Exclusive | Swarovski moves up from crystals to lab-grown diamonds as CEO Alexis Nasard plays ‘the long game’ to get over China’s consumption slowdown
- ‘We are happy to sit through all the turbulence that might be happening in the market, because we are playing the long game in China,’ Nasard tells the Post
- Brand’s ‘Created Diamonds Collection’ available at 34 stores in mainland China and three in Hong Kong
Austrian crystal maker Swarovski has launched a lab-grown diamonds collection in China, in a sign that it has confidence in its second-largest market by sales despite some economic turbulence.
“China is a very important market for us – for business, economic and cultural reasons,” Swarovski CEO Alexis Nasard said in an interview. “We are deeply committed to the region.”
The company launched its “Created Diamonds Collection” with an event at its flagship store in Shanghai last week. The collection will be available at 34 stores in mainland China and three in Hong Kong.
Nasard said that the collection is a win-win, as customers are getting a product that comes with better value for money compared with mined diamonds, and these stones are made with renewable energy and recycled metals. “We don’t believe that luxury is just about high prices,” he added.
The collection’s regular range has been priced from 3,000 yuan (US$414) to 95,000 yuan for 0.2 to 7 carat diamonds. The prices for a made-to-order high complication collection range from 135,000 yuan to 1.8 million yuan, the company said.
“We have a very broad price palette, as we are in a position to offer the appropriate value for money for every type of customer that our brand appeals to,” Nasard said.
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“We are happy to sit through all the turbulence that might be happening in the market, because we are playing the long game in China,” Nasard said.
China, its second-largest market after the United States, currently represents 15 per cent of Swarovski’s sales after “solid growth in 2023”, the CEO said.
Last year, the company’s retail sales grew by 4 per cent to €1.8 billion (US$1.9 billion), well above overall growth in a slowing luxury market, amid a volatile geopolitical and macroeconomic environment, the company said in a statement last month.
Swarovski Crystal Business, the unit that produces crystal glass, jewellery, watches and accessories, has a global reach with around 6,600 points of sale, of which 2,300 are owned stores, in more than 150 countries.
“Today, we have 614 points of purchase in Greater China, out of which we have 227 directly operated stores,” Nasard said.
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As China is also important in terms of its cultural influence on the world, Nasard said being successful in the country went “beyond just scoring with numbers”. And while Swarovski is not expanding, it is making its current stores “more engaging, modern and renewed”, he added.
“We will probably open a few more stores [in China], but at this stage, we believe we are close to cruising altitude in terms of points of purchase across China, particularly as online is a very important component of the business,” he said.
Swarovski is also interest in Southeast Asia, where Singapore and Bangkok are among key cities that the brand is focused on, Nasard said.
“India is one of the fastest growing regions in the world,” he added. “We will be rolling out our Created Diamonds Collection across the region for the course of 2024.
“We focus on bricks-and-mortar retail presence in top cities, because this is where most of the middle class, most of the affluent people who can afford our brand, are living,” Nasard said. Top cities are also where culture is shaped and trends are created, he added.
