Kiran, the Royal Bengal tiger, was in Mumbai a few days back to lend a helping hand to Swarovski, which is teaching water and environment conservation to school children in the country. Kiran, in faceted crystal, designed by Elisabeth Adaner, was a big draw at the Swarovski Charity Auction held in Mumbai. After all, only 33 of these sculptures were made.
The proceeds of the auction will be used in the “Water School” in the Bharatpur Sanctuary (now known as the Keoladeo National Park), where Swarovski's project partner, WWF, has been teaching school kids, through activities, the skills to co-exist with the forest and river and spread the message in neighbouring villages.
“Water is at the heart of our brand, since crystal production is dependent on water and our factories are powered by hydroelectricity. Our legacy of sustainability gives our Water Schools a strong legitimacy,” says Swarovski Crystal Society International Head Ann- Sophie Mayr.
The Austrian family-owned crystal company’s presence in over 43 countries is punctuated by its Water Schools for children living along the catchment areas of major rivers such as the Nile in Egypt, Yangste in China and now the Ganges. The Mumbai auction was a part of an initiative taken by the company’s most ardent admirers who comprise the Swarovski Crystal Society (SCS). These auctions let the aficionados buy limited edition sculptures modelled after endangered wildlife while the proceeds are ploughed back into a Water School.
While auctions and one-to-one interactions for exclusive products and previews bring Swarovski closer to the connoisseurs of the SCS, the company also has a finger on the pulse of the infrequent buyer, especially the youth. Through a mix of retail expansion, occasion-specific advertising and emphasis on its accessories such as jewellery, it is looking to shore up volumes by reaching out to the non-regular buyer. “Our jewellery is the quickest way to reach a younger audience,” observes Mayr, mentioning how crystal can have fine cuts and facets similar to diamonds but with scope for much more imagination.
With a starting price of Rs 2,900 (running up to Rs 50,000), jewellery has enabled the brand post 22 per cent growth last year. From accounting for barely a third of its sales in 2005, this segment now draws in over 50 per cent of Swarovski’s retail turnover. “The look of the moment is the mainstay for our jewellery,” says Swarovski Country Head (consumer goods) Sukanya Dutta Roy. Hence, occasion-specific advertising has increased for the brand. For example, it advertised heart-shaped pendants in white and red to mark Valentine's Day.
While Swarovski has always resorted to below the line communication such as auctions, aligning with fashion designers and in-store promotions, Dutta Roy notes the brand has been increasingly using mass media such as lifestyle magazines since 2008, using up more of the 10 per cent of revenue spent on marketing. “Entering more cities also needed us to use above the line media,” Dutta Roy adds.
Yet, would going more mass not hamper the brand’s perception among the 15- 20 million-strong upper middle class consumers who form its key audience? Dutta Roy believes otherwise: “We are very clear that our stores will have the same ambience and servicing as worldwide. Everything from the product display to store attendants exude the brand ethos of modern luxe as seen in our other stores”. Of the Rs 25- 30 crore investment lined up for the next five years, 55-70 per cent will go in store fit-outs to enable recreating the international look, including the right neighbourhood.
The deceleration in commercial real estate over the last two years had put brakes on Swarovski’s expansion plans since stores had failed to materialise. But in 2010, it is ready to raise the count of its boutique stores by seven, up from 17. “We are already working with our dealers to identify more options for this year,” Dutta Roy adds. Making the brand more accessible are 15 shop-in-shops at Shoppers Stop's high street addresses which bring in more volumes.
Dutta Roy reckons the biggest challenge is finding more brand ambassadors, i.e. not celebrities but the attendants. The onus to explain each product's many facets, cuts and care instructions and understand the kind of consumer who walks in (since accessories range from buttons to watches and jewellery and sculptures from miniatures to limited editions) lie with the store attendant. “They are also style advisers. They undergo intensive training in line with global standards,” adds Dutta Roy. Of their role, Mayr says, “If our crystal is sold without a focus on the craftsmanship and an emotional connect then it becomes just a piece of glass.” They have also helped initiate the Indian audience to the trend of coloured crystals, in jewellery and figurines.
Swarovski came out of its comfort zone when it launched Swarovski watches in 2009, putting it in competition with other luxury watchmakers while increasing the choice in accessories. Dutta Roy says, “We hope to grow this business in the next few years and be present in multi-brand watch boutiques across India.” Up next are pens that could increase corporate gifting for the brand, which for now is limited. “It calls for heavy customisation, but given that our products are imported and pre-designed, there is not much scope for that,” Dutta Roy says.
Its expansion plans, the brand hopes, would not get derailed again and it would be able to up its share in the 2.52 billion euros global business (in 2008) to over one per cent.
