中文版本

Hong Kong Economic Journal, 2021 January 27

Jewelry demands bold innovation!

The century-old establishment, K.S.Sze & Sons, is undergoing a transformation. Dr. Nien-dak Sze proclaims, “Jewelry is not a sunset industry - it demands bold innovation!”

【Hong Kong Economic Jornal Monthly】Jewelry was once one of Hong Kong’s leading export industries, but in recent years, it has lost some of its shine. The younger generations seem to have less interest in bespoke jewelry. Dr. Nien-dak Sze, a scientist by training and the second-generation leader of the venerable Hong Kong jewelry brand K.S. Sze & Sons, is still full of ambition, ready to tell the world a different jewelry story.

Witnessing History Through Store Openings in Shanghai and Hong Kong

Famous figures such as Charlie Chaplin, Princess Diana, the Fung family of Li & Fung, and the first chairman of the Airport Authority, Wong Po-yan, have all been, or still are, esteemed patrons of K.S. Sze & Sons. As the brand approaches its centennial, it can truly claim to have witnessed the history of modern jewelry in China and Hong Kong.

Sze Kong-shun, the founder of K.S. Sze & Sons, opened his first store in 1923 in Shanghai, then known as the “Paris of the East”. Following the change in the political climate on the mainland, Sze moved his family to Hong Kong and continued to grow his jewelry empire, bringing with him the capital and sophisticated tastes that characterized many Shanghainese merchants who moved south.

In 1963, when the British Jardine Matheson Group established the Mandarin Oriental Hotel in Hong Kong, it became an instant sensation. In the colonial era of Hong Kong, it was exceedingly difficult for the Chinese to break into “gweilo (foreign devil)”-managed domains such as the Mandarin Oriental. Ultimately, the hotel chose seven brands to be housed within its walls. K.S. Sze & Sons, after enduring many challenges, became the only local brand to secure a spot in the Mandarin Oriental and the sole jeweler.

The brand’s presence at the Mandarin Oriental is not only credited to the founder Sze Kong-shun’s expertise but also to the distinctive philosophy of K.S. Sze & Sons

In the 60s and 70s, the global jewelry, fashion, and luxury goods markets were dominated by Western culture. Hong Kong’s jewelers, catering primarily to Western customers, produced designs that appealed to their tastes. Sze Kong-shun was a pioneer who integrated Eastern elements into contemporary jewelry design, making extensive use of traditional Chinese materials like pearls, jade, and jadeite. He successfully carved a niche for K.S. Sze & Sons in the competitive market. At the time, K.S. Sze & Sons became a must-visit destination for visitors to Hong Kong, and its jewelry, steeped in Eastern culture, achieved renown in Europe, America, Japan, and other countries, truly representing the first generation of Hong Kong’s cultural “soft power”.

Those were Hong Kong’s most glorious days, with the Mandarin Oriental, K.S. Sze & Sons, and Victoria Harbor combining to create the city’s reputation as the “Pearl of the Orient.”

Is the Jewelry Industry Heading Toward a Sunset?

 

Hong Kong, once a place of splendor, has been on the decline in recent years. With it, many long-established stores have bid farewell to their glory days. Faced with an aging customer base and shifting consumption patterns, numerous traditional industries, including jewelry, encounter unprecedented challenges.

Dr. Nien-dak Sze, the second-generation head of K.S. Sze & Sons, openly admits that the golden era of traditional jewelry has passed. He says, “We primarily rely on repeat business. Many of our customers have been with us for decades, spanning several generations... After shopping with us for so many years, these families own enough jewelry to open their own shops. This group of loyal customers has extremely high standards and an extensive collection at home, diminishing their interest in purchasing new pieces.”

Moreover, the rise of the mobile internet is reshaping the consumption habits of the new generation. Young people interact frequently on social media every day, fostering an “Instagram culture” for various products. This has prompted many jewelry brands that have never before engaged in marketing to re-evaluate their promotional strategies.

“The previous generation prioritized craftsmanship and unique designs in jewelry, with tai-tais fearing wearing the same piece as someone else at a party. The new generation, however, seeks brand recognition and social media likes. Consequently, luxury brands now focus more on storytelling and creating memorable experiences to leave a lasting impression on the new generation,” analyzes Dr. Nien-dak Sze regarding evolving consumer behavior.

In fact, in response to the shift in consumer habits, many international luxury brands have undergone significant innovations in recent years. Burberry, Balenciaga, Yves Saint Laurent, and Balmain, among other major names, have abandoned their original logos and brand image, even introducing products that cater to the tastes of younger demographics.

Dr. Sze further points out that prior to the COVID-19 pandemic, many Hong Kong jewelry brands remained complacent, relying on the aging local customer base and the influx of tourists to sustain the industry despite facing challenges. However, since the outbreak and the resulting disappearance of tourists, many industries that once “fed on tourists” now have to rethink how to innovate their brands and re-attract the younger generation.

Thus, the current economic “winter” is a mirror that reflects the true strength of Hong Kong’s businesses.

Opening New Markets in Men’s Jewelry

Originally engaged in Earth and Planetary Science studies at Harvard University and a passionate racing enthusiast who has continuously sponsored various formula racing events over the years, Dr. Nien-dak Sze has a Western cosmopolitan style that differs greatly from that of his father. About a decade ago, he took over K.S. Sze & Sons from his father and is now determined to infuse this century-old business with distinct new elements.

“Every young person wears AirPods and Apple Watches nowadays, so why not add a splash of color with jewelry? Adding a pendant to AirPods or some jewels to glasses is not only unobtrusive but instantly enhances one’s unique charm.”

“The previous generation believed that buying jewelry was exclusively for women and that men would only wear watches. But now, as jewelry design becomes more gender-neutral, why shouldn’t men wear jewelry? The market potential for men’s jewelry is immensely vast.”

Dr. Nien-dak Sze explains that although jewelry is a traditional industry, it still offers many opportunities for innovation and reform. Moreover, K.S. Sze & Sons has a rich history and stories that are worth sharing with the new generation to help them appreciate its unique charm.

“Wear the stars!”

“No matter how much technology changes, some human interests remain constant, such as stargazing. Looking up at the night sky can instantly sweep away the trivia and anxieties of everyday life. Appreciating jewelry serves a similar aesthetic function. The name K.S. Sze & Sons suggests that stars, too, can be worn.”

“Some people joke that once you leave Central, no one knows about K.S. Sze & Sons, and in truth, that’s the case. Even though we have a century-long history and are located in a prime area, we have never been proficient in storytelling, marketing, and promotion, which have traditionally been weak points for established jewelers like K.S. Sze & Sons. We definitely need to step up our game.”

With the upcoming centennial celebrations, Dr. Nien-dak Sze discusses K.S. Sze & Sons’ brand strategies during the interview, including launching collaborative products with other brands and enhancing social media promotions, aiming to carry forward K.S. Sze & Sons’  spirit of innovation and win over the younger generation anew.

The Challenge of Succession is Considerable

Transforming from the inside out, legacy brands must revitalize themselves to regain vitality. The management team also needs to inject youthful energy. However, according to a recent “Global Family Business Survey Report” released by PricewaterhouseCoopers, a universal trend among the world’s “rich second-generation” scions shows a reluctance to take over the traditional family businesses. Instead, there’s a preference to venture into the finance or high-tech sectors. This phenomenon poses a succession challenge for many of Hong Kong’s established family businesses, including K.S. Sze & Sons.

“The English name of the brand is K.S. Sze & Sons, where ‘K.S. Sze’ is the transliteration of my father’s name, and ‘Sons’ represents all his descendants, embodying his wish for the K.S. Sze & Sons brand to be passed down through generations,” says Dr. Nien-dak Sze.

Despite retaining his titles at Harvard University, including that of a senior researcher and faculty member, Dr. Nien-dak Sze believes he has transitioned from a full-time scientist to a jeweler. “I am not the type who enjoys socializing and networking;  I prefer to quietly conduct my research. But with a family business, there has to be a family member to take the reins. Ten years ago, I gave up my teaching position at Harvard and returned to Hong Kong to take over K.S. Sze & Sons - purely to help my father preserve this brand.”

Addressing the issue of the succession, Dr. Nien-dak Sze candidly admits that his children and grandchildren now reside in the U.S. and have little interest in returning to Hong Kong to take over the family business. Moreover, the jewelry industry, though outwardly glamorous, is inwardly grueling. He has no intention of forcing his children to abandon their careers to take on this hot potato.

Dr. Nien-dak Sze believes that family businesses need to learn to separate management rights from ownership rights. The business should be managed by professionals, while the family is responsible only for holding shares and oversight. This can ensure the brand’s intergenerational continuity without being “snuffed out” by individual family members’ personal factors.

“Starting a business is hard, but keeping it is even harder. Especially this year, I have seen many friends’ established companies falling into difficulties, which has deeply affected me. When the tide goes out, you will see who’s been swimming naked. Many of Hong Kong’s time-honored brands have been coasting along comfortably, overlooking many issues like the new consumption model or future succession planning that I just mentioned. The pandemic this year has provided a good opportunity for everyone to pause, reflect deeply on strategies for their future development strategies and improve their core strengths.”

“The market in the past two years has been as bad as it could possibly be, but I believe Hong Kong’s worst days are behind us. Companies that have weathered this storm and even taken the opportunity to overhaul their brand strategies will undoubtedly stand out when the market recovers.”

信報財經新聞, 2021年1月27日

百年「金星珠寶」謀轉型 施念德：珠寶行業需要大膽創新!

【信報財經新聞月刊】珠寶曾經是香港的一大出口產業，近年逐漸褪色，新一代年輕人似乎對訂製珠寶興趣缺缺，科學家出身、香港百年珠寶品牌金星珠寶的第二代掌門人施念德，卻依然躊躇滿志，準備向世界訴說不一樣的珠寶故事。

滬港開店 見證歷史

差利卓別靈、戴安娜王妃、利豐馮氏家族、首任機管局主席黃保欣⋯⋯，這些赫赫有名的人物都曾經、或依然是金星珠寶的座上客。即將迎來一百周年的金星珠寶，可謂見證了近代中國與香港的珠寶歷史。

金星珠寶的創始人施剛巽 1923年在當時被稱為「東方巴黎」的上海開設了第一間門店。後來隨着大陸變天，施剛巽舉家遷移香港，並在這裏延續其珠寶王國，猶如當年一眾南來的滬商，為香港帶來資金與前沿的生活品味。

1963年，英資怡和集團在香港創立文華東方酒店，哄動一時。那時候尚處於殖民地年代的香港，華人要打入由「鬼佬」主理的文華東方酒店可謂難過登天。文華最後挑選了七個品牌進駐，金星珠寶幾經辛苦，成為了進駐文華的唯一一家本地品牌，而且是唯一的珠寶商。

能夠入駐文華東方，除了創始人施剛巽的手腕了得，也得益於金星珠寶的獨特理念。

在六、七十年代，全世界的珠寶、時尚、奢侈品，都被歐美文化壟斷。當時的香港珠寶店，只能迎合歐美顧客，製作投其所好的珠寶。施剛巽是先行者，在當代設計的珠寶裏糅合東方元素，大量使用珍珠、玉石、翡翠等中式珠寶材料，成功在芸芸珠寶商中殺出一條血路。當年的金星珠寶，是旅港人士必到之地，其富有東方文化色彩的珠寶，在歐美日等國家享負盛名，可謂第一代香港輸出的文化「軟實力」。

那是香港最輝煌的年代，文華東方、金星珠寶、維多利亞港⋯⋯交織出「東方之珠」的美譽。

珠寶漸成夕陽行業？

曾經輝煌的香港，這些年來不斷走下坡。而香港的一眾老店，也紛紛訣別它們的光輝日子，隨着顧客群老化、新消費模式的改變，許多傳統行業遇到前所未有的挑戰，珠寶行業也不例外。

現在掌管金星珠寶的第二代掌門人施念德坦言，傳統珠寶的輝煌時期已經過去，他說：「我們主要做熟客生意，很多客戶從幾十年前起開始光顧，到他們的第二代、第三代⋯⋯幾代人買了幾十年，家中的珠寶已經多到自己能開店。這群熟客對珠寶有極高要求，加上家裏有大量收藏，購買新品的意欲不斷下降。」

此外，移動互聯網正在重塑新一代的消費習慣，年輕人每天在社交媒體高頻互動，養成了對各種產品的「打卡文化」，這讓許多未曾做過營銷推廣的珠寶品牌重新思考營運模式。

 「上一代人買珠寶講求工藝、獨特款式，太太們最怕在宴會上和其他人撞款；而新一代則追求單品是否有品牌辨識度、能否讓他們在社交媒體上獲得更多點讚。因此，奢侈品品牌現在更着重講故事、創造鮮明的體驗，讓新一代留下更深刻印象。」施念德這樣分析新一代消費形態。

事實上，面對新一代的消費模式轉變，許多國際奢侈品品牌都在近年大肆革新。Burberry、 Balenciaga、Yves Saint Laurent、 Balmain等國際大牌紛紛摒棄原來的標誌和品牌形象，甚至大量推出迎合年輕人口味的單品。

施念德續指，在新冠疫情爆發前，許多香港珠寶品牌依然「唔憂做」，儘管面對本地顧客老化的問題，但每年大量遊客湧入香港，他們的消費力依然能撐起整個行業。然而自疫情爆發，旅客歸零，香港的很多原來「食遊客飯」的行業不得不重新思考：如何革新品牌，重新獲得年輕一代的關注和喜愛。

可以說，今次的經濟寒冬是一面照妖鏡，照出香港一眾企業的真正實力。

男性珠寶 開新市場

原本在哈佛大學從事地球與星球科學研究（Earth and Planetary Science）、對賽車充滿熱情、多年來持續贊助各類方程式賽車的施念德，有着與其父親迥異的洋派作風。約在十年前從父親手上接下金星珠寶，施念德現在決定為這所百年老店注入了不一樣的元素。

「每個年輕人都戴AirPods、蘋果手錶，現在每個人都戴口罩，為什麼不能用珠寶為這些必要的配件增添色彩呢？AirPods 掛上吊墜，或者在眼鏡上增加一點珠寶元素，既不累贅，也能瞬間增加個人的獨特魅力。」

「上一代人認為買珠寶是女人的專利，男人最多只會戴手錶。現在珠寶設計愈來愈中性化，為什麼男人不可以戴珠寶？男人珠寶市場的潛力無比巨大。」

施念德說，珠寶雖然是傳統行業，但依然有很多值得創新、改革的可能性。此外，金星珠寶擁有豐厚的歷史和故事，很值得與新一代分享，讓年輕人認識其獨特魅力。

星星可戴上身!

「無論科技如何改變，人類有一些興趣是永遠不變的，例如觀星，在夜裏仰望星空，日常瑣碎事和煩惱也會一掃而空。欣賞珠寶，其實有同樣的美學功能。金星珠寶這個名字，是要告訴人們，星星都可以佩戴在身上。」

「有人笑說，離開了中環就沒有人認識金星珠寶，但事實的確如此。雖然我們有百年歷史及位於黃金地段，但一直以來我們都沒有向市場講故事，宣傳和營銷向來是金星這種老牌珠寶店的弱項，未來一定要加把勁。」

新系列的金星珠寶、與其他品牌合作推出「聯乘產品」、加強社交媒體的推廣……。施念德在訪問間大談金星的品牌策略，希望在迎來一百周年慶典之前，用新方式來承載金星的創新精神，重新贏得年輕一代的歡心。

世代傳承挑戰大

有諸內而形諸外，老品牌要重新煥發活力，管理層亦需要注入年輕活力。然而，普華永道早前公布《全球家族企業調研報告》，發現全世界的「富N代」都不願意接手家族企業的傳統業務，更希望投入在金融或高科技領域。這現象讓不少香港的老牌家族企業面臨傳承問題，金星珠寶也不例外。

「金星珠寶的英文名是K.S.Sze &Sons，K.S.Sze 是父親的名字譯音，Sons代表他所有的子孫，寄寓他希望家族可以世世代代將金星珠寶傳承下去的願望。」施念德說。

雖然施念德依然保持哈佛大學的頭銜，包括資深研究員及教學人員，但他認為自己已經從全職科學家轉行為珠寶商，他說：「我不是喜歡交際應酬的人，我更喜歡自己靜靜做研究。但家族企業就是這樣，必須要有成員去接班，十年前我放棄哈佛大學的教職，回港接手金星珠寶，純粹是想幫爸爸保留住這份招牌。」

問及下一代的接班問題，施念德坦言，他的子孫現在長居美國，對於回港接手家族生意一事無甚興趣，而且珠寶行業可謂外表風光、內裏辛酸，他亦無意強迫兒女放棄其事業，來接手這燙手山芋。

施念德認為，家族企業需要學會分開管理權與所有權，企業由專業人士管理，家族只負責持有股份與監督。這樣才可以確保品牌代代相傳，不會因為家族成員的個人因素而「中斷香火」。

「創業難，守業更難。特別在今年，我看到很多朋友的老牌公司相繼陷入困境，這讓我有很大的感觸。潮退後才知道誰沒穿泳褲，香港很多老字號過慣了舒服日子，對於許多問題視而不見，像剛才所講的新消費模式、或是未來的接班問題。今年疫情，正好讓大家停下來，好好深思未來發展的策略，練好內功。」

「過去兩年的市道可謂差無可差，但我相信，香港最差的日子已經過去，熬過這一波難關，甚至趁機會重整品牌戰略的企業，在市道復甦時必定能脫穎而出。」