14 May 1998: Waterford Wedgwood is trying to “extend” its traditional image and make its products “younger, more contemporary and more casual”, according to recent press reports.
Mr. O“Reilly insist…
14 May 1998: Waterford Wedgwood is trying to “extend” its traditional image and make its products “younger, more contemporary and more casual”, according to recent press reports. Mr. O“Reilly insisted, however, that the group would try to widen its appeal without risking its traditional customer base. “It“s a question of trial and error,” he said. Mr. O“Reilly said the luxury gift offered huge potential. Brokers said the acquisition of Rosenthal, the German ceramics maker, would speed some of the changes. The company reportedly made an I 50 ( UK 42 million) provision in relation to the deal, and is looking for substantial job cuts. One analyst of a brokerage firm in Dublin said the group had been slow to outsource manufacturing at Wedgwood, unlike Waterford which now relies on German and Czech production for 20% of its output. “People“s perception of Waterford as a brand had nothing to do with the place,” he said. “With Wedgwood there was this association with the potteries.” From operating losses in 1992, Waterford Wedgwood has achieved a recovery. But much of the improvement in profit margins has come from cost savings rather than sales growth, according to reports. O“Reilly set a target to double sales and treble profits in the five years to 2000. Analysts said it looked achievable.