– especially aviation and sports based watches – but they then go on to shop other categories, such as from leading designers including Tom Ford, Brunello Cucinelli and Gucci

     

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  • Online boost for Chow Tai Fook Jewellery

    Online boost for Chow Tai Fook Jewellery

    Chow Tai Fook Jewellery Group’s fourth quarter saw e-commerce business soar in Mainland China.

    Retail sales value grew at the rate of 38 per cent year-on-year accompanied by a volume boost of 34 per cent.

    During the three months to the end of March, the percentage of retail sales value settled by Alipay, China UnionPay, WeChat Pay or RMB in the Hong Kong and Macau market – a proxy for sales contribution from mainland tourists – improved to 51 per cent from 44 per cent for the same period last year.

    Both the value of retail sales and same-store sales continued to improve in both the Mainland China and Hong Kong/Macau markets. Hong Kong/Macau had relatively stronger growth during the quarter thanks to improved consumer sentiment and a revival of visitor numbers from the mainland.

    In Mainland China, same-store sales of gem-set jewellery declined while retail sales value stayed positive. The same-store average selling price improved to HK$7100 (US$905) from $6500 a year earlier.

    In Hong Kong/Macau, both volume and average selling price at same-store level increased during the quarter. There was double-digit growth in same-store volume while the average selling price improved to H$13,000 from $12,400.

    An increase in volume drove same-store sales performance of gold products in both markets. The average selling price improved with an increased gold price (up an average 9 per cent) and higher-value purchases.

    The same-store average selling price was $4400, up from $3900, in China while the figure for Hong Kong/Macau rose to $7900 from $7000.

    Chow Tai Fook ended the quarter with 20 more points of sale. This included 17 outlets opening in China, one in Hong Kong/Macau, one in Taiwan and two in Korea. One point of sale closed in the US, taking to total of outlets to 2585.

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  • Soo Kee Group plans rebranding

    Soo Kee Group plans rebranding

    Listed jewellery retailer Soo Kee Group is planning to change its name.

    In a statement to shareholders, CEO and executive director Lim Yong Sheng says the company proposes to adopt the new title SK Jewellery Group.

    “The group currently retails fashionable jewellery and mementoes under, amongst others, the well-established SK Jewellery brand in Singapore and abroad. As such, the board is of the view that the proposed change of name will better reflect the profile, business activities and business direction of the group,” he wrote.

    “In addition, the, the proposed change of name will also allow investors and the group’s business partners to better identify and associate the company with the SK Jewellery brand.”

    Shareholder approval for the change will be decided at an extraordinary general meeting of the company on April 30, following the annual meeting.

    The new name has already been reserved with the Accounting and Corporate Regulatory Authority of Singapore.

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  • Jeweller Michael Hill is closing all but six of its 30 Emma & Roe stores

    Jeweller Michael Hill is closing all but six of its 30 Emma & Roe stores

    Michael Hill will spend $5.8 -$7.9 million closing all but six of its 30 Emma & Roe stores by the end of the financial year as part of its repositioning of the struggling brand.

    The move will see Emma & Roe exit its operations in New Zealand and New South Wales to focus specifically on south-east Queensland.

    In an update provided to the market on Tuesday morning Michael Hill said that its review of the Emma & Roe brand, kicked off in January after another set of lacklustre trading results, was now completed.

    While management believes there’s an opportunity for the business in the demi-fine jewellery segment, it has opted to drastically reduce the brand’s footprint and will move forward with a “smaller, concentrated store footprint” for an initial trial period that will run until the end of FY19.

    Michael Hill has already negotiated non-binding lease exit terms with most of its Emma & Roe landlords and will now move forward with binding negotiations, which will likely see the brand exit several states and concentrate on a “single market area”.

    Chief financial officer Andrew Lowe said that Michael Hill will consider scaling the brand back-up in the future, but wants to preposition the company in an agile way.

    “30 stores is a very large footprint and the intention is to reposition the brand…we want to do that effectively and in an agile way with that smaller footprint,” he said.

    Michael Hill said it will redeploy Emma & Roe employees to Michael Hill stores where possible, but will undertake redundancy arrangements for others, with total severance costs expected to be finalised in 2H18.

    Severance costs, alongside one-off cash costs associated with lease terminations, are expected to cost $5.8 – $7.9 million, although management said this reflected the information currently available to it and was subject to change.

    The company also said that its negotiation to exit its nine stores in the US are ongoing with landlords.

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  • Soo Kee to add shine to Thai market in $1.2m joint venture

    Soo Kee to add shine to Thai market in $1.2m joint venture

    Home-grown jeweller Soo Kee Group is setting up a joint venture in Thailand. The collaboration is with leading Thai jeweller Aurora Design and will be set up with an initial paid-up capital of 30 million baht (S$1.2 million). Soo Kee will hold a 40 per cent stake and Aurora a 60 per cent stake, according to a memorandum of understanding signed yesterday.

    The joint venture firm will sell gold and diamond products under Soo Kee’s Love & Co brand, which was set up in 2007 to focus on bespoke engagement rings and wedding bands.

    Soo Kee will also license and supply intellectual property rights, products and support. Group chief executive Daniel Lim said after the signing ceremony at Soo Kee’s Changi Business Park headquarters that the plan is to take the bridal jewellery concept to Thailand, where there is a gap in the market.

    “Thailand is a huge market for jewellery. It’s also highly fragmented as far as diamond consumption is concerned,” he noted.

    “There are no decent business concepts yet to capture the diamond market, which is similar to what it was like in Singapore 20 to 30 years ago when people traditionally bought gold and the diamond market was underdeveloped.”

    He noted that last year, the Thai jewellery market, mostly consisting of diamond and gold, was worth more than 76 billion baht.

    Soo Kee started talks with Aurora, which has more than 170 stores across Thailand, last year as part of regional expansion efforts.

    Mr Lim said the initial plan is to have 20 retail points in Thailand in the first five years. Soo Kee expects to break even after the first year.

    Mr Lim added: “We will target key cities and strategic locations as part of the first phase.

    “We’re looking at concept stores and depending on the location, there are also opportunities in high-end department stores, where we can possibly open boutiques within them to exploit their traffic flow and footfall.”

    Aurora chief executive Aniwat Srirungthum said the firms are looking at cities such as Bangkok and tourist hot spots such as Phuket and Pattaya.

    Mr Aniwat said: “We are confident of Love & Co’s market potential, and this will widen our product offering and strengthen our capability to grow our customer base.”

    Soo Kee also said yesterday that it will be the first Asian partner of The International Institute of Diamond Grading & Research, part of diamond giant De Beers.

    Soo Kee, whose other brands are Soo Kee Jewellery, SK Jewellery and SK Bullion, is keen on growing in the region.

    Mr Lim said: “Thailand is important to us, but we will not stop here. Thailand is also recognised as the most important bullion market in the region.

    “Be it in the form of gold jewellery or bullion, we see other possible opportunities in Thailand. We are definitely interested in the regional markets and are constantly looking out for new opportunities.”