Swarovski, the jewellery and crystal concern, has merged its consumer goods division with its crystal components unit to form one company: Swarovski North America Ltd. The company“s goal, according t…
Swarovski, the jewellery and crystal concern, has merged its consumer goods division with its crystal components unit to form one company: Swarovski North America Ltd. The company“s goal, according to Daniel Cohen, president, is to make Swarovski, which generated roughly US$ 300 million in crystal consumer products in the US last year, “consistent, stable, dynamic and interesting at retail for the consumer.” Until about three years ago, the two divisions – jewellery and giftware – were marketed separately. The company began to experiment with the two product categories at retail, placing them into each other“s channels of distribution and reworking how they were presented to consumers. The response from retailers was great, said Cohen. Combining its fashion know-how with its knowledge of the collectibles business, Swarovski hopes to tell its brand story in a clearer way by presenting the two aspects of its business together. Consumers may soon find jewellery and giftware offered together at retail. With this new approach to “fashionable gifts”, Swarovski is examining its distribution channels, seeking out retailers – particularly high-end jewellery stores and department stores – that can translate its message of one coherent brand to consumers. The company is being “careful and selective” in choosing its retail partners and my trim its existing list, Cohen said. Underlining its newly focused brand identity, Swarovski has refashioned its display cases, adjusted its product mix to better suit each channel and restructured its field sales force to promote growth. The goal of this consumer-oriented sales force is to act as consultant to retailers to make business more productive and ensure that consumer needs are being met, said Cohen. So far, the plan is working. “We had a strong holiday season, despite what all of us heard about the economy,” Cohen said. “We exceeded expectations last year” and hope to do the same this year, he added. Swarovski operates 17 of its own retail stores, and plans to open 10 to 13 more this year. Comparable-store sales were up double digits last year.