Swarovski plans to double its market share in the Middle
East through an “aggressive” expansion plan that will see it increase its
stores in Saudi Arabia from six to twenty, its CEO said.
The luxury crystal and jewellery house generates three percent
of its profits – around €34m – from the Middle East but aims to raise it to six
percent in the five years, said Robert Buchbauer.
“With an extension of businesses from six into twenty stores
in Saudi, we should be able to increase the share of the region from 3 to 6
percent in the next five years,” he said.
“We have a few emerging regions which grow at an even higher
rate than the rest of the world [at] double digit growth and these will regions
most likely take over a bigger part of our shares. [The] Middle East region and
Latin American are the most important ones.”
The Austria-based firm, which was established in 1985 and is
still family run, will increase the number of stores in the region from 25 to
over 40 by the end of the year. The bulk of store openings will target Saudi
Arabia, but the firm also sees opportunity in Qatar and Iraq.
“Is it quite an
aggressive plan, the way we want to grow,” said Rasmus Olsson, manager consumer
goods business Middle East. “We are present in all of the Middle East except
Iraq but it is just a question of time until we have our first boutique in Iraq
as well.
“Abu Dhabi is definitely where we see quite a deal of
potential, Qatar also potential no question [and] Saudi is the big engine,” he
said, adding that the group also hopes to increase its market share in Kuwait,
Syria and Egypt.
In the last ten years Swarovski has seen a dramatic
turnaround in its business, moving away from kitsch miniature sculptures and
figurines to collaborations with some of the biggest names in fashion,
jewellery and lighting. Last year, the firm generated €2.66bn in turnover and
grew 23 percent.
“We are growing 16 percent after 23 percent last year,
although what I am most proud of is 2009 [when] we grew 6 percent,” Buchbauer
said, adding that the firm maintained good sales amid the downturn as a result
of its “duel business model”.
“We try to be very aspiration and very desirable as a brand
but at the same time accessible. I think playing into both directions really
makes it very attractive as a brand even when times get tough and wallets
become thin,” he said.
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