The Japan Times WORLD EYE REPORTS SWITZERLAND
©THE JAPAN TIMES	Thursday, August 2, 2001

Cutting a path to the Japanese market

During the nineteenth century, Switzerland was among the poorest countries in Europe. It was virtually one vast hamlet where most families were engaged in farming and exposed to the harsh conditions the alpine landscape. Seeing a need to create jobs, a cutler named Karl Elsener organized the Association of Swiss Master Cutlers in 1890 hoping that the group would be able to develop the first pocket-knife ever made for the Swiss army. The group invented one and the initial order came in 1891.

Carl Elsener, whose namesake founded the company he now heads, aims at capturing the Japanese consumer.

In the following years, the milliner's son developed lighter and more elegant pocket knives amidst an immediate wave of imitations from nearby. To stay ahead of the competition, Elsener put a premium on quality and functionality, introducing features like a wood saw and scissors. In 1909, the famous Victorinox cross and shield trademark was first stamped on the knives.

Today, Victorinox is still privately-owned by the Elsener family. Fourth-generation namesake Karl Elsener now runs the business, committed to preserving a legacy that goes beyond commercial considerations. "The company has gone through its ups and downs," he remarks. "Yet, we are proud to say that for more than 80 years all our staff have been able to be keep their jobs."

After more than a century, the trademark red Swiss army knife has remained a reliable and vital tool for millions of people around the world -- from the late US president Lyndon B Johnson to Nasa's Space Shuttle astronauts. That worldwide reputation has resulted in a balance sheet showing that 90 percent of the firm's revenues come from overseas sales.

Victorinox has been trying to carve out a niche in the Japanese market ever since it opened a fully owned subsidiary in Tokyo in 1993. The biggest challenge for the company so far in the way of capturing Japanese consumers has been a cultural gap. Japan currently makes up only three percent of total sales.

"Japanese consumers are not generally outdoor-oriented," muses Elsener. "This could be due to the development of the cities and the population density there."

Despite this, he remains very optimistic about turning Japanese consumers to the functionality of the Swiss Army knife. "We will need some time," he adds. "The execution of the product, which we continuously seek to improve, is something that appeals to Japanese more and more."

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