A considered approach
Since taking over distribution from its previous partner, Thomas Sabo has invested heavily in the Canadian market. Philippe Hazan, managing director of Thomas Sabo Canada, says building a presence here is not simply a matter of believing that if something is a runaway hit in the United States, the same will be true north of the border. Target Canada’s failure and eventual bankruptcy two years after entering the market is a perfect example, he notes.
“What happened with Target is a very clear statement from the Canadian consumer that we can’t be an afterthought,” Hazan says.
“Canada is its own market with its own habits. I think companies that come into Canada and don’t understand that have a very hard time developing their brands. That being said, there are certain parts of the country that have always been attracted to brands. However, we’ve seen a lot of evolution in the traditional jeweller. It’s a little bit of adapt or else.”
While some brands prefer to make a big splash in the United States and migrate north, Thomas Sabo has taken a different route, focusing first on Canada and using it as a “learning model,” Winzer says. This year will see a couple of ‘firsts’ when it comes to the United States, though, namely in the form of the New York City flagship store, as well as the company taking a booth at JCK Las Vegas.
“The focus in the last few years has not been on the Americas, but more in Europe and Asia,” Winzer says. “America was not on our radar previously because going into that market requires a very big investment. I think we’re now ready for the American market because we can see from our track record over the last few years in Canada that the demand is there for Thomas Sabo. It’s a different way of doing things compared to other companies who go into America first and then Canada, but then many also fail in the United States and don’t even make it here.”
The competitive landscape is never far from mind, given the millions of dollars that go into marketing a brand. Innovation is also key, as is not putting all your eggs into one basket. Each season sees dozens of new styles added to Thomas Sabo’s various collections. It’s a necessity Winzer says gives both the company and its dealers an edge over the competition.
“The biggest advantage we have is that we don’t rely on one product,” he explains. “We have a very solid distribution of different product lines. If one isn’t as strong, the others make up the difference. The risk for us and the independent jeweller is limited because you can invest in so many different product groups to stay competitive.”
