TMCnet News
Have leather will travel(Malaysian Business Via Thomson Dialog NewsEdge) GERMAN luxury leatherwear company Braun Buffel is gearing up for a bigger presence in Malaysia. The exclusive distributor of the Braun Buffel brand in Malaysia, Lianbee-Jeco Sdn Bhd is anticipating growth of the products to increase to 40%-50% in 2007 from the current yearly growth of about 20%. Lianbee-Jeco's Managing Director David Kwang, the man who is set to take the Braun Buffel name to greater heights in Malaysia, says, `We have been following the momentum of the growth of the brand and have already finalised plans to open three more Braun Buffel boutiques throughout Malaysia.' The company currently has four prominent outlets in Suria KLCC, Lot 10, One Utama and Sogo. The first of these will be an 800 sq ft boutique in Queens Bay, Penang. This will be followed by a boutique at The Pavilion in Kuala Lumpur in the third quarter of 2007 and The Garden in MidValley's Phase 2 at the end of next year. Kwang, who has been with the company for the last 25 years, says, `Within a year, I'm quite confident of opening outlets in Kota Kinabalu and Kuching.' Braun Buffel has no sales outlets in these two cities at the moment. Established in 1887 in Germany by Johann Braun, Braun Buffel is known for its craftsmanship and high-quality leather collection. From its collection of leather handbags, shoes and accessories, the brand is now expanding its range of products. `We will be launching a new range of eyewear,' Kwang discloses in an interview with Malaysian Business. The new range is expected to be launched this month. The Asia-Pacific head office of Lianbee-Jeco Pte Ltd is situated in Singapore. Besides Malaysia, Braun Buffel is also distributed in Australia, China, Hong Kong, Indonesia, the Philippines, Saudi Arabia, Taiwan, Thailand and Vietnam. The brand is also distributed in The Netherlands, Germany, the United Kingdom, Luxembourg, Italy, Russia, the United States, the Czech Republic, Austria and Switzerland. The strong support for the brand in Asia Pacific is undeniable. The reason, Kwang explains, is that `Asians are more brand orientated'. He reiterated that Asians tend to place a stronger value on branding compared with other regions. Out of the selected brands distributed by Lianbee-Jeco in Malaysia, Kwang reveals that Braun Buffel contributes the biggest chunk to the company's revenue, about 60%. Renoma, a brand that caters to the younger and funkier crowd, constitutes about 35%, while Morgan, a trendy and daring brand which caters to young ladies, contributes the remainder. Since its establishment in 1993, Lianbee-Jeco has made headway in branding efforts for its range of brands, most notably of which is Braun Buffel. According to Kwang, `Our brand is well accepted by our target audience.' Braun Buffel's target audience are those between the ages of the early 20s and 50. But Kwang is quick to point out that young executives in their twenties are increasingly being attracted to the brand. In fact, there is even support from customers in their sixties. The brand's expansion is attributed to several factors. In Malaysia, Kwang says, `In the past 10 years, the middle-income group has grown very fast.' With more expendable income to spare, this group is looking to indulge in luxury at an affordable price. Another factor is the increasing awareness of the brand. He says, `Seven out of 10 people of our target audience are aware of the brand.' This is quite an achievement for a brand that has been in Malaysia for less than 10 years. It would seem that efforts to create awareness of the brand are paying off. Kwang says, `We spend about RM1 million on print advertisements alone every year.' Lianbee-Jeco mostly concentrates its advertising efforts on print advertisements in selected magazines. Beyond this, Braun Buffel also carries out event sponsorship activities. However, it's not just any event. Kwang says, `We go for something that is meaningful like the "Malaysian Business Corporate Governance Award 2005".' In Singapore, Braun Buffel donates about $60,000 to a charity effort that will be used to generate more money for a charity home. Organised by the Community Chest of Singapore, this yearly affair is held at the famous Orchard Road. Kwang hopes that such an effort can be replicated along Jalan Bukit Bintang in Kuala Lumpur to attract tourists as well as benefit local charities. Even though luxury leather goods are no longer out of the reach of the average consumer, will the demand for luxury leather goods be affected in light of the rising cost of living? Kwang says that although the current inflation rate is bound to affect consumers, he is not overly concerned about its effects on the brand. He points out that the collection that makes up Braun Buffel constitutes necessities like wallets, belts and handbags. So while consumers may cut down on their return purchases, spending on such items is still a necessity. Braun Buffel's collection of high-quality leather goods ensures that its customers are able to stretch their money. To keep customers coming back for more, Kwang says it is important to treat them like friends. To this end, the company invested RM150,000 into a customer relationship system one-and-a-half years ago. With the system, he says, `We know what they like and how they spend.' This is one way to be closer to customers by understanding what they like. The investment seems to be paying off as feedback from customers has been tremendous. To ensure Braun Buffel's future growth, Kwang believes in promoting awareness of the brand from young. He says, `We want to expose the brand to the young.' This way, these youngsters would be knowledgeable about the brand. He points out that when these young adults enter the working world, their first purchase of a luxury item with their first paycheques would be anchored. Despite the success the brand is enjoying today, Kwang believes there's more to be done. He says, `We will have to do more to expand our customer base.' He is confident that with the right branding, there will be continual growth. He adds, `If we have all our right elements in place, the growth will come automatically.' |