Luxury Brand Management

A Comprehensive Study of Swarovski for Brand Extension and Growth

Mapping

Submitted by
Aakanksha Rana (MFM/22/317)
Muskan Benada (MFM/22/446)
Sawani Chaudhary (MFM/22/322)
Priya Bhandari (MFM/22/348)
Vanshika Goyal (MFM/22/337)

Submitted to

Ms Manika Verma

Assistant Professor

NIFT Bhopal
Table of Content

Chapter 1- Introduction to Swarovski

Chapter 2- Market Analysis

Chapter 3- Brand Extension Potential

Chapter 4- Global Presence of Swarovski

Chapter 5- Future Roadmap of Swarovski

 Chapter 1

Introduction to Swarovski

Swarovski, a renowned name synonymous with precision-cut crystals and exquisite jewelry,
stands as a beacon of luxury and craftsmanship in the world of decorative crystals. This
Austrian company, founded in 1895 by Daniel Swarovski, has transcended generations,
captivating the global market with its dazzling creations.

Swarovski has evolved into a global powerhouse in the realm of glass production. Originally a
family-owned business, Swarovski has diversified into three major industry areas, showcasing
its versatility and innovation.

The Swarovski Crystal Business, a flagship division, stands as a beacon of luxury. Specializing
in crystal glass, this segment produces a stunning array of jewelry, watches, and accessories.
The brand's commitment to precision and craftsmanship has propelled it to the forefront of the
industry, with a global presence spanning approximately 3,000 stores in 170 countries. In 2018,
the Swarovski Crystal Business boasted a remarkable revenue of around 2.7 billion euros,
solidifying its status as a high-grossing business unit within the Swarovski conglomerate.

Beyond the realm of crystal adornments, Swarovski extends its expertise to Swarovski Optik.
This branch focuses on the production of optical instruments, including telescopes, telescopic
sights for rifles, and binoculars. The marriage of cutting-edge technology and Swarovski's
commitment to precision optics has established Swarovski Optik as a trusted name in the field,
catering to enthusiasts and professionals alike.

Tyrolit, another integral component of the Swarovski conglomerate, operates as a manufacturer

of grinding, sawing, drilling, and dressing tools. Additionally, Tyrolit serves as a supplier of
tools and machines, showcasing Swarovski's diverse contributions across industries.

The company's longevity is underscored by its resilience and adaptability. Now in the hands of
the fifth generation of family members, Swarovski continues to innovate and expand its reach
globally. However, a notable shift is on the horizon, marking a historic moment in the
company's leadership. In 2022, senior management positions are set to be filled by non-family
members for the first time, signaling a strategic move toward a more diverse and inclusive
leadership structure.
As Swarovski navigates this transformative period, it remains committed to the core values
instilled by its founder, Daniel Swarovski. The company's legacy of precision-cut crystals and
commitment to excellence ensures that Swarovski will continue to be a shining symbol of
sophistication and craftsmanship in the world of glass production for years to come.

Swarovski Products: A Symphony of Elegance

Swarovski manufactures a diverse range of products encompassing glass sculptures,
miniatures, jewelry, rhinestones, watches, home decor items, and chandeliers. Each sculpture
bears the distinctive Swarovski logo, with historical transitions from the original edelweiss
flower logo to the S.A.L. logo and ultimately the swan logo introduced in 1988.

The production of Swarovski glass involves melting a blend of quartz sand, soda, potash, and
other components at elevated temperatures. Notably, lead, previously used as lead tetroxide,
has been phased out since 2012, rendering all Swarovski crystal glass lead-free. To enhance
light refraction in a spectrum of colors, Swarovski applies special metallic chemical coatings
to certain products. Examples include the Aurora Borealis ("AB") coating, which imparts a
rainbow appearance to the surface. Other coatings, such as Crystal Transmission, Volcano,
Aurum, Shimmer, and Dorado, contribute unique visual effects. The coatings may cover
specific sections of an object, with designations like AB 2X or Dorado 2X for objects coated
twice.

Swarovski has pioneered a distinctive technology that upholds the brilliance and luminosity of
crystals without incorporating lead dioxide. The hologram on the product packaging proudly
states "advanced crystal superior brilliant lead-free."
 Figure 1 Accessory range by Swarovski

In 2004, Swarovski introduced the copyrighted cut named Xilion, designed to optimize the
brilliance of Roses (components with flat backs) and Chatons (diamond cut).

The Swarovski Group extends its reach beyond crystal products to include subsidiaries such as
Tyrolit (manufacturers of abrasive and cutting tools), Swareflex (specializing in reflective and
luminous road markings), Swarovski Gemstones (offering synthetic and natural gemstones),
and Swarovski Optik (producing optical instruments like binoculars and rifle scopes).
 Figure 2 Swarovski Store

Since 2006, the Royal Canadian Mint has collaborated with Swarovski to produce collectors'
coins featuring crystal components. Notable releases include the 2006 crystal snowflake coin
in gold and subsequent $20 silver coins with different colored crystals. The mint's 2018
birthstone coin series showcased 12 coins, each featuring a distinct Swarovski crystal.
Additionally, Tristan da Cunha issued a five-crown Christmas coin in 2014, incorporating a
small Swarovski crystal in the guiding star behind a colored depiction of one of the magi.

Swarovski's foray into the world of timepieces began in 1999, evolving into a globally
successful venture with Swiss-made watches. Furthermore, Swarovski has ventured into
fragrance, introducing a line of liquid and solid perfumes.
At the heart of Swarovski's allure lies its extraordinary range of products, each meticulously
crafted to perfection. The company's primary focus is on precision-cut crystals that boast
remarkable clarity and brilliance. These crystals find their way into an array of products, from
jewelry and accessories to home decor and lighting.

The jewelry line, a hallmark of Swarovski's offerings, showcases a marriage of innovation and
timeless design. Necklaces, bracelets, earrings, and rings adorned with Swarovski crystals
become more than mere accessories; they transform into statements of elegance and
sophistication. The crystals, carefully cut to enhance their sparkle, elevate each piece into a
work of art.

Beyond jewelry, Swarovski extends its creative touch to the realm of home decor. Crystal
figurines, chandeliers, and ornaments redefine the aesthetics of living spaces, infusing them
with a touch of opulence. The precision-cut crystals, whether incorporated into a lighting
fixture or a decorative object, radiate a mesmerizing play of light, casting a spell of glamour.

Swarovski's commitment to innovation extends to collaborations that push the boundaries of

creativity, resulting in limited edition and one-of-a-kind pieces that captivate collectors and
enthusiasts alike.

Swarovski's Storied History: A Legacy of Brilliance

The company's journey continued to unfold as it embraced innovation and expansion. In 1899,
the iconic edelweiss flower found its place in Swarovski's logo, marking a symbolic
representation of the brand. Expanding its reach to France, Swarovski became known as Pierres
Taillées du Tyrol ("Cut stones from Tyrol"). In 1919, the establishment of Tyrolit extended
Swarovski's influence by bringing grinding and polishing tools from the crystal business into
a different market.

Figure 3 Logo from 2016-2021

The year 1935 witnessed Wilhelm Swarovski, son of the founder, creating a customized pair
of binoculars, a pivotal moment that led to the launch of Swarovski Optik 14 years later.
Swarovski Optik has since become a leading manufacturer of optical instruments, producing
binoculars, spotting scopes, rifle scopes, and telescopes.

Swarovski made a significant entry into the United States' jewelry market in 1977, marking a
strategic move that expanded its global footprint.

Remaining a family-run business for generations, Swarovski underwent a transformative shift

in leadership in April 2020. Robert Buchbauer, the great-great-grandson of Daniel Swarovski,
assumed the role of CEO, bringing new perspectives and strategies to the company. This
leadership change marked a pivotal moment, with Nadja Swarovski, the founder's great-great-
granddaughter, relinquishing her roles in managing the company's communications strategy
and the fine jewelry label Atelier Swarovski.

Figure 4 Robert Buchbauer

This period of change saw not only shifts in executive roles but also significant restructuring
within the company. The closure of 750 retail stores, the layoff of approximately 6,000
employees, and the appointment of Giovanna Battaglia Engelbert as the Global Creative
Director of Swarovski Group signaled a comprehensive reevaluation of Swarovski's direction.

Engelbert, tasked with the full creative direction of Swarovski, embarked on a journey to
reimagine the company's product portfolio across all divisions. Her retail collections, released
in February and September 2021, drew inspiration from archival references to designs created
by founder Daniel Swarovski. Additionally, Engelbert expanded the company's offerings by
introducing its first handbag line under the Atelier Swarovski marque, with Marina Raphael, a
Swarovski-family member, at the helm of design and development.
The company's management landscape experienced further changes in late 2021, less than 18
months after the initial leadership transition. Robert Buchbauer and Mathias Margreiter stepped
down from their CEO and CFO positions, citing shareholder disputes over restructuring plans.
Michele Molon assumed the role of interim CEO, marking the first time Swarovski would be
led by a non-family member. Molon, with a longstanding history at the company, brought a
fresh perspective as Swarovski navigated through this period of evolution.

To truly appreciate Swarovski's present, one must delve into its rich history. Established in the
picturesque Tyrolean Alps of Austria in 1895 by Daniel Swarovski, the company began as a
venture to revolutionize crystal cutting. Daniel's invention of an electric cutting machine in
1892 marked a turning point in the crystal industry, allowing for unprecedented precision in
shaping crystals.

Over the decades, Swarovski expanded its influence globally, becoming synonymous with
luxury and refinement. The brand weathered the challenges of economic fluctuations and wars,
emerging stronger each time. The 20th century witnessed Swarovski diversifying its product
range and establishing itself as an international powerhouse in the realm of crystal
craftsmanship.

As the years unfolded, Swarovski's commitment to innovation remained unwavering. The

company consistently embraced technological advancements, ensuring that its crystals
remained at the forefront of design and quality. Today, Swarovski continues to be a beacon of
inspiration, blending heritage with modernity to create timeless pieces that transcend trends.
 Figure 5 A product by Swarovski

In 1895, the inception of Swarovski unfolded through the collaboration of Daniel Swarovski,
financier Armand Kosmann, and Franz Weis. Originally established as A. Kosmann, D.
Swarovski & Co., later abbreviated to KS & Co., the company set up a crystal-cutting factory
in Wattens, Tyrol (Austria). Taking advantage of local hydroelectricity for energy-intensive
grinding processes patented by Daniel Swarovski, this facility housed the pioneering crystal-
cutting machines that revolutionized the jewelry business by enabling the mass production of
crystals. At the core of Swarovski's vision was the aspiration to make crystals affordable for
everyone, striving to create "a diamond for everyone."
Swarovski's Collaborative Brilliance
Since 2004, Swarovski has been the proud provider of the dazzling star or snowflake that graces
the top of the Rockefeller Center Christmas Tree in New York City. This iconic decoration
measures an impressive 2.7 meters in diameter and weighs 250 kilograms. The smaller versions
of this masterpiece are made available as Annual Edition ornaments, allowing enthusiasts to
bring a touch of this grandeur into their own homes.

In the realm of sports, Swarovski once owned the Austrian football club FC Swarovski Tirol,
marking its foray into the world of football ownership from 1986 to 1992.

In 2018, Swarovski expanded its ambassadorial roster by welcoming celebrity chef Nadiya
Hussain, TV personality Katie Piper, and CoppaFeel founder Kris Hallenga. This dynamic trio
became the faces of Swarovski's ongoing #BrillianceforAll campaign, showcasing the brand's
commitment to diversity and brilliance.

Collaborating with the esteemed fashion house Dior in 2019, Swarovski played a pivotal role
in the brand's exhibition at the Victoria and Albert Museum. The exhibition featured archival
designer pieces adorned with the unmistakable brilliance of Swarovski crystals, adding a touch
of glamour to the world of fashion history.

Demonstrating its commitment to fostering creativity, Swarovski annually hosts the Designers
of the Future Award. This prestigious award recognizes and celebrates the talent of young, up-
and-coming designers. Past winners include influential figures in the design and architecture
world such as Ross Lovegrove, Greg Lynn, Troika, Fredrikson Stallard, Erwin Redl, Eyal
Burstein, Asif Khan, Guilherme Torres, Jeanne Gang, and the global architecture and design
practice Fernando Romero Enterprise (FR-EE). In 2018, the award recognized the innovative
work of Frank Kolkman, an experimental Dutch designer focused on robotic technologies;
Study O Portable, a research-based Dutch-Japanese practice exploring objects in the designed
environment; and Yosuke Ushigome of TAKRAM, a creative Japanese technologist
specializing in emerging technologies. These collaborations underscore Swarovski's dedication
to supporting and showcasing the next generation of design visionaries.

One of the defining aspects of Swarovski's legacy is its penchant for collaboration with
prominent designers and brands. These collaborations represent a fusion of Swarovski's
technical expertise with the creative vision of renowned minds, resulting in groundbreaking
collections that push the boundaries of crystal artistry.
 Figure 6 Marilyn Monroe wearing Swarovski crystals in Gentlemen Prefer Blondes

Notable collaborations include partnerships with iconic fashion houses such as Chanel and
Dior, where Swarovski crystals become integral components of haute couture designs. The
marriage of precision-cut crystals with the visionary designs of fashion luminaries creates
garments that are more than clothing—they are wearable works of art.

Beyond the realm of fashion, Swarovski has left an indelible mark on the entertainment
industry through collaborations with filmmakers, costume designers, and set decorators.
Hollywood's most glamorous moments often feature Swarovski crystals, adding a touch of
brilliance to costumes and set pieces. The crystal-encrusted accessories and props become
integral elements in creating the magical allure of the silver screen.
 Figure 7 Swarovski x Skims collaboration

In the world of art and design, Swarovski's collaborations extend to partnerships with
contemporary artists who leverage the crystals to create installations and sculptures that
redefine spatial aesthetics. These artistic endeavors showcase Swarovski's crystals not just as
adornments but as versatile mediums that can transform spaces into captivating experiences.

In conclusion, Swarovski's collaborations stand testament to the brand's ability to transcend its
traditional boundaries, constantly reinventing itself while staying true to its core values of
precision and innovation.

Swarovski: A Tapestry of Brilliance and Values

• Precision and Craftsmanship

At the heart of Swarovski's legacy lies an unwavering commitment to precision and

craftsmanship. From the revolutionary crystal-cutting machines in its early years to the
advanced technologies of today, Swarovski consistently delivers products of unparalleled
quality, embodying the pinnacle of meticulous artistry.

• Innovation and Diversity

Swarovski's journey is marked by a ceaseless pursuit of innovation. The brand not only shapes
crystals but also molds its identity through diverse collaborations. Embracing partnerships with
iconic institutions, sports clubs, and celebrities, Swarovski proudly champions diversity,
reflecting a commitment to brilliance for all.

• Global Presence and Tradition

Founded in Austria in 1895, Swarovski has evolved into a global phenomenon while staying
rooted in tradition. The crystals that grace the Rockefeller Center Christmas Tree and the
collaboration with Dior at the Victoria and Albert Museum highlight Swarovski's enduring
presence on the world stage, weaving tradition into the fabric of contemporary culture.

• Community Engagement and Empowerment

Swarovski extends beyond the realms of fashion and design, engaging with communities and
empowering talents. The annual Designers of the Future Award stands as a testament to
Swarovski's dedication to nurturing emerging designers, fostering creativity, and paving the
way for the next generation of visionaries.

• Leadership Evolution and Adaptability

With a history spanning over a century, Swarovski embraces change and evolution. The recent
transition in leadership, the expansion of its ambassadorial roster, and the dynamic
#BrillianceforAll campaign underscore Swarovski's adaptability, ensuring its continued
relevance in an ever-changing world.

• Environmental Consciousness

Swarovski not only dazzles with its crystals but also radiates a commitment to environmental
responsibility. The innovative technology that preserves crystal brilliance without lead dioxide,
the lead-free crystal glass since 2012, and the emphasis on sustainability in the company's
leadership transitions highlight Swarovski's dedication to a brighter, more eco-conscious
future.

In essence, Swarovski's values are not just embedded in its crystals but resonate in every facet
of its existence. As the brand continues to shine, it remains a beacon of inspiration, setting
standards of excellence, creativity, and responsibility in the world of luxury and design.
Swarovski: Elevating Elegance and Redefining Luxury

Swarovski has seamlessly carved out a distinctive niche in the market, positioning itself as a
global icon of elegance and luxury. Beyond merely offering crystals, Swarovski has become
synonymous with sophistication, craftsmanship, and a commitment to timeless beauty. Its
strategic positioning encompasses various elements that set it apart in the competitive
landscape.

• Brand Image:

At the core of Swarovski's market positioning is its impeccable brand image. Renowned for
precision-cut crystals and a rich heritage dating back to 1895, Swarovski exudes a sense of
timeless luxury. The brand has successfully transformed crystals from mere adornments to
statements of refinement and opulence.

Figure 8 Swarovski x Skims collaboration

 • Craftsmanship and Innovation:

Swarovski's commitment to craftsmanship and innovation distinguishes it in the market. The

precision-cutting technology, advanced crystal glass production methods, and proprietary cuts
like Xilion showcase a dedication to pushing the boundaries of what crystals can achieve. This
emphasis on innovation not only maintains Swarovski's relevance but also positions it as a
leader in crystal artistry.

• Diverse Product Portfolio:

Swarovski's market positioning is fortified by its diverse product portfolio. From jewelry and
watches to home decor and optical instruments, Swarovski caters to a wide spectrum of
consumer preferences. This diversification ensures that Swarovski is not just a crystal brand
but a lifestyle brand, offering a touch of luxury across various aspects of life.

• Collaborations and Ambassadors:

The strategic collaborations with iconic brands, institutions, and influential personalities
bolster Swarovski's position as a trendsetter. Collaborations with Dior, the Rockefeller Center
Christmas Tree, and partnerships with renowned designers and artists showcase Swarovski's
influence in both the fashion and artistic spheres. The inclusion of diverse ambassadors in the
#BrillianceforAll campaign reflects a commitment to inclusivity and broadening its appeal.

• Global Presence and Accessibility:

With approximately 3,000 stores in 170 countries, Swarovski has achieved a remarkable global
presence. This accessibility, coupled with a wide range of products at varying price points,
ensures that Swarovski is not just an aspirational brand but one that resonates with a broad
consumer base.

• Environmental Consciousness:

In an era where environmental responsibility is paramount, Swarovski's commitment to lead-

free crystal glass and sustainable practices positions it as a socially responsible luxury brand.
This resonates with conscious consumers seeking products that align with their values.

• Adaptability and Leadership Evolution:

Swarovski's ability to adapt to changing times, as evidenced by recent leadership transitions

and strategic shifts, showcases its resilience and forward-thinking approach. This adaptability
ensures that Swarovski remains relevant and continues to set the standard for luxury in a
dynamic market.
In conclusion, Swarovski's market positioning goes beyond the crystalline brilliance of its
products. It is a narrative of elegance, innovation, and a commitment to values that transcend
trends, making Swarovski a timeless beacon of luxury in the ever-evolving market.
 CHAPTER 2

Market Analysis

2.1 Global Market share of Luxury Market

In the thriving landscape of Luxury Goods, the market is poised to achieve a remarkable
revenue milestone, projected at US$354.80 billion in 2023, exhibiting a promising annual
growth rate of 3.38% between 2023 and 2028. Within this expansive market, Luxury Fashion
emerges as the largest segment, boasting a substantial market volume of US$111.50 billion in
2023. Demonstrating its global prominence, the United States leads in revenue generation,
anticipated to reach a substantial US$75,690.00 million in 2023. Delving into individual
metrics, the per capita revenue in the Luxury Goods market is estimated at US$46.18 for the
year 2023, reflecting the market's robust performance on an individual consumption basis.
Moreover, a noteworthy trend surfaces as online sales are projected to contribute 13.9% of the
total market revenue by 2023, signifying the escalating influence and adoption of digital
platforms within the luxury sector's consumer landscape.

Figure 9: Revenue Segment growth of Luxury Goods (sourced by Statista)

According to statistics sourced from the provided graph, the revenue segment within the luxury
goods market exhibits a consistent upward trajectory, poised for continued growth until 2028.
Focusing on luxury goods sector, the data indicates a substantial revenue of $354.81 billion in
2023, marking a significant increase of approximately $418.93 billion. This substantial growth
is indicative of a flourishing trend within the luxury goods segment, particularly within the
jewellery category, signalling robust market expansion and promising prospects for this niche
sector.

Figure 10: Luxury Jewellery 2023 growth (74.97 US$) (Sourced by Statista)

The data presents a breakdown of revenues across various luxury sectors, with the yellow line
specifically representing the jewelry luxury segment. In 2018, this segment recorded a revenue
of $62.57 billion, experiencing a slight decline in 2020, largely attributed to the impact of the
COVID-19 pandemic, resulting in a revenue of $55.23 billion. However, post-2020, there has
been a noteworthy resurgence in this sector, evident in the robust growth trajectory. By 2023,
the revenue surged to $74.97 billion, showcasing substantial growth within this segment.
Projections indicate a continued upward trend, with anticipated revenues reaching $84.82
billion by 2028. Notably, this signifies an impressive annual growth rate of approximately 10%.
This upward momentum underscores the resilience and potential of the jewelry luxury segment,
depicting a strong and consistent growth pattern anticipated in the coming years.
 Figure 11: Average Per Capita (Sourced by Statista)

In luxury marketing, the central pillar often revolves around exclusivity. This exclusivity is
primarily upheld through steep pricing and deliberate constraints on sales volumes and
distribution channels. The year 2018 marked a positive period for luxury goods firms, building
on the industry's recovery, which commenced in 2017 following two slower years. Significant
trends influencing the sector include a continued focus on retail outlets owned by
manufacturers, a notable shift in sales from traditional key markets like Central & Western
Europe, North America, and Japan to emerging markets like Greater China, and an amplified
presence of a rapidly expanding eCommerce sector.
2.2 Global Market Share of Luxury Jewellery

The assessed global market size for luxury fine jewellery, approximated at US$ 45,700.0
million in 2022, is forecasted to exhibit a consistent growth trajectory at a 6.5% CAGR from
2022 to 2032, reaching an estimated valuation of around US$ 85,887.5 million by 2032. This
segment constitutes a substantial share, approximately 30%-35%, of the broader luxury
jewellery market.

The upsurge in expenditure on premium luxury items such as gold rings and diamond bracelets,
in conjunction with evolving fashion dynamics, continues to serve as a significant impetus
propelling the luxury fine jewellery market. Characterized by superior quality standards, these
offerings encompass a diverse array of accessories—from necklaces, rings, and bracelets to
earrings, pendants, and brooches—crafted from top-tier precious metals and gemstones.

Factors such as the widespread global adoption of luxury fine jewellery, particularly among the
millennial demographic, fluid trends in fashion, and the pervasive impact of social media, are
poised to underpin sales growth throughout the forecast period. Simultaneously, the increasing
preference for sustainable jewellery, the availability of customizable products, and the ongoing
introduction of novel offerings are expected to create lucrative opportunities for players in the
luxury fine jewellery sector.

Evidently, enterprises like Metal Passions, facilitating online custom jewellery design, are
catering to the mounting demand for bespoke commissions, indicative of the prevailing
customization trend within the luxury market. Additionally, the practice of upcycling remains
prominent, observed in the restoration and utilization of antique stones, whether for the
modernization of ancestral heirlooms or the consolidation of stones into singular, bespoke
pieces. Notably, the strategic shift of entities such as Louis Vuitton—from procuring cut gems
to directly engaging with clients for the selection and creation of final designs using uncut
stones—underscores the market demand for exclusive and distinctive creations. 2017 to 2021
Global Luxury Fine Jewellery Market Outlook Compared to 2022 to 2032 Sales Forecast

From 2017 to 2021, the global luxury fine jewellery market witnessed a 4.6% Compound
Annual Growth Rate (CAGR), culminating in a valuation of US$ 43,194.7 million by the close
of 2021. Future Market Insights projects a notable upswing with an anticipated CAGR of 6.5%
for the entire luxury fine jewellery industry.
Anticipated growth in the luxury fine jewellery sector is underpinned by diverse design
demands, spearheading a swift market ascent. Factors such as the escalating significance and
demand for diamonds, gemstones, and the emergence of new products, notably Precious Pearls,
are projected to propel the global market forward over the forecast period.

Noteworthy intensification in marketing strategies and advertising endeavors by leading

enterprises is poised to fortify the market landscape in the foreseeable future.

Moreover, the pervasive accessibility of a myriad of offerings through online retail platforms
is set to create lucrative prospects for luxury fine jewellery manufacturers in the forthcoming
decade.

However, the formidable challenge of the exorbitant cost associated with luxury fine jewellery
emerges as a pivotal restraint impeding market expansion.

2.2.1 Why is the Demand for Luxury Fine Jewellery Increasing in the USA?
“Increasing Consumer Spending Fueling Luxury Fine Jewellery Sales in the USA”

Between 2022 and 2032, the luxury fine jewellery market in the USA is anticipated to
experience a growth rate of 4.3% CAGR. This trajectory is attributed to increased expenditure
on fine jewellery, the dominant market presence of key luxury fine jewellery manufacturers,
and the accessibility of tailored products.

Likewise, the swift expansion of the fashion sector, heightened interest in luxury fine jewellery
among male consumers, and the strategic utilization of social media platforms for
comprehensive brand promotion by industry players are foreseen as key drivers augmenting
the demand for luxury fine jewellery in the nation throughout the evaluation period.

2.2.2 How is the Demand for Luxury Fine Jewellery Faring in India?
“Growing Demand for Wedding Jewellery Boosting Market in India”

With an estimated population of nearly 300 million individuals aged between 25 and 29, India
anticipates over 100 million weddings within the forecasted period. Given the cultural
inclination towards jewellery acquisition during celebratory occasions, approximately one-
third of total wedding expenses are allocated to jewellery and related expenditures. This trend
is expected to significantly boost the demand for luxury fine jewellery.
A noticeable uptick has been observed in the practice of securing loans backed by gold
collateral in recent times. The preference for investing in gold is driven by its substantial resale
value. Gold holdings among Indian households predominantly exist in the form of jewellery,
frequently adorned with precious gemstones. Notably, property owners and moneylenders have
emerged as primary financial providers in this practice, fostering the jewellery sector as an
alternative avenue for investment through gold jewellery.
2.3 Competitors and their Strategy:

Figure 12: DeBeers Ring Collection

2.3.1 De Beers:
De Beers, established in 1888, has upheld a dominant position in the diamond industry through
its pioneering innovations, technological advancements, and extensive mining and trading
operations worldwide for over a century. In 1939, De Beers introduced the 4C's system, a
defining framework still prevalent in the diamond industry today. The 4C's encompass Cut
(precisely characterizing a diamond's surface cut), Carat (indicating the diamond's weight
rather than size), Color (describing the spectrum from colourless to off-white), and Clarity
(grading the presence of inclusions, varying from flawless to included).

➢ DeBeers Strategy

Synthetic diamonds are diamonds made in a laboratory process which are very similar to
diamonds found in nature but are much cheaper. The benefits of synthetic diamonds are:

1. Absolutely flawless since they are made in a lab

2. Eco friendly production process which does not require clearing of forests or natural
habitats.
1. Product: The product is lab manufactured diamonds of up 2 carats. These diamonds
are exactly the same in chemical composition as diamonds founds in nature.
 2. Price: The biggest benefit of a synthetic diamonds is that it can be manufactured at a
much lower price than that of natural diamonds. This was a great idea for increasing
the market demand and successfully attracted lower income people. Lab made
diamonds sell for less than 1/10th the piece of a natural diamonds.
3. Placement: In oder to spread the awareness among people about the difference between
natural and synthetic they launched marketing campaign of the synthetic diamonds to
certain groups of people by:
• Putting ads in nature magazines showing that these diamonds have been made in an
environment friendly way.
• Tv and media ads showing that lower income people too can diamonds on their
wedding.
• Using the recession to sell cheaper synthetic diamonds
4. Promotions: The target customer were young people about to get married and lower
income people . For a lot of people a 1 carat natural diamond would be great way to
reach this market.

Ads in wedding magazines was the great way to start the promotion of wedding rings
manufactured using synthetic diamonds.

Figure 13: Cartier Love Patent Bracelet

 2.3.2 Cartier:

Founded in 1847 by Louis-François Cartier, the renowned French luxury brand, Cartier, has
garnered worldwide recognition for its exquisite jewelry, watches, and accessories, known for
their intricate artistry and refined sophistication. Throughout its history, Cartier has nurtured a
rich heritage, crafting enduring and iconic pieces that epitomize luxury and distinction.

➢ Marketing strategy of Cartier

1. Segmentation
Carrier segments their company into either the most populated countries like China, and India,
or the wealthier countries like America, and France.
Cartier dominates the Chinese market and is the number one jeweller brand. There are about
40 Cartier stores located in China in 22 different cities. India has only one store located in New
Delhi.

2. Targeting
Cartier’s target audience is middle-aged(30-45) women and men who reach their peak of
success. Cartier has been ruling over the world for long periods in the jewellery industry.
They want themselves to be composed of highly wealthy individuals. Because they produced
exceptional products for ambitious high net worthy individuals.

3. Positioning
Cartier positioned itself as a high-profile jeweller or watch brand. The world’s richest people
also think twice before buying.
 Figure 14: Tiffany and Co.

2.3.3 Tiffany and Co.

Tiffany and Co., established by Charles Lewis Tiffany in 1837 as a small emporium for
stationery and fancy goods in Brooklyn, Connecticut, has evolved into an internationally
recognized luxury goods manufacturer. Renowned for its iconic status in the realm of luxury,
Tiffany and Co. boasts more than nine product divisions, extending beyond jewelry to include
leather, watches, tableware, decorative arts, stationery, crystal, water bottles, personal
accessories, and more.

Currently, the jewellery chain operates in various regions, spanning the US, UK, Europe,
Canada, South America, Australia, and Malaysia. Nearly 60% of their product line comprises
more affordable variations like sterling silver, rose gold, and other non-jewellery items, often
produced through outsourced contracts.

➢ Segmentation, Targeting and Positioning (STP)

The target audience of Tiffany and Co. is mainly women, in their pre-teen to middle-age years.
This is the group that cares most about lifestyle and status symbols, they care about themselves
a lot.
Women who are really into luxury beauty and personal care products belonging to the upper-
middle and rich class are the customers of Tiffany and Co. It started as a retail store. It has now
expanded around the world and offers its product range as well.

Tiffany and Co. positioned itself in the market by being the first one to start assisted self-service
in the retail industry. It has been continuously rolling out new stores in most countries.
2.4 Industrial Trends

“If Gen Z sales don’t hit 10-15%, the company will be obsolete by
the end of the decade.”
Steady growth characterizes the luxury jewellery market, driven by elevating disposable
incomes, a pronounced consumer inclination towards premium and customized items, and a
burgeoning appetite for luxurious experiences. This market encompasses an array of opulent
jewellery pieces—stunning necklaces, rings, bracelets, and earrings—that are meticulously
fashioned from precious metals and embellished with valuable gemstones. Renowned luxury
jewellery labels persist in enthralling customers with their masterful artistry, distinctive
aesthetics, and enduring sophistication, establishing this segment as a thriving cornerstone
within the broader global luxury goods industry.

1. Designer Disruption

In moments of frustration, it's tempting to see both Gen Z and Alpha as catalysts of chaos,
reshaping not only the world but also the landscape of luxury. While some perceive them as
creators of dystopia, these younger cohorts represent a powerful force driving change and
enrichment. With the potential to shape brands' destinies within a decade, they confidently
wield their future purchasing power.

Figure 15: Bea Bongiasca's Flower Funk Collection

Their early establishment of values prioritizes sustainability, social impact, and higher
standards, especially in the realm of luxury, where they willingly invest in premium products.
This ethos inspires newcomers in fine jewellery to disrupt traditional design paradigms,
embracing inconsistency, defying conventions, and introducing gender-neutral collections that
resonate deeply with these generations. Their aesthetic choices—ranging from punk-inspired
details on runways to avant-garde expressions and nods to nostalgia—mirror a collective thirst
for the unconventional and a desire to redefine the boundaries of luxury.
 2. Sensory Experiences

The romance of browsing and purchasing in-store now manifests in tactile, sensory
experiences, harking back to notions of shopping for pleasure but in newer, more immersive
ways.

In 2021, world-leading jewellers Swarovski embarked on a complete overhaul of their stores

as part of their larger rebrand. As well as a new swan emblem, Creative Director Giovanna
Engelbert reimagined around 30 of the brand’s stores around the world and pioneered 28 new
concept stores under their ‘Wonderlab’ project.

Figure 16: Swarovski Wonderlab store

A world of crystal where science and magic meet’, guests can wander through a lab inspired
by Swarovski’s headquarters, a ‘metaphorical candy store’, and a chess room full of subtle nods
to their Austrian heritage. As more stores open, the experience varies depending on location,
almost creating a subtle challenge for fans to experience everything every Wonderlab has to
offer.
 3. Digital Drip

In 2021, NFTs, web3, and the metaverse exploded into the spotlight, and their momentum
hasn't slowed in 2023. Despite lingering uncertainties, one certainty is the significant value
NFTs bring to the world of fine jewellery. By 2027, the NFT market is projected to soar to a
staggering $13 billion, boasting a compelling 35% Compound Annual Growth Rate (CAGR).
This growth aligns with the core attributes that make traditional luxury items so desirable—
traits like rarity, scarcity, authenticity, innovation, and endurance.

The Aura Blockchain Consortium, a collaboration between Richemont, LVMH, and the Prada
Group, introduced in 2021, authenticates luxury goods by assigning each a unique digital
identity. Similarly, Icecap, an Ethereal-based Diamond NFT Marketplace, employs similar
technology for authentication purposes.

Digital assets and NFTs, often offered in limited editions or as unique pieces, carry the same
allure as provenance does for ardent collectors of rare or exquisite items. Collectors have a
penchant for paying significant sums to own these unique assets, mirroring the appeal of their
physical counterparts.

Numerous luxury brands recognize this allure and potential. Tiffany’s, Bulgari, Amadeo,
Simone Faurschou, and Asprey are among those integrating NFTs into their product lines.
Some, like Metagolden, have centered their brand identity around blockchain technology,
positioning themselves as pioneers in the intersection of luxury and technology.

Other brands prioritize wearability, utilizing blockchain tech as a platform for digital
ownership. For instance, Räthel & Wolf, a jewelry label, launched their digital division,
offering customers the opportunity to download digital renditions of their designs for use in the
metaverse or for 3D printing in various materials.

4. Conscious Carats

Sustainability is a baseline for new luxurians, having a commitment statement to reduce your
brand’s carbon footprint is nothing to write home about anymore. Those who do cut through
the noise are crafting exactly what the U/HNW want, how they want it — in ways that uphold
planetary health, inclusivity, social progression and a more liberal way of living.
 Figure 17: Sustainable Jewellery

Aulerth International, a ‘first-of-its-kind design house for jewellery that's couture-inspired,

meticulously crafted’, partners with leading designers around the world to create pieces that
are environmentally more responsible than others on the market, without compromising on
design, craftsmanship or finish. Luxury French brand Boucheron recently launched an
innovative capsule collection made from Cofalit — a material derived from depolluted
asbestos. Though the idea and collection, titled ‘The Jack de Boucheron Ultime range’, is in its
infancy due to the unknown nature of how the black, stone-like substance performs over time,
it’s a move boldly disrupting the conventions in fine jewellery manufacturing.

To combat controversial practices associated with diamond mining and to present a

contributing solution in response to the climate crisis, Aether are creating lab-grown diamonds
with 100% atmospheric carbon.

Direct air capture technology is used to extract CO2 from our air before being synthesised and
placed into clean energy-powered chemical reactors where diamonds will grow. The fully
formed, cut and finished crystals are then distributed to be worn by the most stylish yet
sustainable shoppers around the world.
 CHAPTER 3:

Brand Extension Potential

3.1 Product Variety

Swarovski company has a wide, deep and diversified product portfolio, able to best suit
different demands. The company holds an inconceivable portfolio, that other enterprises are
not able to offer.

It is characterized by Swarovski Elements division, which offers precious stones, single

crystals, jewels, accessories, lighting and other elements to fashion firms and the Consumer
goods business division which creates and distributes finished products (jewels, clocks,
accessories, figures) to final consumers.

Swarovski is an extremely innovative and fashion reality; in “traditional” sectors in which it

operates as jewellery, fashion, furnishing and home accessories, it appears as innovative and
competitive through the continuous launching of new colours, new cuts and new application
methods. Its assortment is characterized by unique, elegant and ordinary products along with
exclusive, limited edition and museum quality items such as luxury cars and interior design
furnishings covered with millions of crystals. Good taste and aesthetic interests dominate the
Swarovski products.

Market development and diversification strategies allow Swarovski to be present everywhere

on new profitable horizons.

Today, profitable sectors that mostly contribute to the company turnover (2,33 million) are:
crystal sales, jewelries and fancy goods segments in addition to fashion division that represents
55% of the group profitability and the watch sector that could absorb more than 15% of the
future billing.

The company is also interested in market niches still maintaining a small production of optic
precision tools (Swarovski Optik), tools for crystal cutting, polishing and grinding (Tyrolit) and
products for the road safety (Swareflex), perfect examples of diversification. Products are sold
all over the world through a capillar efficient distributive network.
3.2 Brand Extension Strategies already done by Swarovski

Figure 1: Swarovski
selection for both final consumers and business customers

1. Beauty

Swarovski idea of launching a fragrance goes back to 2003. For Swarovski, entering the world
of perfume and beauty products corresponded to a real strategic opportunity. It represented the
intent to extend its portfolio bringing more femininity and sensuality. For the first time, the
company wanted to bring the brand to life beyond crystal with more emotional creations that
people could wear.

Perfumes are a sort of invisible jewels which carry a deeper emotional charge. They represent
an opportunity to add something new to its brand universe.

Aura by Swarovski is the final successful result of the company collaboration with Clarins
Fragrance Group, which has always been characterized by determined approaches,
creativeness, marketing and communicative capabilities.

The fragrance is addressed to women, especially to Asian women, who ask for luxury and
quality. Aura was a success for both Swarovski and Clarins Group, which caught the
opportunity to join the Asian market for the first time.

Swarovski wasn't interested in using crystals as mere decoration for bottles but, starting from
the essence it wanted to express a sense of lightness that only crystal can create. The idea of
creating a fragrance and make-up jewels is totally innovative. Now, the company is able to
offer a wide range of products to perfumeries and departments stores loving the idea of creating
a Swarovski universe in their corners.
Figure 2: Swarovski Beauty selection

Aura by Swarovski

• Eau de parfum

• Eau de toilette: the goal was to translate into a language of fragrance the aura of light that
Swarovski creates through the crystal. The result is a fragrance made of amber and white musk.
The bottle, designed by Gwenaël Nicolas is asymmetrical and faceted to diffract light in
dazzling clarity, with nuances that vary subtly depending on the weather. The shape of the bottle
is ultra-modern and sublimely simple.

• Miss Aura by Swarovski: according to the firm definition, Miss Aura is a lucky charm
fragrance unfolding an aura of good fortune around the woman wearing it. A swarm of
butterflies is designed on the pink bottle.

The Make up Jewels

Make-up jewels are embellished with genuine micronized Swarovski crystals.

• Crystal glass pink

• Crystal touch

• Crystal glass transparent

Figure 3: Swarovski make up jewels

Crystallize your body

This selection includes products for the body care. These products suggest to the firm opinion
the power to lighten women as if with crystals.

• Perfumed body lotion

• Perfumed deodorant spray

• Perfumed shower gel

2. Swarovski Spaces
Figure 4: Swarovski Spaces

• Swarovski Kristallwelten: it is a premise open in 1995 to celebrate the first century of the
firm. It brought moments of wonder to over twelve million visitors from everywhere in the
world. It is a museum showing work of art realized with crystals. The firm wants people to
know its history, its materials and its philosophy.

• Swarovski Innsbruck: it is a retail store, representing the enchantment of Innbruck town. It is

possible to find famous and exclusive jewellery collections, accessories, optic precision tools,
crystal figurines and souvenirs available only at Swarovski Innsbruck, Swarovski Wien and
Swarovski Crystal World.

• Swarovski Wien: it is one of the largest Swarovski store in the world, where you can find the
same offer as Swarovski Innsbruck.

3. Gemstones

Swarovski is the leader in precision-cut genuine gemstones and created stones. Its products are
characterized by manufacturing excellence, quality, innovation and precision. It offers a unique
and well-balanced selection of stones, which can be applied on bridge jewellery, watches and
lifestyle electronics.

The assortment ranges from affordable precious and coloured gems to Zirconia. Stones are cut
and polished in Swarovski’s factories to maintain the strictest standards to meet the most
stringent criteria of colour, quality, size and shape. Now the company is also synonymous of
premium quality in genuine sapphire, rhodolite, peridot, amethyst, citrine, black spinel,
genuine topaz, marcasite, along with zirconia and synthetic stones.
Figure 5: Gemstone selection

• Genuine gemstones: a genuine gemstone assortment is rich of colour, shapes and cuts.
Swarovski stands for precision cutting. The selection includes: Zapphire, Topaz, Amethyst,
Citrine, Peridat, Rhodolite, Smoky Quarz, Spinel and Marcasite.

• Genuine created stones: this line focuses on the reduction of stone breakage, simplifing the
production process, its planning and costs. It includes Zirconia, Synthetic Spinel and
Alpinite Castable.

• Components: components are set with Swarovski's Genuine Gemstones and Created
Stones. They are not merely limited to jewelry applications having proven to be cost
effective and time saving. It is an excellent method used to apply stones in difficult
materials such as stainless steel, titanium, leather and many others.

4. Lighting

Swarovski lighting products and crystal solutions for sophisticated architecture.

Figure 6: Lighting products

Lighting systems: Swarovski's lighting systems with LED and fiber optic lighting are able to
fascinate. They are increasingly used to create atmosphere in large and small spaces. Flexible
lighting solutions, multiple application possibilities, simple maintenance - just a few
advantages of LED and fiber optic lighting.

• Luminaires

• Swarovski Crystal Palace: it is a collection representing a restyling of chandeliers, which

become an example of art.

• Architectural elements: architectural elements create brilliant and unique effects. They are
individually designed works of art.

5. Figures

Swarovski figures appeared in 1976, when the firm decided to join the finished product market.
The first example of figurines was a mouse made with remaining chandelier components.
Today the selection includes 120 crystal creations, which depict flora and fauna worlds,
childwood memories and Christmas themes. Every year special edition figurines are realized
for collectionists, who join Swarovski Crystal Society.

Figure categories

• Animal world

• Acquatic world

• Asian symbols

• Birds & Butterflies

• Bo Bears & Kris Bears

• Chinese Zodiac

• Crystal Myriad Masterpieces

• Disney

• Hello Kitty

• Merry Christmas

• Sparkling flowers

• Sparkling Treasures
Figure 7: Swarovski Figures

6. Jewellery & Accessories

Sparkling fashion accessories turn the ordinary into something extrordinary.

Jewellery categories

• Beads

• Bracelets

• Broaches

• Charms

• Cuff links

• Earrings

• Men's collections Necklaces

• Pendants

• Rings

• Sets
Figure 8: Jewellery offered by Swarovski

Accessories

• Fashion accessories: they include cardholders, handbag charms, key rings, mobile phone
accessories and sunglasses.

• Home accessories: they include candleholders & tea lights, hanging ornaments, picture
frame, tabletop, vases, bowls and boxes.

• Electronic accessories: they include smartphone accessories, stylus and USB accessories.

7. Couture Jewellery

An exclusive collection of crystal jewellery and accessories from the world's fashion and
jewellery designers.
Figure 9: Couture Jewellery

8. Watches

The company creates watches for both women and men. Swarovski company has joined the
watch segment since 2009. Initially, it introduced watches for women, with a price that varied
from 200-800 Euro. In 2012 the male collection was launched, being characterized by a higher
price (til 1000 Euro). Watches are Swiss made as symbol of garantee.
Figure 10: Watches by Swarovski

9. Elements

It is the brand for high quality crystal elements by Swarovski. Designers and manufacturers
refine their products with these elements. The “Made with Swarovski Elements” label serves
as a sign of authenticity and the highest standard of crystal design.

• Crystals: Xirius 1088 is Swarovski most brilliant crystal element. It intricates gemstone-like
cut, rich color, and enhanced foiling have combined to produce an exceptionally durable new
generation of crystal, taking it one step closer to the diamond. It is made according to the
Advanced Crystal standard, the new DNA of crystal.

• Advanced Crystal: it is a new innovative lead-free crystal composition complies with current
laws and regulations governing the use of certain substances in finished products in the most
relevant segments of our customer’s business. It has been patented by Swarovski in the US,
Japan, and 16 European countries.

10. Swarovski Entertainment

Entertainment Swarovski Entertainment is Swarovski's film division, which collaborates with

established industry partners and exceptional talent to develop, finance and produce original
and artistically accomplished feature films with international box office appeal. It aims to
express Swarovski’s philosophy, identity and creative essence through moving images to
enchant and inspire audiences around the world.

• Romeo & Juliet: it is a William Shakespeare's epic tale of love. With an all-star cast including
Hailee Steinfeld as Juliet and Douglas Booth as Romeo the story is revitalized on screen by
writer Julian Fellowes (Downton Abbey) and director Carlos Carlei (The Flight of the
Innocent). An ageless story from the world's most renowned author is re-imagined for the 21st
Century in the lush traditional setting it was written. Every generation deserves to discover this
lasting love.

3.3 Diversification Fields

Swarovski company extended its brand universe developing new and different activities from
those of the core business. Tyrolit, Swarovski Optik, Schonbek and Swareflex are three
examples of the company diversification ability.

They are niche markets on which the comapany has focused. All these brands have been created
to come out of numerous adverse situations as the two Warld Wars or the Oil shocks. The
diversification strategy gives the company the opportunity to survive and to flourish reaching
new markets. In this way Swarovski has become the current colossus, leader in every sector, in
particular in the cut crystal market and in the fashion industry. Today, the company still keeps
a part of these tools production.

Tyrolit: In 1917 Daniel Swarovski developed his own grinding tools, registered later under the
brand name of Tyrolit (an innovative and technical trademark covering all conceivable grinding
applications). Tyrolit concerns tools for crystal cutting and grinding. This has been a
diversification opportunity for the company, which allows to join the jewelry and fashion
industries, which are profitable markets requiring fake diamonds and small pearls. Nowadays
Tyrolit is the leader in Europe among the greatest competitors.
Figure 11: Tyrolit

Swareflex: in the 1920s Swarovski company introduced the production of glass reflectors
under the brand name of Swareflex (today's market leader). The selection Swareflex includes
reflective glass elements for horizontal and vertical warning, for pedestrian security and for
special railway applications. The product portfolio is made of: metal or plastic signals, lane
separators, protection barriers and reflectors. These elements are used in more than 50
countries.

Swarovski Optik: Swarovski Optik has been another success of the company diversification
intent. The company produces optical instruments of precision such as telescopes and
binoculars. They come from the combination of visual acuity gained with the influence of light.

Figure 12: Swarovski Optik

Schonbek: it was founded in 1870 in Bohemia, being today the largest manufacturers of crystal
chandeliers in North America. While Schonbek is a leading consumer brand amongst fashion
homeowners, the company creates chandeliers even for blockbuster films and high profile
commercial projects around the world.

Figure 13: Schonbek by Swarovski

3.4 Brand Extension Potential, Challenges and Opportunities associated with Extension

Recently, Swarovski collaborated with a well know brand called Skims by Kim Kardashian
and entered into Apparels as a collaborator.

Figure 14: SKIMS x SWAROVSKI

Similarly, Swarovski has a brand extension potential in the following field/area:

Bags/Handbags

Market Analysis and Need for the Product:

The global Luxury Bags market size was estimated at USD 22.7.0 billion in 2022 and is
projected to reach USD 37.1 billion in 2030 at a CAGR of 6.3% during the forecast period
2023-2030.

The market has more room to develop as a result of an increase in social media bloggers and
increased use of social media platforms. In other words, increasing consumer knowledge of the
newest styles and patterns due to endorsements from bloggers and celebrities, along with the
desire to wear the newest styles, is directly impacting market growth. Also, the development
and growth of the consumer goods sector is directly affecting the rate of market expansion.

Because more women are entering the workforce and have greater purchasing power, there is
a huge increase in demand for the goods. For instance, according to data from the International
Labor Organization, 48.5% of women worked in 2018. Moreover, it is projected that the
considerable female consumer spending contribution would raise the consumption rate.
Due to the luxury fashion industry's strong growth, a broad variety of appealing luxury bags
are developed, aiding in the market's worldwide expansion. For instance, according to figures
from the fashion industry, 300 million people are predicted to work in the sector, which is worth
USD 1.3 trillion.

In addition, advertising and endorsement campaigns led by well-known individuals increase

consumer appeal and pave the way for rising demand. The market has grown tremendously as
a result of rising expenditure on products through online channels.

Proposed Product Mix

This could be a limited edition exclusive collaboration of Swarovski with Bvlgari and the range
could have around 8-10 designs and there will be usage of different crystals and stones of
different complimenting colours with a high polish finish.

Figure 15: Reference photos of hypothetical collaboration

Strategic Fit of Brand Extension

Bags from Bulgari area combination of the finest leather craftsmanship with contemporary
Italian design. Elegant styles to suit all occasions which are effortlessly exquisite and rich
designs.
For Swarovski, this co-branding will be another attempt to inject modernity and freshness into
a brand famed for its perennial appeal and DNA founded on tradition and heritage.

Strength behind Extension

• Brand Equity

Swarovski and Bvlgari are two global brands with high valuation and loyalty. These braqnds
have successfully resonated with affluent customers worldwide.

• Solid Execution

Both the brands have consistent financial performance and successfully keep coming up with
innovative strategies. Both the brand hold a premium position in the market.

• Highly Profitable

Both the brands have high net profit margin and thus, this strategic collaboration would
definitely prove to be a highly successful move for both the brands.
 Chapter 4

Global Presence of Swarovski

Swarovski, founded in Austria in 1895, established its global presence through strategic
marketing, product innovation, and collaborations. The company gained recognition for its
high-quality crystal products, which became synonymous with luxury and precision
craftsmanship. Swarovski expanded internationally by forming partnerships with fashion
designers, creating iconic crystal figurines, and diversifying its product range. Its retail
presence in major cities and collaborations with renowned brands helped solidify Swarovski's
position as a global leader in crystal products.

Factors that helped in the establishment of Swarovski’s international presence

• Quality and Innovation:

• Brand Partnerships and Collaborations:

• Global Distribution and Retail Expansion:

• Diversification of Product Offerings:

• Marketing and Branding:

 • Commitment to Sustainability:

• Adaptation to market trends & consumer preferences:

QUALITY & INNOVATION:-

Swarovski's expansion owes much to its unwavering commitment to quality and innovation.
These pillars have fortified the brand's reputation and trust among consumers, proving pivotal
in diversifying its offerings beyond crystals into jewellery, accessories, and home decor. This
dedication to excellence facilitated its entry into new global markets, transcending borders with
its universally recognized high standards. Standing out amidst competition, Swarovski's focus
on superior quality and inventive designs provided a competitive edge, attracting and retaining
a loyal customer base while encouraging positive word-of-mouth endorsements. Moreover, this
emphasis on innovation allowed the brand to stay agile, adapting swiftly to emerging trends
and consumer preferences, thereby sustaining its relevance and furthering its global reach.

BRAND PARTNERSHIPS AND COLLABORATIONS:

Brand partnerships and collaborations were instrumental in Swarovski's global expansion,
offering the brand credibility and prestige. Aligning with prestigious fashion designers and
high-end brands allowed Swarovski to position itself as a luxury brand, attracting a
sophisticated consumer base. Integrating Swarovski crystals into the designs of fashion houses
and designers not only increased visibility but also made the brand an integral part of the
fashion industry. These collaborations resulted in innovative and exclusive product offerings,
setting Swarovski apart from competitors and appealing to consumers seeking distinctive
items. By partnering with globally recognized brands, Swarovski gained access to new markets,
extending its reach beyond its traditional customer base. The cross-promotion between
Swarovski and its partners, along with event sponsorships and limited edition releases, created
a sense of exclusivity and urgency, driving demand and enhancing the brand's perceived value.
Social media played a crucial role, with collaborations providing content for impactful
campaigns, helping Swarovski engage with a younger, tech-savvy audience and maintaining
relevance in the digital age.
GLOBAL DISTRIBUTION AND RETAIL EXPANSION:
Global distribution and retail expansion play pivotal roles in Swarovski's global expansion
strategy. By establishing a physical presence in key markets worldwide, Swarovski enhances
its market visibility and gains access to diverse consumer bases with varying preferences. This
widespread retail network allows the brand to tailor its product offerings to suit local tastes,
fostering brand recognition and loyalty. The efficiency of a global distribution network ensures
timely product delivery to retail outlets, contributing to customer satisfaction. Additionally, this
strategy provides a competitive advantage, especially in the luxury goods market, where
customer experience is crucial. Integration with e-commerce further extends Swarovski's reach,
accommodating online shopping preferences and enabling market penetration in areas where
physical stores may not be feasible. Success in global expansion hinges on effective market
research and adaptability to local dynamics, factors that Swarovski likely considers to navigate
the complexities of international markets and sustain its growth.

DIVERSIFICATION OF PRODUCT OFFERINGS:

Swarovski's international expansion has been significantly bolstered by its strategic
diversification of product offerings. Embracing a broad spectrum of products, including
jewelry, crystal figurines, accessories, and home décor items, Swarovski has effectively
appealed to diverse consumer segments with varying tastes and preferences. This approach
enables the brand to adapt seamlessly to local markets by tailoring its product range to meet
specific cultural and regional demands. Beyond mitigating risks associated with dependence
on a single product category, Swarovski's diversified portfolio enhances brand resilience,
positioning it as versatile and capable of meeting a wide array of consumer needs. The
comprehensive brand experience offered through various lifestyle products fosters a deeper
connection with customers. Moreover, diversification not only expands the customer base by
attracting individuals with different interests but also creates cross-selling opportunities,
thereby increasing both the average transaction value and customer lifetime value. Overall,
Swarovski's commitment to product diversification serves as a key driver for its sustained
success in the global marketplace.
MARKETING AND BRANDING:
Swarovski's global expansion owes much to its adept marketing and branding strategies, which
have established the brand as a symbol of precision, luxury, and innovation. The company has
successfully maintained a cohesive brand identity across diverse markets, ensuring a
universally recognizable and esteemed image. Central to its approach is the emphasis on
craftsmanship and innovation, a message consistently communicated through marketing
efforts. Swarovski's strategic collaborations with designers and celebrities not only generate
excitement but also broaden the brand's reach, particularly within the realms of fashion and
entertainment. Leveraging digital marketing and e-commerce platforms, Swarovski engages
with a global audience, transcending geographical constraints. Additionally, the brand likely
tailors its campaigns to local preferences, fostering resonance with diverse consumer bases.
The commitment to sustainability, integrated into its messaging, further aligns Swarovski with
the evolving values of environmentally conscious consumers worldwide. Overall, Swarovski's
international success is intricately tied to its well-executed marketing and branding, creating a
compelling and enduring presence in the global marketplace.

COMMITMENT TO SUSTAINABILITY:
Swarovski's international standing is significantly bolstered by its unwavering commitment to
sustainability, a cornerstone of its corporate identity. This dedication extends beyond mere
environmental consciousness, encompassing a holistic approach that resonates with global
consumers. By prioritizing sustainable practices, Swarovski has not only enhanced its
corporate reputation but has also met the growing expectations of a consumer base increasingly
attuned to ethical considerations. The brand's commitment to sustainability serves as a powerful
market differentiator, setting it apart in an industry where responsible business practices are
increasingly valued. Importantly, Swarovski's sustainability initiatives open doors to new
markets, particularly those where environmentally conscious values hold significant sway.

Moreover, the brand's adherence to sustainability aligns with evolving regulations and
showcases a dedication to compliance and responsibility across diverse international
landscapes. Beyond consumer perception, Swarovski's commitment attracts and retains top
talent, reflecting a broader societal shift where employees seek alignment with their values in
the workplace. The brand's transparent supply chain practices contribute to a trustworthy
relationship with consumers, as it actively traces the origins of materials and ensures ethical
treatment of workers.

As consumer preferences continue to evolve, Swarovski's proactive stance on sustainability not

only addresses the current market landscape but also positions the brand to adapt to future
changes. This forward-thinking approach enables Swarovski to navigate a globally conscious
marketplace, fostering positive relationships, trust, and relevance on an international scale.

ADAPTATION TO MARKET TRENDS & CONSUMER PREFERENCES:

Swarovski's global success is intricately tied to its adept adaptation to market trends and
consumer preferences. By staying attuned to the evolving tastes and lifestyles of consumers
worldwide, Swarovski ensures the relevance and appeal of its products. This adaptability is
particularly evident in the brand's localized strategies, tailoring offerings to specific cultural
nuances during market entry and engaging in targeted marketing campaigns. Swarovski's
commitment to innovation and design leadership allows it to differentiate itself by introducing
cutting-edge designs and responding quickly to emerging trends. The brand's flexibility in
product development, with the ability to adjust seasonally, underscores its commitment to
staying ahead in the fast-paced fashion and accessories industry. Active participation in social
media platforms not only fosters engagement but also provides real-time insights for prompt
adjustments to marketing strategies based on consumer feedback. Swarovski's customization
for local markets showcases cultural sensitivity, fostering a distinctive image and competitive
advantage. In essence, Swarovski's proactive and adaptive approach to consumer preferences
is pivotal in maintaining a strong and dynamic global presence.

STRATEGIES FOR INTERNATIONAL EXPANSION OF THE BRAND

Experiential Retail Spaces:

• Swarovski can design retail spaces that transcend traditional shopping environments,
offering customers an immersive and memorable experience.

• Workshops within stores could provide insights into the craftsmanship behind
Swarovski products, engaging customers in the creative process.

Limited Edition Collaborations:

• Forge partnerships with globally recognized designers, artists, or celebrities to create

exclusive and limited-edition crystal collections.
 • The exclusivity and uniqueness of these collaborations can generate excitement and
attract a diverse customer base.

Artisanal Partnerships:

• Collaborate with local artisans in different regions to create limited-edition products

that showcase regional craftsmanship.

• This strategy not only supports local communities but also adds cultural authenticity to
Swarovski's product offerings.

Heritage Collections:

• Develop collections that revisit and reinterpret iconic designs from Swarovski's history.

• By celebrating the brand's heritage, Swarovski can appeal to consumers interested in

the legacy and authenticity of luxury goods.

Art and Innovation Centers:

• Establish centers dedicated to fostering creativity, research, and development within the
crystal industry.

• These hubs can serve as incubators for innovative crystal designs, reinforcing
Swarovski's position as a leader in innovation.

Digital Luxury Experiences:

• Invest in virtual and augmented reality experiences that allow online customers to
explore and interact with Swarovski products.

• This digital engagement strategy provides a unique and innovative way for customers
to connect with the brand.

Cultural Philanthropy Initiatives:

• Engage in philanthropic initiatives that support cultural preservation, such as

contributing to the preservation of historical landmarks or supporting cultural events.

• These initiatives not only contribute positively to society but also enhance Swarovski's
reputation as a socially responsible brand.

Luxury Tech Integration:

 • Explore the integration of smart features into crystal products, creating a unique blend
of traditional craftsmanship and cutting-edge technology.

• This rare strategy can position Swarovski as a pioneer in luxury tech, appealing to tech-
savvy consumers.

Implementing these strategies can help Swarovski differentiate itself in the luxury goods
market, appeal to a broader audience, and solidify its position as a unique and innovative brand
on the global stage.

POTENTIAL COLLABORATIONS OR PARTNERSHIPS

Luxury Home Décor: Swarovski's foray into the realm of luxury home decor involves
strategic collaborations with prominent interior designers and high-end furniture brands,
embodying a fusion of crystal craftsmanship with exquisite design. By carefully selecting
esteemed interior designers recognized for their proficiency in luxury decor, Swarovski
initiates collaborative workshops to conceptualize an exclusive line of crystal-infused home
decor items. This collaboration aims to produce limited-edition releases, cultivating a sense of
exclusivity and allure for collectors and enthusiasts alike. Simultaneously, Swarovski
strategically partners with distinguished furniture brands renowned for their craftsmanship and
design ethos that harmonizes with the brand's identity. Together, these partnerships explore the
integration of Swarovski crystals as opulent accents in bespoke furniture pieces, elevating the
overall aesthetic and delivering a unique touch of luxury to the world of high-end home
furnishings.

Few suggestions for collaborations can be-

Fendi Casa:

• Fendi Casa, an extension of the renowned fashion house Fendi, specializes in luxurious
home furnishings. The collection includes furniture, lighting, and accessories that
embody the brand's sophisticated and contemporary aesthetic.
Armani Casa:

• Armani Casa, the home division of the fashion brand Giorgio Armani, offers a
sophisticated collection of furniture, lighting, and home accessories. The designs reflect
Armani's minimalist and timeless aesthetic.

Versace Home:

• Versace Home offers opulent and glamorous home decor inspired by the iconic designs
of the fashion brand. The collection includes furniture, textiles, tableware, and
decorative items featuring bold patterns and the Medusa head motif.
TECH WEARABLES: In a strategic move into the tech wearables arena, Swarovski is set to
collaborate with both fashion tech companies and augmented reality/virtual reality (AR/VR)
developers, seamlessly blending the brand's hallmark crystal craftsmanship with cutting-edge
technology. The collaboration with fashion tech companies involves partnering with industry
leaders known for their expertise in creating stylish and functional wearables. Swarovski aims
to infuse its signature crystals into the design of smart wearables, such as fitness trackers and
smartwatches, offering consumers a unique combination of luxury and advanced technology.
The collaboration further extends to the development of customized, limited-edition collections
that showcase Swarovski's commitment to innovation and elegance.

Simultaneously, Swarovski is set to join forces with AR/VR developers renowned for their
creativity and proficiency in delivering immersive digital experiences. The objective is to
create crystal-themed AR/VR experiences that not only captivate users but also serve as
interactive showcases for Swarovski's exquisite crystal creations. This strategic move not only
places Swarovski at the forefront of the convergence of fashion and technology but also ensures
that the brand continues to offer consumers a distinctive and opulent experience in the rapidly
evolving landscape of wearable technology. For Eg:- Apple Watch Hermès A collaboration
between Apple and Hermès, offering exclusive watch bands and custom watch faces on the
Apple Watch, combining high-tech functionality with luxury design.
 CHAPTER 5

Future Roadmap of Swarovski

In envisioning a future brand roadmap for Swarovski, several key areas can be prioritized to
sustain and elevate its position as a leading luxury brand:

1. Sustainable Innovation and Eco-Friendly Practices:

• Swarovski should target a significant reduction in the carbon footprint by 25% within
five years through sustainable manufacturing and energy-efficient processes, aligning
with the company's commitment to sustainability.

• Invest $50 million over three years in research and development to explore new
sustainable materials and eco-friendly crystal production techniques, aiming to
introduce a new line of environmentally conscious products by 2025.
2. Digital Transformation and Enhanced Customer Experience:

• In 2017, Swarovski started an ‘Innovation Lab’ in order to bring retail technologies to

the forefront of its digital strategy.

• In 2018, Swarovski started testing a new store format on London’s Oxford Street, called
‘forerunner’. The store included a number of digital features including its AR try-on
technology, and an interactive selfie wall.

• So every year they should shift up their level in terms of technology, and only then they
would be able to have a upper hand on their customer.

• Allocate $30 million to revamp the digital infrastructure, focusing on AR/VR

integration for online platforms to offer virtual try-ons, resulting in a projected 30%
increase in online sales by 2024.

• Implement AI-driven algorithms for personalized recommendations, aiming for a 20%

rise in conversion rates from personalized product suggestions by 2023.

3. Exclusive Collaborations and Product Diversification:

• Forge collaborations with three renowned fashion designers and two emerging artists
annually, projecting a 15% revenue increase from exclusive collections by 2025.

• Introduce a new line of lifestyle products, allocating $40 million for R&D, marketing,
and production, targeting a 10% revenue contribution from this segment within three
years.

• Swarovski has already partnered with a select number of high-profile influencers,

including model Karlie Kloss, as well as smaller influencers like fashion blogger
Melissa Celestine Koh. By working with the likes of Koh, who has previously created
content for a variety of both affordable and luxury brands, Swarovski has created
awareness around key jewellery retail events such as Mother’s Day and Valentine’s
Day. But they can and should take to a level up.

4. Retail Reinvention and Global Expansion:

 • Invest $80 million in flagship store renovations worldwide, aiming to enhance the in-
store experience and drive a 25% increase in foot traffic by 2024.

• Focus on expanding retail presence in key emerging markets such as India and
Southeast Asia, aiming for a 20% revenue growth from these regions by 2025.

5. Community Engagement and Ethical Practices:

• Launch a $10 million fund for community-based projects supporting local artisans,
empowering women in the supply chain, and promoting education in underprivileged
regions, aligning with Swarovski's corporate social responsibility objectives.

• Transparently communicate these initiatives, expecting a 15% increase in brand

perception among socially conscious consumers by 2023.

6. Data-Driven Marketing and Personalization:

Implement a data analytics platform with an investment of $20 million to derive insights and
create targeted marketing campaigns, projecting a 30% increase in ROI from marketing efforts
by 2024.

7. Cultivating Innovation Culture:

Allocate $15 million annually for employee innovation programs, fostering a culture of
creativity, resulting in an estimated 20% increase in patent applications for innovative crystal
designs by 2025.

8. Adaptability and Agility:

Establish an agile task force to monitor market trends, allocating $5 million to quickly pivot
strategies in response to emerging market dynamics, aiming for a 10% increase in market share
flexibility by 2024.
 1. A Crystal-Clear Future for Swarovski: It’s Going to Be Sustainable

Swarovski is synonymous with crystals. But the luxury brand should be aiming to be known
for something else, too: being a sustainable business.

Daniel Swarovski created his eponymous crystal business in 1895 in Wattens, Austria, with a
broad vision: to build a business that cared for its employees, customers, and environment. It’s
been 127 years since then, and while the company has never lost sight of that vision, it says it
needs to do more—it will do more.

Beginning this year, Swarovski says it will launch at least one sustainable collection per year.
By 2030, it says all metals will be sourced from responsibly managed and recycled suppliers.

Under its recently launched Wonderland brand, Swarovski says it’s entering a new era.
Wonderland’s aim is to bridge the past and future, “where science and magic meet, and extra
and elegance collide.”

Swarovski is focused on six sustainability initiatives: conscious materials; empowerment and

education; waste and circular economy; equality, diversity, and inclusiveness; respect for
people; and greenhouse gases.

Chief among Wonderlab’s directives is to pursue new impact levels through a sustainable lens,
detailed in the brand’s sustainability report released late last year.
As of 2019, 35 percent of Swarovski’s energy comes from renewable sources at both
manufacturing and water production locations. The brand says it met 76 percent of its water
demands in 2018 through recycled sources.

In its jewelry collections, Swarovski launched lab-grown diamonds in 2016, expanding those
into the Atelier Swarovski Fine Jewellery line. It also introduced responsible materials
including Fair Trade and recycled gold and responsibly sourced gemstones. In 2019 it launched
Swarovski Advanced Crystal, the world’s first lead-free crystal. In 2015, Swarovski launched
the Conscious Design Program, which has provided more than six million upcycled crystals to
design schools and designers. It’s also prioritizing female leadership across the company by
implementing innovations in recruitment—including AI technology. It says by 2024 Swarovski
will be a “bias-free” recruiter.

The 2021 report said Swarovski committed to reducing its emissions—both indirect and
direct—a 47 percent decrease for internal and 28 percent for emissions outside of its operations.
Both targets are aimed at 2030 deadlines. So is the plan to transform operations and go 90
percent landfill-free. Swarovski says of that, 70 percent of waste will be recycled or repurposed.

Internal lifecycle assessments have helped Swarovksi outline an innovation roadmap, the brand
says. It’s looking at its entire value chain from mining raw materials to disposal for products at
the end of their life cycles. A focus on innovations will help Swarovski double its materials
efficiency also by 2030. All packaging will be sustainable or recyclable by 2030 as well.

2. Strategies to maintain and enhance relevance of Swarovski

Below mentioned are some suggested strategies that Swarovski can adopt in order to enhance
and maintain its relevance with its customer.

1. Interactive Virtual Showrooms:

Develop immersive virtual showrooms allowing customers to virtually explore and interact
with Swarovski's collections, facilitating a personalized and engaging shopping experience.
 2. Artistic Collaborations with AR/VR Artists:

Partner with renowned AR/VR artists to create interactive digital art installations using
Swarovski crystals, offering consumers an innovative way to engage with the brand through
technology and art.

3. Swarovski Creator Studio:

Establish a digital platform or app where customers can design and personalize their crystal
jewelry or accessories, leveraging Swarovski's customization capabilities and fostering a sense
of co-creation.
 4. Limited-Edition NFT Collections:

Launch exclusive Non-Fungible Token (NFT) collections featuring unique digital art pieces or
virtual wearables tied to limited-edition Swarovski physical products, targeting tech-savvy
luxury consumers.

5. Sustainability-Driven Transparency Campaigns:

Implement a transparent sustainability initiative, utilizing blockchain or QR codes to trace the

sourcing and ethical journey of Swarovski crystals, appealing to environmentally conscious
consumers.
 6. Smart Jewelry and Wearable Tech:

Develop smart jewelry pieces embedded with technology, such as health-tracking features or
connectivity with smartphones, merging luxury with functionality to cater to tech-oriented
luxury consumers.

7. Immersive Experiential Installations:

Create pop-up experiential installations or art installations in flagship stores or any other place
providing immersive experiences that blend technology, art, and Swarovski's craftsmanship,
attracting younger and experiential-seeking consumers. So that the image of the brand and the
experiences it gives remains unforgettable by the customers.

8. Social Commerce and Live Streaming Events:

Embrace social commerce by hosting live streaming events showcasing Swarovski's products,
allowing customers to shop in real-time and interact with influencers or designers, boosting
engagement and sales.

9. Augmented Reality Try-Ons and Styling Apps:

Develop AR applications for virtual try-ons of Swarovski jewelry and accessories, enabling
customers to visualize products before purchase, and introduce styling apps for outfit
coordination with Swarovski pieces.

10. Niche Collaborations with Lifestyle Brands:

Collaborate with niche lifestyle brands, such as wellness or sustainable fashion companies, to
co-create limited-edition product lines that resonate with evolving consumer preferences for
conscious and holistic living.
These innovative strategies blend technology, sustainability, personalized experiences, and
cultural collaborations, aiming to captivate diverse consumer segments while reinforcing
Swarovski's position as a forward-thinking and relevant luxury brand.
References

London Design Museum's Swarovski Exhibition Features Light Painting, Holograms and
Other Mind Blowing Digital Technologies". 3 September 2012. Archived from the original on
7 August 2019. Retrieved 20 November 2023.

Swarovski, Philips, unveil 'Active Crystals'." Press Trust of India. 20 November 2023.

Penelope Cruz's Atelier Swarovski Kewelry Campaign Is Fire". Us Weekly. 30 January 2019.
Archived from the original on 7 August 2019. Retrieved20 November 2023.

Expert Advice: How to Determine the Value of Swarovski Crystals - Catawiki