Mr. Liu: Are those big slabs mainly used for ground and wall paving, or will they also be used at home furnishing to make countertops or furniture plates?

Mr. Low: Yes. The house area in Singapore is not very large. Large format tiles are usually used in commercial space and large villas which is called high-quality western-style house. Only those large-area houses require big slabs.

Mr. Liu: You have a marble processing factory. Large format tile and marble are processed together, right?

Mr. Low: Yes, our marble processing plant has large-scale processing capacity, which is able to process all large format tiles, ceramic tiles and marble. At present, 3200×1600mm is our largest processing specification. With our previous experience in marble processing, we also have a stronger backing for the development of large format tile. The large format tile in our renewed showroom is used as a key display to attract more high-end customers.

Mr. Liu: Stone material company usually has strong process capability. You have any idea about building processing factory in china to deliver better big slabs and better large format tile for home decor?

Mr. Low: actually, this is what we do next. We will transfer our experience in stone processing to ELEMENT.

Mr. Low: ELEMENT was founded in 2017.

The connection with Banson and the establishment of ELEMENT China are also based on many considerations. On one hand, Banson is very experienced in ceramic distribution. The other is, after a long time of contact and communication, we all believe that Banson is a responsible idealist. We share the same ideas. Moreover, Banson's team is very efficient in product development. Backed by our own brand, we joined hands to create a company, which is a strong alliance that will goes from strength to strength for each other.

For example, if Singapore needs any new product, Banson's team work on it and tend to the projects we entrust them in China.

Mr. Liu: Do you mean that some products developed by ELEMENT team are delivered to Singapore?

Mr. Low: Yes. Of course, our sales team will also give feedback to ELEMENT based on the needs of the Singapore market, so that they can head towards the right direction combined with the information given. We also share with ELEMENT team on the trendy products in Italy.

Mr. Liu: Will you hand over the project you take in China to ELEMENT?

Mr. Low: Hap Seng Consolidated Berhad, our shareholder based in Malaysia is a reputational listed enterprise with six core businesses spanning from planting, real estate investment and development, finance and credit to automobile, trade and building materials. Lei Shing Hong Limited is one of its brands. And many of its property projects in China will be gradually taken over by ELEMENT. So there is a large market to be developed.

Mr. Liu: Right now ELEMENT adopts a business framework of imported ceramics platform + domestic products. Is that true?

Mr. Low: Yes, it's a distribution platform of imported + high-quality domestic ceramic tiles. One of our directors are well-informed the trends in Italy. Thanks to our connections with factories, we are able to provide ELEMENT with whatever supply chains and resources it requires. Many Italian factories have agreed to make products for us exclusively. So, from this perspective, Italian factories provide robust strength.

Mr. Liu: Such strength is very important. A brand with abundant resources globally will be much stronger than others.

04

Mr. Liu: what do you expect from ELEMENT in next phase after its progress made in these years? Or what brand you want to build ELEMENT into while making your market strategies in China?

Mr. Low: in recent years, ELEMENT grow strongly in both sales and branding. At present, there are nearly 100 sales terminal outlets, which build up its reputation in ceramic industry.

In the long run, ELEMENT will continue to deliver esthetically quality products for our consumers based on its development capacity provided by the team. So it's our original aspiration and vision of moving forward from Chinese market to high-quality and even global market that drive our cooperation and branding.

Mr. Liu: So you mean that ELEMENT will target to both china and other countries, right?

Mr. Low: Yes, the Chinese market is our foundation. Our next step is to find ways into global market by well-positioned strategies.

Mr. Liu: This international brand mainly sells Chinese ceramic tiles?

Mr. Low: Yes, and it focuses on high-end product distribution. I believe selling products at a lower price than other is meaningless. To sustain our business, we must focus on something with high added value. This is what Banson and I are working on.

Mr. Liu: When it comes to products, Banson is an excellent product manager in my impression. He knows everything about products. He has managed to find his niche in Chinese market and make his name in terms of product/market life cycle control to development /quality assurance. And ELEMENT remains dedicated to high-end market.

Mr. Low: Yes. The most important thing for the progress of a company is talent. Years of communication and cooperation allow us to witness the dedication and solidarity of our youthful ELEMENT team. We believe Banson will help ELEMENT to move forward along its scheduled plan.

Mr. Liu: The pandemic has wreaked havoc for 2 years. What's your expectation on Chinese market? Have your ever changed your perception about the market especially in recent 2 years?

Mr. Low: of course, there will be changes in post-pandemic era. It's a matter of life and death for many businesses. But still some enterprises seize the opportunities and grow bigger and stronger. In fact, in the final analysis, this is the so-called "survival of the fittest".

I am still very optimistic about the Chinese market and our cooperative company ELEMENT. After all, China has a huge population and resilient domestic market.

Mr. Liu: Therefore, you should amplify the ability of HAFARY in Chinese market to further enhance your capacity in global market for the long run.

Mr. Low: We are very optimistic about the Chinese market.

Mr. Liu: Finally, can you introduce your engagemet in building materials in the past 40 years?

Mr. Low: I started my career in the building materials industry in the 1980s. It can be said that I have witnessed the history of how modern ceramic tiles gain their popularity. For example, in 1980s, Italian small format tiles were the dominating trend; in 1990s, Spanish market was the mainstream. China didn't take up much market share until the year of 2000, especially after 2003. This is also an important opportunity for us to occupy the Chinese market.

However, at that time, Chinese ceramic tiles were still in its infancy and the quality was not guaranteed. Back then, in order to find some high-quality manufacturers, we came to China for investigation and selection for many times. Finally, we selected some better factories and carried out long-term cooperation.

Most products sold now in Singapore are made in China.

Mr. Liu: Were you born, raised and studied in Singapore?

Mr. Low: I was born and raised in China. I came to Singapore in 1959 when I was about 10 years old.

Mr. Liu: When were you born?

Mr. Low: It's a secret. Sorry that I can't tell you (laugh). When people raised that question, I would say:" well, I'm 50 years old." That's it, anyway.

Mr. Liu: Staying young at heart in very important. Do you usually communicate with customers? Will you go to the terminal market to connect with consumers in Singapore?

Mr. Low: Now I mainly stay contact with some old consumers and friends. Our teams will manage the match-making issues with others. Nowadays ceramics are iterating at fast pace. Younger generations are better at coping with those changes and operations.

Mr. Liu: It takes times to build a brand or develop a youth team. Your 40-year experience will definitely empower and sustain the development of HAFARY-ELEMENT alliance. That's all for today's interview. Thank you, Mr. Low!