Swarovski: Of crystal clear branding

BANGALORE: It''s a name that has becomesynonymous with crystal and ensures exclusivity not just in ownership but evenaccess to its vast plant in a tiny village in Innsbruck, Austria, which produces65 million crystal pieces a day. The family-held company keeps crystalcutting techniques as closely guarded a secret as the Coca-Colaformula.Swarovski is clearly a name that brings a different dimension tothe pride of ownership factor in branding. In India since January 2001,Swarovski plans to take the brand below the upper-upper end of consumers whereit currently enjoys patronage and even wants to tap the bridal jewellerysegment.V. Shiv Kumar, country manager, Swarovski India, is emphatic thatthe company will not launch a bridal collection but that it has recommended toits headquarters to incorporate Indian colours like red and more yellowgold-based crystal jewellery which will be retailed in its showrooms across 12cities.Sales in India, one of the 2.5 billion Swiss francs company''s 30international subsidiaries, have doubled since last year, Shiv Kumar says, andthanks to a growing interest in Vaastu and Feng Shui, crystal sales have grown.Both disciplines recommend crystal since it dissipates light energy.Internationally and in India, jewellery accounts for 35 per cent of Swarovski''ssales. But it''s not been an easy run here. With duties on crystal imports at 70per cent, much of the costs have been absorbed by the company so that prices arekept at just a little higher than international levels.What we need is areduction in duties to 35 per cent which is likely to happen by 2005, Shiv Kumarsaid.Exclusivity goes a step further with the Swarovski Collectors''Society, which the company claims is the largest privately owned collectors''database. While the US has 150,000 members in this club, India has 700.Swarovski is marketing the Society aggressively in India in order toachieve its five-year target of Indian operations accounting for 3-5 per cent ofthe company''s global turnover.