Swarovski sparkles in China with innovative strategy

Swarovski, one of the world's leading fashion jewelry brands, is meeting Chinese consumers' evolving demands through sparkling innovation, while keeping its founding principles and passion for mastery, design and craftsmanship at its core.

"We are very proud to be a brand operating in China," said Robert Buchbauer, chairman of the executive board and CEO of the consumer goods business at Swarovski. "Even when there are dips in certain markets around the globe, China consistently performs strongly for us. In fact, at this point in time, it is our leading growth market."

The first of its kind to enter China in the 1970s, Swarovski has reported strong annual sales revenue growth over the past 30 years.

"We enjoy a nice single-digit growth in many markets like the United Kingdom, the Nordics, Australia, and other emerging markets," Buchbauer said. "However, the China market is the only one in the world that shows a double-digit growth at the moment."

Stable growth in the China market can be attributed to China's urbanization plans, online channel development, first mover advantages and professional local distributors, according to the company.

The brand, which was established in 1895, will further seize opportunities in China and will "bring a broader and more compelling offering" to local consumers, from millennials to those with more mature profiles, according to Buchbauer.

Omni-channel strategy

At a time when the generation gap is widening and marketing landscapes are becoming increasingly complex, Swarovski, which always takes a consumer-centric approach, has decided to place greater emphasis on omni-channel development in China.

In recent years, Swarovski has partnered with major Chinese online retailers like T-mall, JD and Xiaohongshu, and opened an official account on the communication platform WeChat. It also operates a large number of physical stores in big cities to give consumers the chance to experience the products in-person before they make the decision to purchase.

"Many companies talk about the omni-channel, but 'omni' means everywhere," Buchbauer said.

Swarovski's online sales in China is growing "at a very fast pace", according to the company.

"More than 20 percent of our revenue has come from online businesses in the China market this year," said Buchbauer. "It's one of the highest rates in the world." This exponential growth puts the development of digital channels at the center of Swarovski's future strategy in China.

Despite strong online sales, Swarovski believes that physical stores will still play an irreplaceable role in its retail strategy. The brand will continue to upgrade its bricks-and-mortar stores and create showrooms and experiences that center on Swarovski's collections.

"I think that the growth we have seen in the online market will lead to a change in the physical stores and the role they play, but I definitely don't see them disappearing," Buchbauer said. "They will need to co-exist, and synergize, which is why we have developed our new Crystal Studio store concept. The Crystal Studio elevates our retail strategy and redefines the consumer experience through a truly immersive environment."

Swarovski opened this new store concept, also known as the fourthgeneration stores, in Beijing on Nov 9, in response to the evolving demand of younger generations. Swarovski will open another such store in Shanghai on Nov 26. The Crystal Studio stores in Beijing and Shanghai represent the third and fourth to open in the world, according to the company, demonstrating the significance of the China market. The first Crystal Studio launched in Milan, Italy in September this year.

Designed to create an immersive shopping experience and to satisfy the new target consumers of Swarovski, encompassing millennials and generation Z, the architecturally focused stores are revolutionary in the services and experiences they provide, as well as their color schemes. For instance, there are spaces for consumers to take selfies on the devices provided, and send them to their friends. Finally, there are dedicated stylists to offer fashion tips, helping them to build a genuine connection with the consumers.

"I believe that the 360-degree omni-channel approach that we have implemented in these stores is the next step in retail strategy. Any brand which cannot achieve this next level will have difficulties in the long run," Buchbauer said.

Constant innovation

Apart from the store upgrades and online development, Swarovski will undertake more innovative marketing activities in China, which has always been a crucial part of the brand's global expansion plan. For example, more exclusive collections that incorporate Chinese cultural elements will be launched in the China market. They will help the brand to stay relevant and fulfill the demand of local consumers, according to Buchbauer.

"While we have done this before, we will be bringing an even broader and more compelling offering to Chinese consumers, with a focus on China-exclusive collections," he said. "We appreciate the heritage of Chinese culture and we want to embrace and interpret it in our products."

In 2020, when Swarovski will be celebrating its 125th anniversary, the brand will continue its mission to adapt to the ever-changing market, in order to retain relevancy. It will do this through the manufacturing process and the craft of polishing the crystals and stones, to create sparkles and positive emotional reactions from those who admire the brand, not just in China, but around the world－as it has done since it was founded.

"We've transformed loose stones into finished objects, collectables, home-decoration, jewelry, watches, pens and accessories. All in all, we offer a lot when it comes to product categories," Buchbauer said. "Swarovski represents the sparkling lifestyle and brings energy to consumers."

The company, which is present across five continents and has over 3,000 stores in 170 countries, will continue its mission to honor and preserve its traditions, paired with its passion for mastery, design, innovation and craftsmanship.

"It's a fact that for over 125 years we have managed to evolve and innovate, and it's crucial that we continue to do this, because our consumers are getting younger and younger as time passes by," Buchbauer concluded.

CHINA DAILY