Noritake sees strong tablware sales with tourism boom

80% of retail business depends on foreign sales:

Noritake, the well-known Japanese ceramic brand, is increasing its presence in Sri Lanka as the company foresees a huge growth in sales with the continued boom in the travel and tourism industry.

The company hopes to expand its presence in emerging Asian nations by leveraging its key production site in Matale in Sri Lanka as a hub to reach nearby countries.

"There is room for tremendous growth in Sri Lanka. We have seen the growth in tourist arrivals and subsequent increase in purchases of Noritake ceramic products," Noritake Japan's Director and Managing Executive Officer (Tabletop Group), Yoshitaka Mabuchi said.

Noritake's sales in Sri Lanka have risen rapidly over the last couple of years, mainly owing to the growth in the hospitality industry propelled by rapid rise in tourist arrivals.

Mabuchi is hopeful that tourists from China and India would be the key buyers of their products.

"Sri Lanka is an extremely important market for us," Mabuchi told the Business Observer last week soon after the launch of their new range of fine porcelain-ware, stoneware and cutlery in Colombo. Mubachi is also the chairman of Noritake Lanka Porcelain Pvt Ltd, a 100% Japanese investment.

Demand for quality

In addition to tourists, the company says, its clients in the hospitality industry are increasing. "Demand for quality porcelain-ware is growing within the hotel sector with many new properties around the country. One of the products we launched is especially for the hotels and restaurants sector," he said.

Besides foreign sales in Sri Lanka, the company says local sales have increased a lot following their expansion plan.

The retail segment contributed a lot to this growth. "But an 80 percent of our retail sales rely on foreign customers visiting the country," Deputy Chairman/Managing Director, Noritake Lanka Porcelain (Pvt) Ltd, (NLPL) Yoshinari Shimaya said.

Talking about the export markets of Noritake, he said their main markets include Japan, the US and other Asian markets.

"We do business with EU countries as well; but the total volumes of business are nominal in that market. Therefore, the GSP issue has no affect on our business." Noritake has in recent years opened up new stores in China and India.

Industrial products

While Noritake is well known for its tableware around the world, it also has other business segments.

These include industrial products which make grinding wheels, ceramics and materials which are used to manufacture electronic paste and thick film circuit substrates, and engineering which makes various types of industrial furnaces. Noritake Lanka is Sri Lanka's pioneer porcelain manufacturer and is the largest in the island.

As a fully-owned subsidiary of Noritake Co. of Japan - a company that has a 110 year old history - NLPL is one of the many branches of Noritake spread across the globe.

Since 1972, Noritake's operations in Sri Lanka with superior manpower and craftsmanship, amplified its position as one of the best producers of fine porcelain ware in the world. It is a fine blend of superior technology and dedicated craftsmanship enriched by an enduring history.

Noritake has stayed in the forefront of the porcelain industry across the globe being the number one brand in fine porcelain tableware in the world.

NLPL has been supplying fine customised hotel and restaurant ware to almost all the five star hotels, to a large number of resort hotels as well as small luxury hotels (SLH) in Sri Lanka since its inception.

"They look to NLPL as the obvious choice given definite advantages ahead of the market, given that all Noritake ware is free from lead, cadmium and zealanium, retains a very high level of whiteness and translucency, is resistant to chiping and scratching, is shock resistant, and suitable for heavy duty usage. They are made to withstand wide temperature ranges and are of high durability," a company press release said.

The five tyes of tableware launched recently are: Cher Blanc - a light, thin, highly translucent, fine porcelain that is bright, pure white with a high-gloss glaze that is perfect for all occasions; Grandir - made from light, fine premium porcelain, which is thin, yet durable, the Grandir line is translucent white; Noritake Culinary White - which are chip resistant, thermal proof, resistant to cutlery marks, long-lasting and high-density porcelain dinner ware; Colorwave - a creamy glaze interior, and a matte exterior, the simple but chic dinnerware is made from durable stoneware; and Rochefort - stylish and modern, has a timeless quality that will add grace to any dining table.