malaysian pewter industry 2
TRANSCRIPT
MALAYSIAN PEWTER INDUSTRY
Report by Raymond Azul
PEWTER
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
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
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
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
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
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
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
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
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
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
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
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
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
THANK YOU