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Swarovski’s 2,000sq m stand at Baselworld impressed visitors with its circular structure |
Austrian crystal specialist Swarovski has announced plans to double its business by 2020 through organic growth, acquisitions and the creation of new internal brands. The first completely new in-house jewellery brand is lola&grace, targeted at younger customers than the classic Swarovski jewellery brand.
Speaking to The Moodie Report at the Baselworld trade fair in April 2013, Daniel Swarovski Corp Vice President Travel Retail Peter Zottl set out the company’s strategy – and his ambition to grow the jewellery category’s overall share of the travel retail pie.
Asked about the company’s performance over the past year – which has been marked by a recent slowdown in Chinese spending in European domestic markets – he said: “The Chinese and Russians are driving our business, particularly the Chinese. The first two months of the year were a bit slower due to the anti-corruption measures against ostentatious luxury, but we do not and should not feel it because Swarovski is not selling US$10,000-plus watches. That is different from Swarovski, so we have not felt [the slowdown].” He added: “The summer 2013 season will be decided by the Chinese tourists.”
Zottl – a 31-year veteran of Swarovski – was also at pains to explain Swarovski’s decision not to attend the TFWA Asia Pacific show in Singapore this year, where the company has been a regular exhibitor, and to exhibit instead at Baselworld, the watch and jewellery trade fair that took place just a few weeks before the Singapore event.
“It was a tough decision, but our most important Asian partners are coming to Basel, and we are banking all our efforts on Baselworld. We were honoured to be asked by the organisers to take up this space in the new hall.”
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Stone pendant and Venetie cuff from the Secret Treasures Fall/Winter 13/14 collection | |
Surveying Swarovski’s spectacular 2,000sq m, two-level stand at Baselworld, The Moodie Report is not surprised at the decision. The sparkling stand forms a central part of the redeveloped halls designed by renowned architects Herzog & de Meuron, connecting two of the halls together in a magnificent circular atrium structure. No picture could do justice to the resulting vast and breathtaking crystalline space, whose handcrafted crystal walls were conceived by Japanese designer Tokujin Yoshioka.
To achieve dazzling light effects, the stand is surrounded by a 7 metre high curved wall of 155 metres circumference made up of 253,231 reflectors with a mirrored surface that symbolise Swarovski’s signature facets. On these reflectors, 22,856 skilfully positioned LED lights link with one another to form a crystal structure.
“This stand is a huge investment,” continued Zottl. “We’re showing the whole scope of Swarovski’s activities – Gems, the industrial side, Swarovski and Swarovski Elements. The focus is on Swarovski watches and jewellery.”
A highlight of the hi-tech stand was the use of augmented reality. Every visitor was given a large CD which, when placed over a certain hotspot, digitally displayed the items inside the showcase, providing further information and pictures. Crystal cool!
Aiming to double business by 2020
Zottl then turned to the Swarovski group’s strategy to double its business to around €5 billion by 2020. “There are three major paths to achieve this objective. First, organic growth of the Swarovski brand; second, new internal brands; and third, acquisitions. We believe this goal can be achieved with the power and support of Swarovski.”
Turning to travel retail, Zottl expressed his desire to build the overall jewellery category in travel retail, with Swarovski taking a leadership position. “Swarovski aims to claim leadership of the jewellery category and to strengthen the jewellery category in the very competitive world of travel retail.”
He continued: “At a recent WDFG suppliers’ day, we heard that beauty made up around 50% of the business. Then there is liquor, tobacco and confectionery, which are all big categories in travel retail. The jewellery category must grow in importance and we need to strengthen and solidify the category. Swarovski aims and claims to lead this charge. Swarovski is already the leading brand for other suppliers [via its Swarovski Elements business which sells crystals to other brands – Ed].”
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Swarovski’s Indira watch model |
He added: “We also have a new second brand, lola&grace. This business is well founded; the leadership of the Swarovski brand is already established, and other brands use Swarovski Elements.”
Zottl also noted that jewellery often came under a wide-ranging “accessories” category in travel retail, alongside sunglasses, which he acknowledged were growing strongly as a category in the channel. But Zottl passionately believes jewellery can win the battle for space in travel retail stores. “We have everything to win,” he enthused, adding: “The jewellery category should aim to be 10% of an operator’s portfolio.”
Turning to WDFG, Zottl praised the operator’s objective to move upmarket in its product offer. “WDFG wants to go upmarket into luxury and wants to trade up. I want to be part of that and help them achieve that move into luxury.”
New jewellery brand lola&grace to enter travel retail
A further Baselworld highlight was the launch of lola&grace, a new jewellery brand created by Daniel Swarovski Corp, but separate from the group’s classic signature Swarovski brand.
“lola&grace is launching here at Baselworld and the brand is already in the UK market,” said Zottl. “It is a completely new, second brand from Swarovski – a line of young, on-trend jewellery that is affordable and fair value, with all items below US$60 [at retail]. It will be launched in travel retail later this year.”
lola&grace has three standalone shops in the UK, all in or near London. [For full details on lola&grace, see separate story to be published soon.]
About Swarovski
Swarovski is the world’s leading producer of precision-cut crystal for fashion, jewellery, lighting, architecture and interiors. Today, the company, still family-owned and run by the fifth generation, has a global reach with some 26,100 employees, a presence in over 120 countries and a turnover in 2011 of €2.22 billion. Swarovski comprises two major businesses, one producing and selling loose elements to the industry and the other creating design-driven finished products. Swarovski’s own brand lines of accessories, jewellery and home décor items are sold through more than 2,200 retail outlets worldwide. The Swarovski Crystal Society has nearly 300,000 members worldwide, keen collectors of its crystal figurines. And in Wattens, Austria, the multi-media crystal museum Swarovski Kristallwelten was opened in 1995 as a celebration of Swarovski’s universe.
For details, contact Peter Zottl, Vice President Travel Retail, Daniel Swarovski Corp, at peter.zottl@swarovski.com Visit www.swarovski.com
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The Baselworld stand’s handcrafted crystal walls were conceived by Japanese designer Tokujin Yoshioka [Stand pictures courtesy of Dmitry Schipakov] |
