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Like so many successful brands, Royal Selangor, the world's most famous and largest producer and distributor of pewter goods, owes its modern-day success to the humblest of beginnings. In 1885, Chinese-born, 14-year-old Yong Koon arrived in Malaysia with nothing but his pewter-smith apprenticeship. By the global depression of the 1930s, Koon had 22 employees producing an assortment of functional household products such as cups and cigarette tins.
In 1968, the brand, then known as Selangor Pewter, opened its first retail location. A seemingly small step, this first showroom ensured that Selangor controlled all phases in the production and sale of its products, and thusly, complete control over the fate of the brand. In the 1970s Selangor diversified into other precious metals, but never forsook the bread and butter of pewter. By the late 70s, Selangor made a leap abroad, establishing presences in Hong Kong, Japan, West Germany, Switzerland and Denmark. Selangor Pewter had achieved what so many Asian brands fail to do; it established a global presence based on quality, and maintained complete control of its brand – to the extent that it was still within the Koon family's control.
Royal Selangor Pewter International, as it is now known (the "royal" having been bestowed upon the company by a Sultan's Royal Warrant in 1992) harvested 55 percent of its revenue from over 25 markets last year. Partly to thank for this uncontestable success is the brand's control over the entire value chain, from blueprint to production to distribution to retail. The company now exports to a multitude of countries and has retail outlets scattered about the globe. Yet, not forsaking its roots, Selangor operates more than 30 showrooms in Malaysia.
Recognized for its triumphant brand strategy, Royal Selangor was identified as one of Asia's top 50 brands in a Business Times report (Sep 14, 1999 Companies/Markets). One of only two Malaysian brands rated in the survey, Royal Selangor earned 29th place and Malaysia Airlines came in at 43rd.
Although Royal Selangor has long stuck to the niche products that made it famous, it continues to leverage the lessons of flexibility learned long ago by Selangor's young founder Yong Koon. In 1996, the company established an Internet presence for just over US$ 8,000; the site now averages over 50 transactions a day. By 2001 the brand had won a CIO Asia Award (International Data Corp Asia Pacific and CIO magazine) as well as an Intelligent Enterprise: Asia's Intelligent 20 award for its e-commerce operations. Royalselangor.com's success is owed to too-often overlooked strategies such as simplicity and reliability, and nurturing honest bonds with its customers while at the same time gearing itself for a more international audience.
Royal Selangor is an excellent archetype for other brands from developing nations for several simple reasons.
- By maintaining full control over the product it has been able to control the ripening of its brand, thus avoiding the short-term focus that handicaps many Asian brands.
- By recognizing its market and seizing it without over- or premature-expansion it has created a trustworthy, quality brand name for its product.
- By first dominating the local market and then exporting globally (while never forgetting the local market), it has avoided helplessness at the mercy of fluctuations in any one market.
- And by remaining friendly to change and not stagnating in initial successes it has been able to roll with the punches and build a brand name worthy of royalty.
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Abram D. Sauer is a writer currently living in New York. He was a columnist for The China Daily while living in Beijing and is co-founder of Chopstickfactory.com.
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Jul 22, 2002
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Famous Amos - making dough -- Randall Frost
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A lot of companies have stuck their hands in the cookie jar of Famous Amos and changed the brand formula from a gourmet cookie for the jet set to a commodity.
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Jul 1, 2002
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Amazon.com - stacked -- Brad Cook
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Amazon.com transformed itself from the little bookstore on the corner to the mega-super-duper-full-of-stuff store that squats at the end of a monstrous parking lot.
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Jun 17, 2002
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Weber - smokin’ -- Ron Irwin
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With nearly 365 days of grilling weather per year, every day is Sunday for Weber Grills in South Africa.
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May 6, 2002
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Gatorade - endures -- Brad Cook
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The Gatorade team has managed to rule the sports drink market for decades -- perhaps there’s something in their drink?
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Apr 29, 2002
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Leatherman - sharp -- Ron Irwin
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Leatherman enlists the old-fashioned values of customer support and quality product to carve a niche in the Sub-Saharan African market.
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Feb 4, 2002
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Marmite - my mate -- Edward Young
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One man’s food is another’s axle grease. As Marmite celebrates its anniversary, we ask is the world ready for another 100 years?
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Jan 14, 2002
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H&M - Hot & Mod -- Abram D. Sauer
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H&M is hot, but focusing loyalty on price not product, forces the brand to compete with both low-end discount chains and chic designers.
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