Speech by Mr Lee Yi Shyan, Minister of State for Trade and Industry and Minister-in-charge of Entrepreneurship at the Singapore International Jewellery Show 2007 on 23 August 2007, 10 am at Suntec International Convention & Exhibition Centre Level 402 & 403
Hon Dr. Sarath Amunugama
Minister of Enterprise Development &
Investment Promotion, Sri Lanka
Your Excellencies,
Distinguished Guests,
Ladies and Gentlemen,
Good Morning
I am pleased to join you at the opening of the Singapore International Jewellery Show (SIJS) 2007. In particular, I would like to extend a warm welcome to our guests from overseas.
The Jewellery Sector in Singapore
Singapore’s retail industry is a $25-billion business, and is one of the main sectors fuelling our economy’s growth. Retail also plays an integral role in enhancing our attractiveness as a premier business and tourist destination.
The jewellery sector is a key and growing contributor to Singapore’s retail industry, comprising 750 establishments and employing close to 5,400 people. It contributed $1.46 billion or 7 per cent of the retail trade in Singapore[1].
As a popular tourist destination in Asia, Singapore is also a favourite spot for tourists keen on jewellery. In 2005, tourists spent more than $424 million on jewellery items in Singapore. Indeed, jewellery has been consistently ranked as one of the top three most purchased shopping items by tourists in Singapore in the last few years, accounting for 13 per cent of their total expenditure, after fashion and accessories, and consumer tech products.
Opportunities for Growth
Clearly, for the Singapore jewellery industry to grow, it as to consider new strategird to sell more to the local population as well as to international visitos. While the local population accounts for two-thirds of the sales currently, the growth potential for our jewellers is good if we can sell more to tourists, as well as export more to the region and international markets.
Minister of Enterprise Development &
Investment Promotion, Sri Lanka
Your Excellencies,
Distinguished Guests,
Ladies and Gentlemen,
Good Morning
I am pleased to join you at the opening of the Singapore International Jewellery Show (SIJS) 2007. In particular, I would like to extend a warm welcome to our guests from overseas.
The Jewellery Sector in Singapore
Singapore’s retail industry is a $25-billion business, and is one of the main sectors fuelling our economy’s growth. Retail also plays an integral role in enhancing our attractiveness as a premier business and tourist destination.
The jewellery sector is a key and growing contributor to Singapore’s retail industry, comprising 750 establishments and employing close to 5,400 people. It contributed $1.46 billion or 7 per cent of the retail trade in Singapore[1].
As a popular tourist destination in Asia, Singapore is also a favourite spot for tourists keen on jewellery. In 2005, tourists spent more than $424 million on jewellery items in Singapore. Indeed, jewellery has been consistently ranked as one of the top three most purchased shopping items by tourists in Singapore in the last few years, accounting for 13 per cent of their total expenditure, after fashion and accessories, and consumer tech products.
Opportunities for Growth
Clearly, for the Singapore jewellery industry to grow, it as to consider new strategird to sell more to the local population as well as to international visitos. While the local population accounts for two-thirds of the sales currently, the growth potential for our jewellers is good if we can sell more to tourists, as well as export more to the region and international markets.
According to
the World Wealth Report 2007 from Merrill Lynch and Cap-gemini, more than
2.6million High Net Worth Individuals (HNWI) reside in the Asia Pacific region
and account for more than a quarter of global high net worth assets. The report
highlighted that these HNWIs plan to allocate 24 per cent of their investment
dollars on jewellery purchases, higher than the global HNWI average of 18 per
cent.It is interesting to note that HNWIs consider purchases of jewellery as
INVESTMENTS, rather than consumption or expenditure. If so, the question for
those in the industry then is whether what we offer will capture this new trend
of spending, or investments, I should say.
Challenges ahead
Meanwhile, Singapore jewellers also face strong competition from overseas.China and India, with their lower cost structure, have substantial manufacturing capability especially in the costume jewellery segment.European countries, likeItalyandFrance, are renowned for their exquisite designs and reputed workmanship.
Against these dynamic market forces, our jewellery companies possess unique strengths that are not fully exploited.What are these?They are Design, Branding and Trust.Let me elaborate.
Enhancing Design Capabilities
Twenty years ago, it used to be that Asian consumers purchased jewellery for their intrinsic value. For instance, they bought gold, literally for their ‘weight in gold’. Today, many consumers are buying mainly because of the fashionable designs. Whether the jewellery is made of precious metals and materials is a less important consideration. As a result, a whole new segment of costume jewellery has sprung up.Luxury watch makers, exquisite furniture retailers, branded clothes retailers and even leading marques of cars are creating their own lines of jewellery to complete their lifestyle offerings.
Design is therefore a competitive advantage for our jewelers in differentiating themselves.I am heartened that more local jewelers are realizing the importance of design. For instance, Aspial-Lee Hwa’s collaboration with top Japanese designer Toshiyuki Kita, led to the birth of an exclusive “Twist’’ jewellery collection.This was launched at the Milan Fair in 2006, paving the way for the company to enter the international jewellery market.
Another example is the Goldheart brand of jewellery that has leveraged on design to set itself apart from the competition. As part of its initiative under the Celestial Celebrities Series, Goldheart has partnered famous celebrities to design unique jewellery pieces.
This strategy has enabled Goldheart to tap on the growing married couples market segment and the response has so far been positive.
In terms of capability building, the Government has dedicated more resources to promote design capability in Singapore.Over the last few years,we have certainly seen enhanced awareness of Singapore’s growing capabilitiesthrough the efforts of the DesignSingapore Council. The Council works closely with various Government agencies and industry partners to develop initiatives that aim to establish Singapore as a leader in cutting-edge design expertise. Through initiatives such as the DesignSingapore Scholarships and the President’s Design award, we have raised the profile of budding designers to attract and create a pool of world-class expertise in Singapore.
Brand Development
Next, I would like to talk about Branding.A Brand is a promise made good. Tiger Woods is a brand. Rolex is a brand. Toyota is a brand. Raffles Hotel is a brand. Singapore Airlines is a brand. Successful brands command premiums. They bring to mind certain emotive qualities and attributes. Successful brands build customer loyalty.
In the jewellery industry, there are a number of outstanding brands. Tiffany is one such example. The Tiffany brand carries with it attributes such as timeless design, prestige and the company’s renowned reputation for quality and craftsmanship.Tiffany has immortalised these values in its distinctive Blue Box, which makes customers want to purchase the contents that come in the box.
I am happy to hear that Poh Heng Jewellery, one of Singapore’s pioneer jewellers, embarked on its branding journey last year. Poh Heng saw potential in the market segment of the modern working woman and launched two new brands: ORO22 and itrust me. The company then employed selective advertising to showcase these new brands. Through these branding efforts, the 59-year-old jeweller has successfully transformed itself from a traditional family-run goldsmith to one of the most highly recalled brands in Singapore today. Since 2006, their turnover has also increased by more than 15 per cent.
Another forward-looking local jeweller is Soo Kee. Set up in 1991, Soo Kee Jewellery has grown from a heartland traditional goldsmith to become one of the leading local jewellery chains today. Soo Kee has always believed that diamonds should not be enjoyed by just the high-end consumers or be meant for only special occasions. In 2004, Soo Kee took its business to new heights with the introduction of SK Jewellery, which made diamonds available to women of all ages and at affordable prices.
Challenges ahead
Meanwhile, Singapore jewellers also face strong competition from overseas.China and India, with their lower cost structure, have substantial manufacturing capability especially in the costume jewellery segment.European countries, likeItalyandFrance, are renowned for their exquisite designs and reputed workmanship.
Against these dynamic market forces, our jewellery companies possess unique strengths that are not fully exploited.What are these?They are Design, Branding and Trust.Let me elaborate.
Enhancing Design Capabilities
Twenty years ago, it used to be that Asian consumers purchased jewellery for their intrinsic value. For instance, they bought gold, literally for their ‘weight in gold’. Today, many consumers are buying mainly because of the fashionable designs. Whether the jewellery is made of precious metals and materials is a less important consideration. As a result, a whole new segment of costume jewellery has sprung up.Luxury watch makers, exquisite furniture retailers, branded clothes retailers and even leading marques of cars are creating their own lines of jewellery to complete their lifestyle offerings.
Design is therefore a competitive advantage for our jewelers in differentiating themselves.I am heartened that more local jewelers are realizing the importance of design. For instance, Aspial-Lee Hwa’s collaboration with top Japanese designer Toshiyuki Kita, led to the birth of an exclusive “Twist’’ jewellery collection.This was launched at the Milan Fair in 2006, paving the way for the company to enter the international jewellery market.
Another example is the Goldheart brand of jewellery that has leveraged on design to set itself apart from the competition. As part of its initiative under the Celestial Celebrities Series, Goldheart has partnered famous celebrities to design unique jewellery pieces.
This strategy has enabled Goldheart to tap on the growing married couples market segment and the response has so far been positive.
In terms of capability building, the Government has dedicated more resources to promote design capability in Singapore.Over the last few years,we have certainly seen enhanced awareness of Singapore’s growing capabilitiesthrough the efforts of the DesignSingapore Council. The Council works closely with various Government agencies and industry partners to develop initiatives that aim to establish Singapore as a leader in cutting-edge design expertise. Through initiatives such as the DesignSingapore Scholarships and the President’s Design award, we have raised the profile of budding designers to attract and create a pool of world-class expertise in Singapore.
Brand Development
Next, I would like to talk about Branding.A Brand is a promise made good. Tiger Woods is a brand. Rolex is a brand. Toyota is a brand. Raffles Hotel is a brand. Singapore Airlines is a brand. Successful brands command premiums. They bring to mind certain emotive qualities and attributes. Successful brands build customer loyalty.
In the jewellery industry, there are a number of outstanding brands. Tiffany is one such example. The Tiffany brand carries with it attributes such as timeless design, prestige and the company’s renowned reputation for quality and craftsmanship.Tiffany has immortalised these values in its distinctive Blue Box, which makes customers want to purchase the contents that come in the box.
I am happy to hear that Poh Heng Jewellery, one of Singapore’s pioneer jewellers, embarked on its branding journey last year. Poh Heng saw potential in the market segment of the modern working woman and launched two new brands: ORO22 and itrust me. The company then employed selective advertising to showcase these new brands. Through these branding efforts, the 59-year-old jeweller has successfully transformed itself from a traditional family-run goldsmith to one of the most highly recalled brands in Singapore today. Since 2006, their turnover has also increased by more than 15 per cent.
Another forward-looking local jeweller is Soo Kee. Set up in 1991, Soo Kee Jewellery has grown from a heartland traditional goldsmith to become one of the leading local jewellery chains today. Soo Kee has always believed that diamonds should not be enjoyed by just the high-end consumers or be meant for only special occasions. In 2004, Soo Kee took its business to new heights with the introduction of SK Jewellery, which made diamonds available to women of all ages and at affordable prices.
Through BrandPact, jointly administered by IE
Singapore and SPRING Singapore, the Government will continue to encourage and
help more local SMEs to embark on their branding journey.Since the programme
was launched in 2005, over 3,500 companies have benefited from various
BrandPact initiatives. This includes training workshops, brand assessment
tools, and $9 million worth of co-funding support for brand development
projects.
Establishing a Strong Reputation for Trust and Quality
Finally, the quality of TRUST. This is a quality that takes a long time to build, many continuous positive validations to sustain, but fragile enough to be destroyed overnight through negligence, inconsistency or malpractices. We only need to look at the recent product recalls in toys, food and toiletries in the USA to understand the adverse impact of losing trust.This is especially relevant for the jewellery industry because, as I mentioned earlier, many treat jewellery purchases as investments. They would want to retain the value of their jewellery, and if possible, enhance it further. The resultant damages from losing consumer trust will be costly and take a long time to repair. We should therefore do everything we can to protect the TRUST quality of the jewellery industry in Singapore.
I am pleased to note that the Singapore Jewellers Association launched the Quality Jewellers of Singapore (QJS) Scheme in October 2005, to assure customers of consistently high quality of products and services at its certified outlets. So far, more than 20 jewellery companies have been certified under this scheme. I urge QJS members to uphold this high standard in all their outlets.I encourage more companies to apply for the scheme, so that Singapore as a whole can uphold our strong reputation for trust and integrity.
Conclusion
I am happy to see that the Singapore Jewellers Association is taking the lead in helping the industry to grow and stay competitive. I urge the association to do more and move faster.
In two to three years, our two Integrated Resorts will be up. The Gardens by the Bay will be ready in 2010. Our sports hub will be ready by 2011 We aim to have 17 million tourist arrivals by 2015.Meanwhile, our private banking and wealth management industry are poised for high growth. Many HNWIs would be attracted to make use of Singapore for business or to house their families. We will need creative retailers with innovative services to serve these new market segments. Our jewellery industry, our designers, our retailers have a golden opportunity to transform themselves and grow. The time to act is now.
Establishing a Strong Reputation for Trust and Quality
Finally, the quality of TRUST. This is a quality that takes a long time to build, many continuous positive validations to sustain, but fragile enough to be destroyed overnight through negligence, inconsistency or malpractices. We only need to look at the recent product recalls in toys, food and toiletries in the USA to understand the adverse impact of losing trust.This is especially relevant for the jewellery industry because, as I mentioned earlier, many treat jewellery purchases as investments. They would want to retain the value of their jewellery, and if possible, enhance it further. The resultant damages from losing consumer trust will be costly and take a long time to repair. We should therefore do everything we can to protect the TRUST quality of the jewellery industry in Singapore.
I am pleased to note that the Singapore Jewellers Association launched the Quality Jewellers of Singapore (QJS) Scheme in October 2005, to assure customers of consistently high quality of products and services at its certified outlets. So far, more than 20 jewellery companies have been certified under this scheme. I urge QJS members to uphold this high standard in all their outlets.I encourage more companies to apply for the scheme, so that Singapore as a whole can uphold our strong reputation for trust and integrity.
Conclusion
I am happy to see that the Singapore Jewellers Association is taking the lead in helping the industry to grow and stay competitive. I urge the association to do more and move faster.
In two to three years, our two Integrated Resorts will be up. The Gardens by the Bay will be ready in 2010. Our sports hub will be ready by 2011 We aim to have 17 million tourist arrivals by 2015.Meanwhile, our private banking and wealth management industry are poised for high growth. Many HNWIs would be attracted to make use of Singapore for business or to house their families. We will need creative retailers with innovative services to serve these new market segments. Our jewellery industry, our designers, our retailers have a golden opportunity to transform themselves and grow. The time to act is now.
Thank you.