The new Swarovski stores will be located in both first-tier cities and smaller ones. — China Daily
SHANGHAI: Austrian jewellery and accessories brand Swarovski will achieve a record rate of store openings in China this year, the company’s chief executive officer Alexis Nasard says in an interview with China Daily.
Nasard said this during a visit to China last week, his first to the country since it optimised its Covid-19 control measures.
The new Swarovski stores will be located in both first-tier cities and smaller ones. Meanwhile, the company will also have refurbished 70% of its existing stores in China by the end of this year, said Nasard.
Apart from better brand building, the company’s stress on physical stores can be attributed to the fact that 75% of its sales revenue is generated by offline channels, while the rest is from online retailing.
Swarovski saw double-digit growth in its China stores in April. Consumers are returning to the stores, doing “a lot of revenge spending”.
As a result, the company’s combined online and offline sales in China are back to their pre-pandemic levels.
This is in line with market consultancy Bain and Co’s prediction in February, which said that China’s luxury market will recover before the first quarter wraps up.
“The recovery in people’s consumption appetite is putting China on track to become Swarovski’s No. 1 market,” Nasard said.
While the United States is still the top moneymaker for Swarovski, which is expected to account for 12% of the company’s annual revenue this year, China, its second-largest market, is not too far behind, expecting to contribute 11% to Swarovski’s annual turnover.
According to Nasard, the spike in personal savings in China during the pandemic period can be translated into a lot of growth potential for Swarovski. — China Daily/ANN
