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Jewelry firm Hartadinata Abadi targets eastern Indonesia
As part of its expansion strategy, jewelry company PT Hartadinata Abadi will focus on developing its wholesale business in the eastern part of the country while developing an e-commerce platform to support its existing operations
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s part of its expansion strategy, jewelry company PT Hartadinata Abadi will focus on developing its wholesale business in the eastern part of the country while developing an e-commerce platform to support its existing operations.
Learning from its partnership with jewelry wholesalers in Kalimantan over the past five years, the company believes that there is great potential in eastern Indonesia as a result of unique consumer habits.
“Jewelry is part of the culture during wedding and childbirth [celebrations] for people in eastern Indonesia. They are more interested in buying heavier [jewelry] made of higher carats,” president director Sandra Sunarto said recently in Bandung, West Java.
For wedding rings, for instance, people there typically wear gold rings weighing 20 grams compared with people in Java who usually wear rings weighing a maximum of 10 grams, Sandra said.
“For bracelets, it could be between 150 and 250 grams. For a childbirth, [parents] buy the newborn a package of jewelry containing earrings, necklaces, bracelets and a leg bracelet,” she said.
The unique character of jewelry shopping in the eastern part of Indonesia is also supported by the increasing number of middle class consumers, said Deny Ong, the company’s sales director.
Global market intelligence publisher Euromonitor International reported that Indonesia’s fine jewelry sales grew by 13 percent last year to Rp 21 trillion (US$1.58 billion) and are expected to flourish in the coming years.
In line with the growth of upper-middle-income households, the demand for fine jewelry made from gold, silver and metal combinations might grow annually by 7.8 percent until 2021, Euromonitor International reports.
Furthermore, the number of upper-middle-income households is expected to increase from 1 million in 2016 to more than 2.5 million in 2030.
Established in the late 1980s, Hartadinata Abadi claims that it currently controls a 10 percent share of the production of gold jewelry in Indonesia.
"We are aiming to increase our market share to up to 15 percent in 2017," said Deny.
In addition to expanding its market in eastern Indonesia, the company also plans to introduce an e-commerce platform to widen market outreach.
“We will create a system that allows wholesalers to order online. Thus, they will be able to see the catalog of our jewelry products and use it to place orders,” Deny said.
He added that the company had partnered with at least 600 stores in Java, Sumatra, Kalimantan, and Sulawesi.
At present, the company markets its products through three channels: Toko Mas ACC gold store, Claudia Perfect Jewelry and Celine Jewelry.
To expand its network, this year, it will offer a franchise system for Toko Mas ACC, specializing in targeting middle- to low-income customers.
The family business Hartadinata Abadi was founded by president commissioner, Ferriyadi Hartadinata.
Starting out as a home-scale business, Hartadinata achieved its initial success in 1998 amid the height of the Asian financial crisis. When other entrepreneurs decided to restrict their production, Ferriyadi chose to expand the company’s production so it could sell a wider range of products such as rings, pendants, bracelets, earrings on an industrial scale.
In 2003, the firm’s production capacity stood at 100-150 kilograms per month. Last year, it was able to significantly increase its production to 600 kg per month. (win)
