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By Geraldine Tan
IN A market dominated by fine jewellery retailers, TAKA Jewellery positions and promotes itself as unapologetically lower-end and value-for-money.
This may not be de rigueur in an industry where bigger and grander are often perceived as better, but with a turnover of $137 million in the 2009 financial year, it is a formula that clearly works for the company.
'We believe that this upfront and direct approach cuts through the clutter and inspires trust and confidence in our customers, the majority of whom are price-conscious ordinary women,' says managing director Michael Teo, 55.
And it is a concept that has been in the company's DNA since it was launched in 2001, when Mr Teo and his partners, then manufacturers of gold jewellery casings for the local jewellery industry, decided to expand their operations to include a retail arm.
Says Mr Teo: 'Our business model has very much remained the same since day one. What has changed is that we keep ourselves constantly updated with the latest trends and understanding the demands of our consumers.'
Today, the home-grown successful jewellery retail and export enterprise boasts 26 retail outlets here and three in Hong Kong, with a staff strength of more than 200.
Mr Teo says: 'On an average month, we sell about 30,000 pieces of jewellery.'
Working in tandem with the Singapore headquarters, sales offices in Hong Kong and Dubai facilitate the operations of TAKA Jewellery's thriving wholesale export business, which contributed a significant 41 per cent of the total turnover in the financial year 2009.
'Since early 2003, we have been actively exhibiting and selling our products to numerous trade customers from all over the world. We participate in over 30 trade and consumer exhibitions globally, and export to over 40 countries across five continents,' says Mr Teo.
He credits TAKA Jewellery's success to its ability to give customers a 'crucial combination' of good quality and good pricing.
'We have slim profit margins. We make a little on each piece of jewellery we sell, and we sell a lot of it. Additionally, we regularly buy vast quantities of quality diamonds and gems.
'Our loyal suppliers offer us privileged discounts that we pass on to our customers in the form of low prices.
'Finally, we have a short supply chain. Our parent company produces our jewellery, therefore cutting out the middleman and dramatically cutting down on costs,' he adds.
It is this commitment to delivering value for money through accessible, affordable jewellery pieces that has cemented TAKA Jewellery's place in the jewellery fraternity, as well as in customers' hearts.
'The early years were difficult,' recalls Mr Teo.
'Many consumers had their doubts, and could not believe that genuine diamond jewellery could be sold for as low as below $100. But we never gave up, persevering and pressing on in our belief of offering diamond jewellery at affordable prices.'
For its efforts, TAKA Jewellery earned a place on the SME 500 list in 2005. This year marks the company's second appearance on the Enterprise 50 list, and it is an achievement which Mr Teo is very proud of.
'We are honoured to be recognised as one of the 50 most enterprising privately held local companies in Singapore. Winning this award again gives us affirmation that our business model and strategies are on the right path.
'The award has also enhanced our business image, resulting in greater recognition among suppliers and customers as being a credible company,' he adds.
Such acknowledgment, Mr Teo observes, will go a long way in spurring him and his colleagues on to fulfil his vision, both for his company and for the local jewellery business.
'I hope to see TAKA Jewellery take its position in the world map and become a household brand, making diamonds a simple pleasure for all women.
'Another desire of mine is to see Singapore become the premier jewellery hub in South-east Asia, of course with TAKA Jewellery leading the way.'
This article was first published in The Straits Times.
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