FORTUNE CONCEPT TO EXPAND IN MALAYSIA
Distributor plans to double number of outlets in the country over next 5 years
FORTUNE Concept Ltd, which distributes international lifestyle brands for watches, jewellery and sunglasses, is expanding in Malaysia to gain more market share.
Rajiv Mehra, the Hong Kongbased company’s regional sales director, said there were plans to double the number of outlets in Malaysia over the next five years.
Fortune Concept currently operates 14 kiosks and standalone stores in key cities.
Rajiv told NST Business at the recent launch of Cerutti 1881’s Odissea Master that the company is bullish on long-term investment prospects here.
“I am confident the market will bounce back in the next 12 to 18 months. Firstly because it is a business cycle. It is a fact the business cycle has gone up and down.
“Secondly, a lot of people have been saving their money due to market uncertainty. They are now back in the market and ready to purchase items that include jewellery and watches.
“Our business in Malaysia has been stable. In fact, we do see a lot more people buying medium-end to luxury goods, especially watches and fashion jewellery,” he said.
On how much the company intends to spend here for their expansion, Rajiv said it would depend on the location and the size of each outlet.
“On average, we spent between US$3 million and US$5 million (RM11.9 million and RM19.9 million) to open a standalone store here.
“Malaysia is a country with huge potential so we are willing to spend that kind of money in the country,” said Rajiv.
He said Malaysia was one of the most important markets in Southeast Asia for Fortune Concept, especially for the watch category and under the Cerutti brand.
The company sells 20,000 to 25,000 Cerutti watches a year, he said.
“Malaysia is second after Indonesia, followed by Thailand and Singapore. Indonesia takes the lead because of its huge population,” he said.
Founded in Paris by Italian fashion designer Nino Cerutti in 1967, Cerutti 1881 started out as the choice apparel for discerning men and women.
Today, it has evolved into a major global brand that has expanded beyond suits and dresses to include sunglasses, jewellery and watches.
Fortune Concept sells different watches that complement activities such as daily wear, weekends, outdoor sports and clubbing.
The watches are priced between RM700 and RM1,500 and the company is targeting consumers between the ages of 25 and 45.