Hans-Kristian Hoejsgaard, the globe-trotting CEO of Davidoff
cigars, is on good form for our interview at the TFWA World Exhibition in
Cannes. Sporting a fine-looking Breguet watch, Hoejsgaard explained that he had
just completed the rebranding of the group from a “branded house to a house of
brands”.
The rebranding has encompassed a new company name –
Oettinger Davidoff AG – and a new corporate identity. The trademark is now in a
discreet gold colour, while the dark brown in the printed matter is designed to
reflect the company’s tobacco activities.
“In my first 90 days as CEO [Hoejsgaard was appointed in March
2011], I talked about transforming the company from a branded house to a house
of brands. Since then, we’ve focused on getting it right and becoming an
innovation leader. We are a brand, not a territory,” said Hoejsgaard.
He emphasised that Oettinger Davidoff, based in Basel,
Switzerland, has nine other brands in its portfolio as well as Davidoff, which
is currently the best known internationally.
Store rebranding
Key words like “quality” and “authenticity” trip off
Hoejsgaard’s tongue as he described how, as part of the rebranding process, the
Davidoff stores had been renamed with the "Davidoff of Geneva - since
1911" wording on the fascia. “We want them to be a destination store,” he
added.
“It’s first and foremost about brands; we’ve spent a lot,” Hoejsgaard
said of the rebranding. “We have divested non-core businesses and merged two
others. We are a passionate family company of brands. We know about brands and
people trust us.”
As part of its luxury brand positioning, the company recently
partnered with the real-estate developer of the Du Parc Kempinski Hotel
Residences overlooking Lake Geneva to incorporate a Davidoff cigar lounge for
residents. “We want to distinguish ourselves as a luxury brand, so we have also
produced a bespoke humidor in a Rolls-Royce and a Bentley, for example. We want
to enter spaces we are connected with as a brand.”
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| Davidoff CEO Hans-Kristian Hoejsgaard |
Cigar accessories a
growth area
Expansion plans in the pipeline include new cigar accessories,
following the recent appointment of an executive to handle this category from
2014.
“Growth is coming from people aged 25 to 30,” noted
Hoejsgaard. “They are into lifestyle and wine and food. Accessories will be
big, but we are limited in what we can do in accessories. There are two
‘destinations’ for cigar accessories – the first is a gentleman’s destination
and the second is a woman buying gifts.”
Hoejsgaard promises that the new accessories will be
“exclusive, exciting and viable”, and will help Davidoff remain a retail
destination.
Expansion in the
China market
China has been identified as a market for expansion, with
the Chinese traveller as a particular focus. The Davidoff brand is already
present in China with 11 monobrand stores, operated by Mr Qi Jianhong of
Sparkle Roll Group Ltd, who is also a Bentley and watch distributor in the
Chinese market and helped build Burberry and Bang & Olufsen in China.
“There are two risks in expanding in China: the first is the
financial challenge, and secondly the brand image may suffer if it is not done with
a luxury positioning. The challenge is how to expand in a controlled way,” said
Hoejsgaard, adding: “We’re focusing now on the Chinese traveller, as Davidoff
is a brand they know.”
He noted that the cigar accessories segment is just as important in China as the cigar business.
One particular challenge for Davidoff is that the Dominican
Republic, Honduras and Nicaragua – the three main sources of tobacco for
Davidoff cigars – do not recognise China politically, so the Chinese government
imposes high taxes and excise duties on imports, making the cigars very
expensive. Lobbying efforts are under way to ameliorate the situation,
according to Hoejsgaard.
The new Davidoff
Nicaragua cigar
The launch of the new Davidoff Nicaragua cigar, which began
in the US from July, has been “fantastic”, said Hoejsgaard. “It has been
phenomenal and we are now promoting it in travel retail. We’ve had a great start.”
He is aiming to get new consumers to try Davidoff via the Nicaraguan-sourced cigar. Certainly, the Davidoff Nicaragua Toro scored 100 points with one particular cigar aficionado I know, who says it’s the closest in taste to a smooth Cuban cigar.
Closing our interview, Hoejsgaard revealed that his leisure
pursuits include cooking and art collecting (Davidoff is a sponsor of the Art
Basel art fairs in Basel, Hong Kong and Miami Beach), as well as interior
design. As he travels between his bases in Manhattan, Paris, Majorca and Denmark,
the dynamic Dane leads a charmed life. He lives up to his “Time Beautifully
Filled” tagline, used on all Davidoff communications.
Follow Hans-Kristian Hoejsgaard on his fascinating Twitter
feed @DavidoffCEO.
Visit www.davidoff.com
