Swarovski: Low-key to do high-end

Swarovski has always followed the pace of fashion, constantly promoting new products, brand marketing efforts. However, Swarovski is not satisfied with this, in addition to high-profile use of a variety of new marketing methods to do its fashion brand, Swarovski is low-key to enter the high-end jewelry field.

Since the financial crisis, many luxury goods brands have been quietly sinking. From the high-end consumers who only pay attention to the top of the pyramid, they have shifted their focus to consumers in Tajikistan and focus on development in addition to paying attention to the spires and consumers in the towers. Potential consumers. Swarovski's low-key approach to high-end jewellery is the opposite: he began to “climb” upward from the base.

In China's low-key luxury jewelry industry each year before the "Eleventh" Golden Week, are the most busy luxury brands. The gift economy has boosted the sales of domestic luxury goods. In addition, many young luxury consumers have also frequently entered various brand stores during this period, personally selecting the desired products, and recording product numbers, sizes, colors, and other product information. Or ask a friend to take the golden week out of the opportunity to purchase.

Yang Huilin is one of them. Not long ago, she saw a jewellery that was close to 20,000 yuan in a Swarovski boutique shop in the third phase of China World Trade Center. She wanted to ask her friends to purchase overseas. This time, however, her plan was "frustrated," because Yang Hao's promising product is Swarovski's high-end jewelry product. This series of products was first settled in the Chinese market and will be promoted in the global market in the future.

According to the “China Business” reporter, high-end jewellery products are Swarovski's exclusive landing in the Chinese market at the end of November 2012. Within a year, Swarovski stores in Beijing, Shanghai, Guangzhou, Chengdu and other cities. In the middle, opened a "shop shop." In May 2013, it opened its first independent store in Beijing Guomao Phase III. After “11,” a second independent store will be opened in Shanghai’s Hang Lung Plaza.

Yang Huilin told reporters that in the past, the Swarovski jewelry she purchased was all made of crystal. This time she saw an 18K gold diamond and precious stone jewelry. “In addition to the style, I feel that the gold and diamond products are more Crystal is more collectible," Yang said.

Indeed, the reporter saw in the three-phase franchised store of the International Trade that Swarovski's high-end jewellery products are based on different types of colored stones, with diamonds, 18k white gold, gold and rose gold. According to the brand, the original stone of these gemstones is mainly from another brand “GEMS STONE” under the Swarovski brand. This brand is dedicated to providing raw stone materials for major jewelry brands worldwide.

Ignoring the wedding market fashion is the most profound impression Swarovski left for Chinese consumers. Whether in Beijing, Shanghai, or Hong Kong, Swarovski's boutiques are always adjacent to Gucci, Dior and other luxury brands, so there are also some consumers It is classified as a luxury brand. At this point Swarovski is quietly starting to "backlash" from the fashion goods to the luxury goods field.

Pang Zhifeng, senior vice president of sales and operations for Greater China in Swarovski's Crystal Boutique Division, said that Swarovski's entry into China's high-end jewellery industry has undergone some serious consideration. Through market research and forecast, it is conservatively estimated that in the next two years, the demand for high-grade jewellery in the Chinese market will increase by 6% to 10%.

The financial reports of the world's major luxury goods groups have classified jewelry and watches in the same category. Affected by the declining economic growth rate and the increase in domestic anti-corruption efforts, the major group’s watch watch category earnings are not optimistic. However, Zhou Ting, president of the Wealth Quality Institute, believes that this cannot be generalized. With the escalation of consumption, fashion watches and jewellery will continue to grow over time. It is for this reason that Swarovski's confidence in entering high-end jewellery is firmly established.

“The jewelry industry has two major branches, one is fashion accessories, and the other is high jewelry. We have always had a certain market share in the former.” Pang Zhifeng believes that in the high-end jewelry field, 90% is a material competition for real gold and silver. There is still 10% left for the fashion accessories industry.

While Swarovski itself started as a fashion accessory, it is very familiar with and understands the field, and it is in the field of high-end jewelry. It is also aimed at the field of fashion accessories. It is the industry that it is most familiar with, and it is not a brand new attempt. Based on the increase in the selection of product prices and materials, "there is no great risk."

In the field of high-end jewelry, Cartier [Weibo], Van Cleef & Arpels, Shangmei, Bvlgari and other brands in the country have a certain degree of visibility and brand positioning. However, for the new Swarovski entry into the field, how to identify the positioning is the first step to success. The brand's original loyal customers are obviously one of its key development goals for internal upgrades. However, the problem that this brings is that the two major categories of fashion accessories and high-end jewellery in the group compete for the same type of consumer groups and are doing both right and left hands.

Pang Zhifeng denied this view. He said that from the first half of the year when high-end jewellery was opened, 60% of them were emerging consumers. They bought Swarovski high-end jewellery unintentionally for fashion accessories, and the other 40% were brands. Loyal consumers.

In recent years, the growth of high-end jewellery products has mainly relied on the "80s wedding market" in the first and second tier cities and the related festival anniversary. However, Swarovski has to "ignore" this part of the market. Pang Zhifeng said that in the field of wedding ring, the Chinese market is very small compared to the United States and Japan market, and all major brands have targeted here and the competition is fierce. Swarovski's differentiated competition with it is to define the product as high-end jewelry that can be matched daily.

Testing the brand's internal strength in the high-end jewelry field of Swarovski test water, as the group's top officials, there have been many concerns and concerns: Before the brand only made fashion accessories products, the price is relatively close to the people, fans of brand fans. However, as high-end jewellery, the original fans may not be the target group of high-end jewellery, and the real target group may be because Swarovski is a fashion brand, unable to compete with Tiffany and Cartier and finally give up the choice, so that the brand can fall into target consumption. The embarrassment of the drain.

Pang Zhifeng believes that Swarovski has positioned high-end jewelry as daily jewellery with a focus on design, using precious materials to create products that follow fashion, and he believes that consumers buy their products, and more emphasis on product details and orders. Its favorite design.

Zhou Ting once had a deep-seated affair with Swarovski executives in the second half of 2012. She told reporters that Swarovski decided to do high-end jewellery quickly and quickly, compared to the lengthy decision-making process of many luxury brands. The way products make decisions has earned the brand much valuable time.

However, the next step is how to truly build a brand into a luxury product. Zhou Ting believes that in the past, Swarovski has won advertising effects in the country by continuously expanding and opening stores. Today, there are too many Swarovski brand stores and it is a bottleneck for the overall development of the brand. "I suggest the brand can no longer open stores, and even consider switching off some stores, especially not to open outlets in the outlet, and now domestic Swarovski 50% off too many products, this approach is based on fast-moving consumer goods Way to do fashion products, Swarovski should consider how to use the luxury brand approach." Zhou Ting said.