 |
Hans-Kristian Højsgaard, pictured at the Cannes TFWA show, is presiding over a huge transformation at Georg Jensen |
DENMARK. At the recent TFWA World Exhibition in Cannes, Hans-Kristian Højsgaard, President & CEO of Georg Jensen, was buzzing with excitement about his mission to turn the Danish silversmith into a global luxury goods brand.
The respected ex-Lancaster, Guerlain and Seagram senior executive told The Moodie Report he was presiding over a huge transformation at Georg Jensen. “The company is in a period of transformation,” he explained. “We were traditionally known as a Danish silversmith, making 100% silver gift products, and now we are becoming a global luxury goods company manufacturing gifts in other precious metals. In just two years [since taking over at the helm of Georg Jensen – Ed] one-third of our business is done in gold and diamonds, and two-thirds is in silver. I want to achieve a 50:50 balance.”
Højsgaard’s strategy is carefully honed. He knows it will not be easy for a small (in global luxury goods terms) Danish company that celebrated its centenary last year, steeped in the silversmith tradition, to compete with the bigger boys on the global stage. But Højsgaard is confident he will pull it off and believes there is huge potential for products offering “understated elegance and simplicity”, which is how he sums up the Georg Jensen brand.
The retail strategy
On the retail side, Georg Jensen has a head start. The brand already boasts 115 owned domestic stores worldwide carrying its wide range of jewellery (pendants are a speciality), watches, gifts and homeware. The Georg Jensen Living sub-brand is offered to third-party retailers, such as airlines and cruiseships in the travel retail sector, and has “really taken off”, enthused Højsgaard. British Airways and SAS were the first two carriers to start carrying Living items; BA is currently listing a candle-holder. Other carriers listing products such as the popular Victory pendant include Lufthansa, KLM, Cathay Pacific, JAL and Korean Air.
Højsgaard said the airline business had become such a huge success that the company is, for the first time, introducing airline-exclusive pendants. Examples on display at Cannes included the Zephyr, on a silk cord, and Gravitas, featuring a leather cord. Outer packaging is kept small, resembling a jewellery box, with no outer window.
Domestically, two Georg Jensen boutiques opened during the Cannes TFWA fair – an extended store in Aarhus, Denmark’s second city, and a renovated outlet in Stockholm, Sweden’s fashion capital. In travel retail, Højsgaard harbours big expansion plans. The brand has two stand-alone boutiques, at Copenhagen Kastrup and Singapore Changi airports, focusing on a tight selection of jewellery, watches and gifts. Højsgaard said “an agreement has been reached” with Hong Kong International Airport for a store to open from June 2006. “Three or four” more airport shops will begin trading in the Western Hemisphere and Asia next year, although he said he was “choosy” about locations and would not be drawn on details.
The product range
 |  |
 |  |
Clockwise from top: Zephyr silver chain, Gravitas, Zephyr silver cord and Artist Heart Collection pendant 2006 | |
Product design is the DNA of the Georg Jensen brand, and the company has a unique take on this side of the business. Always wanting to refresh the brand’s contemporary image, the in-house design team works with leading outside designers. One top name is Arne Jacobsen, whose Georg Jensen Living espresso and caffe-latte spoons boast clean, simple lines and are perfectly set off by the outer gift packaging. Other sleek Living products include wine stoppers, bottle openers and a leaf-shaped snack bowl.
Each year, Georg Jensen teams up with a leading designer to create a limited-edition annual Heritage Collection pendant, a reworking of old designs from the company’s archives dating back to the early 1900s, which is a strong seller in Asia, especially Japan, China and Taiwan, according to Højsgaard. The 2006 Heritage Collection takes a 1913 classic Art Nouveau design capturing the bud of a flower about to burst open. In addition, the company selects an artist to produce an annual Artist Heart Collection pendant. For 2006, the firm has teamed up with Karim Rashid, an acclaimed New York-based artist, who has interpreted the heart in his signature sensual way in a pendant and earrings. The pendants from both collections have become collector’s items, added Højsgaard.
In terms of new product development, the company is responding in a big way to the global trend for personalised jewellery. Featured now in the world’s top fashion magazines are the new Carnival rings, available with a choice of five cabochon-cut coloured stones in either 18ct white gold or sterling silver, designed to be worn together to create an individual look for the wearer. The Fusion collection also responds to the trend for individuality.
The financials
In its financial review for 2003/04, the latest figures available, Georg Jensen’s total turnover was up by +7% to DKr789 million (€105.7 million). While sales of third-party products declined, turnover of Georg Jensen products jumped by +15% during the fiscal year 2003/04, and +30% during the second half of the year (at constant exchange rates). The declining sale of third-party products, the firm said, was in line with the deliberate phasing out of non-group products, which represent only 10% of total sales.
EBIT for the period rose by DKr21 million to reach DKr6 million against a deficit of DKr15 million the previous year. EBITDA reached DKr24 million against DKr2 million the previous year.
In product terms, sales of gold and diamond jewellery jumped by +33%. Jewellery and watches accounted for almost 80% of the retail turnover and 60% of the total turnover. Sales of Georg Jensen Living leapt by +27%.
Georg Jensen’s biggest markets are Denmark, Japan, Australia, Taiwan, the US and the UK. Sales of Georg Jensen in the US jumped by +40% during 2003/04, driven by jewellery. Turnover in Asia advanced +22% thanks to the strong performance of jewellery and watches.
Turnover in Scandinavia grew by +20%, mainly due to Living products. Net result (after interest and tax) was a deficit of DKr7 million against DKr44 million the previous year. However, last year’s results included an extraordinary profit of DKr70 million generated by the sale of two shop leases, the company said.
Trade enquiries to Georg Jensen, 7 Søndre Fasanvej, DK-2000 Frederiksberg, Denmark, tel: +45 38 14 98 98, fax: +45 38 14 99 70. Visit www.georgjensen.com
*Look out for a special interview with Hans-Kristian Højsgaard in the next issue of The Moodie Report print edition out in January 2006.
MORE STORIES ON GEORG JENSEN
Georg Jensen aims to be king of hearts – 30/11/04
Højsgaard takes top post at Georg Jensen – EXCLUSIVE – 12/08/03
