Malaysian Pewter Industry 2

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MALAYSIAN PEWTER INDUSTRY Report by Raymond Azul

Transcript of Malaysian Pewter Industry 2

Page 1: Malaysian Pewter Industry 2

MALAYSIAN PEWTER INDUSTRY

Report by Raymond Azul

Page 2: Malaysian Pewter Industry 2

PEWTER

Page 3: Malaysian Pewter Industry 2

Background

Pewter – alloy of tin, copper & lead/antimony Originates back to Roman empire Pewter guilds established to protect the craft Introduced in Malaysia by the British in the

19th century After British rule in 1957, Malaysia exported to

England Malaysia is the biggest source Royal Selangor (formerly Selangor Pewter) is

the first and biggest player

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Porter’s 5 Forces on theMalaysian Pewter Market

Competitive Rivalry• RS is the best known brand• JS focus on low end small volume• Other players focus on niche markets• Industry benchmarks based on RS stds• No of alternative players pushes RS to compete on speed, quality & price

Threat of New Entry

Threat of Substitutes

Buyer Power

Supplier Power

Threat of New Entry• Low startup capital reqmt• Big spread allows new entrant options for low pricing •Employees the biggest threat

Threat of Substitutes• Other gift items in retail shops

Supplier Power• Diminished due to abundance of supply (Malaysia, Africa, etc)

Buyer Power• Prosperity causes high demand for corporate purchases• Growth in tourism builds demand for souvenirs and large shipments to other countries• Position as high end gift item

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Malaysian Pewter MarketPri

ce

Quality

RS

Hi

Mid

Lo

HiMidLo

JS

Tumasek

OrientalPenang

Note:Perception of market sizeAssumed based on no of workers• RS 1,000• Tumasek 200 (w/ export)• Oriental 100• Penang 100• JS 10

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Malaysian Pewter MarketN

o o

f D

esi

gns

Brand Recognition

Hi

Mid

Lo

RS

JS

Tumasek

OrientalPenang

HiMidLo

Note:Perception of market sizeAssumed based on no of workers• RS 1,000• Tumasek 200 (w/ export)• Oriental 100• Penang 100• JS 10

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TumasekOriental

Malaysian Pewter MarketN

o o

f S

how

room

s &

O

utl

ets

Clientele

RSHi

Mid

Lo

LocalTouristCorporate

JS

Penang

Note:Perception of market sizeAssumed based on no of workers• RS 1,000• Tumasek 200 (w/ export)• Oriental 100• Penang 100• JS 10

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Key Success Factors

Quality as a Competitive Edge in Local Market

Leadership through Design RS invests on design and technical capability, so it

leads in product introductions, and gets the first crack on product pricing

Price Competitiveness on tourism sector Exposure to Clients

RS had 40 showrooms and 240 authorized retailers

With Penang as a tourist destination, Penang pewter souvenir items sell

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Porter’s 5 Forces on theGlobal Pewter Market

Competitive Rivalry• Malaysia is biggest player w/ RS, Tumasek, Oriental as price leaders• Emergence of several players in Sweden, UK, Canada, Brazil, Belgium & Thailand• Threat of Seagull brand• Low labor cost in Indonesia & Thailand

Threat of New Entry

Threat of Substi

tutes

Buyer PowerSupplie

r Power

Threat of New Entry• Low startup capital reqmt• Big spread allows new entrant options for low pricing • Technology is readily available

Threat of Substitutes• Other pewter-like alloys

Supplier Power• Diminished due to abundance of supply (Malaysia, Africa, etc)

Buyer Power• Demand for trophies in Sweden• Pewter as an impulse item

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Global Pewter MarketPri

ce

Quality

RS

Hi

Mid

Lo

HiMidLo

Can

Mal

SeagullBra

Swe

UK

Note:Perception of market sizeAssumed based on no of workers• RS 1,000• Malaysia 100-200• Seagull 100• Canada, Brazil, UK no info• Sweden 4-8

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Global Pewter MarketVari

ab

ility

of

Desi

gn

Brand Recognition

Hi

Mid

Lo

HiMidLo

RS

Mal Seagull

UK

Note:Perception of market sizeAssumed based on no of workers• RS 1,000• Malaysia 100-200• Seagull 100• Canada, Brazil, UK no info• Sweden 4-8

Bra

Swe

Can

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Global Pewter MarketR

ep O

ffice

s/S

ale

s O

utl

ets

Int’l Exposure

Hi

Mid

Lo

HiMidLo

RS

MalSeag

ull

Bra

Swe

Can

UK

Note:Perception of market sizeAssumed based on no of workers• RS 1,000• Malaysia 100-200• Seagull 100• Canada, Brazil, UK no info• Sweden 4-8

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Key Success Factors

Price Competitiveness Design Variability

As an impulse product, attractiveness and price competitiveness is preferred over brand

RS, Tumasek and Oriental has a wide range of designs, with RS adding a minimum 4 designs per year

Seagull has 1000 different designs and constantly adding

International Exposure RS has some 2400 representative offices & outlets,

and invests heavily on trade shows Seagull has 10,000 accounts spread across N. America

and participates in 40-50 shows each year

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Comparative Key Success Factors

MALAYSIAN PEWTER MARKET

GLOBAL PEWTER MARKET

Quality as Competitive Edge

Leadership through design Trial purchases Price leadership

Exposure to clients

Price competitiveness

Design Variability Attracting the impulse

buyer

International Exposure

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Recommendations

Common/Similar Approaches for Malaysia or the globe design innovation exposure to target clientele is important.

Price Competitiveness Important for the global market due to number of players For the moment, price pressure in Malaysia is not so much due

to high demand. However, new players are bound to enter soon due to ease in

entering the industry, which will depress prices. It is important to look into operational efficiencies, like the lower

labor costs in neighboring countries Differentiation through Quality

Use government support visavis Malaysian tourism Penetrating the international market

Invest into trade fairs, lead generation efforts

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THANK YOU