A decade ago, when it came to exquisite gifting options, a named that most often popped up was Swarovski. The journey of the brand began in 2000 and since then it has been charming people in India with its exclusive creation – begging with crystal artifacts and show pieces to introducing their jewellery line. Here is the brand’s journey in the country over the years, which is much before the luxury brands in India got going
The first exclusive Swarovski store was launched in 2004, but it was beginning of 2000 when Swarovski began its journey within the country. Elaborates Sukanya Dutta, Director, Consumer Goods Business (CGB), India: “We began our operations in India through the wholesale model. Initially, we were present through various multi-brand outlets. It was in 2004 that our retail journey came into being with the setting up of our first exclusive boutique in Chennai and thereafter in Mumbai. We are a 100 percent subsidiary and operate under this format currently with 40 mono-brand outlets in 22 cities thus having a national footprint.”
As Dutta points out, the brand has managed to have a successful journey with presence across premium malls. She says: “With the response we received since the opening of our first exclusive boutique, the company has increased investment and re-affirmed its commitment towards the Indian market.” Termed as crystal Forest Stores, the opening of the same was done in India in 2009 which was also the year when these stores were launched across the globe. This in itself shows the brand’s commitment towards the Indian market considering it to be at par with any other international market it is present in.”
“Swarovski is synonymous with sparkle and is a brand that encapsulates many different facets from tradition through to avant-garde, glamour and trend. This is a company that has asserted its position as a major economic player and continues to be a key style influencer in fashion jewellery and lifestyle industries. The journey in the Indian market has been steady and continues to be a fruitful one,” adds Dutta.
Initial Journey
Going back to yesteryears and talking about the merchandise available in India during the initial years, Dutta shares: “When we started, we had only premium crystal products and high-end collectible pieces, and as the brand evolved, we introduced jewellery in 2004. Today, the jewellery line for us comprises 85 percent of our business.” In 2004, the Indian market was just opening up to accepting luxury products and Swarovski enjoyed the first mover advantage in the category. “Our customer is always at the centre of any brand communication or promotion. We were the first to bring customers the joy of crystal products at their home and office and gradually used new media, fashion magazine, stylists and styling blogs to educate the customer on the versatility and wear ability of our jewellery. Today we communicate across channels be it traditional, in store or digital,” she states.
The brand entered the country with its gifting/crystal range, which proved to be a challenge for them to make the Indian consumers understand that the jewellery line from the brand was at par with luxury jewellery that could be flaunted. Elaborating on the challenges faced, Dutta says: “Swarovski as a brand became popular in India primarily for its luxurious crystal gifting items. Although this marked success for the brand, it also proved to be a challenge for our jewellery segment. In India, the perception of prized and valued jewellery is still of gold and to some extent, other precious metals. In such a scenario, changing mindsets of consumers turned out to be the biggest test for us.”
Engaging the Customer Through Visual Merchandising
In case of every brand, big or small, it is less about the end sale and more about the experience offered to the customers to make their final purchase decision. To provide this, one of the most basic exercises implemented by Swarovski is regular staff training to attend to consumers. Dutta shares: “A brand is remembered not just by its products but also by its customer engagement and interaction, and we have maintained this as a core focus uniformly at all Swarovski retail points.” She further adds: “Visual merchandising has been another brand aspect that has been extremely important for us. The first impression created with the store setup and display is what entices customers to enter the premise. On an international platform, Swarovski joined forces with Design Miami, ‘Designer of the Year’ award winner Tokujin Yoshioka in 2008 to create an enchanting retail architecture. The concept he designed exclusively for Swarovski embraces a ‘Crystal Forest’ theme, highlighting the infinite possibilities of crystal, and illustrates the deep affinity with the natural world held by both Tokujin and Swarovski. This concept has since been extended across Swarovski stores globally including India. Swarovski, as a brand, believes strongly in consumer interactions – online or offline which in turn also helps us build a consumer base. With the help of contests, feedback receipt, consistent brand communication coupled with an excellent product, we have been able to create a loyal fan base in the country.” According to her, the brand has not yet rolled out its loyalty programme in India but it would be done pretty soon. Globally, Swarovski has a loyalty programme in place.
The brand has total 34 exclusive stores spread across 20,000 sq.ft. Currently, Swarovski sells its products through 34 franchise stores operated by various partners across the country. Swarovski currently has 4 shop-in-shops and counters are present in 15 Shopper’s Stop stores across the country. The brand maintains its store set up as per the global guidelines with same fixtures across the globe. The cost of the fittings is the highest in market amongst premium brands. The brand spends around 2,400-2,600 Euros per sq. mt.
In terms of setting of the stores and choosing between malls and high streets, the brand has consciously opted to have their presence more at malls. Explaining the reason behind this, Dutta says: “I think in India, mall culture is massive and hence, brand presence is vital. Swarovski does its best sales via mall retail points simply because of the walkins.”
Changing Market Dynamics
Having a presence spanned across more than a decade in India with a luxury/premium line, the brand has had a fortune to not only witness a change in customer behaviour but also cater to the changing dynamics. Dutta points out: “Today, jewellery is no longer restricted to special occasions and now extends to everyday life such as college and work place. In such cases, women look for slightly understated yet elegant selections to complement their corporate or casual wear. Swarovski has been able to successfully position itself as an everyday jewellery brand and a gifting option. In terms of consumer evolution, there has been a gradual shift from the traditional jewellery options in gold and silver to more contemporary choices like platinum and crystal; however, it will still take a couple of years before we can convert the mindsets of the entire market.”
Crystal Forest Retail Concept
The brand launched its “Crystal Forest” retail concept design in 2008. The store evokes modern luxury and carefully highlights crystal jewellery, fashion, accessories and home decor objects. This exclusive retail design has been conceptualised by the famous designer Tokujin Yoshioka. The Crystal Forest theme brings out infinite possibilities of crystal and illustrates the company’s deep affinity with nature. Outside the store, the crystal forest in illustrated by a myriad of stainless steel prisms. Fascinating displays are used to connect with the passers-by. The inside of the store has walls that are textured with reflective white relief prisms of various lengths. Swarovski’s creativity is reflected by modern art installations that hang from the ceiling. Of course, the Crystal Swan is a part of all of the stores, at the cash counters and the entry panels. Ambient lighting is used to maintain soft ambience in the stores. Crystal Forest has become Swarovski’s signature boutique design concept and operates in global shopping hubs such as London, Paris, New York, Delhi and Mumbai.
