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Extraordinary treasures

SINGAPORE — It’s impossibly slick, has a screen made of a material that is the second toughest in the world after diamonds, is wrapped in a combination of Grade 5 titanium and hand-stitched leather, and offers a personal assistant at the touch of a button.

SINGAPORE — It’s impossibly slick, has a screen made of a material that is the second toughest in the world after diamonds, is wrapped in a combination of Grade 5 titanium and hand-stitched leather, and offers a personal assistant at the touch of a button.

Yes, it’s a phone but one that costs upwards of S$15,000; and that’s just for the most basic range. Prices can soar up to S$30,000 per piece depending on the type of leather you fancy — calfskin, alligator and lizard, anyone?

We are talking about the not-so-regular mobile phone by luxury mobile phone brand Vertu. Its newest model, the New Signature Touch, was recently unveiled and has set tongues wagging.

But is there really a sustainable market here for such an exhorbitantly-priced phone, or any other luxury product for that matter?

Some retailers seem to think there is. It’s a small market, but it’s growing, they say.

Indeed, a recent report by WealthInsight said 1 in 35 Singaporeans is a millionaire, with their number increasing by 17 per cent from 130,000 in 2010 to 154,000 today. It forecasts the figure to reach 188,000 in 2020.

Nicholas Holt, general manager of Vertu (Asia-Pacific), said the company has noticed a trend here where people are more interested in bespoke products, or made-to-order items. For Vertu, customers can work with the craftsman, for a fee, to choose the type of materials, colours and engraving (and even add diamonds), to make the product unique to you.

“It’s not uncommon to sell a made-to-order Vertu phone in Singapore for up to S$100,000,” he said, adding that the company has sold about 20 units with that price tag this year alone.

Vertu has even sold phones here priced up to S$1 million, but those are “few and far between”, numbering less than five, he said.

Still, he conceded that the company has to be “realistic” about the reach of its product. While the performance of the device is “unquestionable” — “it’s not a question of ‘will my Vertu work as well as (other brands)’”, said Holt — he believes the public knows that the Vertu phone is “not a product that is applicable to all people”.

“Being the high-tier smartphone, it’s really targeted at, I would say, a CEO-level of clientele. A gentleman who surrounds himself with the finer products... (and) really appreciates the luxury of the phone, (the) craftsmanship and the service element as well,” Holt noted.

The company is not going for mass-market consumers, which would explain its low global sales figure of 450,000 units since it started in 2002.

“It’s a very different model from say, Apple, which sells a billion handsets in a year,” he said. “We are quite niche in where we sit as a brand. We consider ourselves first and foremost a luxury brand that produces beautifully crafted mobile devices.

“We are still the market leader is luxury mobile technology. Many brands have tried to get into that space and ultimately failed.”

COLLECTING CRAFTSMANSHIP

Holt said some of Vertu’s repeat customers keep their old phones, even as they add to their collections. One example is retired celebrity photographer Dominic Khoo, who owns four Vertu phones — he got his first seven years ago. Khoo said the one thing that separates luxury brands from other brands is craftsmanship. And Vertu offers parts, features and technical specifications that no other phone from other brands has, he said.

For Vertu’s phones, leathers are sourced from the same tanneries that produce goods for other luxury brands, such as Chanel. Each device is handmade in the company’s factory in England and every phone sports the signature of the craftsman, which is laser engraved only after the craftsman is completely happy with the product.

“This piece has really only been in the hands of one person from start to finish, very much unlike other brands that would be mass-produced, potentially ... by a robot,” Holt said. “There is definitely room for brands to exist outside of that space, and for people to want more than something everybody has.”

Another luxury brand, independent high-end watch label MB&F (Maximilian Busser and Friends) also noted the impetus of having a high level of artisanship, “compared to the industrial products most brands churn out in big quantities”, said its founder Maximilian Busser.

“The only reason to be an independent high-end watchmaking creator is pride. It is a calling, and what keeps us going is our passion for creating the exceptional at exceptional levels of quality. We do what we do because we are passionate about our craft, sales is secondary,” he said.

Beyond craftsmanship, the Vertu phone is also not a mere status symbol. Its technological specifications are impressive: It comes with a 5.2 inch, 1080-pixel high contrast display that is protected by a 130-carat solid sapphire crystal; a 21-megapixel main camera and a 2.1-megapixel wide aperture front camera; 64GB of internal memory along with a slot for a microSD card; and a Dolby Digital Plus surround sound system, just to name a few.

Any market that is small like Singapore will take some time to grow its base of luxury consumers, but it is growing, noted Khoo, a certified watch expert and art collector. “Singapore is a country that seems to follow after luxury trends from Europe. You’re beginning to see people already putting solid gold and diamonds on their iPhone cases ... it’s a matter of time (before the luxury market takes off in a big way), and this could be the killer product that changes it,” he added.

THE MARKET CHALLENGE

Holt noted that Singapore is a key market for Vertu because of its geographic location, which allows the brand to reach out to travellers from around the region. Vertu, he said, has been doing well thanks to strong domestic and tourist sales, although he declined to reveal how many pieces have been sold in Singapore so far.

MB&F also noted the importance of the Singapore market. “The consumers here are extremely discerning and this is largely due to the cultivation of the love and passion for watch-collecting by our exclusive retailer, The Hour Glass, over the last decade,” said Busser.

“No one needs a watch today. You have time everywhere — and first of all, on your phone — free of charge. That is why the only reason you should buy a timepiece is because it is a true piece of mechanical art,” he added.

MB&F crafts about 280 of its Horological and Legacy Machines a year. Its latest Legacy Machine Perpetual is available for sale in rose gold (S$226,000) and platinum (S$275,100). Busser, too, acknowledged that niche luxury brands such as his face challenges in sustaining the business.

“The watchmaking business is a terrible business model. The research and development investments are gigantic and cannot be amortised on the bigger brand volumes,” he said. “The extremely small revenues generated do not allow for any communication budget so all you are left with is word of mouth, (as) the retailers are usually not interested in taking on a brand that is not presold like all the famous big names.”

Meanwhile, Vertu remains coy about how many New Signature Touch pieces will be made for the market here. Holt would only say that there will be “enough to fulfil the needs of the sales”. Globally, the company has made “thousands” of these pieces, said Vertu’s artisan for specialisation, James Wall.

But how many pieces does Vertu expect to sell in Singapore?

“Lots,” said Holt with a laugh. “The target is very high ... It would certainly be more than 10, otherwise I wouldn’t be sitting here!”

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