Swarovski’s vision for a successful brand refresh is crystal-clear

Swarovski’s latest marketing campaign, featuring pop diva and “Wicked” star Ariana Grande, is the latest indication of the brand’s positive performance in recent months. 

The campaign images featuring Grande laughing and partying in a festive, holiday-ready setting, iced out in layers of Swarovski jewellery pieces, reflect the company’s overall sparkle. 

A report of Swarovski’s results for the financial year ending last December 31 showed the Austrian crystal maker experienced solid profit growth of about 4 per cent, to reach about €1.8 billion. 

In addition, estimated earnings before interest and taxes ​(​EBIT) before restructuring costs were in the black for the first time since 2019, despite an adverse foreign exchange impact. 

Swarovski Group CEO Alexis Nasard noted that the brand’s sales have also risen by 4.5 per cent in the first half of this year. 

In a market where mid-tier and luxury brands are struggling to stay afloat, let alone increase their profits, Swarovski certainly did not achieve these results by accident. 

Swarovski’s strategic scheme for brand revival 

There are three key factors behind Swarovski’s rising status. The first is the addition of the brand’s first creative director, Giovanna Engelbert, in 2020, and its first CEO from outside the founding family, Nasard, in 2022. 

After Nasard and Engelbert joined the Swarovski squad, the team worked quickly on executing an updated merchandising strategy, dubbed LUXignite. 

In April last year, Dr Lea Sonderegger, Swarovski’s chief digital and information officer, stated, “Our goal is to offer high-quality experiences drawing on our long heritage in luxury. This is a core element of our LUXignite strategy, which is designed to consolidate Swarovski’s position in the luxury segment and expand its presence in the fine jewellery market.”

Prior to the brand’s product revamp, Swarovski was better known for its crystal figurines and simple pendants and bracelets. Today, the company is known for its statement pieces, including the Gema collection, which features a mix of crystals in different shapes, and the Millenia collection, which features oversize crystals. Items in both collections retail for hundreds of dollars.

The third and arguably most vital part of the brand’s new strategy is its fashion-focused, younger-leaning image. 

Thanks to its celebrity partnerships with taste-makers like Grande and supermodel Bella Hadid, strategic placements at red carpet events like the Met Gala, and a revamped merchandise assortment, the 128-year-old brand has successfully refreshed its image to suit the interests of the younger Millennial and Gen Z consumer. 

Can Swarovski sustain this growth?

Melissa Minkow, a director of retail strategy at CI&T, questioned the brand’s ability to sustain its sales growth, as the luxury price point of its newer prices will drive less volume, especially with younger, less financially affluent consumers. 

She noted, however, that the buzz generated by Swarovski’s latest campaign – featuring Grande – is a good sign for the brand in the year ahead.

“Ariana Grande was a great choice for the brand, given the timing of the ‘Wicked’ release and the buzz she’s generating because of that,” Minkow mused. “Swarovski has had to navigate appealing to younger audiences who may be less familiar with them, so this is a perfect tie-in for a younger consumer.”

Minkow also noted that Swarovski has successfully “pursued a very specific group of brand ambassadors and brands for partnerships in order to target younger and trendy consumers”.

The retail strategist pointed to collaborations with brands like Skims and Coperni, as well as Swarovski’s partnership with another popular female pop diva, Sabrina Carpenter. 

“Their assortment and brand image has moved away from heritage positioning and into high, yet accessible, fashion,” Minkow stated. 

“From a marketing perspective, they’re leaning strongly into social and experiential, which is extremely strategic in capturing that younger audience as well. This is a very creative example of how a luxury brand with heritage associations can move into a younger, provocative, trend-forward positioning when intentional and razor-focused on making that move.”

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