Business and Management
Submitted By cissux
Kwanpen Case Study
-Why Singaporeans do not warm up to local brands
Kwanpen was founded in 1938 in Singapore by Mr Kwan Pen Seng, who is a first-generation immigrant from China . Kwan passed on his knowledge to his son, who learned the craft already as a little boy helping his father. When Kwan Jr. was 10 years old he was talented enough to make his own leather belts and shoes and today he is the CEO of the company. In the 1970s Kwanpen started to expand from just manufacturing bags for other brands to make its own handmade crocodile handbags, the same bags they are known for today. In 1976 the first Kwanpen store dedicated to crocodile-skin bags opened and the first Kwanpen logo was established in 1989. Kwanpen want to be identified as a luxury brand, and thus want their handbags to be associated with prestige and status. All their products are handmade with advanced craftsmanship. It can take up to 50 man-hours to produce one Kwanpen bag and only 400 pieces are manufactured on average per month. That is why one bag can sell for as much as $20,000 a piece. Furthermore the raw materials that go into all Kwanpen products are acquired from strictly regulated wildlife organizations and according to rules laid down by the Convention on International Trade in Endangered Species of Wild Fauna and Flora (CITES). Kwanpen signifies crocodile-skin bags with high value and quality.
Problems faced by Kwanpen
Kwanpen wants to position itself as a luxury brand. We believe they have achieved some prerequisites of being a luxury brand, but not all. Having a premium price, limited edition products and high quality are some criteria for a luxury brand which we think Kwanpen has accomplished. This is due to the fact that they do not mass produce their products, but rather manufacture a relatively small amount of exclusive,...