In the course of its history, DeGem has overcome numerous entry barriers by putting itself in a position of strength by developing strong and invaluable brand equity, leveraging on a pool of experienced and gifted designers, and integrating its business right from the design and manufacturing stage to final distribution.
Generally, each retail outlet requires a capital outlay of RM1.5 million and above while a new manufacturing plant requires an investment of RM3 million ~ RM4 million. Since its business is moderately capital intensive, DeGem is where it is today owing to prudent management of cash flow as well as building reputable brands that garner customer support and loyalty. To ensure its long term profitability, DeGem has been able to strike the right balance of retail outlets and factory capacity to ensure the future sustainability and growth of its business.
