Swarovski refashions to a Tech Company?

Embracing change is the key to success for all retail businesses.

Why would a company with a 121 year history which began in Austria years ago explore high tech solutions as a future for their business? With a workforce of 31,000 and gross revenue in 2015 of $3.8 billion, Swarovski as a brand has achieved global status as the fashion designer of shiny crystals. Retail outlets globally sell jewellery and fashion designer products. In past years Swarovski also sold optical goods and crystals for industrial purposes such as oil field drilling equipment.
The chairman of Swarovski, Longus Swarovski made the move to embrace technology in Swarovski in 2012 shortly after the Kodak Corporation filed for bankruptcy. Kodak film was the cornerstone to photography for over 100 years before digital cameras took over.
Kodak was a slow adopter of technology and suffered the consequences of a fundamental failure to embrace change. Swarovski did not want to follow Kodak to obscurity.
Competition for the shiny crystal market also has witnessed many low cost Chinese manufacturers flood the crystal market globally. Swarovski has faced challenges on many fronts largely because the labour component of the manufacturing process for Swarovski crystals is more expensive.
In any business embracing change is fundamental to survival. In the retail industry, embracing change is fundamental to retaining, attracting and expanding your customer base.
Technology and innovation are not words normally associated with the name Swarovski. Teams within Swarovski began in 2013 to update and revamp production facilities. New technologies were involved to expedite generating smaller batches of crystals at lower costs. The shapes of the crystals were also modified into smaller sizes.
Solar powered crystals were developed in Swarovski research and development labs These solar powered crystals were then added to the fitness tracker called the 'Misfit - the Smart Watch Company' as the first solar powered crystals to power a smart watch. Swarovski small crystals now are solar cells used in generating electricity. The uses are just now becoming applied and utilised in many new applications.
Swarovski crystals have also been created in their research labs. These crystals which are able to change color through touch have introduced a new fashion statement. Launched in 2016 at lavish New York based Gala Dinners in concert with the fashion designer Tory Birch, Swarovski created the first dress where the Swarovski Crystals on the dress actually change color with touch.
Swarovski enjoyed many benefits for their exploration to add tech research into their company DNA. Great strides in E-commerce have resulted in greater sales penetration and increased volumes into previously existing markets. Several tech partnerships for the Swarovski Group have grown from their exploration into the uncharted tech waters. A change into the way the company views itself has mobilised the staff globally. The corporate mindset is now refocused on finding ways to create greater efficiencies, to look at current challenges with a new perspective and a greater awareness of alternate ways to expand market share utilising tech solutions.
Although still a work in progress on adopting tech to grow the Swarovski footprint globally, working collaboratively, the company has found ways to expand production, increase margins, create new products and has imparted a new corporate mind set in this 121 year old business.
Embracing change is the key to success for all retail businesses. Investing in the future requires radical steps and thinking out of the box for all businesses but most importantly for all retail businesses.
The writer is chief executive of Middle East Council of Shopping Centres. Views expressed are his own and do not reflect the newspaper's policies.