The 14th Most Wanted Luxury Brand in China
Swarovski in China is considered as luxury, in spite of its ‘civilian’ status in many other countries. According to the 2010 China Luxury Report conducted by Ruder Finn and Albatross consulting, Swarovski was ranked the 14th in the list of most wanted luxury brand in China in 2010. With extravagant decorations of its stores, very little sales promotions and advertisements, Swarovski is making a big effort in creating its high-quality and big brand image. Despite of the fact that all Swarovski products are made of artificial crystal glass, it is still cherished and admired by many Chinese consumers as a true luxury.
High Grade Stores for Brand Image
Swarovski’s development in China has undergone a detour. It was too early for them to go into the second-tier cities and after realizing that they started to focus their attention on building beautiful luxurious stores in big cities in China. ‘What we needed most was a good brand image but not channels.’ The flagship store in Peace Hotel in Shanghai took on the design of the Japanese designer Tokujin Yoshioka. The whole place looked like a crystal forest in a white setting, using a lot of stainless steel and crystal element. It is set this look will continue in other more Swarovski stores to be built.
More Try-outs on Social Networks and E-commerce Platforms
Just recently, many luxury brands and fashion brands have created their micro film and promoted over the internet. As a new way of promotion, Swarovski also made its own micro film intending to attract more younger consumers. In terms of Swarovski’s achievement in China so far, it uses direct marketing and dealer channels and at present it has 200 stores and plans to open 60 more in 2012. Online shopping will be a new channel, according to Swarovski’s executive director Robert Buchhauer. In the coming future, the brand will open up its official website for sales of its products. In the end, as to the company’s long-term strategy, Robert said they may seize acquisition as a way of expanding their product lines as well as their business. Going public is not a plan as they think they operates best as a family business. ‘We think not going public enables us to put more profit into future investments which is good for the carry-out of our long-term strategy.’ Robert put it.