Clogau Gold digs deep to harness global travel retail potential

Family matters: Clogau’s Bill and Ben Roberts

Welsh jewellery brand Clogau is looking to extend its Midas touch in 2013, as the family-owned company turns its attention to airport expansion. The brand, famous for including a touch of rare Welsh gold in every piece it produces, has made huge strides in travel retail within the past three years, progress that’s been driven by the 2009 appointment of David Butler as Head of International Sales. To date Clogau has established a significant inflight presence globally, particularly with its silver portfolio. Now the brand is looking to build its airport business, with gold as the focus.

And Clogau gold is pretty special. Mined from the St David’s Gold Mine in Snowdonia, North Wales, it’s the same gold that has been used by British Royalty for over 100 years, a tradition upheld most recently by Catherine Middleton, who chose a pure Welsh gold wedding ring on her marriage to Prince William, now Duke of Cambridge. That mine, however, closed in 1998, and stockpiles are limited, making Welsh gold arguably the rarest in the world.

But that rarity is not the only exceptional element of the Clogau story. The company was born almost by accident, when local entrepreneur William (Bill) Roberts bought the then-defunct Dolgellau mine in 1989, with a view to re-opening it as a tourist attraction. When planning permission for that was denied, Roberts completely changed his game plan, and instead re-introduced some small-scale gold mining, which in turn led to the birth of Clogau Gold in 1992.

Miners at the Clogau gold mine in the 1900s

Initially, just five lines of jewellery were created, using Wales as the sole design inspiration. Today, that portfolio – and the company of three – has grown exponentially. Around 50 people now operate Clogau’s North Wales Head Office. But it remains a family business. Bill’s son Ben became Managing Director of Clogau in 2007, and Ben’s sister Samantha is the brand’s Creative Designer. The landscape, history and heritage of Wales remain key elements, on all levels.

All in all, it’s a package that has captured consumers’ imagination – and their spend. “We were voted ‘Brand of the Year 2012’ at the prestigious UK Jewellery Awards,” confirms Clogau Brand Manager Sonia Menezes. “It’s a great accolade, as the judges form the backbone of the UK jewellery industry”¦so we’re chosen by the best amongst our peers.” She adds: “But it’s about sales, as well as aesthetics. We are the most successful gold brand in the UK. We also increasingly rank highly on the best-selling silver brands list too.”

Menezes attributes this success to a number of factors. “We have positioned ourselves as the story-tellers within the jewellery industry, which works for many reasons,” she explains. “Firstly, every single collection we bring out has a beautiful story behind it. Those stories are either inspired by the natural beauty of Wales, or by our royal [connections], which might be British or Welsh.”

Menezes adds: “Story-telling enables us to price accordingly. When people buy Welsh gold, they feel they are buying a piece of history; a special story that complements their jewellery. And that makes us unique. It also gives us very distinctive design handwriting, to the point where Clogau is instantly recognisable, particularly inflight where we work hard to offer selections which are strong in terms of brand recognition, but which will also have the widest appeal.”

Items from Clogau’s best-selling Am Byth and Cariad collections

Clogau’s reputation for craftsmanship is another key sales driver, Menezes maintains. “We are creating heirlooms for future generations,” she underlines. “If you take care of our pieces, you can pass them on – and many of our pieces are purchased as a tangible reminder of a special experience, for example, a wedding or engagement. It’s one of the reasons why we never plate our jewellery, even our silver pieces, because once that wears away, the gold would be gone. It’s yet another element that helps us stand out from our competitors.”

Cymru Am Byth
The ‘Welshness’ of Clogau is a key component of the brand DNA, and not just in terms of the origin of its gold. Many of the collections, such as Am Byth, Cariad, Awelon and Seren have unashamedly Welsh names, a decision which has in no way hampered the brand’s international aspirations.

“Am Byth (which means forever) is just beautiful,” notes Menezes. “And even if it’s not a phrase that everyone immediately understands, people want to find out what it means. It’s engraved on a lot of our jewellery, and for this year I have added Am Byth into our packaging. The Am Byth collection itself is available in yellow, rose gold and sterling silver. And there are diamonds in every piece which reinforces the ‘forever’ message.”

Clogau’s connection with British Royalty is another key design inspiration, as highlighted by collections such as Royal Roses, and the Historic Royal Palaces collaboration. Welsh gold’s royal association dates back to 1911, when Prince Edward was invested as the Prince of Wales, and his entire coronation regalia was made from the precious metal. Moreover, some members of the British Royal Family have been using pure Welsh gold to create their wedding rings since 1923, a tradition founded by the late Queen Mother, then Lady Elizabeth Bowes-Lyon, on her marriage to the Duke of York.

A selection of Clogau’s Historic Royal Palaces’ bead charms and Clogau’s Wales Polo Collection

That royal/wedding connection generated phenomenal publicity for Clogau in 2011, thanks to the Kate/William nuptials. “It was huge,” agrees Menezes, “and last year, during the Queen’s Diamond Jubilee, we enjoyed the same sort of boost. You couldn’t buy the level of media coverage we got worldwide; it was simply incredible.”

Unsurprisingly, Clogau’s domestic engagement/wedding ring collections also saw a big sales spike in 2011, and it’s a sector that has potential within travel retail too at the bigger airport hubs, the company believes.

“There’s gold in them thar hills!”

Last year I went to New York City (x 4), Madrid, Venice, Hong Kong, Paris, Istanbul, Milan, Monaco and Cannes. My final trip was to Bodelwyddan, in North Wales. God’s country. Believe me, I saved the best til last.

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On other regal matters, Clogau has been working with Historic Royal Palaces for about two years. The independent charity looks after the Tower of London, Hampton Court Palace, the Banqueting House, Kensington Palace and Kew Palace. Although the Palaces are owned by the Queen on behalf of the nation, Historic Royal Palaces receives no funding from the Government or Crown, and depends solely on the support of visitors, members, donors, volunteers and sponsors.

“Historic Royal Palaces have done an amazing job of preserving history,” notes Menezes, “and in particular they run some great educational programmes. We pay them a royalty for every Historic Royal Palaces piece we sell, which goes towards the upkeep of these beautiful palaces which receive thousands of visitors every year, and are iconic symbols for British royalty all over the world. In return, the charity gives Clogau access to their archives, and to the palaces themselves, for design inspiration.”

Historic Royal Palaces also lends its support in other ways. For example, this month Clogau has joined forces with British Airways to create an innovative competition that is being featured in the inflight brochure. First prize is two nights in a London hotel with free entry to the five Historic Royal Palaces (plus a Clogau Kensington pendant). In addition, the charity is planning to offer an as yet unspecified special extra element, such as a private Beefeater tour guide, or private entry to see the Crown Jewels.

Giving something back
Clogau’s desire to give something back, particularly to its local community, underpins an active and effective Corporate Social Responsibility strategy. The company supports Hope House Children’s Hospices (located in Oswestry and Conwy respectively) though a number of initiatives. A recent Clogau-sponsored Midnight Pyjama Walk raised over £39,000, and just before Christmas the entire Clogau clan turned out in force (clad in Santa suits no less) to participate in the charity’s annual Festive Fun Run.

Moreover, Ty Gobaith was Clogau’s chosen charity for the “QVC Cares” day on 14 December 2012, when 5% of all sales on that day were donated to the charity. Clogau also provides long-term support by donating £10 to Ty Gobaith from the sale of each of its Childhood Charms.

Clogau donates £10 from the sale of each Childhood Charm to Hope House Children’s Hospices

Best foot forward: the Clogau clan personally supprts the charity’s annual Festive Fun Run

Within the sporting arena, in addition to being an official licensee of the Welsh Rugby Union, Clogau is the official sponsor of the Wales Polo Team and Welsh Polo Association, an alliance which ties in perfectly with the brand’s Welsh/royal connections, given that His Royal Highness The Prince of Wales acts as the team’s patron. “We’ve also created a Wales Polo jewellery collection (inspired by a bridle’s snaffle bit); the ladies’ pieces in particular are performing very well,” notes Menezes.

As a further synergy, an hour’s lesson with the Wales Polo Team was one of the prizes donated by Clogau, at an auction last year to benefit Hope House Children’s Hospices. “We also auctioned the opportunity for Samantha to design a bespoke piece of Clogau jewellery,” adds Menezes, “and a private harp session with [Clogau Brand Ambassador] Claire.”

The ‘Claire’ in question is of course Claire Jones, also known as “The Girl with the Golden Harp”. The former official Royal harpist to His Royal Highness The Prince of Wales, Jones played at the William/Kate Royal Wedding in 2011, wearing a bespoke collection of Clogau jewellery. And a performance by Jones, courtesy of Clogau, was a highlight of The Moodie Report’s 10th Anniversary Charity Ball, held in Hong Kong last October.

“Claire is the ideal ambassador for Clogau and we see so many synergies for this partnership,” notes Menezes. “For example, we have created a very successful harp-inspired collection called Heartstrings. When Claire’s then boyfriend proposed to her, he composed a piece of music [now called Heartstrings] which is featured on her latest CD. And we’ve also used that music within our TV advertising; it’s almost become the Clogau ‘soundtrack’.”

The product portfolio
From just five initial lines in 1992, the Clogau jewellery portfolio now comprises hundreds of pieces. While the company is constantly on the look-out for new stories and inspirations, where possible, it is committed to expanding the existing collections which consumers know and love.

“It’s very important that we understand which pieces are selling well, and then find a way to build on those strengths within each collection,” explains Creative Designer Samantha Roberts.

Clogau’s successful harp-inspired Heartstrings collection

For example, for Autumn/Winter 2013, Clogau will extend its Seren (Star) collection with a new line called Seren Wishes. “The original Seren is very strong: it’s sweet, simple and a great, ‘safe’ gifting option,” Roberts notes. “Seren Wishes is targeted at younger girls, and is a shooting star-inspired collection.”

Butterfly, another strong seller, will be refreshed with the addition of pink and blue sapphires. The Awelon (Welsh for ‘happy breeze’) collection, inspired by the leaves on the trees at Betws-Y-Coed, will be updated with a diamond hero piece, in both nine carat yellow and rose gold.

Clogau has created a new ‘fairytale’ ad campaign for 2013 and several new additions will tie in nicely with this theme. “Our cheeky Frog Prince, until now available only in charm form, will be extended into other items,” Roberts reveals. “And our Fairy collection has been updated. Previously, the fairy was concealed within a locket. We have decided to ‘uncage’ her, and transform her into a mother, complete with baby fairy.”

Clogau Brand Ambassador, harpist Claire Jones, performs at The Moodie Report 10th Anniversary Charity Ball in Hong Kong last October

Cariad (Love), a perennial strong seller, is being expanded with a selection of charms and stud earrings, to round out the collection. “And as the Cariad pendant (to date available only in silver) has become one of our top-selling items, we will expand the range into gold,” Roberts confirms.

It’s important to note that Clogau is starting to see much stronger demand for gold, and 18 carat gold at that, in markets outside the UK. “We are selling more gold internationally,” confirms Head of International Sales David Butler, “and in certain markets, such as Asia and the Middle East, it’s a trend we think will continue, which bodes very well in revenue terms.”

Accordingly, a new rose gold ring, set with pave diamonds, will spearhead the Eternal Love collection, inspired by Celtic swirls, twists and patterns. Clogau will also extend its bridal collection, in response to the growing preference among Asian women to complement their plain ‘day’ wedding band with a diamond-encrusted ‘evening’ version.

The new 2013 Clogau brochure – an important sales tool – will be written in the form of a fairy tale, and segmented into six chapters, each of which will focus on different jewellery collections. “I chose fairy tales as a theme for several reasons, not least because they are cross-cultural,” Menezes explains. “Every culture understands and recognises them, even if different versions of the stories exist.

“Chapter one is the Royal Story, where all the royal collections will go together. Chapter two is the Enchanted Garden, where our nature-inspired collections will feature. Players and Princes will highlight our men’s lines, while Charmed will obviously showcase our charms. The Wedding tells the Clogau wedding story, while Am Byth is all about love.”

International aspirations
Travel retail is Clogau’s fastest growing channel, and one that still holds plenty of untapped potential, according to Head of International Sales David Butler. “When I joined in 2009, we had three international accounts: BA, Virgin and Harding Bros, all of whom are still with us today,” he explains. “Today we have over 30 international accounts, and I am confident we will add quite a few more in 2013.”

Larger airlines, cruise ships and shopping channels underpin Clogau’s international business; in geographic terms the majority of sales to date are done within Europe. Looking ahead, Butler is targeting the airport sector, and has high hopes for the Asian market in general, which he believes could deliver almost half of his projected growth.

Clogau’s vision for its airport concept store, which would work as either a permanent or pop-up boutique

“When I joined the company, I put together a six-year plan, to take us to December 2015,” Butler reveals. “We’ve made excellent progress in certain areas, but I am now keen to secure more airport locations; I hope by year-end 2013 we’ll have at least four or five major accounts, and perhaps 10 smaller ones. I am also targeting a couple more shipping channels, and some of the smaller airlines.”

2012 success stories included a new listing onboard JAL, which helped to strengthen Clogau’s presence in the wider Japanese market. “There was even an inflight marriage proposal, supported by the airline, whereby the prospective groom presented his new fiancée with a Clogau ring pendant which was listed onboard,” Butler explains. “In Japanese minds Clogau is now considered a lucky brand for brides, which we think is absolutely great.”

In 2012, Clogau welcomed Artemis Kouroupaki, formerly of Folli Follie (and her own consulting business), to its international team. “Artemis made an immediate impact, especially in the Asia Pacific region where she secured the important business with JAL, as well as forming potential business relationships in China and the region in general,” notes Butler. “She also managed to open a valuable airport account in Cyprus, which has provided the stimulus we needed to promote an 18 carat gold strategy worldwide.”

Clogau’s higher price points vis-à-vis its competitors are seen as advantageous by airlines, as they allow them to carry less stock for the same/higher return. “Cruise shops are another great sector for us,” notes Butler, “as the clientele is ideal. We’re on 21 ships with Harding Bros, and we tend to sell plenty of high-ticket items, such as our gold watch which retails at £2,500.”

Clogau will take its cruise ship presence one step further this year, onboard the high-end The World Residences, the largest privately-owned yacht on the planet, which continuously circumnavigates the globe. There are 165 private onboard residences. Prices vary based on size, décor, location and market conditions, but apartments are thought to start at around US$3 million, while maintenance fees alone can range from US$60,000 to US$270,000.

“The ship is coming to the UK in 2013, and Clogau has been invited to give a sales presentation,” Butler explains. “We’ve been asked to bring 80-100 18 carat gold pieces, all one-offs, to sell onboard. The ship is basically full of nothing but high net worth individuals, so it’s potentially a very interesting opportunity for us.”

In conclusion, post-Cannes, Butler sent out 35 proposals to prospective customers, with a predicated annual value of around £4.5 million. “If you were to put an average 33% confidence percentage on how many of those will come through, that translates into £1.3 million in new sales alone in 2013,” he notes.

More specifically within new business prospects, Butler has earmarked key airport doors in the Middle East and China. “We have created an idea for an airport concept store,” he reveals, “with interactive elements, including an integral iPad which allows customers to find out more about Clogau and our jewellery. We think this concept store would work as either a permanent or pop-up boutique.”

– Clogau is also featured in The Moodie Report Print Edition (January), which will be published later this month

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