Creating the write impression
Common sense dictates that writing instruments sales should be on a downward spiral or levelling off at the very least. You’d think it reasonable to assume that the modern-day accessories of lap-tops and mobile phones have wiped out the need for the more traditional bastion of communication: the pen. In actual fact, this couldn’t be further from the truth.
In travel retail, writing instruments have shown an impressive 42% increase in sales since 2003, with sales nearing US$400m in 2005. Top-name companies in the sector are showing similar, if not greater increases in sales, and put much of the general health of the category down to shrewd product development and an increased focus on customised merchandising and marketing initiatives.
The sector is no longer about selling a functional pen in an acrylic-moulded box. It’s about selling a luxury accessory, and making a fashion statement. This is particularly evident in the rise of limited edition, luxury pens, and in the growing focus on the women’s market.
Most companies are carefully targeting women with at least one new launch or line extension this year, as female buyers are becoming more and more the norm. Caran d’Ache, for example, had great success with its Ecridor Eclat ballpoint pen last year, and is this year launching a new version, “Un jardin en hiver”. Aimed at women in the 30+ age bracket, the pen has engraved flower petals and butterfly wings with 42 Swarovski crystals. “Caran d’Ache has identified a very clear trend in associating writing instruments with jewellery, essentially targeting women looking for fashion accessories,” says international duty free manager Urs Messerli.
The company is not alone. Last year, market leader Montblanc launched a women’s jewellery collection as part of the company’s programme of diversification: both companies have clearly identified a trend for selling pens and jewellery together, with the aim of capturing potential new female consumers.
Frey Wille, the Austrian jewellery manufacturer, is capitalising on this trend with the launch of a new, decorative ladies’ pen, which will soon be available in the brand’s own boutiques in both the domestic and travel retail markets.
Likewise, UK-based Conway Stewart has recognised the growing importance of women buyers, and has specifically targeted this group with its recent Nightingale enamel collection of products.
Because of the high-tech competition that the writing instrument sector will always face, companies are recognising more and more the need for something special and exclusive to capture the attention of the consumer. This often results in limited edition ranges, which are certainly on the increase in the sector.
Montblanc is master of this approach, and is famous for limited editions dedicated to famous artists, writers and musicians, which traditionally consist of 4,810 pieces (the height of the famous Montblanc peak in Switzerland).
This year’s innovations have been no exception, and were launched to celebrate the brand’s centennial year. They include the very exclusive Bohème Skeleton 3 Edition – a precious and finely-crafted line limited to just three pens; the Bohème 100; the Bohème 1906, which consists of 1,906 pieces, and several variants of the brand’s well known Star Walker line.
“Almost all our 100-year editions are sold out,” says Frank Passmann, general manager travel retail. “We believe what we have planned for the remaining year will be just as successful. The trend is going towards higher-priced and more limited products in domestic channels as our clients prefer more exclusive products. Travel retail is still not adapting to this trend because the purchase decisions are much more impulse-driven in that channel.”
Like Montblanc, Conway Stewart prides itself on addressing the market demand for limited editions, and as well as expanding its core range on a regular basis it also develops specialised lines with artistic and cultural themes to appeal to its solid base of collectors. These ranges can retail from anywhere between £399 (US$745) and £12,000.
“Successfully marketing fine writing instruments is a very delicate process,” says managing director Glenn Jones. “We have to balance the needs of our customers: those who are collectors seeking the latest limited edition; those with a passion for expressing themselves through their choice of writing instrument, and those seeking to make a statement about themselves through their choice of personal accessories. Each of these customers requires a different approach, and at Conway Stewart we do our best to keep an open and nimble approach to the marketing decisions we have to make.”
The company has developed a location-specific strategy towards both marketing and product development, which is so far serving it well. “Where we once might have launched an edition worldwide, we are now tailoring editions to specific geographical markets,” says Jones.
“As an example, we produced a recent edition exclusively for the Russian market, celebrating the Romanoff dynasty.” Sales increases of 23% last year are testament to the effectiveness of this approach, and Jones predicts that next year’s growth will increase to 38%.
The trend for developing a brand and diversifying into other product areas remains as strong as ever, and is particularly evident in the activities of the top-three names in travel retail. Montblanc was the pioneer for diversification and continues to push its formidable sales up with a broad product range and customised, branded fixtures.
“Our product presentation in branded fixtures allows a clear merchandise clustering, provides better orientation for the customer, and underlines the brand competence,” says Passmann. “The Montblanc merchandising units stand out from their surroundings
, but are not separate. They are harmoniously integrated into the existing retail setting.”
Because of its approach to merchandising, Montblanc has successfully sold its name as much as individual items. Although writing instruments remain the brand’s core product, building brand image and diversifying into other ranges have been the keys to strengthening Montblanc’s sales. Last year, 40% of the company’s turnover was achieved by products other than writing instruments, which nevertheless showed double-digit increases.
Number-two player Caran d’Ache is recording increases of nearly 30% and this year expects similar growth. Its new products, Un Jardin en Hiver, and innovative new ink concept the Colours of the Earth will contribute to this increase, but the brand’s continued roll-out of its boutique and shop-in-shop concept will play a more weighty role.
“We opened our first luxury shop-in-shop in South American duty free at Ezeiza airport in Buenos Aires with operator Interbaires in September 2006,” says Messerli.
Last year, the company opened a second Caran d’Ache boutique in China, in Shanghai, following its first one in Taipei, and now has 35 shop-in-shops and corners spread over five continents. The plan this year is to open more shop-in-shop and corner concepts throughout Europe, Asia and the Middle East.
For AT Cross, continued product diversification – combined with a complete re-brand earlier this year – has kept the UK brand firmly in the number-three position. The new corporate logo and updated company image are designed to communicate an innovative, design-led lifestyle brand that has products for both male and female consumers.
Current new product developments include new finishes and styles for the Apogee and Autocross
collections, as well as a range of leather accessories inspired by the luxury cars of the 1930s.
These include Sun Readers, new precision reading glasses, while a plethora of other launches within the Century II, Chantilly, ATX, Verve and Townsend lines are expected in the run-up to Christmas.
“These latest launches are perfect examples of Cross’s commitment to developing accessories for a modern, contemporary lifestyle, and are a reflection of the brand’s metamorphosis from solely a manufacturer of writing instruments to that of a lifestyle brand,” says director of sales Mark Ivory.
He adds: “By continually innovating and expanding the offering, Cross is not only reinforcing its position as brand leader within the premium writing instruments sector, but it is constantly adapting to changing consumer demands in order to provide a broad range of lifestyle accessories, which are appealing, accessible and relevant to today’s audiences.”
Whether the approach to this fast-growing sector be targeting new customers, creating demand with limited editions, diversifying into other product categories or a combination of the three, one thing is certain: continued growth looks, for the time being at least, something of a certainty.
“We have found a rapidly growing desire among consumers to have something special as a personal accessory,” says Conway Stewart’s Jones. “While having the latest mobile phone or laptop
computer offers a sense of satisfaction, it usually proves to be short-lived, as the technology marches onwards, rendering your new device obsolete within a very short period of time. But a quality fountain pen remains a treasured heirloom for generations.” n
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