Frontier Magazine
July 2011

The Mighty Pen

From the reed pens of Ancient Egypt to the modern fountain pens and rollerballs, the world of writing instruments spans the ages and has caught the imagination of many, being used to mark grand occasions such as the signature of the Constitution of the United States or the Armistice after World Wars I and II. In the present day, consumers can choose from a wide variety of writing instruments, from simple Bic pens costing a few euros to fountain pens costing several thousand.

But in today’s world of technological advances where tablet computers and smartphones are becoming ubiquitous, is there still a place for writing instruments? Or are they going to be relegated to museums and private collections; a relic of ages past? It all depends on how you look at the category. As a purely functional tool, writing instruments may well be under attack by new technology such as emails and tablet computers or smartphones. However, the category offers much more than convenience; it offers aspiration as well.

“Writing instruments are part of the luxury goods category,” explains Urs Messerli, international duty free manager for Caran d’Ache, “and in terms of product groups, luxury goods showed the strongest evolution in 2010 with +16.7% versus 2009, outpacing global duty-free sales which showed a growth of +13% in 2010 versus 2009 as per figures of Generation Research. For Caran d’Ache, 2010 was a terrific year showing a very strong double-digit growth versus 2009.”

Whether for personal use or for gifting, writing instruments have an appeal that goes beyond their use and, as David Dayan, international director for LATR, which is worldwide distributor of Parker in travel-retail, says: “Why do you buy a particular pen when they all have the same function? You first buy a pen that you like, that fits your lifestyle and your needs whether you are male or female, a business student, a worker, or an entrepreneur... It is primarily your pen [and acts] just like a bag, a pair of glasses or a watch, all of which are fashion [accessories]. In the same way, the pen [is a fashion accessory] in addition to its primary function.”

The partnership between Parker and LATR is a perfect example of the relevance of writing instruments for the travel-retail/duty-free channel. With over 100 years of history, Parker used to be “the market leader in travel-retail” about 15 years ago, according to Dayan, and decided to “return in force” last year with a “complete rework of their concept” of how pens are sold and for what purpose.

For Messerli, the appeal of writing instruments as a gift is undeniable, and also places the category firmly in the fashion accessory segment. “Writing instruments are ‘emotional/functional’ in the gift-giving market and are the perfect ‘premium’ gift item for a spouse/partner (birthday, homecoming, friendship/love) or informal gifts for friends/colleagues (return to work, homecoming, thank you, etc.). Our range of pens targeting women are more ‘fashion-driven’ with specific colour codes matching also their handbags or small leathergoods. Our pens decorated with Swarovski crystals sell particularly well in duty-free/travel-retail, as they become a piece of jewellery.”

The appeal of writing instruments goes beyond this, however, by providing customers with well-known brands that they can recognise and trust. Parker “is unquestionably a leader in the field of writing,” says Dayan. “Its reputation is already well-established and we have noticed this in the more than 50 countries where we have established the brand.”

Messerli agrees, saying that “consumers return to brands offering true values”, and explains how Caran d’Ache emphasises “the ‘Art of Craftsmanship’, the importance of values such as artisanship, and the mastery of traditional skills such as the ancient technique of using genuine Chinese lacquer.”

And there is still room for innovation. New inks and writing techniques have been developed throughout the ages, and Dayan says that the next innovation is just around the corner. “The real challenge today is that writing is not in competition with new technologies (tablets, smartphones, notebooks) but is the equal of those products. That’s why in these last two years Parker’s mission was to think of a new writing style to closely [reflect] the next decade. And I have the privilege to announce that Parker will soon introduce a large number of patents, an event without precedent in the field of writing, with a new invention to be unveiled in Cannes in September.”

What retailers need to be aware of is the potential of the category as a whole within the airport environment. “Retailers should broaden their product base of luxury accessories to reduce risk,” Messerli explains. “Also, it provides a more fulfilling shopping experience for the consumer as he is getting more choice. Retailers should develop enhanced retail areas for writing instruments & accessories, allowing the implementation of branded shop-in-shops and corners/displays.”

And when you hear that, as revealed by Messerli, “according to Generation Research, between 2000 and 2009, while the Luxury Goods category has grown statistically by +59.6% in US dollars, writing instruments grew by +74.8%,” the future of the category can be seen in an entirely fresh light.

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Friday 1st, July, 2011

Author: Marek Kolasinski

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