Posts Tagged ‘global sourcing’

Bali: The life of a Silver Jewelry Buyer (Part 2)

Thursday, September 9th, 2010

The sun-lit room smelled like Orchids. My buyer, Susan, and I were sitting next to each other on a long dark wooden table facing the factory owner.  One assistant was standing behind him while the other rolled in a cart loaded with trays. Each tray must have held at least jewelry 100 styles.

Our first day in Bali was nothing more that a paid vacation. It was finally time to get to work. Susan took out a raft of computer generated sales, profit, style/type reports. She had done her homework.

Like many jewelry buyers, she was under the gun — so to speak. It was time for her to apply her taste, design knowledge, manufacturing know-how, cost breakdown, experience, negotiating skill, financial knowledge, you get the idea. Her work could spell the success or failure of my jewelry store’s season.

Concentration was key. She had to analyze each design, its cost, markup, quality, customer tastes and who knows what else. She asked me – I was just an observer – not to talk or banter with the owner or flirt with the pretty assistants. Hummphhh.

• She knew what styles and price-points our customers preferred.

• She knew what kind of designs, (basic, fancy, ornate, etc.), our customers bought.

She had to analyze each design, its cost, markup, quality, customer tastes and who knows what else

• She knew what margins, (at least keystone), we had budgeted for the season. Susan would look at each style she had ‘pre-selected’, (these were put in a special tray), and once she went through their entire line, she would ‘review’ the pre-selected tray to be sure each design could ‘carry’ the necessary retail price. If it couldn’t it was returned to the cart.

• Known for its special designs, (she had done her homework here too), she selected styles that had the Bali ‘look’. There was no point in selecting styles that could be bought in other parts of the world — or even in the US. We were, after all, trying to differentiate our store from the competition.

Bali styling was indeed unique. Whether due to the island being remote, the silver jewelry artisans having special skills or who knows what, Bali jewelry had two special features.

The first was Bali’s hand made rope/chain look. Highly labor intensive, (machine made rope/chain jewelry looks like, well, machine made jewelry), the man made designs were beautiful and unique to Bali.

The Bali artisans were also skilled at carving faces and animals on small semi-precious stones. These faces were then set in silver creating beautiful pendants and brooches. Almost one-of-a-kind works of art.

When Susan finished, she would total up the cost of her selection. Since she had budgeted a certain dollar amount for each of the four factories we planned on visiting, she could add a few pieces to the tray or take a few out.

The buying process, however, was far from over.

To Be Continued……

Bali: The life of a Silver Jewelry Buyer (Part 1)

Wednesday, August 25th, 2010

dreams-kiteA while ago, my silver jewelry buyer and I left New York on a sourcing junket, er, mission, to Bali, Indonesia. We were looking to add some unique Bali designs to our branded sterling silver line and check out Bali’s sophisticated jewelry manufacturing expertise. More on that later.

As you probably know, Bali is arguably the most beautiful spot on earth – considered the Australian Riviera. James Mitchner wrote South Pacific with the island in mind. “No wonder you want to go,” the buyer told me.

Bali is arguably the most beautiful spot on earth – considered the Australian Riviera. James Mitchner wrote South Pacific with the island in mind.

The flight, via Hong Kong, lasted 20 hours. When we arrived at the Bali International Airport, we adjusted to the slow customs check-in. (What’s a computer?) Hurry up and wait, (we’re from New York after all). But we had no choice

Other than that, the airport was bedlam — Bali’s definition of organization. We kept our eyes open and hoped for the best. Exhausting.

We selected a taxi – or rather a taxi selected us – and left for the hotel. Our agent-guide-translator would meet us there. The taxi ride was educational.

Click here: YouTube – BALI-Beautiful Island & It’s People

• Kites filled the clear blue sky. Kite flying is Bali’s national pastime.
• Huge, ornate, carved statues guard many street corners.
• There is no speed limit. We arrived at the hotel shaking and in one piece
• The men are handsome, the woman beautiful
• With an abundance of teak, inexpensive labor and cheap land, hotels were all on one level and gorgeous. Never seen any hotel like them.
• There were lots of Australians.
• One negative. While we were leaving, Al-Qaida blew up a local bar. The island is mostly Muslim.
• Everything, (trinkets, furniture, souvenirs) is teak. Given enough time, (a few days) they will carve anything to your specifications.

We arrived at the first factory early the next day. The rifle toting guard/sentry, after opening the barbed wire-topped gate, let us in. Inside was a bustling compound – a fort of sorts. Much of the factory labor was done outdoors.

We were led inside to a long dark showroom. Everything Teak.

The  Australian owner introduced himself and his two attractive female assistants. The assistants wore typical wrap-around sarongs and spoke no English.

They brought out the trays of silver samples…..We began to work.…..

To be continued…..

Become an International Player

Friday, June 25th, 2010

Now that you are, (or should be) comfortable with buying (sourcing) from overseas, it’s time to get your passport and hop on a plane to Hong Kong.

While Hong Kong is a wonderful and vital city, it also is the unofficial jewelry center of Asia.

Most countries with a jewelry manufacturing standing have cities with annual jewelry fairs, shows, or exhibitions: Bangkok, Istanbul, Shanghai, and so on.

The Hong Kong International Jewelry Show is no exception. Thanks in part to the beautiful, bird-shaped exhibition center, the Hong Kong show has grown to be the largest jewelry in the world, according to its organizers. The extravaganza gets bigger and better every year.

The range of designs, the diversity of the visitors, and the size of the building in which the show takes place, however, can be intimidating.

The more than 4,500 exhibitors are arranged by global regions: Asia, Europe, Middle East, Africa, South America, and so on. You’ll know you are in the right place when you bump into a buyer from a big jewelry chain, one from a TV home shopping network, or even your competitor.

“Bali’s designs are exclusive to the island, which specializes in silver and gold mesh looks.”

After you have selected and purchased the merchandise you need for the season, start taking notes on what global region appeals to you—and your customer—and will be hard to replicate by your competitor. Once you have picked a particular country, make a point to go there the next time you’re on a buying trip. A few highlights include:

• Bali, Indonesia: Designs are exclusive to the island, which specializes in silver and gold mesh looks. There are also manufacturers that make miniature stone carvings (i.e. faces and the like) that could become unusual pendants.

• China and Hong Kong: These are the places to go for jewelry with unusual details. They specialize in highly complicated handiwork.

• Bangkok, Thailand: If you’re into Victorian jewelry, this is the place to go, since Thailand was a British possession during Queen Victoria’s reign.

Once you are comfortable with the factories with whom you are working, it could be time to develop alliances. An alliance with a favorite manufacture could lead to special prices, delivery, exclusive designs, and a long list of other benefits. It just depends on creativity.

An established alliance could lead to acquisitions, mergers, joint ventures, or any other deal that you, your lawyer, or accountant can devise. There’s nothing like having a formal – or informal — price, delivery, style ‘alliance’ with your favorite factory(s) around the world. They could end up being a partner.

With implementation and foresight, you are now an international company, with the experience and partners to grow globally. You just need imagination and a willingness to become an international ‘player’.