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Glittering line-up: The top master craftsmen in France rose to the “huge challenge” of creating the five US$200,000 Baccarat crystal bottles of Bombay Sapphire gin. From left to right: Baccarat North America VP of Merchandising and Marketing Brent McDaneld; Yann Erminell, Product Development Engineer; Marwan Semaan, Special Affairs; Eric Brient, Production Director, and Jaime Jiménez, Director, Public Relations & Special Events North America |
FRANCE. Tuesday, 18 March marked a seminal moment in the short but seriously starry history of Bombay Sapphire Revelation. It was the day all five US$200,000 bottles of Bombay Sapphire gin went on display together – a moment that will never be repeated unless one kind-hearted and bulging-walleted multi-millionaire buys all five museum-piece bottles.
As previously reported, this ultra-luxury charity Revelation product launch – possibly the most ambitious ever to be staged in the world, let alone in travel retail – consists of a five-city, five-airport, five-bottle international roll-out of Bombay Sapphire gin.
Each US$200,000 Revelation bottle was lovingly blown by the famous French crystal house Baccarat, while Garrard crafted the bottle stoppers out of gems, and world-respected designer Karim Rashid brought his design eye to bear on the total look. Fabulous, fabled – call it what you will.
Proceeds from the sale of these five creations go to the travel retail industry-endorsed charity, The Smile Train, whose work performs cleft palate surgery for children who cannot afford it. That is, of course, a worthy and humble aim, but what many people don’t realise is how this million-dollar collection of five gleaming bottles began as humble sand. For that is how Baccarat crystal starts its life.
To celebrate their partnership in the Revelation project – hardly a project, more a “Grand Design” – Bacardi Global Travel Retail Division recently hosted two events with Baccarat: the first at the Baccarat Château in the village of Baccarat in northeastern France, where the five-piece collection of crystal bottles was displayed together for the first time; the second, in Paris, at the Maison de Baccarat, designed by Philippe Starck.
On Tuesday, 18 March, media guests from France, Spain, Italy and the UK travelled to the Baccarat Château with their host Gary Chau, the ever-dynamic Marketing Director for Bacardi Global Travel Retail Division.
During their stay in the quaint village, guests – including The Moodie Report – enjoyed a private tour to see first-hand the magic of creating Baccarat crystal: each piece of Baccarat crystal is blown and shaped entirely by hand. That evening, for the first time ever, all five Revelation pieces were revealed together, which was a moment of great pride; even the four “Meilleurs Ouvriers de France” (master craftsmen honoured by the French President) who had worked on the project were in attendance and full of excitement.
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Baroque splendour: Left: The Grand Ball Room inside the Maison de Baccarat in Paris, designed by Philippe Starck; Right: The five Bombay Sapphire Revelation bottles take pride of place on a table beside the guests | |
The next day, the group returned to Paris for an unforgettable dinner in the Grand Ball Room of the Maison de Baccarat, designed by Philippe Starck and located in the city’s chic 18th arrondissement.
A group of 30, including media and Baccarat VIPs, enjoyed Bombay Sapphire cocktails under a majestic, 167-light Baccarat chandelier; a private view of Baccarat’s historic collection; then dinner in its 18th Century-inspired ballroom, which set off the sleek modernity of the five Revelation pieces on display for their one last night together. In this rococo setting, guests admired the clean, pure lines of the five-piece Revelation collection.
After that, the limited-edition Revelation pieces were separately sent to their final destinations for the airport launch events: one was despatched to London Heathrow to be displayed with World Duty Free from 25 March, followed by New York JFK and Singapore Changi (with DFS Group) from 28 March, Dubai (with Dubai Duty Free) from 30 March, and Sydney (with The Nuance Group) from 31 March. Now, each bottle awaits its new owner.
The Moodie Report is reporting live from each key travel retail destination. Stay tuned.
Baccarat: World leader in luxury crystal
Baccarat was established way back in 1764, but in the past few years the French house has been undergoing a transformation. In September 2005, Starwood Capital acquired the Société du Louvre and is the majority shareholder at 86%. Starwood Capital’s Chairman, Barry Sternlicht, is also Baccarat’s Chairman. Hervé Martin, a former executive at Italian fashion group Salvatore Ferragamo, was appointed Managing Director in January 2008.
A strategic action plan has been in force since Martin’s arrival to double sales in the next five years to reach about €300 million. Plans call for an expansion of the product range, both in the household market: lighting, tableware, decorative objects, and in the jewellery sector, where there is significant potential, Baccarat believes.
Implementing the first phases of the five-year strategic plan (including major investments in creativity, product development and strengthening of in-house distribution) will affect results in the short-term, according to Baccarat, though it expects regular growth in sales.
To boost this expansion, the group aims to inject investment into its historical glassworks employing 850 staff, to improve the production process by drawing on the skills of Baccarat’s workforce in France – many of whose families have worked there for generations.
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The five bottles, each weighing more than 11kg, are displayed together in the Château de Baccarat, home of the famous Baccarat glassworks |
Jewellery: A successful diversification
With its two collections and nearly 400 new products incorporated into the catalogue annually, Baccarat constantly updates and diversifies its product range, collaborating with contemporary designers who capture the brilliance of crystal in jewellery (Sophia Vari, Philippe Airaud, Legge&Braine, Peggy Huynhm Kinh), home furnishings and interior design (Arik Levy, Philippe Starck, Ettore Sottsass, William Sawaya, Atelier LZC, Kenzo Takada), lighting (Mathias) and accessories (Renaud Pellegrino).
Jewellery sales have grown from 5% of total sales in 1997 to 20% in 2007. The jewellery range has been “remarkably successful”, says the company, growing on average by double digits annually since its launch.
Bolstered by the success of its jewellery range, Baccarat has continued to diversify since 2001 with the launch of jewellery collections, the Baccarat watch and a range of fashion accessories.
The success of these fashion-inspired collections has contributed significantly to reviving the brand and increasing its accessibility. They are energised by an advertising policy that aims to promote Baccarat’s status in the fashion world.
By product category, the sales mix is as follows: tableware 28%, decoration 20%, jewellery 16%, perfume bottle manufacturing 18% and lighting 18%. Fashion-watchers expect jewellery’s contribution to climb sharply as Hervé Martin’s action plan kicks in.
Development of Maison Baccarat
In November 2003, Baccarat moved its Paris base to a mansion formerly owned by Marie-Laure de Noailles. The 3,000sq m building is now home to the company’s headquarters, a boutique, the Crystal Room restaurant, a gallery-museum, a ballroom and a reception room that preserves its original 18th century Italian baroque style.
Following the worldwide success of its first Maison (house) in Paris, Baccarat inaugurated a second Maison in Moscow in February 2008, based on the same concept and also designed by Philippe Starck. Russia represents a historic Baccarat market to which the company returned in 2001 with the opening of a first boutique. Baccarat was well known in history as a crystal maker to the Tsars.
Targeting the resurgent Russian luxury goods market, the 550sq m space houses home, decoration, jewellery and accessory boutiques, in addition to the Crystal Room restaurant run by chef David Desseaux.
A new clientele
Efforts to reach new, younger customers and strengthen relationships with client-influencers (interior decorators and designers) have contributed to Baccarat’s solid results. From the first half of 2004, company sales have risen +13.6%.
Lighting has been particularly successful, with sales up +100% over 2004 and 2005. Next time you’re browsing in a Chrome Hearts jewellery store, anywhere in the world, look up at the ceiling and you’ll see an all-black Baccarat chandelier.
More new Maisons Baccarat are on course to be opened soon in major luxury international capitals and the main emerging markets. The next Maison will begin trading in Macao from 2009.
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Heavyweight launch: This crystal table was specially commissioned to accommodate the five precious bottles |
New territory: Baccarat five-star hotels
Following its expansion into jewellery and the development of the Maison Baccarat concept, the brand is moving into the luxury hotel market.
One of the strategic roles of Starwood Capital will be to set up 20 to 25 hotels faithful to the brand’s image, in cosmopolitan cities and resorts.
The first hotels are set to open in Anguilla in 2009 and Hawaii in 2010. Other projects are in the pipeline for Europe and the US.
Depending on the location, Baccarat will give each hotel its own identity through special creations, such as chandeliers, lights and tableware.
Distribution developments
From 1995, Baccarat developed a new distribution policy aimed at establishing and controlling its visual identity, boosting the number of brand-owned boutiques from four to 53. Most recently, boutiques have opened in Asia (Beijing, Tokyo and Hong Kong) and in North and South America.
With the success of its branded fashion collections, in 2001 Baccarat launched a new boutique concept – jewellery-based boutiques, dedicated to jewellery and accessories. The stores are located in Paris, Nancy and Las Vegas (October 2004).
Baccarat developed another new concept when it opened a boutique in Japan’s fashionable Roppongi Hills shopping centre. The B-Bar, which has a sophisticated environment offering cocktails and appetizers, is Baccarat’s first development of this kind and has created a synergy between bar and boutique, according to the company.
A second Tokyo bar opened in the Marunouchi neighbourhood, as an annex to the boutique. A third B-Bar opened in 2007 in Osaka (UMEDA).
Retail strategy
In a significant development, Baccarat is refocusing on a more selective distribution approach and is strengthening its brand-owned boutique network. Two boutiques in the US were renovated in 2007, in Houston and Costa Mesa; a new boutique was established in Nagoya in Japan in May 2007; and a new boutique began trading in Atlantic City in the US.
Strengthening partnerships with leading department stores is also being undertaken, including the reopening of a large jewellery corner in Galeries Lafayette in Paris.
International corners are currently trading in eastern Europe, including Ukraine and Uzbekistan. In Western Europe, there is a jewellery corner in Harrods in London and a corner in Rusch in Munich; and in Asia a shop-in-shop has reopened at Takashimaya Shinjuku in Tokyo.
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Bacardi Global Travel Retail Marketing Director Gary Chau shows The Moodie Report’s Mary Jane Pittilla (centre) some of the fine intricacies of the gem-laden bottle stoppers, made by London-based Crown Jeweller Garrard |
Baccarat’s key 2007 accomplishments
Baccarat lists its strengths as:
– Successful diversification into jewellery and accessories, reviving the product range and modernising its image;
– Continuing success of the Maison Baccarat, an international showcase for the collections;
– Production of remarkable pieces, to satisfy the most extraordinary requests.
Beyond its sales figures, Baccarat’s accomplishments also boast a visible and continued presence in China following a retrospective cultural exhibition at China’s largest museum, Beijing’s NAMOC Museum in 2006.
Raising awareness among interior decorators and experts is also key. The Lan Club restaurant in Beijing, designed by Starck, displays the brand’s chandeliers.
Two high-impact events have taken place in the US market. In partnership with UNICEF in New York, Baccarat produced a huge chandelier made of thousands of Baccarat crystal pendants, created by acclaimed lighting designer Inge Maurer. In Los Angeles, Baccarat illuminated Rodeo Drive, the legendary shopping street, with Baccarat chandeliers.
The company is also sustaining the growth of business-to-business and perfume bottle activities. For spirits, recent projects have included Rémy Martin’s Black Pearl limited-edition Cognac bottle, and participation in the Beauté du Siècle contemporary art project to celebrate 100 years of Kilian Hennessy.
In the fragrances sector, limited editions have been created of Lolita Lempicka, Caron and Burberry bottles.
Developing travel retail sales is also a key focus. [A major interview with Baccarat’s Travel Retail Manager Peggy Morel will be published in the Category Insight Jewellery Supplement to be published by The Moodie Report and distributed at the Tax Free Asia Pacific show in Singapore in May 2008.]
2008 outlook
In addition to the recently opened second Maison Baccarat in Moscow in February, this year will see the brand maintaining a dynamic distribution network, particularly in Eastern Europe. Openings include a jewellery and decoration corner in Sofia, a decoration corner in Bucharest, and a jewellery and decoration corner in Lahore.
To strengthen the brand’s presence in the contemporary luxury market, fresh product ranges will be created, for example Arik Levy’s Intangible collection and Philippe Starck’s Crystal Dream collection.
And, emphasising its status as a key figure in the worldwide jewellery sector, it will preview its new collection, Insomnight, at the Baselworld trade fair in Switzerland next month.
BACCARAT FACT FILE
Sales 2007: €142.8 million, up +9% based on the constant exchange rate. International sales accounted for more than 80% of the total.
Employees: 1,130 (as at 31 December 2007).
Overseas subsidiaries: Baccarat Inc (US) and Baccarat Pacific (Japan).
Worldwide distribution: The brand is distributed in 85 countries with 53 boutiques and 21 distributors with “brisk” shop-in-shop growth in Asia, France and the US. A network of 1,500 authorised points of sale, representing 66% of consolidated sales: multi-brand home and decoration, jewellers and department stores.
Sales mix by region: Europe 49%, Japan 25%, US 17%, Asia 6%, Other 3%.
About Baccarat
Founded in 1764, Baccarat is recognised globally as the eminent creator of luxury crystal, including traditional crystal lighting, glasses, home decoration, jewellery and fashion accessories. Commissions have included Japanese Emperors and Russian Tsars, as well as European royalty. For 244 years, Baccarat has graced royal palaces and presidential residences worldwide.
MORE STORIES ON THE BOMBAY SAPPHIRE REVELATION PROJECT
Bombay Sapphire Revelation introduced in London as five-city roll-out nears – 25/03/08
