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Product Magazines: Product Trends |
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Vol.2 1996    |
LEADER IN A CROWDED FIELD - Dehres Int'l Ltd BRIDGES 'FASHION' AND 'PRECIOUS' - Kai-Yin Lo Ltd COLOURFUL CUTS - Lily Creation |
Diamonds have been Dehres Int'l Ltd's business for more than 10 years. But even in Hong Kong's competitive, diverse mar-ket, this company is well recognised as a niche supplier of the finest qual-ity gems and jewellery available.
"For Dehres, quality counts for everything. The quality of materials, design and workmanship is our lifeblood and what sets us apart from other manufacturers," says managing director Ephraim Zion.
Striving for perfection has led the company to place more emphasis on exclusive handcrafted, high-end jewellery, in addition to dealing in polished diamonds. When the husband-and-wife team of Ephraim and Hannah Zion established the company in Hong Kong in 1985, 80% of their business was derived from trading diamonds. Now, having responded to customer requests, more than 50% of Dehres' turnover comes from its line of Hong Kong-manufactured jewellery.
Ephraim Zion arrived in Hong Kong in 1971 with almost 10 years of experience as a diamond cutter and family connections in the jewellery industry. Clients pointed out the need for a high-end supplier and, after working with other family members in the territory for several years, Zion started his own business.
"Even before we started Dehres we were known as a source for larger-sized polished diamonds, five carats and up, and for fancy-shaped diamonds. We filled a niche by providing these products, often to retail stores, on memo," remembers Zion. Other clients from Asia appreciated the products but began to request more and more finished jewellery, either single-stone pieces or elaborately designed items of jewellery. Zion spotted the demand potential. He established a factory and hired a renowned Swiss craftsman to train local workers.
Dehres has been able to surpass the competition by placing importance on design, as well as quality. "We produce big pieces of jewellery that other companies will not do, such as necklaces priced from US$40,000 to US$3m FOB Hong Kong," Zion says. "With other companies' high-end jewellery you can sometimes see rough mountings, dull polish and inferior settings. Our pieces always meet our exacting standards."
Zion says many jewellery settings from other manufac-turers make use of only two dimensions, making the stones appear flat, but Dehres pieces emphasise the depth of the gems. "Our designs show off all the stones used so the consumer gets a piece that is more impressive," Zion says.
This European-style flair and refinement does not come cheap by Hong Kong manufacturers' standards but represents value compared with the rest of the world. For example, the 18K gold mounting for a 5-7 carat oval cut diamond ring with half moon-shaped side stones can cost about US$1,000 from Dehres. A similar ring mounting from a French or Swiss company would cost 2-3 times as much, Zion says. Being in Hong Kong also means Dehres is quicker and more efficient at sourcing and manufacturing the product.
Dehres sets diamonds of three carats and up and averages 20-25 rings, 2-3 necklaces and up to five bracelets per month. Production can vary according to demand but the emphasis on quality is never sacrificed.
Zion finds diamonds ranging in colour from D to H and in clarity from VVS to VS most saleable. Overall, he identifies three separate quality levels in which Dehres deals. The top quality is the collector's-grade diamonds of D to F colour which are IF to VVS clarity. Diamonds in the colour range of G to H and graded IF to VS fit into the middle bracket. The third bracket encompasses diamonds with similar clarity but in colours from H to J. "We never use stones of less than VS2 clarity," says Zion.
The local market is important to Dehres but 70% of its production is exported, mainly to markets in Southeast Asia. Other export markets include European centres such as France and Switzerland.
Studying demand in the marketplace is how Zion plans new business developments and products. The next year is no exception. As well as continuing with its present production lines, Dehres is launching an interesting array of coloured diamond jewellery using fancy intense yellow, pink, blue and, when available, green diamonds.
To suit buyers looking for better value products, Zion notes, Dehres will turn its attention to the US$20,000-70,000 range. "We have been inundated with requests for jewellery in this price range and will be responding to this demand with a new line soon," he says.
Written by Johnny Edison
"To me, jewellery should be part of your everyday life, from morning to night. Appealing, classic, exotic and always, always wearable," says Kai-Yin Lo, managing director and main designer of Hong Kong jewellery firm Kai-Yin Lo Ltd.
"Real value in jewellery lies in its wearability ... it must also be comfortably affordable," Lo explains.
These two statements sum up the philosophy of the firm itself and the small treasures it designs, wholesales and retails. Its collection bridges the divide between precious and fashion jewellery, incorporating an Eastern sensibility with Western aesthetics, originality with wearability, and elegance with affordability.
Lo, who did corporate public relations before going into the jewellery business, is among Hong Kong's many internationally renowned designers. She has created an identity in a range of jewellery that reflects her own point of view.
"Every woman is unique. I believe her jewellery should be a reflection of her personal style," she stresses. "That's why my designs feature precious and semiprecious stones, blending together the traditions of East and West."
"My inspirations are nature's infinite combinations of colours and shapes smoothed by time," she says. The company, which specialises in 18K vermeil and 18K gold precious and semiprecious pieces, carries three main lines: Lumia, Gold and Traditional.
The Lumia category is a stylish and colourful blending of semiprecious stones set in 18K vermeil, launched with two yearly collections Ä spring/summer and autumn/winter. "This line enjoyed great popularity in the US, and as Asian markets gradually catch up with the West, this collection is now also popular in Japan, Hong Kong and recently in Thailand," Lo says. Kai-Yin Lo Ltd has shops in all of these locations, as well as New York, Seoul and Singapore.
The Gold series is an ample showcase of the limitless appeal of gold when combined with precious and semi-precious stones. It incorporates rhythmic and modern designs embellished with diamonds, and stones set in 18K gold. One main annual collection is launched each spring in May-July.
"Since recent emphasis is put on Asian markets, great weight is put on creating 18K gold jewellery which is boutique in direction and look but with Kai-Yin Lo flair," Lo says of the Gold line.
The Traditional collection is a creative and wearable mix of antique-look pieces, often interfused with modern elements. They are mostly assembled into necklaces and pendants. This series is available throughout the year.
The company makes unique pieces of jewellery by hand and larger series by casting. Delivery takes 10-13 weeks after the customer's approval of samples.
Lo, the firm's concept maker and chief design director aided by three other designers, started the business in 1974 when she was handling corporate public relations for Time Inc. As a part-time jeweller, she made her first jewellery by piecing together Chinese carved coral beads, jade buckles and freshwater pearls. When she took them to Cartier, the store bought the entire collection. But she did not engage in the jewellery business full-time until 1979.
A former student of history at Cambridge and London Universities, Lo foresaw the evolving trends in fashion and society. This led to her concept of designing day-into-evening jewellery suitable for all seasons. For the future, "We will focus on high jewellery Ä an exclusive range with special stones, while continuing with our present ranges," she says. "More emphasis is put on the Asian markets."
"We wholesale to the US, Japan and Singapore, to agents and stores which operate Kai-Yin Lo corners bearing the Kai-Yin Lo name," she says. Wholesaling abroad accounts for half of the company's turnover, with domestic retail generating the rest.
In Hong Kong, it has three retail stores in upmarket shopping arcades, and Kai-Yin Lo products are sold at the TDC's Design Gallery in Convention Plaza.
The firm is bullish on the market potential of Thailand, where it opened a store in June to spearhead the establishment of another two there by mid-1997.
Written by Beatrice Lee
Lily Wong likes to wear her own jewellery. Literally. Most of the boldly coloured, intricately cut pieces this Hong Kong business woman selects from her jewellery box in the morning bear the name of the company she established together with her sister in 1985 Ä Lily Creation Ltd.
Lily Creation began business as a lapidary, and this shows in its intricate gemstone cuts, the designs in which they are set and the symbiosis of these two ingredients. Semiprecious stones of all shapes and sizes abound, creating a look that exudes confidence and colour. "We cut and polish all our semiprecious stones to individually fit our jewellery designs," says Wong.
The jewellery ranges from silver-cast pieces to 14K and 18K gold to platinum rings, earrings and necklaces. The higher-end pieces are handmade and set with diamonds and coloured stones. Prices start at about US$20 FOB Hong Kong and range up to US$100 for very simple silver designs, while the collection of gold jew-ellery ranges in price from US$100-1,000. The company recently launched a range of platinum jewellery, mostly rings set with diamonds, priced at US$300-1,000. These have proved popular, according to Wong, and she is updating the com-pany's designs.
"Lily Creation makes rings and jewellery that are in fashion. Our lines are constantly changing, keeping pace with consumer taste. We provide the kind of pieces that women wear today. They like to wear lots of rings of different modern designs and we cater to that demand," says Lily Wong, managing director.
The quality of polished diamonds used is mainly H-I colour with VS clarity. Wong says the stones are never larger than a carat. "Our jewellery is fashion jewellery and we have to hit certain price points," she says. In the medium range of jewellery, Lily Creation's best selling range, the style is the most important factor and the price range is US$300-500.
Wong and staff members travel frequently to see other works that inspire new creations. Customer response and request also play an important part in the design process. "Feedback from our customers is also very important since they know what they need to sell to their customers. We like to work with them as much as possible," Wong says.
All production takes place in a joint-venture factory in Guangdong province, southern China. One of 10 Hong Kong staff members travels there at least twice a week to monitor production. The factory, which opened in 1990 and employs 110 people, manufactures about 3,000 pieces of jewellery per month.
The impetus for setting up Lily Creation came from some Japanese customers of the company that employed Wong and her sister, Sumi Wong, at the time. These customers saw Lily Wong's potential as a business woman and prompted her to venture out on her own, at first sub-contracting production to local factories. Most of the work was semiprecious gem lapidary and Lily Creation gained a strong reputation for innovative and high-quality carvings and ornaments in rock crystal, nephrite, amethyst and lapis lazuli. This expertise is reflected in the pieces Lily Creation produces today.
The company grew steadily despite a hard business environment, one that was especially challenging in 1989, according to Wong. More than 10 years after starting the business, Wong says she feels her creativity and business drive are as fresh as ever.
The US and Japan receive the majority of Lily Creation's production, with 40% exported to each country, while European countries account for about 10%. The remaining 10% goes to other countries, mostly in Southeast Asia and it is in these markets that Wong sees the strongest potential for business. She is targeting these markets and seeking new customers, particularly in Taiwan and Malaysia. Another important and continuing part of Lily Creation's business is manufacturing specific designs for a prestigious US jewellery house that Wong prefers not to name, which accounts for about 10% of production.
A long-time exhibitor at the March and September Hong Kong jewellery shows, Lily Creation also attends Inhorgenta in Germany and the TDC's annual Jewellery, Watches & Clocks Exhibition in Osaka and Tokyo.
Written by Johnny Edison
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