October 5, 2012 03:30 PM
Luxury Tea salon "TWG" from Singapore became global brand only in 4 years
[Singapore]
By Masaaki Yasuda Reported on September 3
Singapore brand, luxury store specialized in tea "TWG". They have opened first overseas branch in Jiyugaoka city in Tokyo since they carries many of Japanese fans. The company seems like a long establishment however they are still a young venture just opened first branch in 2008. Since 2012, their global development is dramatically improving. Foodrink had an interview with Japanese representative, Ms. Heda Reiko and PR manager Ms. Louise Benzrihem of TWG.
TWG
TWG has founded in 2007. Their full name is The Wellness Group（TWG. Company initially carried Spa and skin care products. When they had huge break of TWG tea business in 2008, company had decided to suspend all other businesses to concentrate on one.
There are 3 owners and all of them are from luxury brand back ground. Founder and president, Mr.Taha Bouqdib has 20 years' experience in fragrance market and this tea master is constantlyout of town to research on tea plantation all over the world. The 4 digit number of "1837" mention in the TWG logo identifies the year of free tea trading in Singapore when chamber of commerce has started. Tea trading used be done by East Indian company monopoly until then.
"1837" identifies the year of free tea trading in Singapore when chamber of commerce has started.
There are 7 outlets in most established department store in the island such as ION Orchard, Shoppe at Marina Bay sands and Takashimaya. 2 branches are located at each location at attractive unit. Tea salon and retail shop is in one and it is located in luxury fashion brand floor instead of food court floor.
At Shoppe at Marina bay sands branch located on the bridge over the man-made river within the premises
In 2008, TWG product was introduced and sold at "Dean & Deluca" New York. Their first global official branch of tea salon and retail shop was launched at Jiyugaoka city in Tokyo in April 2010. It is franchised under Tokyu Ltd., and the sales are increasing every year except temporary recession affected from Earth Quake incident. Director of Japan business development, Ms. Heda Reiko commented "Branding in Japan is very steady and we want to expand further". They have just launched their second branch at Shinmaru building located in Marunouchi Tokyo in September this year.
Jiyugaoka city Tokyo branch
The product has also joined lines of London brand "Harrods" in May 2010. Their aggressive global expansion is not only that but they had reached Asia's major department store such as IFC mall in Hong Kong in December last year, Dubai mall in UAE in February, Pavilion Kuala Lumpur in Malaysia in May, and The Emporium in Thailand in August same year. They intend to expand wider into countries such as Philippine, Indonesia and Shanghai. All of branches are located in high class department store and franchised by luxury brand distributor of each country.
Their expansion get strong not just because of quality but quantity of tea kinds they carry that is up to 800! Different production process is applied to blue tea, black tea, green tea, red tea, white tea and yellow tea. Blending method and additional ingredient such as fruits, flowers, and spice will make its own mixture. PR manager Ms. Louise Benzrihem told us "Singapore has strong tea culture and it has strength of trading flexibility which let us carry variety of tea leaves from all over the world. That creates a mix culture."
They do not own their original plantation however they carry tea leaves from Brazil, Russia and various places from Africa. Ms. Heda said "We understand customer demand by having a good communication. We send back the feedback to plantation company to make TWG original tea leaves. We do not own our own but many of our global suppliers are committed to make our original blend at flexible attitude."
New products are continuously marketed depending on season and occasions. Signature tea with the city name is created every time they open a new branch in a new city. Server will bring tea book which describes each tea leaves in detail at the table together with food and tea menu. Server consults customer's preference from fragrance and types of teas. The most popular choice is "Singapore Breakfast tea" that is blend of green tea and black tea mixed with ginger and orange peel.
Tea book
Thick book of 70 pages
The Package of each product is colorfully design by their in-house designers. Ms. Benzrihem mentioned "Design is adjusted according to season and trend that is done similarly to fashion brand." Wide variety of tea accessories including tea pots and pastry using tea ingredients are available as well.
Haute Couture collection
Ms. Benzrihem told us "Tea and coffee attracts totally different customers. We define coffee as non-competitor of ours. Tea is to be enjoyed in slow pace. Take your own sweet time at the seat to choose the tea kind, and taste it with relaxing time. Coffee is enjoyed within no time without seating. Customer puzzles coffee and teas differently within their day."
Domestic market has sales ratio of 30% from tea salon and 70% from retail. Retail shop has more than double sales of tea salons but TWG concepts come along only when both business models are there. There is single retail business exists only at those countries that recognize the TWG concept well.
Marina Bay sands retail shop
TWG unique selling point is "Made in Singapore". It is first global brand from Singapore. 20 years ago, luxury brand was only recognized if they are from such countries like France. But today, trend has changed and "Made in Singapore" is a definite strength in the market.
