DeGem to penetrate Thai market with new office

by **hlk** Mon 27 May 2013, 17:35

Business & Markets 2013
Written by Bernama
Monday, 27 May 2013 16:07
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KUALA LUMPUR (May 27): DEGEM BHD [], the manufacture, retailer,
designer and distribution of fine gemstone jewellery, will soon establish
an office in Thailand as a move to penetrate the market.
The company is currently in preliminary discussions with several parties
to make inroads into Thailand.
Chief Executive Officer Stephen Choong Kai Fatt said the company
wanted to take advantage of the Asean Free Trade Area (AFTA) which
would come into force in 2015 and were in talks with interested
business partners to set an office in
the country.
"Looking towards 2015 as AFTA comes into effect, we choose to go
regional due to easy access, no tax barrier and no difference in culture.
"We will focus on wholesale trading of jewellery and we might go into
the retail segment once the opportunity arises as Thailand's population
is huge," he told Bernama after the company's annual general meeting
here today.
In a related development, Choong said the group was actively scouting
for suitable locations for expansion of its retail business both at home
and overseas.
Currently, DeGem has five outlets locally and two in Singapore and one
in Jakarta, Indonesia.
"For the current financial year, we will focus on enhancing our existing showrooms by refurbishing, expanding and relocating
some of them," said Choong, adding that the group had allocated up to RM3 million for group refurbishment.
As for its factory in Bangsar, Choong said the group planned to relocate it as part of its future expansion.
DeGem markets its products under three channels -- retailing under the DeGem brand; retailing under the Diamond and
Platinum brand and wholesaling under its design and distribution units.
It operates two design and distribution centers in Hong Kong which markets its jewellery to Europe, Asia Pacific, the Middle
East and South East Asia.
For the financial year ended December 31, 2012, DeGem's revenue rose 14 per cent to RM250.8 million while pre-tax profit
fell to RM29.8 million, from RM34.4 million, recorded in the 2011. -- BERNAMA