Report by Raymond Azul

 Pewter – alloy of tin, copper & lead/antimony

 Originates back to Roman empire
 Pewter guilds established to protect the craft
 Introduced in Malaysia by the British in the 19th
century
 After British rule in 1957, Malaysia exported to
England
 Malaysia is the biggest source
 Royal Selangor (formerly Selangor Pewter) is the
first and biggest player
Threat of New Entry Threat of Substitutes
• Low startup capital reqmt Threat of • Other gift items in retail
• Big spread allows new entrant New shops
options for low pricing Entry
•Employees the biggest threat

Competitive Rivalry
• RS is the best known brand
Supplier • JS focus on low end small volume Buyer
Power • Other players focus on niche markets Power
• Industry benchmarks based on RS stds
• No of alternative players pushes RS to
compete on speed, quality & price
Supplier Power
• Diminished due to Buyer Power
abundance of supply • Prosperity causes high demand
(Malaysia, Africa, etc) Threat of for corporate purchases
Substi • Growth in tourism builds demand
tutes for souvenirs and large shipments
to other countries
• Position as high end gift item
 Hi

RS
Price

Note:
Tum Perception of market size
Mid Orie Assumed based on no of workers
asek
Pena
ntal • RS  1,000
ng
• Tumasek 200 (w/ export)
• Oriental 100
• Penang  100
• JS 10
J
Lo S

Lo Mid Hi
Quality
 Hi
RS
No of Designs

Note:
Tum Perception of market size
Mid Orie
asek
Pena Assumed based on no of workers
ntal • RS  1,000
ng
• Tumasek 200 (w/ export)
• Oriental 100
• Penang  100
• JS 10
J
Lo S

Lo Mid Hi
Brand Recognition
No of Showrooms & Outlets

Hi RS

Note:
Tumasek Perception of market size
Mid Oriental
Assumed based on no of workers
Penang
• RS  1,000
• Tumasek 200 (w/ export)
• Oriental 100
• Penang  100
• JS 10
JS
Lo
Corporate Tourist Local
Clientele
 Quality as a Competitive Edge in Local Market
 Leadership through Design
 RS invests on design and technical capability, so it
leads in product introductions, and gets the first
crack on product pricing
 Price Competitiveness on tourism sector
 Exposure to Clients
 RS had 40 showrooms and 240 authorized retailers
 With Penang as a tourist destination, Penang pewter
souvenir items sell
Threat of New Entry Threat of Substitutes
• Low startup capital reqmt Threat of
New • Other pewter-like alloys
• Big spread allows new entrant
options for low pricing Entry
• Technology is readily available

Competitive Rivalry
• Malaysia is biggest player w/ RS,
Tumasek, Oriental as price leaders Buyer
Supplier • Emergence of several players in Sweden,
Power
Power UK, Canada, Brazil, Belgium & Thailand
• Threat of Seagull brand
• Low labor cost in Indonesia & Thailand

Supplier Power Buyer Power

• Diminished due to • Demand for trophies in Sweden
abundance of supply • Pewter as an impulse item
(Malaysia, Africa, etc) Threat of
Substi
tutes
 Ca
Hi n
Seagu Swe
ll UK
Bra RS
Mal
Price

Mid
Note:
Perception of market size
Assumed based on no of workers
• RS  1,000
• Malaysia 100-200
• Seagull 100
Lo • Canada, Brazil, UK  no info
• Sweden 4-8
Lo Mid Hi
Quality
 Hi
Variability of Design

RS
Seagu
Mal ll

Mid Can
Swe
Note:
Bra
Perception of market size
Assumed based on no of workers
• RS  1,000
• Malaysia 100-200
UK • Seagull 100
Lo • Canada, Brazil, UK  no info
• Sweden 4-8
Lo Mid Hi
Brand Recognition
Rep Offices/Sales Outlets

Hi RS

Mal
Seagu
ll

Mid Can
Swe
Note:
Bra
Perception of market size
Assumed based on no of workers
• RS  1,000
• Malaysia 100-200
UK • Seagull 100
Lo • Canada, Brazil, UK  no info
• Sweden 4-8
Lo Mid Hi
Int’l Exposure
 Price Competitiveness
 Design Variability
 As an impulse product, attractiveness and price
competitiveness is preferred over brand
 RS, Tumasek and Oriental has a wide range of designs,
with RS adding a minimum 4 designs per year
 Seagull has 1000 different designs and constantly adding
 International Exposure
 RS has some 2400 representative offices & outlets, and
invests heavily on trade shows
 Seagull has 10,000 accounts spread across N. America and
participates in 40-50 shows each year
MALAYSIAN PEWTER GLOBAL PEWTER
MARKET MARKET
 Quality as Competitive  Price competitiveness
Edge
 Leadership through  Design Variability
design  Attracting the impulse
 Trial purchases buyer
 Price leadership
 Exposure to clients  International Exposure
 Common/Similar Approaches for Malaysia or the globe
 design innovation
 exposure to target clientele is important.
 Price Competitiveness
 Important for the global market due to number of players
 For the moment, price pressure in Malaysia is not so much due to
high demand.
 However, new players are bound to enter soon due to ease in
entering the industry, which will depress prices.
 It is important to look into operational efficiencies, like the lower
labor costs in neighboring countries
 Differentiation through Quality
 Use government support visavis Malaysian tourism
 Penetrating the international market
 Invest into trade fairs, lead generation efforts