Invigoration in the New Era

Company PortraitInvigorationin the New EraGeoffrey Kao, Executive Director of Wah Ming Hong Ltdand Awardee of Young Industrialist Awards of HongKong 2010 talks about how the hundred-year old watchbrand Enicar has become the top 10 imported watch brandsin the Mainland market.The renowned watch brand Enicar dates back tothe 1850s in Switzerland and played an importantrole in the Swiss watch and clock industry. Inthe 1930s, Geoffrey Kao’s grandfather Lee Waileebecame the agent for Enicar in Shanghai, andquickly became the general agent in Asia. Fromthen on, Enicar was well known by successivegenerations in the Mainland.After Mr Lee moved to Hong Kong in the 1940s,he established Wah Ming Hong Ltd. In 1988,Enicar was acquired by Wah Ming Hong with theproduction remaining in Switzerland.Wide Promotion andAdding ValueSince Geoffrey Kao took the positionof Executive Director of Wah MingHong Ltd in 2004, the brand invitedthree famous Mainland actors asspokespersons to increase thepopularity of Enicar. These weresuccessively Zhou Xun, Xu Jingleiand Zhang Hanyu. According toMr Kao, “These three actors aretalented and capable. Just likeEnicar, they are cultured, congenialand easy-going. They also hold high standardsfor themselves, which means their choosing tobe the spokespersons of Enicar is an indicationthat our brand is of a high standard itself. “Enicar has been in three different stages duringthe period that the three actors have beenspokespersons. In 2005-07, Enicar invited ZhouXun as the spokesperson, commencing thebrand’s first national promotion. It also startedto release new designs based on the marketdemand to replace old models. “In the secondstage, which was 2007-09, we began to enhanceour market positioning.” The average price wasdoubled and watches with prices overRMB10,000 were released.In the third stage (2009 tillpresent), Enicar has begun toposition itself in the high-endmarket and put more emphasison conveying the brand culture.Detailed Classification toExploit Market PotentialThe market classification of Enicaris very detailed. Mr Kao said, “Forexample, the market of Jiangsu34 6/2011/

province is traditionally divided into two, thenorth and the south. To me, however, differentstores in Yangzhou city of Jiangsu province canbe considered as different markets.” He does notdivide and analyse Enicar’s market with the clichéconcept of an “x-tier” city. “Many Hong Kongerswould consider Hefei, the capital of Anhuiprovince, as a ‘third-tier’ city, but it is absolutelya ‘first-tier’ city to Enicar. As each store, city andprovince is at different development stages andseeing various changes, it is impossible for usto classify the markets in conventional ways.Besides, we will not give up any market howeverits size is.”Therefore, Enicar does not have a unifiedoperation strategy for all the stores around thecountry. “I am very flexible in doing businessin the Mainland, and formulate business plansspecifically for a province, a city or even a singlestore. Besides, the strategies I am using nowmight be changed next month.”Having gained popularity in the Mainland in thepast decades, Enicar always sells well. Therefore,Mr Kao’s main duty is to strive for the bestenvironment and conditions for the brand tofully exploit its potential. He says, “I have sevensales staff based in the Mainland who update themarket situation to me, and I plan as a whole andmake specific decisions based on the informationprovided.” If sales at one store do not meetexpectations, Mr Kao would fly there to get theopinions from many sides including sales andcustomers. Then he would try to find out thereasons, such as inappropriate display locations,strained relationship with the franchisee, or failedpromotion work. Then he would make decisions tochange accordingly to fully explore the potentialof Enicar in that market.As each store, city and provinceis at different developmentstages and seeing variouschanges, it is impossible forus to classify the markets inconventional ways.Follow the Trend withStrong Market SenseWith its rapid development, theretail market in the Mainland hasseen fast changing consumptionstyles. Mr Kao elaborates, “It istotally different from five or 10years ago. There were fewer whitecollarsbefore, and they would liketo make a high profile of themselvesin every way. Nowadays, peoplestill want to show their success,but they prefer comparativelyl o w - k e y d e s i g n s .” E n i c a rcaught this change, and wonpeople’s hearts with simple andfashionable designs.E n i c a r p l a n n e d t o p u t m o r eemphasis on attracting the post80’s customers, and will releaseyoung and fashionable designs.R i g h t n o w , t h e e x i s t i n gcustomers are those agedfrom 30 to 45. “Many ofthem are successful and areable to buy Enicar’s watchesfor themselves, their parentsand children. Many post 80’s,although having not workedfor long, have decent incomeand are able to afford Enicaras well. Therefore, we are nowaiming at people aged from 25to 45.” To achieve this, Enicar hasand will release models like CH331, CH333and CH128 catering to the youngsters. “Thereis considerable room for the growth of the post80’s consumption power in the coming 10 years.We will try our best to attract them and keep thecurrent consumers as well.”M r K a o i s v e r y c o n f i d e n t f a c i n g f i e r c ecompetition. “Many brands will be eliminated inthe competition. Their disappearance indicatesthat there will be room for the development ofother brands. What Enicar focuses on now is howto beat the competitors when some brands arebeing washed out of the game.”6/2011/35

Company PortraitActive Participation inCross-cultural CommunicationApart from work, Mr Kao proactively promotescommunication between the youngsters from theMainland and Hong Kong. He has taken severalpositions including the Vice Chairman of HongKong - Shanghai YouthExchange PromotionAssociation, ExecutiveVice Chairman of HongKong – ChongqingY o u t h E x c h a n g ePromotion Associationand Executive Directorof Hong Kong UnitedYouth Association, inorder to promote the interaction and cooperationbetween the young business leaders from theMainland and Hong Kong.Mr Kao says his original intention of joining theseactivities was to further understand the country.He has to deal with many details at work, andthese activities can not only release him fromwork, but also enable him to look at situationswith comprehensive and long-term perspectives.“Through these activities, I have found Mainlandyoungsters very smart. They just do not havemany opportunities and platforms. Therefore,I hope to help them develop the field of theirvision with Enicar’s vast network so that they canbe far-sighted in their study and work. I also hopeHong Kong youngsters can get to know moreabout the nation through these activities.”