COMPETITORS
Analysis Of The Market
The global jewellery market is a very competitive environment in which Swarovski has gained a high position in brand value. Their biggest competitors include Tiffany & Co., Pandora, Signet Jewllers, H Stern., Chow Tai Fook, Cartier, Buccellati, Harry Winston Inc., Chopard., Rajesh Export Ltd., Chanel and LVMH Moët Hennessy (Facts & Factors, 2021). This is a very big market that is based on disposable income, which is why countries in more developed economies tend to have bigger markets, such as in the UK.
The closest competitor that Swarovski has is Pandora. This is a company that earned a total of 9,945 million pounds in physical stores and a total of 5,977 million pounds in online stores for the year 2021. Their biggest markets include that USA and the UK. The company has had a negative organic growth since 2018 but for 2021 it managed to grow a 23% recuperating from the pandemic with a total net profit income by which they finished the year of 4,160 million pounds. Their dividends for 2021 increased to 15 million per share when last year none where given out. It is important to keep in mind that Pandora focuses on gift giving as the majority of their sales come from men purchasing for women around the age of 18-34 which take part of 44% of their sales (Pandora A/S, 2021).
Another company that is also considered a direct competitor that is LVMH, a French multinational that manages multiple jewellery brands such as Christian Dior, Bulgari, Louis Vuitton and many others. The company manages to have 44.7 billion pounds in revenue for 2021 and went down 17% compared to last year with a total profit of 8.3 billion that when down 28% compared to last year. The company has more than 5,000 stores and works around 80 countries. The company’s customers are women with a median age of 33 and according to their indicators their buyers are 71% women. Their biggest markets include Europe, Asia and the US.
Digital Tranformation Matrix
Tekic, Z., & Koroteev, D. (2019). From disruptively digital to proudly analog: a holistic typology of digital transformation strategies. Business Horizons, 62(6), 683–693.
Given the nature of the industry, Swarovski and its competitors are considered Proud to be Analog, since they digitalize parts of the business, without compromising core activities. For example, LVMH has introduced vending machines to reduce time spent in store (Euromonitor International, 2016), whereas Pandora implemented an AR try-on tool for some jewellery items on their website.