Wednesday, October 28, 2009

THE ORIENT EXPRESS TO ULTRA-LUXURY

       In December, Christie's will auction off "the Vivid Pink," a bubble-gumcoloured five-carat diamond with an estimated value of US$5 million to $7 million (about 167 million baht to 234 million baht). But instead of scheduling the sale for New York or Geneva,the city chosen was Hong Kong.
       Asia's role in the market for super highend luxury goods is mushrooming, reflecting an underlying shift in consumer spending power that has been creeping along for years,but which received a boost from the global economic crisis.
       Christie's and its rival Sotheby's say that in the last few years Hong Kong has emerged as a top location for sales of expensive jewelry,gems and fine wines. Asians have also become major buyers of ultra-luxury goods at their auctions in London, New York and Geneva.
       Christie's clear 101-carat Shizuka diamond,for instance, sold in Hong Kong for $6.2 million in May 2008. That sale, and the one coming on Dec 1 of its big pink diamond,"are both great examples showing how important this market has become at the very top end", said Vickie Sek, head of jewelry at Christie's Asia.
       In another telling example, Rolls-Royce,which did not even have dealerships in Asia until 2003, immediately received 20 orders for its new $250,000 Ghost when it presented the car in Hong Kong last month - despite taxes that double the price.
       More broadly, household spending in developing Asian nations is expected to increase as continued growth, rising populations and improving government health and retirement safety nets reduce the need for families to save.
       At the same time, many of the world's economies are struggling to return to growth after the financial crisis. Russia and the Middle East are taking a hit from lower oil prices.And consumers in the world's traditional spending powerhouse, the United States, are weighed down by debt and expected to be much more cautious about opening their wallets for quite some time.
       "The United States is in the early stages of a multi-year retrenchment," Stephen Roach,chairman of Morgan Stanley's Asia operations,said in a speech last week in Hong Kong.
       The result is a gradual rebalancing in spending power toward emerging nations in Asia - and China, in particular.
       Japan, mired in a long economic slump, is a big exception in the region. Recently Yohji Yamamoto, the Japanese clothing designer, filed for bankruptcy protection, and Gianni Versace, the Italian fashion brand, announced it would close its Japanese stores.
       But China, the world's most populous nation, has already become the biggest global car market, having overtaken the United States earlier this year. And Credit Suisse forecast last month that China's share of global consumption would overtake that of the United States by 2020.
       China's population of "high net worth individuals", those worth $1 million or more,surpassed that of Britain for the first time last year, according to an annual study published by Capgemini and Merrill Lynch in June.
       North America, Japan and Germany together still accounted for 54% of the global total, but the authors of the report also predicted that the Asia-Pacific region would surpass North America by 2013. Last month, a list compiled by Hurun Report, a research and publishing company based in Shanghai, found that the number of known billionaires in China had grown to 130 from 101 in 2008.
       To be sure, the shift in consumption and wealth is slow, and much will depend on how quickly Asian governments manage to improve social safety networks, stimulating domestic spending. Still, Asia has already seen a large rise in the number of individuals who can splash out in the auction halls of Christie's and Sotheby's.
       Buyers at Sotheby's autumn sales in Hong Kong this month spent $7.9 million for fine wines - well above the $6.1 million estimate and above the $6.4 million raised at the Hong Kong spring sale. A painting by the Chinese master Sanyu comfortably beat estimates,
       going for $4.7 million to a Chinese buyer
       bidding by telephone.
       And Sotheby's jewelry auction last Wednesday raised more than $32.6 million, up from just less than $20 million a year earlier. A 28.88-carat round brilliant-cut diamond fetched $4.7 million.
       And a "fancy intense blue diamond" went for $5.6 million, just short of the record percarat price for a diamond of that type, drawing applause from those in the hall.
       Though some prices remained below their pre-crisis peaks, the results bode well for sales at Christie's in December.
       In the mid-1990s, Sotheby's jewelry auctions in Hong Kong raised only about 5% of its total in the jewelry category, said Terry Chu, deputy head of the jewelry department at Sotheby's in Asia.
       In 2004, its Hong Kong jewelry auction raised $47 million, surpassing the Geneva auction for the first time. Since then, the Hong Kong auctions have represented about one-third of the total each year.
       In December 2008, when the credit squeeze set off by the collapse of Lehman Brothers was at its most severe, Christie's raised $33.5 million at its jewelry sale in Hong Kong,more than at any of the other jewelry auctions it held elsewhere that season.

THE DESIGN CONSULTANT

       FACT BOX Anon Pairot,30, is the founder of Anon Pairot Design Studio (www.anonpairot.com)and a design consultant.His upcoming exhibits will be on display at Bangkok Design Festival 2009 (Oct 12-18, Bangkok Art and Culture Center)and at Bangkok International Gift Fair and Bangkok International Houseware Fair 2009(BIG+BIH)(Oct 13-18, Impact Challenger).
       HOW ESSENTIAL IS DESIGN CONSULTANCY?A designer is like a hairdresser. When a client needs us to help with a design solution, we need to get our hands on the work. I believe, these days, with a changing business structure, suppliers no longer simply supply materials - the
       first thing is to educate people. People can produce OTOP products, but again, do they know how to run a business, how to export their merchandise, how to fill in customs forms? Before we force something upon the people, we need to educate them as well.GTo see an extended interview with Anon visit gurubangkok.com.y're supplying something with a design. What I do is, primarily to design, and secondly to research and to come up with solutions. Each case is different it's like a hairdresser working with different conditions of hair. So that's our work, to find the best solution for them.
       SO IT'S A COMBINATION OF BUSINESS AND ART?Yes it is. I believe the work for an architect or a designer is an integration of different fields. The one who can cook best makes the best dish. It's not just about designing - it involves news, current updates, culture.Art-wise, we love to work because it allows us to think positively. We are, at the same time, hopeful for everyone involved - from the entrepreneur to the supplier, to the worker - that we can come up with the best design solution.
       WHY IS THAILAND'S DESIGN INDUSTRY NOT THRIVING AS MUCH AS IN SOME OTHER COUNTRIES?I started designing and entering competitions in my college days. I'd say, I'm lucky to have learned from the experiences, from the experts at the Department of Export Promotion. If I didn't know what business is, what national structure is, I wouldn't have understood the difference between our products and those of other countries. The worth is just different, and that reflects a lot of factors from the business per se,the culture, the lifestyle, the history of each country. So if we say we
       can make a bag exactly like Louis Vuitton,why doesn't it sell equally as well? That's because there are many differences.History can't change; a business profile can't change. People don't just buy an object. Again, it goes back to education.
       SO WILL "CREATIVE ECONOMY" WORK?We have to go back to "who knows what 'creative economy' is?" It's like eating instant noodles. But do you know why we need to have instant noodles? What's the purpose of them when we have cheap street food everywhere? So the first thing is to educate people. People can produce OTOP products, but again, do they know how to run a business, how to export their merchandise, how to fill in customs forms? Before we force something upon the people, we need to educate them as well.

BRIDAL BANQUETS BY THE BEACH

       For decades, Thailand has been one of the most popular destinations for honeymooners around the wourld. Thanks to the country's geographical location and convenient access points that make it easily accessible from the US, Europe and Asia, the kingdom is blessed with a diversity of destinations that can be enjoyed at anytime of theyear. Throw in its cultural aspects and a few fun quirks and it's easy to see why Thailand has also becom a popular place for lovers to exchange vows. Growing alongside that popularity is the prufessinal wedding service offered by boyh independent studios and luxurious hotel chains. Among many famous locations, one new option for the soon-to-be-married is Pattava.
       Taking advanage of its vicinity to Bangkok and the mushrooming of luxurious four and five star hotels, Pattaya is now offering mid-range but quality wedding receptons for both local and foreign lovers.
       Those who want a cultural setting can choose to go up North for a Lanna style reception, or head Northeast to enjoy a nuptial experience on elephant back, Ocean lovers can tie the knot underwater in Trang and follow up with a romantic, candle-lit party on the beach to celebrate the union.
       But the vast majority of couples simply want the "perfect" reception, shich includes a decent meal and drinks, exquisite wedding cake, nice set up with romantic music anc, most importantly, convenience for their gurests.
       Phuket, Krabi and Samui have long been big wedding markets, as they all have stunning ocean cackdrops, easy access by plane and professional event organisers from many five-star beachside hotels, They mainly cater to high-end clients looking for an exclusive event.
       In Pattaya, couples will find both mid-range to super high-end and everything in between. Prices range from Bt15,000 to Bt 100,000 and cover both traditional Thai and Western style potions.
       Pattaya has worked hard to drop its "Sin City" tag and today is recognised as a family resort, It's busy expanding its territory int he wedding market thanks to expanding its territory in the wedding market thanks to its growth and strength in hospitality business. With its four to five-star hotel chains booming, ti attracts not only the higher-end vacationers and MICE groups but also wedding cuples who want convenient, quality reception in reasonable prices.
       Amari Orchid Resort & Tower in Pattay has been a pioneer in wedding business. For the third consecutive year, the hotel organised its Wedding Fair last weekend at Central Festival Pattaya Beach. The hotel offers a special wdding package and has now introduced a range of professionsl services from wedding planners, aestheitc spas. wdding dress designers and jewellers. The hotel also has additional packages for honeymoon and spa pampering after the wdding.
       "What we've been trying to do is tio fill the demand in Pattaya's wdding market." David cumming, General Manager, said in an interview after the opening ceremeny on Sturday. "Of course people get masrried here, both the Thais and the foreigners that live here, but it's not professionally organised. We're running a hotel business, we have the facilties and we have the manpower, we can cater to that."
       For teh first year, the fair claimed 26 weddings at the hotel and the figure went up to 45 last year. Amari hopes to double that number during the upcoming high season, While other hotel cahins in Pattaya slowly pick up on the wedding market, Amari ranks weedings as important as vacations and other functions.
       "What we do is the ensure the couple that they'ss get what they pay for, and they'll get the best for their money. We set up the banquets, full scale, for them to see, And we guarantee that they will get exactly what they choose on their wedding day. We sell the promise, and we deliver it." Cumming confirmed.

Tuesday, October 20, 2009

Adecco boosts high-margin business with MPS deal

       Adecco, the world's largest staffing company, is buying American rival MPS Group for $1.3 billion, boosting its high-margin and more recessionresilient professional staffing business.
       Adecco also said it was launching a 900 million Swiss franc ($888 million)mandatory convertible bond to accommodate the cash deal, though one rating agency promptly put its investment grade credit rating on watch.
       This deal, plus the recent acquisition of Britain's Spring Group, means close to 25% of group revenues will be generated in the more lucrative professional staffing arena, up from 17% in 2008.
       "We are delighted to have MPS Group become part of the Adecco Group, in a move that will see Adecco taking the worldwide lead in professional staffing,"CEO Patrick De Maeseneire said in a statement, who later added that this was the last big acquisition on the cards.
       Adecco also sounded a more upbeat tone on its trading environment, saying market conditions had improved during the third quarter. The group will post quarterly figures on Nov 5.
       "This acquisition is fully in line with Adecco's strategy to strengthen its professional staffing business, which offers higher margins and more attractive growth opportunities," Helvea analyst Chris Burger said in a note.
       The move marks a significant coup for De Maeseneire who took over the helm in June from Dieter Scheiff. Adecco failed last year in its bid to buy professional staffing group Michael Page, which many believed was the reason behind Scheiff's departure.
       "After the unsuccessful try to take over Michael Page, MPS Group was chosen, which has a similar, or even slightly bigger, size in terms of sales,"Burger said, adding the deal put Adecco ahead of rival Robert Half in professional staffing.
       Adecco would now focus on organic growth, De Maeseneire told Reuters."The big acquisitions are done now," he said."We now have a strong platform to grow organically."
       MPS Group's board of directors has unanimously backed Adecco's offer of $13.80 per share, which represents a premium of 24% over the Florida-based company's last closing price.
       Standard & Poor's said yesterday it had placed its BBB rating on Adecco on CreditWatch with negative implications as a result of the deal.
       But chief financial officer Dominik de Daniel said he was confident Adecco would be able to keep its investment grade rating thanks to the convertible mandatory bond offering.
       The MPS deal is expected to close in the first quarter of 2010.
       Adecco's news comes as Dutch group Randstad NV said Britain's NorthgateArinso was buying its human resources services unit Cian.

Wednesday, October 14, 2009

A BUSINESS GOING TO THE DOGS

       Do you feel a special connection to animals and have always wished one day you could have a career working with them? Are you tired of a mundane job and are thinking about what you would truly enjoy doing? Or are you looking for a secondary business to work on at weekends in order to help increase your income. If so,then dog grooming could be the ideal choice for you.
       "Being a professional dog groomer is such a rewarding career," Anupun Boonchoen,the owner of Dog2Home, a dog grooming school, said."I've always loved dog grooming because it can be a joyful experience for both the groomer and the pet," the dog lover added.
       Anupun always dreamed of being a successful dog groomer. To achieve his goal he attended a pet grooming course taught by an American professional dog groomer. With the special grooming techniques learned from the class, combined with some self education,he decided to establish his own dog grooming school. His objective is to provide the training necessary to prepare students with the skills required to successfully enter to the pet grooming industry.
       "About 10 years ago, it was hard to find a dog grooming school in Thailand. However,if one wants to be a professional dog groomer,I think it's very important to attend a school because they will be taught the correct way to groom dogs," Anupun said.
       Being trained to be a professional dog groomer
       Located in the Don Muang area, Anupun's dog grooming school offers several courses such as Colouring Dog Hair, Spas for Dogs,the Management of a Pet Shop and Specialised Dog Grooming, with Professional Dog Grooming being the most popular course among students. This is because the course provides fully integrated dog grooming.
       "I studied a master's degree in education at Srinakharinwirot University so I was able to design and developed all the courses myself," Anupun said.
       On the Professional Dog Grooming course,students are provided with hands-on education and training using the school's modern facilities. They also get comprehensive grounding in grooming dogs, pet hygiene and pet cardiopulmonary resuscitation (CPR).
       To help students establish a business, special studies on appointment setting, customer record keeping, marketing, tools of the trade and sanitation, are also offered.
       "Beginners are always welcome at our classes. We start with basic lessons such as how to handle scissors and clippers properly.When students are adept, we will move to more advanced procedures like proper scissor techniques," the groomer said.
       The course runs for 30 days and totals 150 hours. The cost is 28,000 baht and there is a maximum of 10 students. A set of grooming tools is also provided for each student. All class fees include the use of tools and dog training. Applicants must be 15 years of age or have a parent's or guardian's permission.
       "During the school break, many young students come to attend our class. They want to be skilled dog groomers and keep their dog well-groomed themselves as well as optimise their free time," Anupun said.
       In classes, students learn to groom many breeds such as Poodles, Yorkshire Terriers,Pomeranians and Shih-Tzus. Each dog breed has its own grooming needs. The students will also be trained in many styles of grooming from standard to pom-poms or teddy bear.
       "One of the most important qualifications is that students must truly love dogs. Dogs bark very often, play around and mess on the floor. Importantly, students have to deal with aggressive dogs and learn to control them," the teacher emphasised.The road ahead to success
       In addition to building up their own business, getting trained in dog grooming and becoming a skilled dog groomer can open many occupational opportunities for students to work in pet supply shops, pet boarding kennels and grooming salons.
       "The Thai pet-grooming industry is now thriving. There is a great demand for qualified professional dog groomers to work with veterinarians and animal hospitals and shelters.However, most of our student graduates prefer starting their own dog-grooming business and enjoy being their own boss. Some of them have gone to work as professional dog groomers abroad which generates better income than working in Thailand," Anupun said.m
       BUILDING A CAREER
       Nipaporn Noja, 28, is the owner of "The Dog Grooming and Spa", a shop located in HomePro, Rama II.Nipaporn worked as a customer relations manager at Toyota Nonthaburi for five years. Even though she liked her job,she found that something was missing. It was not fulfilling.
       She is a pet lover and owns three dogs and five cats. So she wanted to have an occupation working with pets.
       After a serious discussion with her boyfriend, Nipaporn decided to attend a professional dog grooming course. She graduated in September and then she and her boyfriend opened their own pet grooming and pet shop with an investment of one million baht.
       "We chose to open the shop where we did because it's packed with people, particularly at weekends, and it's also near my house," Nipaporn said. Meeting customer satisfaction
       Nipaporn has always realised that customers are the key to business success.So to attract them, she has tried different methods of getting customers' attention.
       She distributes brochures in many places nearby in order to promote her new business. She also implements effective marketing strategies and offers special promotions to customers.
       "For every 300 baht spent, customers will get a stamp. If they collect five stamps,they will get a free grooming for their dog," the owner said.
       To impress her customers, she also sends them an SMS to thank them,."By doing this, I think customers will return because they like our services," Nipaporn said. A bright future
       On weekdays, Nipapon offers grooming for three to four dogs and the number increases to nine to 10 at weekends. She charges customers 450 baht for each grooming.
       Nipaporn and her boyfriend said that they don't know when will they get a return on their investment.
       "But after just 15 days in business, we have 50 customers. With such a healthy start, we have good reason to expect a promising future," Nipaporn said.
       Chareeya Junchuwanitkul, 22, is the owner of Pooterky, a shop located in Wat Dan Samrong Soi 2, Samut Prakan.
       Chareeya has always had a love for animals, particularly dogs. She has three of them. In the past, she took her dogs to a grooming shop every week which meant she spent a lot of money on them. And she also learned that finding a good dog groomer is not easy.
       After completing a bachelor's degree at Kasetsart University, Chareeya, applied for a dog grooming course because she thought it would not only save her money,she could also earn some money, too.
       In May 2009, Chareeya went into partnership with a friend and took over a dog grooming business. Their shop is situated in a prime location close to several communities. They invested 200,000 baht each for tools of the trade and shop renovation.They also have to pay 20,000 baht in rent.They think that they can get a return on their investment within six months.
       Chareeya charges customers 300-350 baht per grooming service and serves about 180 dogs per month."The standard price for grooming is 400 baht. But we offer a lower price because we want repeat customers," Chareeya said.
       In order to provide convenience for her customers, Chareeya also offers a delivery service to the dog owners' homes for an extra 50 baht.Careful attention to every detail
       Chareeya has learned from a former entrepreneur that offering high quality grooming will enable them to survive in this booming business. To this end, they pay close attention to every aspect of grooming, from bathing to brushing and from shaving to claw trimming in order to give dogs a healthy, glossy and well-groomed appearance.
       "You know, keeping dogs groomed is not only important for their appearance but for their health as well. Moreover, regular grooming of your dog can help control parasites in addition to improving general appearance," she said.
       What the future holds
       In her opinion, Thailand's pet-related industries will enjoy strong growth. As a result, Chareeya will broaden her horizons by adding more services.
       "We will introduce spa services for dogs in the future in order to meet the increasing demands of our customers," she said.