Posts Tagged ‘Jewelry Fairs’

‘The Colonel’ on the Corner: Sourcing Silver Jewelry in Hong Kong: (Part 6)

Wednesday, January 26th, 2011
 
 
Ricardo, (the Brad Pitt look-alike) and I, Jan Brassem, his boss, walked out through Peninsula Hotel’s glamorous front door. Two young, white-gloved, smiling, bellmen wearing smart-looking outfits and the famous ‘cake caps’, (remember the Philip Morris pitchman), wished us a good day. 
 
We were on our way to the famous Hong Kong Jewelry Fair at the breathtaking Hong Kong Convention and Exhibition Centre.
 
When you walk outside, the hot, smelly, polluted Asian air can surprise you – as it always does me. From my experience, however, your nose quickly adjusts to the, ahh, unpleasant stink  aroma. 
 
“Not like New York, eh?” I said to Ricardo, err, Brad. He shook his head. He was, after all, a die-in-the-wool ‘Noo Yawker’. When we left the city, only three days ago, it was cold and snowing.
 
I was wearing a light-colored summer shirt, a light weight sports jacket and comfortable slacks. Brad didn’t plan as well. The dark suite he was wearing – with a tie, no less — was the wrong thing to wear in Hong Kong, no matter what time of year. Those were only worn by ranking HK government officials or important businessmen.
 
He probably didn’t know any better. He didn’t bother to Google the Hong Kong climate, or, especially, its culture. Suits are not worn in Hong Kong, by foreign buyers, unless it’s white and extremely light weight. He would learn that soon enough. It may be true what they say about New Yorkers: They can be the provincial.
 
The Peninsula’s versions of taxis — chocolate-colored Rolls Royce — were neatly lined up to the left of the door. Never mind, we were on our way to the famous Hong Kong Jewelry Fair by foot and by the legendary Star Ferry.
 
It was a short walk to the Star Ferry dock. The traffic’s hustle and bustle was like New York, except for a few woman who carried  parasols to screen the sun.
 
We passed the city’s famous Tech Center, a few stores, tea shops and a bunch of impressive buildings. (At right, is a typical Hong Kong street at night, just like the one we walked to the ferry.)
 
Further down, on the right, in stark contrast, was a handful of “wanted posters” glued to a stonewall. We stopped to look. “Wanted for Murder” read one. “Wanted for Sedition,” read another.
 
“What’s sedition?” Brad asked. I didn’t answer.
 
We arrived at the pier – kind of a transportation hub. Busses, taxis, bicycles, pedestrians squirmed about. 
 
There it was, on a far corner.
 
 Oh, no, The Colonel!
 
Brad saw The Colonel too. “Can we get some fried chicken and a Coke?” He asked.
 
“We’re in Hong Kong. You can get that in New York.” I told him. ”You can’t be that hungry, it’s just eight in the morning.”
 
This could end up being a long trip.

We bought our ferry tickets, (about $3.50 each), and proceeded down a covered pier. An incoming ferry was not far away – visible through some open windows. In a few minutes it was docked. By now the pier was full of milling people, reminding me of NYC subways.
 
“You must feel right at home here.” I yelled at Brad. “Just like the Q Train at Grand Central.”
 
There was a difference. There seems to be cultural respect for individual space. While on NYC subways, there is pushing and shoving, there was none of that here. I am always impressed.
 
We found an empty bench, rotated the back rest, (so we could sit facing front), and sat close to the railing, near the water. By this time, Brad was sweating. I kinda felt sorry for him…..or maybe not.
 
“Every time I take the ferry I become melancholy.” I was talking to Brad and myself. “…Brings back tough memories.”
 
“Huh?” He was evidentally a man of few words.
“Years ago,” I nodded to Victoria Harbour, “I was a severely wounded Vietnam GI sent to Hong Kong on R&R to recover. My body and spirit were hurting. Thanks, in part, to Victoria’s help , I recovered.”

I wasn’t sure why I was even talking to Brad –  like talking to an open window. “In those days, I must have spent 18 hours on the ferry and the Harbour – back and forth – to get my spirit back.” I was  rambling.

 Enough of that. “Let’s talk business.” I looked at Brad.
 
I told him that we will be dealing with some of the smartest and shrewdest jewelers in the world. We have to be a team. We gotta’ focus on the merchandise that our customers will buy. We have to get it at the right price, at the right terms, at the right quality and at the right delivery schedule.
 
 Not that easy to do.
 We will be dealing with some of the smartest and shrewdest jewelers in the world.
 So, Brad and I developed a clever and innovative  buying strategy.
 
I told Brad to do the initial selection using all the marketing data that we brought along. (He was, after all, the Assistant Merchandise Manager.)  He would purchase no more than US$10,000 per vendor.
 
I would follow Brad to each vendor and negotiate price, quality, payment and delivery terms. If we liked the vendor’s conditions, I would signal Brad, who would then come back and select more from him or her.  If I didn’t like their conditions, I would cancel the order.
 
“Wouldn’t that make the vendor mad at us?”
 
“Better have them mad at us, than to be mad at ourselves.” I said. “Not a great feeling to have over-priced, poor quality merchandise delivered late and already paid for.”  Brad understood, I think……
 
After awhile, thankfully, the ferry landed at the famous Hong Kong Convention & Exhibition Centre. We made it and not a minute to soon.

To be continued next week so stay tuned…. 

 

No Such Thing as a Stupid Question about Silver? (Part 5)

Tuesday, January 18th, 2011

To Our Readers,

Thanks for being such loyal and diligent readers of this blog. Over 15,000 of you left comments — some were even positive – and the experts say about 15,000 have read the posts. WOW!

We are simply trying to describe the life of a global silver jewelry buyer without putting you to sleep – trying to make the process, the characters and the countries interesting.

However, some of you, (Robert, Symantha, Yaun and a handful of others), have asked Jan Brassem, (the author),  for more detail. So, with the risk of putting you to sleep, or worse, loosing you as readers, we have decided that the next two or three blog posts will go into the details of negotiating with foreign manufactures for the best price, terms, delivery and quality.

We’ll make this first post a little shorter. The rest will be normal length. We hope you find this entire negotiating process interesting.

We would love to know what you think.

Brassem Global Consulting.

 

 

I arrived in the Peninsula’s dining room at around 7:15 Monday morning. I was ready to do some business.

The Brad Pitt look-alike, Ricardo Mummitti, the somewhat challenged Assistant Sourcing Manager from my office in NYC, arrived a few minutes later.

He sensed my annoyance. “Sorry to be late. I still haven’t adjusted to the time difference. My wife called me at 2AM. Tough getting back to sleep.” I nodded.

“No problem,” I said. “That happens when your wife doesn’t know the time difference.”

“Did you see the sights on Sunday?” I asked.

“I walked the streets Saturday night – couldn’t sleep. Bought lots of junk – er, souvenirs — at the all-night flea markets.”  He reported. “Couldn’t stay awake Sunday afternoon. My body clock is all screwed up – just like you warned me on the plane.”

After a big buffet breakfast, (we wouldn’t have much time for lunch – and the food is very expensive at the Exhibition Center), I told Brad what I wanted to accomplish at the fair.

“Susan, (Brad’s boss in the US), made our first appointment with one of the best silver jewelry manufacturers in the world; Pointers Manufacturing. They have a sales office in Hong Kong and a big plant in China. Probably 2,000 to 3,000 workers.”

“How did she make the appointment,” Brad asked. (I told you, dear reader, that Brad is somewhat challenged.)

“She emailed our contact at Pointers for the appointment. Mr. N’gai also happens to be the owner,” I replied. I was trying to be patient with Brad. Patience, as you may have noticed, is not my strong suit. (The picture on the right is Mr. N’gai.)

Before we start looking at Pointers’ silver jewelry line, I told Brad, we will discuss – in detail — next years’ merchandising and growth plans with Mr. N’gai and his GM Bonnie Lee.

Since their merchandise appeals to our customer base, our two companies have become very close. We trust them and they trust us.

Pointers comes out with about two hundred new styles four times a year, so there should be plenty of samples to select. Since Susan thinks the ‘big-n-bold’ look will be “in” this year, we will look for that kind of styling.

I asked Brad to help in the selection process as long as the styles, after our required mark-up, meet our customers’ expected price-point.

I would mention to Mr. N’gai, confidentially of course, that we will be opening several new stores next year. Since we will probably be placing a bigger order than normal, I will carefully ask him if he could extend our payment terms for thirty extra days. He will quickly agree.

We left the hotel and walked to the Star Ferry that will take us to the Exhibition Center. We are entering the world of global sourcing on a grand scale.

See you on the Star Ferry in Hong Kong’s famous Victoria Harbour. As you can see from the picture, (on the right), we’re already on board waiting for you.

Brad Pitt & Frankenstein. Sourcing Silver Jewelry In Hong Kong: Part 4

Thursday, January 6th, 2011

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Victoria Harbour: Sourcing Silver Jewelry in Hong Kong: Part 2

Monday, December 20th, 2010

It’s tough to describe the agony of the 21-hour, non-stop flight from NYC to Hong Kong. If you’re flying Business Class you’ll have good – but not great — leg room. The flight attendants frequently offer meals, drinks, hot towels, newspapers, you get the picture.

You try not to get bored, (difficult), try not to get into conversations with strangers, (easier), try to do some office work, (easy), try to keep hydrated, (drink lots of water) and get some exercise, (walk around a lot).

So, after the movies, (three), meals, (four), naps, (a bunch), snacks, (two), reading and day-dreaming for hours, you’re finally landing in Hong Kong.

A bit of a Hong Kong history. I was a US soldier, (Captain Jan Brassem they used to call me), on R&R from the Vietnam war, when I first visited the city. In those days the airport, Kai Tak, was one of the scariest and most dangerous in the world.

To land a Boeing 747 the pilot had to fly so low, you could (almost) read the street signs. One wag told me he could read  the headlines of newspapers sold on street corners. That might be an exaggeration, but take a look at the video, (above), and you’ll see, in those days, landing on Kai Tak was a white-knuckle, terrifying event.

Now, thank goodness, there’s a brand new  Hong Kong’s International Airport, which is one of the most modern and efficient in the world. Here’s a good example.

After you’ve arrived and glide through passport control and customs area, (there’s no, “Please Open Suitcase”  here), you enter the huge terminal lobby. This is a good time to get local currency – the Hong Kong dollar – and make a hotel reservation. (Shame on you if you haven’t  made reservations from home.) More on Hong Kong hotel scene later.

Now, it’s decision time. Since the airport is about 50 miles from the city, you have the option of  taking an expensive taxi or the inexpensive speed, (repeat speed), train. Take the inexpensive train, (duh!).

The train is about one hundred feet from the lobby. After buying a ticket, you walk to — and into – the clean and sleek train – like walking into a jet plane. Your luggage is carried on board by female porters, who do not accept tips. (Since I’m from Noo Yawk, I’m flabbergasted).

The train is fast – about 100 MPH – or so it seems. It travels along spectacular Victoria Harbour – the signature sight of Hong Kong. It also passes the frenetic Hong Kong docks, giving you an idea of the city’s economic power. No evidence of a recession here.

Through the train’s big picture windows, you get a few clear ‘thumbnail’ views of Hong Kong. This sourcing/buying trip will be a great opportunity to combine business, (sourcing) with the beauty and activity of a world-class city.

Please stay tuned…
                                                                                      _____

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Like a Jail Break: Jewelry Sourcing in Hong Kong: Part 1

Friday, December 3rd, 2010

Here we go again. Every time I go on a buying — ‘sourcing’ —  trip and step into a car – or a beat up taxi, (like this one) –   I feel like I’m taking my life in my hands. First, it was Bali, then Mexico and now New York City.

We were on our way to Kennedy Airport. It was snowing hard, (slush everywhere), during the Friday evening rush hour — and almost dark. Kind of a cattle stampede, a gold rush and a jail break – rolled into one.  I was nervous. And adding to the confusion, our driver didn’t speak English. He was yelling, occassionally spitting, into his cell phone in some indistinguishable language.

“Take Queens Midtown Tunnel,” I told him.

“Heo ejje hirr wer Treborgh Brid,” he answered.

“Kennedy Airport,” I told him, an octave higher.

He nodded appreciatively. Evidentially he lives in Queens. A short ride after dropping us off.

Hong Kong is arguably one of the most interesting and entertaining cities in the world. Great food, wonderful shopping, gambling in Macao, a rich history, Chinese culture….

But wait, we’re getting ahead of ourselves. Since our jewelry buyer was on maternity leave, I asked her young, eager assistant, Ricardo, to join me on a buying trip to Hong Kong. We were in the office lobby, suitcases in hand, waiting for our cab to drive us to Kennedy. The Delta flight would take 22, (gulp!), hours.

The world-famous Hong Kong Jewellery & Watch Fair – a must for any modern jeweler looking for new designs and fresh ideas – was opening in a few days.  The Fair’s efficient organizers  anticipated more than 2,700 exhibitors from more than 55 countries. About 35,000 jewelers from around the world would be in town for the event.

Over the years, I had escorted US-sourcing missions to the show. I was looking forward to going back.

Globalization, shrinking margins, the Internet, competition, a lousy economy and who knows what else, forced many jewelers to think globally for growth and profitability. Nothing new here; I’ve been writing about Global strategies for years.

Ferry in Hong Kong Harbour with Convention Ctr in background

The Fair, an event really, thanks to the beautiful Hong Kong Convention & Exhibition Centre, (seen behind the harbor ferry in the picture), has grown to be one of the largest jewelry shows in the world (so they say). This was my seventh trip and it was obvious – to me anyway — that the extravaganza gets bigger every year.

The range of designs, the diversity of the visitors and the size of the building, (from a distance The Centre looks like a small bird with big wings), can be intimidating and – at the same time – exciting.

One more thing, Hong Kong is arguably one of the most interesting and entertaining cities in the world. Great food, wonderful shopping, gambling in Macao, British history, Chinese culture….I could go on. But, more on that later. The goal now, though, is to get there in one piece and on time.

A yellow cab pulled to the front of our building. Other than being filthy, with a loose rear fender, cracked front window and coat-hanger antenna, the taxi looked, er, safe — kind of. The driver, wearing a dirty golf shirt and khaki shorts, (it was late February and snowing), got out, forced open the trunk and flung in our two bags. He closed the trunk with a slam.

The ride to Kennedy was uneventful, except for the driver’s gesticulations, screaming and mumblings. Evidentially he was a ’challenged’ guy with a wide personal space requirement. It would have been more effective, nevertheless, if he had opened his window before cursing at the next taxi….easier on my eardrums too.

The check in at the Delta counter was like feeding-time at a turkey farm. We eventually checked in.

Once we were in our Business Class seats, not particularly happy to sit — in one place — for 22+ hour flight, I checked to make sure I had…

• My travel documents, (passport, credit cards, identification, emergency home numbers, etc.)
• My light reading books and magazines: 
• My company’s sales records and analysis: 
• My company’s price-point analysis: 
• My company’s inventory balance report: 
• My company’s next years merchandising plans: 
• My company’s list of popular styles by type and category: 
• List of companies whose products I liked and want to visit: 
• List of companies to discuss our expansion plans: 
• List of my company’s contacts and friends in Hong Kong: 
• Names and numbers of US Dept. of Commerce officials in Hong Kong: 

This was a long flight so if I had trouble falling asleep, I could simply read one of these dry, computer-generated reports. I would be asleep in no time.

I was familiar with the rules of long flights. Be sure to ‘hydrate’, (another way of saying to drink lots of water), move around when you can, set your watch to Hong Kong time, (11 hours behind) and start sleeping when it’s night in Hong Kong.

The pretty Flight Attendant handed out our first meal (smelled and tasted like a sweat sock), saw a movie, read a magazine and had – sigh — only 19 hours to go. Gimme some of those reports.

Hong Kong here we come.

To be continued…….

A Silver Buying Trip to Hong Kong’s Famous Jewelry Fair

Sunday, July 4th, 2010

Not that long ago, I, Jan Brassem, escorted a bunch of American jewelers to the awsome 80,000 square ft. Hong Kong Convention and Exibition Center. (The Center, with its wing shaped roof is in the background in the picture at left.) It was March and the jewelry ‘Fair’ was in town.

The Fair, and the beautiful Centre, has grown to be the largest jewelry show in the world (so they say). This was my 15th trip and it was obvious – to me anyway — that the extravaganza gets bigger and better every year.

 

I had been guiding a group of American  jewelers around the Fair — and Hong Kong — on a “Sourcing Mission” — as I do from time to time. Their first impression of Hong Kong was shock enough, but nothing compared to their ‘wide-eyed’ astonishment of the Fair.

I even arranged for several jewelers to meet with manufacturers, outsidehk-street (1) the Centre, in an effort for them to develop a few long-term vendor/supplier relationships.

It was time to fly home. We picked up our custom made suits and shirts — and other oriental “souvenirs” — and headed for the airport. The Hong Kong Airport Express, by the way, is one of the best and, hold on to your hat, fastest in the world.

I was in my American Airlines seat, not particularly happy to sit — in one place — for 22+ hours during the flight home. Fortunately, I was sitting next to Bill, a second-generation jeweler from northern Michigan. We had an airline meal (tasted like a Brillo pad), saw a movie, read a magazine and had – sigh — only 19 hours to go.

Bill took out his laptop and started writing a Trip-Report to his Dad. When he finished, he let me read it. I thought you may find it interesting too.

                                                      INTEROFFICE MEMO

To: Bill, Sr.
From: Bill, Jr.
Subject: Hong Kong Sourcing Mission, March 4-7
Date: Martch 8.

Our first effort in buying direct form overseas was, I think, quite successful, (but very tiring). I will email you this Memo during my stopover in LA. I’ll go into detail when I get to the office next week.

Here are the some points.

1. The jewelry styling was wonderful. I never realized that each geographic region has a different design look. I thought Bali, Middle Eastern and Indian styling was especially noteworthy.

2. I spent a good deal of time with seventeen manufacturers. I bought 42 samples which will be FEDEX’d within 2 weeks. Of those 17, I had lunch with five, who could fit into our future.

3. The prices here are generally terrific — not surprising since these are manufactures’ prices. I saw several styles that we carry and, as far as I can tell, are about 45% below what we now pay.

“The prices ..I saw…here are generally teriffic….about 45% below what we now pay”

4. I also met with six smaller factories who were not exhibiting at the Fair. They seemed more innovative and eager.

5. I gave the fifteen drawings and ideas, that Sue developed and gave me before I left, to several factories. The designs will be a great nucleus for our new Brand. The factories will design them from scratch via their CAD system as soon as possible. They will be ours exclusively.

6. I know you expressed concern about their quality. I gave them our Quality Control Standards Manual. They also showed me their customer list and even some of the styles they were about to ship to the States. I don’t think quality will be a problem.

I’ll fill you in on their invoicing, payment and delivery schedules when I get back. Now that I know my way around here, this should be quicker and cheaper next year.

Bill.