Third generation jeweler brings innovations to family business

Family businesses aren’t a sure thing. Some last for many decades, while others go pffft when the second or third generation members take the helm. One family business that’s gaining strength as the years go by is the jewelry business of the Sarabia-Gorriceta family of Iloilo. Amparo Sarabia started a jewelry store in Iloilo. Later on, her eldest daughter, Dr. Sandra Sarabia-Gorriceta (an optometrist following the footsteps of her grandfather, Dr. Federico Sarabia, the first optometrist in the Philippines), also went into the jewelry/pawnshop business with her own shop, the SS Gorriceta, which now has three stores in Iloilo. Now Dr. Sandra’s son, Felix Gorriceta III, is following tradition, heading the jewelry chain store Karat World. “Growing up in Iloilo, I was exposed early to the business. I have a brother and a sister, but I was the only one interested in the jewelry business,” shares Felix. He recounts that when he was in grade 1 or 2, he already knew how to open the store vault. In high school, he helped out in the store, and listened in when his mom talked with suppliers. At first, Felix thought he could be a lawyer or go into politics like his father Felix Gorriceta, Jr., who became mayor of the town of Pavia in Iloilo. Felix studied Legal Management in De La Salle University in Manila to prepare for this. But during school breaks, he would help out at the jewelry store his mom put up in the early 90s in Harrison Plaza. While Felix was in college, his father became ill and his mom had to take care of him more. It was at this point that Felix decided to go into the jewelry business as a career. He went to London to study gemology after college, and when he came back, his father passed away. Since Felix was the eldest, he had to take care of his father’s business, a sugar plantation. “I tried to take care of it but my heart was not into it,” Felix said. After some time, the family decided to have the sugar plantation just rented out. Felix then focused on Karat World, the jewelry business. Innovations Felix lost no time in introducing innovations to the way the family ran the jewelry business. “I made Karat World a brand, not just a jewelry store,” says Felix. From that one store in Harrison Plaza, Felix grew the business. By the end of this year, Karat World will have 16 stores nationwide, with three stores slated to open this year outside Manila (at the Marquee, an Ayala Mall set to open in May in Clark, Pampanga; in Robinsons Dumaguete; and in Cebu). How did he do it? It started with knowing his market. “Karat World’s market is the working woman of today. And so we offer basic jewelry that can be worn every day from morning until night,” shares Felix. The store carries a wide assortment of items with a prices ranging from the reasonable to the high end. “We want to tell people that not all jewelry stores are expensive, and that a woman need not wait for a man to buy her jewelry. She can afford to buy it herself!” says Felix. Based on this profile of their target market, Felix introduced the following innovations to further strengthen his market position: 1. Take out the door in shops to entice customers to come in the stores. “A door creates a barrier between the person and the store. It’s intimidating, not inviting,” he says. At first, his mom was concerned about security, but Felix won her over. Now, Karat World stores are open in front from end to end in the lease area. 2. Create awareness about the brand through the use of media. Felix made sure Karat World’s jewelry are worn by the leading actresses in local teleseryes, and there have been in fact customers coming in asking for the jewelry worn by actresses on Betty La Fea. Felix also mounted advertising campaigns and granted press interviews. 3. Come up with up-to-date designs. “This is very important,” says Felix. But even with modern designs, the jewelry should still be wearable and be attractive to his target market. To ensure this, he observes his clientele and notes what they want. It’s surprising that the tastes of his market vary per location. “In some provinces, people are more conservative and would go for gold jewelry even if white gold is in fashion. In other areas, if you go downtown, conservative designs are in demand. If you go uptown, the experimental designs are what people prefer,” says Felix. He makes sure to stock up on items his market would want in that area. For instance, in Robinsons Galleria, clients are mostly working women. Their bestseller in this location are earrings, and so the store has a minimum of 200 designs on stock, starting at a reasonable price of P1,250 per pair. 4. Introduce a Wedding Station. To make brides-to-be and their fiancés feel extra special, Felix made sure there is a special section in every Karat World that is dedicated to wedding and engagement rings alone. This area also has comfortable chairs where couples can sit and take their time choosing their rings. 5. Offer promotions. Karat World will have a big promotion coming up soon where clients can win a diamond ring. 6. Listen to the staff. “This is to make sure that we hear what they think would be good for the business, what would sell or not sell,” says Felix. He also keeps an open line with the staff, meeting all staff personally upon hiring and telling them that they can write him a note or e-mail him or HR to tell them anything. “We want to help them the best way possible. They can air out anything, be it a grievance or not,” says Felix. 7. Be open to change, even in terms of supply. “We want to give customers the best possible price and so we try to source the best products,” shares Felix. About 80 percent of their merchandise are sourced from Italy and Hong Kong, while 20 percent are made locally—Karat World’s wedding ring line designed by Felix himself. “Here is where my creative streak shines through. I like doing designs for wedding rings,” he says. 8. Try to please customers as much as possible. Felix tells his staff that people use their hard-earned money to buy their merchandise so they deserve the best. And so the store will go out of its way to serve customers, even to make arrangements for the delivery of an engagement ring abroad if the customer wants. 9. Have a website to let people know about the store and its offerings. Selling online is not a possibility given that jewelry is a personal thing, but the website is a way to clue the customer in on what they can see at Karat World stores. Felix’s mom is still involved in Karat World while still overseeing her SS Gorriceta shops. She is head of finance of Karat World, while Felix is in charge of the creative side. It is interesting to note that Felix’s wife is also in the jewelry business but in another chain, F&C. But everything’s going well in the family and in the business. The innovations are working well, and looks like the business will survive and be passed on to succeeding generations.