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These recent moves are part of a move aimed to distinguish between Caran d'Ache's traditional activities (color pencils and artist products) and its luxury products. "Caran d'Ache seeks a more defined strategy with a view to dissociating the two activities," explains its managing director Silvio Laurenti. "Although Caran d'Ache remains a single entity, the company has two different logos now and our goal is to adopt separate approaches for both businesses in terms of marketing and our distributors network." The re-branding is expected to cause the largest impact in Japan, Singapore, Hong Kong and Saudi Arabia where luxury-writing instruments represent 60 percent of total sales. Japan is also Caran d'Ache's largest market for luxury lighters. However, when it comes to luxury writing instruments, the company still needs to catch up behind its main rivals Mont Blanc, Waterman, Cross and Parker. To boost its presence in Japan, Caran d'Ache is working together with leading Japanese department stores and retailers. The company also plans to broaden its high-end product offerings and to install boutique outlets within larger stores. In face of the competition, Caran d'Ache has capitalized on its "Swiss-made" label, as well as the fact that most pen manufacturers have given up metal in favor of plastic in producing writing instruments. Despite a continued economic slump in Asia, the luxury goods sector already shows encouraging signs of growth. Besides, according to Laurenti, the luxury products sector usually holds up in tough times. "Economic crises do not really affect the low-end and high-end customer bases, but rather the middle-range," he comments.
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Ricola www.ricola.ch Hilti www.hilti.co.jp  |
Caran d'Ache managing director Silvio Laurenti sees high-end writing instruments as an important luxury goods move for the company.