Wednesday, December 12, 2007

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Dankotuwa Porcelain shines more with niche marketing

Gets mega deal to produce Kelly Hoppen table-ware design for top UK store BHS

Dankotuwa Porcelain PLC has been selected to produce a Kelly Hoppen table-ware design for British Home Stores (BHS), a top UK Store.
Dankotuwa which has moved away from mass produced items to service niche markets has become a preferred manufacturer for these specialty designs.


“It is impossible to compete on price with large scale manufacturers in Asia whose unit production cost are much less than ours,” Dankotuwa Porcelain Chairman Sunil Wijesinha said.


He added that the Company has gradually revamped its strategy to produce small lots for niche markets, at short lead times, rather than volume markets at lower prices. While manufacturers in countries with cheap natural gas such as, Bangladesh and Thailand cater to mass markets with competitive prices, Dankotuwa is becoming recognized as a niche market manufacturer.


“We are delighted in getting the order to make a Kelly Hoppen design for BHS” said Mr. Wijesinha, adding though that logistics in catering to small orders in a large variety is difficult and needs a very high level of management efficiency.


Kelly Hoppen is a world renowned British interior Designer whose work has been featured in News papers and magazines across the globe. She has been designing apartments, houses, yachts, and interiors for hotels, restaurants, Office and Air Crafts. In July 2007 Kelly Hoppen won the Top Euro Award for Women. Dankotuwa won this particular order through their UK Agent Fairmont and Main, who was also instrumental in getting Dankotuwa products into the famous London store Selfridges.
Philip Harrison of Fairmont and Main says that Dankotuwa was selected mainly because of the superior quality of their white ware and their high competency in handling complicated designs. Dankotuwa has earned a lot of respect for its design capability and had recently come out with innovations such as a new kind of Gold decorations which has to be polished after firing.


Exporting 85% of its products to overseas markets, Dankotuwa is gradually branding its products and hopes to reach a level very soon where 50% of its products would be branded. “Catering to the mass market is very much easier,” Mr. Wijesinha said adding though that mass market prices are lower and with the escalating costs of energy and labour there is no other option but to shift to high value added segment catering to smaller markets.


In the good old days says Wijesinha “we would have only perhaps four designs in one container, but today our overseas customers want about 10 designs in one container. Earlier the whole sellers and even retailers would keep several months of stocks, but today because of the volatility of the market no one wants to risk holding large stocks. This naturally results in smaller quantities, a wider variety at higher frequencies.”
Dankotuwa has the widest range amongst Sri Lankan manufacturers and has shapes and designs for every taste.