Compagnie des Orfevres SA specializes in creating finely-crafted, Italian-style jewelry at moderate prices – a feat accomplished by combining an Italian designer and Thai labor.

            Giuseppi Troisi, who began his career in the jewelry industry by selling equipment for Mario Di Maio in Italy, also worked in China as managing director for a company manufacturing 10k gold jewelry. The company eventually folded because it could not match market demands, Mr. Troisi said.

            “It was a big company with completely integrated production from refining gold up to making chains, stamping and casting. They didn’t have many customers, but a lot of quantity. When one or two of their main customers stopped buying they had a big loss. They didn’t have a clue about the market because they were dependent on a few. When they tried to switch to another kind of market it was too late.”

            Mr. Troisi had already moved to Thailand to launch his own company, Ital-Gold, which was a joint venture with Thai partner to mass produce low-end jewelry for export. He left the joint venture in 1991 for several reasons.

            “First of all I don’t believe in mass production anymore,” he explained. “It takes a very large bed work to do it successfully. You need to have a hand in supply distribution. You can’t just pick up the phone and say I want sapphire 200,000 pieces, 2x2. No one can do that unless they also are involved in the supply of stones. I think there’s a better opportunity in the middle range where you can combine quality and style with a reasonable price. Your product does not sell because it’s cheaper than the competition but because people like it.”

            That is the philosophy behind Compagnie des Orfevres, or CdO. Mr. Troisi’s wife. Doreen, who was formerly an executive with Chase Manhattan Bank, does the marketing and runs the factory while Mr. Troisi gives his input for design. Meanwhile he works full time as president of the Thailand office of Gesswein, the equipment supplier.

            CdO employs 30 workers to do the casting, goldsmithing and polishing work but subcontracts the setting. “Right now we only have very expensive top people,” Mr. Trosis said. “We are opening a new factory soon that will employ not more than 100 people. We can produce about 1,000 pieces a month.”

            The price of CdO pieces ranges from US$68-$6,000, with the majority of it between $300-$500.

            In spite of Thailand’s rising cost of labor, Mr. Troisi finds it preferable to have a factory in Bangkok instead of China. “The skill level is much higher here than in China,” he said. “Here, if you have a goldsmith he likes what he does. In China it is very frustrating. First of all they are not goldsmiths because they want to be goldsmiths. They have been assigned to do it so they have to learn it.”

            But as Thailand’s labor costs increase manufacturers will have to devise new production methods to remain competitive, he added. “Everybody is looking for technology to upgrade now. All the successful companies are changing their techniques and improving their quality. You have to combine European technology with labor intensive pieces.”

            Mr. Troisi plans to invest in stamping equipment. “It’s expensive but you can do a lot of hollow work so you have big pieces with light weight. Until now you could only get this kind of production from Europe or the US. Right now you can go to Italy, Germany, France or the US and buy a very nice hollow gold chain. But you cannot buy a hollow chain with a pendant set with diamonds and rubies. If you do that it will cost you a fortune. That’s where Thailand can compete, by combining high technology with complicated. Labor intensive prices.”

                   The next step is for Thailand to focus on innovative designs, Mr. Troisi said. “Thailand has the best resources for raw material. If it will develop the design then no one can catch it.”