Global multichannel jeweller hits ASX
Plukka, a Hong Kong-based fine jewellery company which listed on the ASX last Friday, has an omnichannel strategy to disrupt a “fragmented, inefficient” industry.
“The fine jewellery market is very, very fragmented, localised and inefficient,” said Joanne Ooi, the founder and creative director of Plukka.
Founded at the end of 2011, Plukka was first launched as an online-only designer jewellery retailer. Today, it has an omnichannel business model, retailing designer products as well as its own private label stock.
Plukka has a flagship boutique in Hong Kong and will open a second store in London in February. The business aims to open six boutiques by the end of 2017.
Ooi said Plukka’s model, “happens to be revolutionary because of how backward the jewellery industry has been.”
Apart from mono-brands, such as Tiffany and Cartier, most independent jewellery designers are stocked locally and have to deal with each retailer or department store individually to range their products.
According to a report from McKinsey, the 10 biggest jewellery groups capture just 12 per cent of the worldwide market. Ooi said Plukka is stepping into a supplier-side void, offering independent designers international marketing and distribution.
“Think of the jewellery industry as being 20 years behind the fashion industry,” she said. “That’s where we are.”
Plukka listed on the ASX last week via a reverse takeover of investment company, Continuation Investments Limited (COT). COT acquired 100 per cent of Treasure Castle Holdings Limited, the owner of Plukka. Upon relisiting, COT was renamed Plukka and now trades under the code PKA.
The float raised $10 million, which will be used to fund the brand’s expansion plans, with a focus on the US market.
Plukka’s channel strategy is centred around the knowledge that jewellery is a high sensory involvement category and consumers still want a real life encounter with the product.
As well as the boutiques, Plukka has trunk shows and a ‘view on demand’ service, an online platform which allows clients to “summon” products to their home or office to try on, before deciding if they will buy them.
Ooi believes the model is the correct intersection of tech and personal service for the category.
“Are you really going to buy the ear cuff after you see it worn by your virtual avatar on your computer screen?,” Ooi said. “You still would really strongly like to see it on your ear in-person.”