On the first floor of the Landmark atrium in Central, in a corner
beside global brands such as Louis Vuitton and Fendi, you'll find a
small Plukka boutique that houses several striking independent designer
jewellery collections.
It's a trove of shimmering coloured diamonds, innovative rings and
earrings, lustrous pearls and inspired lines. Work by artisans from
around the globe - Lebanon, India, Hungary, Italy and the US - are sold
under the aegis of this brand. Now, three years after its inception, its
founder and chief executive, Joanne Ooi, has plans to expand - big
time.
"We are doing a IPO on the Australian stock exchange [ASX]," says
Ooi, who has almost 20 years of experience in the luxury industry. "We
considered that an expedient vehicle for raising a much larger amount of
money deemed necessary to expand globally and, specifically, to tackle
the US market."
A tropical diamondleaf choker by Jack Vartanian.
So this expansion isn't about knocking down walls and tackling the
prohibitive rents of retail in the city. "No, after doing this for three
years, it has become evident to me that this is a scale business in
order to flourish," Ooi says.
"We are building a global luxury retail brand which requires a
continuous and systematic marketing effort that only a big infusion of
capital can achieve."
The brand chose to list on the ASX - it will happen mid-October -
because it encourages small cap listings and is relatively inexpensive.
And while many brands are looking for salvation in the East, and China
in particular, Ooi is heading West.
"We are going to focus primarily on the United States," says Ooi.
"The US has the most developed fine jewellery e-commerce customer base.
In terms of fashion opinion leader buy-in, this will come back to roost
on all the international markets which look to the US as being a pivotal
influence globally in what's cool, what's hot and creative. It gives us
global branding benediction."
"Poetic Hands", and 18 carat yellow gold pearl ring by Bernard Delettrez.
In additional to a busy US trunk show schedule, Plukka is in
negotiations to take on a prominent retail space in London and will do a
pop-up in Manhattan later this year.
The brand has been successful at placing its jewellery on the lobes,
hands and around some of Hollywood's most famous necks. But for many
clients, the concept of buying fine jewellery online is still new - with
big potential for growth - whereas fashion and accessories are tried
and tested e-commerce sectors.
So how would you describe Plukka to new customers; moreover, to new investors?
"We are the first international omni-channel - bricks and clicks -
fine designer jewellery retailer," says Ooi. "It might sound ridiculous
that it's the first international one, but only 12 per cent of the
jewellery industry is dominated by big traditional brands like Tiffany
and Cartier. That is a little known fact.
Plukka's website."Of course, there are very localised players that are gigantic such
as Chow Tai Fook," which generates huge sales, dominates the China
market but doesn't have any distribution outside of the country, says
Ooi, Or Zales which is a behemoth in North America, or American company
Giant, ubiquitous in middle-American shopping mall stores, but, again,
has no global presence.
While the business model that Ooi has created is different from many others in the market, it harnesses her logistical location.
Tropical diamond leaf cuff bracelet by Jack Vartanian.
"The power of what we are doing is based on taking the manufacturing
base of the Pearl River Delta and the jewellery industry together. Hong
Kong is at the epicentre of the jewellery industry globally because it's
in the backyard of Thailand, China and India - where 90 per cent of the
world's jewellery is made."
But surely the gap in the market that Ooi has spotted is because it's
dominated by a cartel of rich, well-established brands that won't take
kindly to newcomers.
"It's a culture of firsts. It's a very family- and trust-driven
business. It's expensive to start a jewellery retail operation. You
typically need about a US$2 million inventory just to start off. So that
is why it's family dominated, because if you're a young person trying
to find your way into retail - unless you're a billionaire - it is
daunting. In terms of internationalisation in businesses such as this,
you have to have the systems and the will to move jewellery around and
pay tariffs. Then there's customs and physical security. Unless you have
a scale-type business, it doesn't make any sense."
Diamond face double teardrop diamond chain ring by Ludervine.
Ooi also faces the challenge of chipping away at the brand loyalty of
old houses that have been around for centuries and developed a
relationship with customers.
"One reason we're raising capital is because we need a higher level
of brand visibility. Cartier and Tiffany took decades to get where they
are today. There is no reason why we can't attain the same level of
trust, authoritativeness and prestige within three to five years."
The assumption has always been that the ever-escalating rental costs
for retail space prevents sales-related businesses from flourishing.
Multi-finger rings by Bernard Delettrez.
"Jewellery retail can be very attractive - we have high sales per
square foot for the surface area actually required to operate a
boutique. At any given time, US$2 million worth of inventory, compressed
into a small space, is around. That massively diminishes my rental
cost."
Surprisingly, 90 per cent of Plukka's online sales come from the US.
"We seek to establish dominance in branded jewellery sales online. The
overall jewellery industry is worth US$100 billion; online is only worth
US$5 billion - very small but it's expected to double by 2020."
Numbers and figures aside, there are the designers and their pieces that Ooi chooses herself.
Sophie Birgitt wears some of her creations, available at plukka.com.
"I pick people who are genuinely original, especially as the industry is rife with copying.
"Many people are unwilling to try something avant-garde and new. I'm
looking for true originality, which is hard to find. I need to know
there's a genuine talent there. I need to see that the quantity of their
work is sufficiently large... so I won't typically pick a designer
who's just done 12 pieces. Generally, I want so see 30 to 50 pieces -
that's usually the accretion over a few years, not a flash in the pan.
We are not in the business of being a flash in the pan."
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