JNA Nov/ Dec 2020

22 | JNA Nov/Dec 2020 SPECIAL FEATURES Business models The coronavirus pandemic also forced businesses to rethink their growth and operational strategies. According to Lo, Hong Kong’s jewellery industry, which is mostly export-oriented, realised the need to diversify its manufacturing base and maintain some production capabilities in the city. Over 90 per cent of Hong Kong’s manufacturing facilities are located in China, he noted. “As borders with the mainland were closed and factories there shuttered, we relocated some functions to Hong Kong, particularly digital and CAD/CAM production that can be handled in the city. We will need to eventually set up a skeleton facility in Hong Kong so when there are difficulties transporting materials across borders, our production will not be crippled,” he explained. Jewellery businesses could also reconsider their business models to foster growth, according to Damrongsakul. The new normal in a Covid-19 world highlighted the benefits of streamlined operations and production partnerships. “Companies may no longer need to maintain large workforces. They can focus on their strengths and outsource or partner with others on different components of the business. For instance, those that specialise in jewellery manufacturing but are not proficient in design should join hands with design companies. Italian brands are experts in design; Asian companies are good at manufacturing. They can team up for growth,” the AGJA official explained. Digital adoption is another area for collaboration, he pointed out. Since most jewellery companies do not have the capability to set up their own platforms, they can work with digital experts to set up an online business. “Covid-19 showed us we do not have to do everything in-house. As we downsize and focus on expenses, we can partner with experts in different fields to maintain growth. You do not have to wait until you’re ready to embark on new aspects of the business,” Damrongsakul said. Anticipating stronger demand for fashionable, affordable jewellery that requires greater attention to design and pricing, he encouraged businesses to seriously consider shifting from orders and factory work to design and brand development. “More than 80 per cent of companies in ASEAN are OEMs. When buyers stop orders and payments, they are in big trouble. The key to long-term survival is creating and selling their own designs and having a branding strategy,” he explained. Retail measures Jewellery retailers likewise found themselves making significant adjustments to cater to their customers during the Covid-19 crisis. Virus-induced lockdowns and social-distancing measures accelerated the adoption of digital initiatives, cross-industry collaborations and omnichannel strategies, according to speakers at two Return & Recovery webinars – Retail Strategies in a Covid-19 World on October 5 and The Asian Retail Market on October 12. Indonesia’s PT Central Mega Kencana kept customers engaged during the pandemic through client outreach and social media campaigns on healthcare, shop-from-home initiatives, and entertainment content such as virtual concerts and Instagram filters. Group Creative Director Tanya Alissia said, “We are now in the ‘low touch’ economy so maximum effort to go digital is really necessary.” The multi-brand retailer initiated closer collaborations with other industries to entertain customers and expand its network through database sharing. “When you choose the right partner to collaborate with, these partnerships can be highly effective. Database sharing with banks was common pre-pandemic. We extended this to fashion designers and musicians too,” Alissia commented. Cross-industry partnerships likewise appeal to India’s Kashi Jewellers. Vice President and Partner Shreyansh Kapoor is setting aside an area for pop-up exhibits of luxury watches and high-end clothing lines in the retailer’s upcoming showroom. PT Central Mega Kencana Group Creative Director 創意總監 Tanya Alissia Kashi Jewellers Vice President and Partner 副總裁兼合伙人 Shreyansh Kapoor