HKU562 AC RC Asia Case Research Centre THE UNIVERSITY OF HONG KONG PO.docx - HKU562 AC RC Asia Case Research Centre THE UNIVERSITY OF HONG KONG POON

HKU562 AC RC Asia Case Research Centre THE UNIVERSITY OF HONG KONG PO.docx

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HKU562 AC RC Asia Case Research Centre THE UNIVERSITY OF HONG KONG POON Poonkamer DR. CHIKIN (BENNETT) YIM JEWELLWORLD.COM: A JEWELLERY INDUSTRY B2B PORTAL It was a hot and sunny day in August 2004. Derek Ling, project manager for Jewellworld.com, was sitting in his air-conditioned office, which was located inside the headquarters of Luk Fook Holdings (International) Limited, or Jewellworld.com's parent company. It had been over four years since Jewellworld.com had been established as a jewellery industry portal, and over a year since it had broken even. Its B2B membership had grown from less than 40 to around 250, and its service offerings had also undergone considerable changes. By mid-2004, Jewellworld.com was perhaps one of the few surviving jewellery industry portals in Hong Kong and China that provided both B2B and B2C services. Moving forward, Ling wondered how Jewellworld.com should continue to develop and grow. Hong Kong's Jewellery Industry The mainstay of Hong Kong's jewellery industry had long been the precious jewellery sector In 2001, it accounted for 75% of total jewellery exports, 87% of the industry's total establishments, 95% of the industry's employment, and 97% of gross output. The range of products spanned from medium- to high-priced. With a skilled and productive labour force, the industry was well-known for its flexibility and value for money. While Hong Kong's overall technology level in precious jewellery was perceived to be behind world leaders such as Japan and Italy, Hong Kong's jewellery manufacturers
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were renowned for gem set jewellery, and their gem-setting skills and design capability were considered to be on par with their European counterparts. Hong Kong was also regarded as a leading production centre for jade jewellery and a leading trading and distribution centre for pearls. By 2004, Hong Kong was the second largest exporter of fine jewellery in the world. Traditionally, the jewellery industry was self- sufficient. From manufacturing, retailing and through to exporting, most value-chain activities were conducted in Hong Kong Small jewellery manufacturers usually acted as suppliers to larger manufacturers or retailers, Tetrade.com www document.man industries:12 22 (ced May 2009 w Le pred his caree r 2006 y C . The r Cwe wa or by Jinni Man Ke Manto chcel C ity M Ref.662770 062770 Jewellworld.com: A Jewellery Industry B2B Portal providing such goods and services as mould making, gem setting and electroplating. Only established manufacturers equipped with sophisticated and automated equipments were capable of mass-producing jewellery By the late 1990s, however, most manufacturing processes were being shifted from Hong Kong to Shenzhen and Panyu in southern China. Mainland China's development as an outward processing production base of jewellery had been straitjacketed by the country's trade restrictions of precious metals. Also, its labour force was not as skilled. Hence, manufacturing processes with less stringent quality requirements were likely to be shifted to the Chinese Mainland, while the more
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  • Spring '19
  • Prof. Adnan Hamideh

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