Aigner is focusing on Asia and the Middle East for
growth, according to the German premium leather goods brand’s dynamic CEO
Sibylle Schoen.
But consumer consumption is increasing in the brand’s home
market of Germany thanks to the strong economy, she told me during the TFWA
World Exhibition in October.
Schoen continued: “Outside Germany, the whole Asian
market is doing extremely well for us. The Aigner brand is also established in
the Middle East. We entered Kuwait in 2013 with a partner, and I have never
seen such a warm welcome. We’re doing very well there.”
The warm welcome she received in Kuwait visiting a new
partner was the personal highlight of her year so far, Schoen said.
In Europe, the brand has also been performing
surprisingly well. “Our European effort is paying off in Scandinavia, including
Denmark, and Stockholm. The south of Europe, for example Rome, is doing well
too.”
Schoen puts Aigner’s success partly down to its
affordable luxury price point. The new Cybill handbag – launched earlier this
year and named after her – retails at between €899 and €1,200 for a medium-size
and large bag, respectively. Created by head designer Christian Beck to mark
the anniversary of Aigner’s Heritage collection, the bag pays homage to the
accessories of the 1970s and features exclusive leather classics.
Schoen also cites good staff training as critical for
success. “We give training to staff on the products and we offer Champagne
in-store to customers, or tea in the Arab countries. We also send presents to
hotels, for example. We appreciate different cultures and we aim to offer the
best service to our customers.”
Aigner builds its China presence
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| Aigner CEO Sibylle Schoen |
Aigner builds its China presence
Aigner entered the Chinese market in 2000 and is now
pursuing a retail expansion strategy in second-tier cities such as Xi’an and
Shenyang, “where the money sits”, according to Oliver Schellbach, Aigner’s head
of international sales Far East. The company says it initially opened shops in
second-tier cities to generate future store openings in Beijing and Shanghai.
The company, which appointed a new distributor in China
in 2011, will celebrate its first shop in Shanghai in December 2013.
“We changed our distributor at the end of 2010/2011 to
raise the bar on our presence in China. Over the past year we have opened eight
very important retail locations in tier-two cities such as Jinan, Shenyang and
Xi’an.”
Schellbach described these openings as the “face of the
brand” in mainland China, boosting brand awareness further.
China is an important destination for other Asian
nationalities, he noted. But he added that today, sales growth is no longer
coming from the Japanese. “Sales to the Japanese are decreasing. Their department
stores are old-school - the retail sector in Japan needs a turnaround. In the
1990s, Takashimaya, Isetan and Mitsukoshi generated big business but the world
has dramatically changed. There are new multiple retail labels like Beams and
United Arrows, and now the Japanese go to Korea or Singapore – where there is a
Takashimaya - for shopping.”
New-generation
retail lands in China
“New-style retail” has landed in China, led by overseas
investors from Hong Kong, Singapore and other countries, continued Schellbach,
citing Plaza 66, the IFC mall, K11 and Galeries Lafayette as examples. “It’s all
about lifestyle, not product” in these new-generation retail concepts, which
cater for “younger, sophisticated, educated shoppers”, he said.
He added that Aigner had not seen a reduction in sales
following the recent economic slowdown in China, although it was a “concern”
and he knew that the effect could be felt generally in the country’s department
stores and shopping malls.
Noting that the Chinese are travelling more domestically
and internationally, Schellbach observed that there are 120 airports in China
alone. “It’s important to be in the top 10 airports and we have a growth
strategy for our Chinese airport business.”
Travel retail a key part of company strategy
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| Aigner Cybill bag |
Travel retail a key part of company strategy
The wider travel retail sector is also a focus. “Travel
retail is one of the pillars of our strategy because of the huge amount of
Chinese travellers. The future - and biggest - opportunities will be in domestic
duty-paid and duty-free. The retail infrastructure is there now in airports.
The key is to educate consumers.”
Aigner generates about 10% of its total turnover from Chinese
consumers, and most of these sales are made when the Chinese travel abroad to its
stores, notably in Europe. Aigner’s store staff in key cities such as Munich,
Salzburg and Vienna check the nationality of shoppers when they purchase a
product.
Is operating in China a challenge, I ask? “It is
difficult. There’s a cultural barrier and a language barrier. But what happened
in Japan and Korea is now starting to happen in China. Younger Chinese are studying
in the US or want to go abroad [to learn or work].”
Aigner sells its global product assortment in its stores
in China, and does not offer limited-edition items.
Turning to dynamic markets outside China, Schellbach
cited Indonesia and Vietnam. The former market now features 12 Aigner shops,
measuring some 250sq m each.
