Like many entrepreneurs, Cindy Yeung admits that when she graduated from universtity she didn’t know much about the business she was about to embark on.
Her degree in international business management from the University of San Francisco provided an excellent basis for a successfull career but she was lacking the specifics required for her particular calling. So, Ms Yeung decided to boost her knowledge of the jewellery business by doing further training as a gemologist at the Gemology Institute of America.
That was in the very early 1990s and now in her position as managing director of Emperor Watch and Jewellery (EWJ) in Hong Kong, she is charged with taking the company founded by her grandfather, Yeung Shing, as a watch and clock retail business in 1942, to the next level.

Early days

From timepieces, EWJ diversified into jewellery in the 1960s, and after her grandfather stepped down, Ms Yeung’s father Albert Yeung Sau-shing assumed the leading role – now it’s Ms Yeung’s turn.
Her desire to get involved in the family business began soon after her return to Hong Kong in 1990. After scouting around for a suitable site she stumbled upon a clothing store that was up for lease near the Landmark in Central.
She began there as a salesperson before taking over as branch manager in 1992: “It was my first baby,” Yeung recalls nostalgically.

Big spenders

At the time the company was solely dependent on the high end watch market and Yeung persuaded her father to introduce high end jewellery to compliment the long established watch business.
Now, EWJ is a luxurious watch and jewellery retailer both in Hong Kong and Macau. The company focuses on top Swiss brands of watches and also designs and sells jewellery products to middle and high income earners all over the world. The average customer spends about HK$ 30,000 on a purchase.
At present the company has 11 stores in major business areas in Hong Kong and Macau and plans to open more: “Our main customers are from China and Hong Kong, as well as international tourists. Our shops are in prime areas so they cater to customers from all over,” says Yeung.
EWJ has built up a steady base of customers, many of whom are tai-tais (rich housewives), celebrities, artists and others is the market for a classy watch or a fine piece of jewellery.
In line with the group’s focus on tourists and the high end market, it offers fine jewellery products, predominantly diamond, jade, pearl, 999.9 fine gold and precious stones products. About 80 percent of the company’s income comes from its watch business, while jewellery account for the remainder.

Friends not customers

The company philosophy is simple: “We have no customers, they are our friends,” says Yeung who studied their tastes when she first started at the company, and uses the intelligence she picks up to tailor the jewellery accordingly.
“If you really think they are just customers that does not denote a long term relationship. You really have to treat to them like friends. Whenever I come to Central I always see my friends and not my customers. That’s how we have built relationships,” Yeung adds.
Nearly 90 percent of their jewellery is made in Hong Kong and this year EWJ has collaborated with a French and an Italian designer to produce products in Thailand.
To keep abreast of the latest trends in jewellery, Yeung and her team of designers visit international fairs in Basle in Switzerland, and Las Vegas twice a year, and adapt new styles to local tastes.
“I design most of the jewellery because I socialise with the tai-tais and our friends and I know what they want. Then I tell our workers what to do,’’ she says. “ Each week Yeung meets with her designers to discuss and fine tune her next line.

Macau expansion

The company has opened branches in Macau to tap into the growing market: “Macau is a booming market for both watches and jewellery. Since it is now a second Las Vegas with a lot of casinos and hotels coming up, it has a huge potential.
“They now even have Cirque du Soleil to attract families, inviting them to go there not only for gambling but to watch international basketball, football, tennis games and attend conventions – this is all good for business,” Yeung says.
In July, EWJ was listed on the stock exchange and was over subscribed by more than 98 percent despite weak market sentiment. The company’s net profit soared more than 144 percent to more than HK$120 million by June 2008.
Now, despite the global financial meltdown, Yeung is confident that high end businesses such as hers will not be affected.
“In the past two months the business has been very stable and we have a good turnover. The third quarter is the high season. The economic turmoil will not affect us much, because people will have to buy presents for Christmas. Our sales may be slightly less than we expect, so we may have to adjust a little,” she adds.

by Anil Stephen in Hong Kong