Dr. K.S. Wong, Managing Director of Kowloon Watch.

HKIM Corporate Member - Kowloon Watch

Interview: Ken Cheung, Roman Chiu, Joanne Lui Text: Ken Cheung

As a corporate member of the Hong Kong Institute of Marketing, Dr. K.S. Wong,

Managing Director of Kowloon Watch shared with us his success story on its behalf.

During his interview with China Daily, his remarks somehow repeatedly evoked associations with the aphoristic style and wise substance of the Analects of Confucius in being both pithy and practical.

Kowloon Watch was founded by Mr. Wong Ho Hung, father of Dr. Wong, in 1952. Unfortunately, he passed away in 1972. Therefore, Dr. Wong had to take over the business early, in his twenties.

Dr. Wong has accumulated decades of experience in the industry. It not only brings him wealth, but also brings happiness to many

families-two traditional goals of classical and traditional Chinese culture. "An enterprise is a platform. By maintaining a thriving

business, you can raise your own family and also preserve the jobs of others. It is, in fact, very meaningful. Secondly, running a business can enrich my life experience", he explained.

Although he could not help taking over the business at such an early age, he thinks that running a business is actually very simple, as evidenced in a few easily grasped principles, much as the wisdom of Confucius is embodied in easily understood and applied maxims.

Inventory control

First of all, stock should be sold as soon as possible so as to make profit. "We don't want to accumulate stock; so we lower the price for a clearance sale before we close. This is fundamental to inventory control", Dr. Wong said.

Crisis management

Crisis management is also important to a business according to Dr. Wong. Regarding Kowloon Watch, a portion of funds after deducting the costs will be reserved for crisis management, the rest being allocated to "housekeeping" expenses and savings, and for future expansion.

Expansion timetable

As an owner, Dr. Wong thought that everyone must have a timetable for expansion as business will also grow with expansion.

Lifelong learning

"But if you want to grow your business or you have established an enterprise, you'll have to undertake lifelong learning". It makes perfect sense, he says, because "a book holds a house of gold".

Empathy

How to differentiate itself from competitors? "Well, for Kowloon Watch, we have always been selling original products and this gives our customers full confidence. We have also launched the star-service pledge to educate our salesmen to apply the "I'm also a customer" concept. Illustrating Kowloon Watch's business philosophy,

Dr. Wong said, "In briefing our staff, we'll see things as a customer. If a customer enters a shop and the salespersons look untidy and rude, the customer will not be willing to spend in the shop. We need our staff to put themselves in the customers' shoes so that they will pay attention to their appearance and attitude. In order to increase their sense of belonging, we adhere to the slogan of 'unchanged sincerity as time flies' and expect our staff to work in concert".

Overlap

According to Dr. Wong, every business has an optimal point. If an enterprise aims to achieve sustainable development, it'll have to start another potential overlapping business before the existing business reaches its optimum level. "Don't take it for granted and let sales plunge", he explained. Based on such a philosophy, Dr. Wong expects to set new objectives in 2010 to cater to market needs.

Innovation

Dr. Wong stated that innovation can also help to differentiate one brand from the others:"I follow very closely

the market trends and will think of how to apply them in my own business".

Philosophical adaptability

Running a different kind of business needs a different philosophy and we need to apply the theory correctly, Dr. Wong maintains. "The decoration of traditional watch companies is pretty impersonal. Now, cubicle shops are very popular,

offering a variety of products for customers to choose from. Unlike traditional watch companies, there is no pressure on the customers. Such a pattern of operation is worth

studying". Dr. Wong is very experienced in the industry and well-versed in other

markets, which has enabled him to have a farsighted

ability to see the big picture. "To run a watch business, it has to be in large shops with high pedestrian flow associated with high rent. On the other hand, if you open a small fish-ball stall in a

narrow alley, you make $9 profit on a $10 stick. It is a difference to ponder".

Finger on the cutting edge

"In a watch exhibition in Switzerland in 2003, Tissot launched the quartz electronic watch line, during which many watch makers thought that it's only an ordinary electronic watch and did not realize its amazing features". Dr. Wong recalled.

Pointing to a sample watch, Dr. Wong said, "Actually, this kind of T-Touch watch was the first quartz technology watch from Switzerland. It enabled touch screen function that had not been launched by Casio, in addition to compass, barometer, blood pressure monitor and altimeter. It represented a revolutionary innovation in the watch industry in Switzerland. The retail price was only around $3,000." Dr. Wong thought that it had huge market potential.

"As I remember, here's what the Tissot salesman told me: 'Can you do me a favor and order 20 watches, Mr. Wong'. He sounded as if he thought I would decline. But it so happened I ordered 200 watches. I wanted to give it a try".

The rest is history. The principle of "watch the watch on your watch" paid off handsomely. The T-watch has been selling for almost two years and a total of 4,000 have been sold, realizing a profit of $8 million. "When I got back to Hong Kong, I made a number of advertising placements in newspapers to emphasize the functions of this watch. I received 680 orders by fax that day. But the vendor said it would take a few months to assemble the stock and only around 100 watches would be available. Interestingly, some of the customers were willing to pay more when they knew that limited stock was available".

Create desire when there is no need

However, watchmakers are now facing challenges as youngsters are more eager to get the hottest cell phones rather than watches. "Many youngsters are used to reading time with their cell phones instead of watches nowadays," Dr. Wong noted, with a hint of lament. After the accession of China to the WTO, the watch industry in Hong Kong has been undergoing substantial changes, making it increasingly difficult to run the watch business.

So is it better to be more aggressive to make a turnaround for the existing watch industry through advertising? "The watch ads are very simple and generally involve a handsome man, a beautiful woman or a successful person wearing the watch, which makes you feel like you'll possess their qualities and characters if you buy that watch. And I think that improved ads or marketing can create excitement and drive the customers to buy on impulse", he explained. Actually, Kowloon Watch will have a major reform and launch an ad next year with the above elements.

Simplicity

Dr. Wong has been running Kowloon Watch for years. What are his peculiar

requirements for its watches? "To me, accuracy will do just fine. It is why I wear this watch, which was given to me by a friend of mine", he replied.

(HK Edition 01/28/2010 page3)