Rendez-Vous

How are Hong Kong’s manufacturers coping up with economic slowdown?

The global economic slowdown and crisis in 2008-09 prepared everyone for tough times. China isn’t affected much by this crisis as compared to the US and Europe. From the 4th quarter of 2008 to 2nd quarter of 2009, the entire industry suffered. Orders were affected due to poor sentiments, interest rates and currency fluctuations. If we compare 2009 figures with 2007 or 2008, then there is a 23.7% drop in demand but it has picked up again. At Baselworld 2009, everyone was guarded and cautious. All watch manufacturers and marketers pruned production and also focused on markets that weren’t affected by the crisis. They also focused on certain segments of the market including the mid-segment price points. Hong Kong trade are OEM players and this focus on niche segments benefits them. However, it is still wait-n-watch till Christmas 2009. Last year in 2008, the Hong Kong Fair was held in early September before the crisis set in towards the end of September 2008. And the exhibition evoked good response. This year, Baselworld 2009 also showed lesser number of visitors. However, Hong Kong Fair witnessed quality-serious visitors and buyers. We are witnessing rush of orders.

Why is brand building becoming more and more important in Hong Kong?

In Hong Kong, OEM products are posting higher sales as brands take a longer time to build. Brands account for 10-15% of the whole pie. We have just started creating brands in the last few years. It takes efforts, design, marketing, distribution and investments. This year, we have ramped up Hall 1 and focused on the Brand Gallery. We are making efforts to promote our own brand. TDC spends a lot of money to attract international buyers. Brand names can get more exposure to the Chinese and Asian markets. We should invite more brands to be part of the Brand Gallery. The watch manufacturing associations can help provide OEM and ODM services for brands as well as tie-up with companies. Hong Kong trade has a holistic approach. It can create its own brand completely and also act as OEM/ ODM. It can also help partner international companies, who are looking at entering the Chinese markets. 

JACOB JENSON LOGO

Plain surfaces which, upon closer investigation, reveal a rich inner life. Clear lines and sharp borders inviting investigation. A delight to the eye, calm acceptance in the mind. An invitation to embrace. No, this is not a description of industrial products from Jacob Jensen Design, though it could be. It is a description of the view from the rather remarkable house where Jacob Jensen Design has been established for more than a quarter of a century. On a hill facing a bay in the Limfjord, industrial design is created so calm and clear in its message that one is tempted to interpret it as an illustration of the water’s reflection and the horizon which dominates the view from the studio. 

Maybe it’s the B&O stereo in the living room. Maybe it’s the Gaggenau stove or the Margrethe bowl in the kitchen, or the weather station, the Nilfisk vacuum cleaner, the telephone, or the JoJo cable reel in the workshop. The Labofa office chair you are sitting on, the watch on your arm or the windmill you pass by. With more than 500 products designed since the beginning of the 1950’s, Jacob Jensen is possibly the most represented designer in the Danish home. 

Excerpts from a rendez-vous with John Rodrigues Garcia (Global Business Head) of Danish design and Jacob Jensen...

Tell us about the design philosophy of Jacob Jensen? 

Jacob Jensen started his career with Bang & Olufsen Sound Systems. He moved on to design all kinds of lifestyle products. We don’t sell watches but the concept of design. The mission is to develop and design superior lifestyle products. The values are pure, perfect and enduring. We also have a vision to become the leading international high-end brand with a Danish-Scandinavian background. In 1990, his son Timothy Jensen took over the reins of the company and designing. They don’t follow the market but the market follows their designs. You like it, you buy it!

Tell us about your markets and target audiences? 

We have the world wide license for jewelry, watches and clocks. We are present in 23 countries across the world. Since the products are pure, clean and functional, the target group comprises qualified self-employed professionals such as lawyers, judges, doctors, etc., from their 30s. We have a wide range of products including the classic world timer clocks. We sell (and are identified on the basis of) values and technology in an understated way. We build our pitch on the basis of pure play and simplistic designs. All our products are made from stainless steel & Titanium with Swiss movements. There are eight of the different series till date and we are unveiling two more very soon. Every market is treated uniquely while keeping local sensitivities. Across the world, there is a uniform pricing policy. We are present in all the high end stores, boutiques, jewellery stores, design gift shops and modern art museums in the world from Japan to America and Holland to Russia. We train retailers not to sell the watch but to sell the Jacob Jensen way of lifestyle. All our distributors are invited to visit our head office and design studio in Denmark. We are bringing a unique lifestyle to the world and we want everyone to experience this first hand. We are one of the well known brands in the area of design. We are connecting to the end consumers through our printed material communication. We unveil new collections on average every year. We believe we cannot be compared to any peer group brands. We don’t have direct competitors. We have core price range from 250 to 1,000 Euros. Our designs are unique. Our different price segments and look give us a strong positioning. 

Tell us about the Danish design background? 

The creation of Danish Design watches commenced in 1988 when S. Weisz Uurwerken BV found a gap in the market. The demand of modern designs was high and especially the offer in design watches was very small. Scandinavian designs are famous for its simple, elegant and non-obstructive characteristics. One of the first designs of Danish Design is by Danish designer Jan Egeberg. Throughout the years there were various other Danish freelancers designing for this collection.  

Tell us about your India plans? 

We adhere to the local culture and mentality. We met Rajan Mehta, who has a good experience. We asked him to join us and open branch office in India to distribute from this subsidiary. We shall introduce products in November 2009. We have our own Danish production where we work with young Danish designers which have the same ethos with strong design philosophy. It is priced from 80 to 200 Euros and has a wide variety of collections with 400 different models. Danish Designs will be introduced into the Indian market early and will be available from November 2009 onwards. We shall work with local distributors and multi brand outlets to create a strong presence and will make steady progress over next 5 years.




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