Shining, shimmering, splendid

0

TA01535Jewellery’s more than just a decorative piece

KUCHING: A centrepiece of fashion, exuding shine and sheen – jewellery is the nub that assembles an outfit together, a statement of class, taste and stature.

But jewellery is not just seen as a representation of one’s fashion and decorum – it is also a loyal investment handed down generation to generation.

Fashion pieces, and especially diamonds, can last forever and hold more intrinsic value than cars or properties.

This also comes as the Malaysian culture loves to accessorise and showcase itself with necklaces, earrings, rings and so on.

“In the past, the Asian impulse has been to buy jewellery first and foremost as a form of investment, something to fall back on in times of need.

“Over the years, many have become more savvy, realising that the five carat solitaire diamond ring that their grandmother has passed down, for example, has shot up in value,” explained Mink Ong, the managing director of Mystique Universal Sdn Bhd, to BizHive Weekly.

“Rather than buying costume jewellery to complete their outfits, they are now starting to look for something with a much more real value.”

Mystique Universal hosts several retail brands in Starhill Gallery including international jewel powerhouse Garrard and Gubelin.

“In the last decade or so, the Malaysian consumer has come to learn the importance of branding, realising that jewellery from prestigious, trustworthy brands, especially international ones, hold even more value in the long run.

“For this reason, slowly but surely, many are not content with a 1 carat diamond ring, but seek out those made by reputable brands like Gubelin and Garrard.”

 

GST dampener on demand, but not as bad as Europe

However, even the jewellery industry is not spared from dampeners such as the Goods and Services Tax (GST).

According to the Royal Customs Department’s Guide on Approved Jeweller Scheme, the manufacturing of jewellery from precious metals requires substantially high input cost on raw materials, but sales of jewellery are generally slow moving.

“This results in manufacturers of jewellery having to bear high input tax upfront while the speed of output tax collection from their sales are not in tandem with their input tax payments,” the Royal Customs Department said.

“As a consequence of this, the jewellery manufacturers would be burdened with cash flow problems as the rate of their output tax collection would not be able to correspond with that of their input tax liabilities.”

Ong from Mystique Universal observed that demand for high-end jewellery has been affected by consumerism trends such as the GST and inflation.

“Unfortunately, yes,” she told BizHive Weekly. “Fortunately however, in Malaysia we started at six per cent, compared to most parts of Europe, where value added tax (VAT) can be as high as 22 per cent.”

Having said that, Ong believed it is very important for Malaysian consumers to know that while they can get a refund on the VAT, they don’t always get the full 22 per cent.

“With the drop in the Malaysian currency exchange rate, despite the refund, it has made shopping overseas a very costly affair.

 Garrard: A testimony from royalty

TA01536

As the oldest jeweller in the world since 1735, Garrard has withstood the tests of time to reach where it is today.

Founded in London, Garrard today has a presence in Harrods, London, Geneva, Lebanon, Qatar Dubai, Moscow, Hong Kong and also Malaysia.

Garrard has plenty of achievements under its belt. In 1843, Queen Victoria appointed Garrard to the position of Crown Jewellers, leading to the production of numerous pieces of silverware and jewellery for the Royal Family, as well as the upkeep of the Crown Jewels.

The company has dealt with a number of famous jewels, such as the Cullinan diamonds – including Cullinan I, “The Great Star of Africa” – and created such pieces as the Imperial Crown of India in 1911, the crown of Queen Mary for her coronation, and the Crown of Queen Elizabeth in 1937.

More recently, Garrard has been noted as being the maker of the sapphire engagement ring given by Prince William, Duke of Cambridge to his wife Catherine. The ring once belonged to Diana, Princess of Wales.

“Garrard has been in Malaysia for over two years. It has been an amazing experience, especially to know that many Malaysians are in fact already Garrard’s customers and fans, since before we even opened our doors,” said Ong from Mystique Universal.

“Garrard is also a favourite among royalty, as Garrard has had the honour of being the Royal Crown Jewellers to the United Kingdom for over 150 years.

“In our archives, there are records of many beautiful pieces ordered by royalty from Malaysia and around the world, some of which are now antiques.

“These pieces are priceless collector’s items that would fetch a huge sum if they were auctioned at Auction Houses such as Sotheby’s or Christie’s.”

Ong said from time to time, the Garrard boutique in Starhill Gallery has even had surprise visits from certain Kings, Queens, Princes and Princesses. “This is certainly an honour which we are proud to have,” she added.

Meanwhile, Garrard’s most outstanding jewellery or product which was best received by Malaysians, the Wings collection is definitely a huge favourite.

“The simplicity and whimsical nature has captured the hearts of many customers both here in Malaysia and globally.

“Symbolising Peace, Purity and Protection, the collection continues to grow, and it is amazing to see the new extensions and designs that are created.”

When asked on Garrard’s plans in Malaysia, Ong could only reveal that there are a lot of exciting plans in store, “but we will have to wait for the perfect time for these to be unveiled.”

 

Gubelin: Standing on the legacy of its craft

TA01537

Quality lies in the artistic touch of details. With precious gemstones such as diamonds, sapphires, rubies and emeralds, quality also lies in perfection – something which requires dedication, skill and taste.

Such is the skill that has been honed by the Gubelin Group since 159 years ago when the group started as a watchmaker in Switzerland.

“Perhaps unsurprisingly, we currently have more international than Malaysian customers, as Gubelin has had a huge presence in Switzerland for over 150 years,” Ong revealed to BizHive Weekly.

“Customers come from far and wide. What is surprising is when we even have Malaysian customers who come to us with Gubelin jewellery pieces and share with us the great experiences they had as Gubelin customers, sometimes spanning generations.”

Fine Swiss quality, high standards, strict selection processes, personalised service and an outstanding reputation and integrity are what Gubelin offers to their customers, an unparalleled experience to what other brands may be offering.

Quality and innovation are infused in the group’s focused segments, specifically Gubelin Jewellery Atelier and the Gubelin Gem Lab.

The atelier designs, crafts, custom creates and maintains jewellery, while theGubelin Gem Lab – an independent gemmological laboratory – produces reports, analyses and historic research on an array of gemstones, diamonds and pearls.

Such promise has come to fruition with the opening of a Gubelin boutique in Kuala Lumpur’s Starhill Gallery in December last year. Featuring a luxurious collection of rare gemstones and signature pieces, the launch was highlighted by the display of Gubelin’s Madagaskar jewellery line in yellow, white and rose gold.

The boutique showcases the celebrated vintage Astroline necklace, which was designed with baguette and tapered coloured gemstones by Martha Widmer, one of Switzerland’s most successful and multi award-winning jewellery designers. Apart from the Madagaskar collection, it also carries a wide range of precious gemstones and jewellery from its equally dazzling Rainbow and Paris lines.

Speaking on Gubelin’s most iconic product to date, Ong said its heart-shaped wedding bands that can be worn as a pendant, as well as the Madagascar collection, inspired by the family’s trip to Madagascar.

“The inspiration for the design itself comes from pebbles on the Madagascan beach. Each element is solid gold, polished and smoothed to an immaculate finish,” she detailed.

“It is the biggest challenge to the highest craftsmanship to ensure every part is perfect, and when worn one can feel the smoothness and the comfort of the piece.”

On Gubelin’s future plans in Malaysia, Ong revealed exclusively that, “This year, the Gubelin boutique has expanded five times its original size, and plan to launch a mysterious unveiling this November.

“This has been kept top secret and will definitely be something that our fans can look forward to.”

“This is especially true when buying high value items like jewellery and watches, as normally they are purchased using credit card rather than cash.

“The practice of double exchange rate conversion (for example, when purchasing an item at 100,000 euros in France with a credit card, the bank will first convert the amount to US dollar, then bill you in ringgit. By and large you will experience approximately four per cent additional charges from the conversion.

“If customers realise this, eventually they will find that shopping in Malaysia is actually more affordable.”

Another challenge for the industry is the problem of fake jewellery which is prevalent on a global scale. Consumers are often also overvalued or overcharged on the true value of a jewellery.

“Indeed, this is a troubling issue worth paying attention to,” Ong highlighted. “An example of this fraud is when you go to a place like Turkey which is very well known for a gemstone specific to Turkey called Zultanite.

“This is a colour change gemstone which changes colour according to the light source, be it sunlight or artificial light.

“Unfortunately, many tourists looking to purchase these gems are taken to unscrupulous tourist traps and sold colour changing glass instead. As such, it is often better to shop in your home country, especially at an international brand where your investment is guaranteed no matter which country you go to.”

 

Rise of the wealthy Malaysians

Of course, the gemstone industry could not survive if there were no high net worth individuals in the country.

It was projected last year that the number of Malaysian ultra high-net-worth individuals will grow by 42 per cent over the next 10 years.

At the launch of the ninth edition of The Wealth Report 2015, which included a survey of Knight Frank’s Capital Markets wealth spending, Asia-Pacific head of research Nicholas Holt said that the projection would be mainly driven by economic growth.

“It has been reported that there are currently 572 ultra high net worth individuals, followed by 14 billionaires and 211 centa-millionaires in Malaysia, which are projected to grow by 42 per cent and 43 per cent over the next 10 years.

“The global independent property consultancy defined a UHNWI as one with a net worth of at least US$30 million (RM110.68 million), a HNWI as one with a net worth of at least US$1 million (RM3.69 million), and centa-millionaires as those with a minimum net worth of US$100 million (RM369 million), each excluding their principle residence.”

Ong from Mystique Universal concurred with this view, stating that most customers come from the high net worth category.

“Most definitely. This is due to the fact that more often than not, those from a higher income segment seek out the finer things in life, and demand nothing but the best quality.”

Meanwhile, the study said luxury items are expected to perform, with classic cars as top annual performers in the index, projected to grow 16 per cent this year, followed by art, wine and coins, which are forecast to grow 15 per cent, seven per cent and 13 per cent, respectively, over the year.

Speaking on the weakened ringgit, Knight Frank Malaysia managing director Sarkunan Subramaniam said more Malaysian HNWIs will hedge their wealth by investing overseas, and that the current economic climate will further see Malaysian capital moving towards safe havens such as London, New York and Melbourne.