Thomas Sabo: Bringing a ‘lifestyle brand’ to the masses

by charlene_voisin | May 1, 2015 9:00 am

By Jacquie De Almeida

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Harald Winzer eagerly flips through images on his iPad, intent on showing the interior décor of Thomas Sabo’s British flagship store on London’s South Molton Street.

His purpose is to not only point out the Venetian silk lamps suspended from the ceiling, the terrazo-tiled floor complementing the dark furniture, or the Asian window grilles that lend to the mood of some of the company’s collections. Winzer, who leads Thomas Sabo as its chief executive officer, is offering a sneak peek into how the brand’s Toronto flagship store will look when it opens its doors at the Eaton Centre in September, along with the fine jewellery collection that will grace its showcases.

It’s the first time the German company has offered a line comprising 18-karat gold, sterling silver, diamonds, and gemstones, which for the time being, will only be available at its flagships stores, including Montreal and Toronto.

Demand for the Hindu chakra-inspired jewellery—which will range from $1200 to $15,000 Cdn—has been high since its unveiling last November in Zurich.

 “I’m stumped by the sales figures we’ve achieved in the last few weeks because consumers know Thomas Sabo as a fashion jewellery company,” says Winzer, while taking a break from the high-glam goings-on that is a Thomas Sabo product preview. The showcases displaying the 2015 spring/summer collection pepper an event room at Toronto’s Shangri-La Hotel, an appropriate venue considering its own Asia-inspired décor.

30 years and counting

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The launch of the fine jewellery collection seems fitting, given it coincided with Thomas Sabo’s 30th year in business. It was in the early 1980s when company founder Thomas Sabo—who apprenticed to become a precision mechanic—looked to Asia to source silver jewellery that he sold in Germany. By 1984, he had established his namesake company, added a team of designers, and developed a brand concept.

In the years since, Thomas Sabo has expanded to include more than 250 concept stores worldwide, over 2600 trade partners, and about 1500 employees. It’s also seen itself grow from offering only sterling silver to a company that now bills itself as a ‘lifestyle brand,’ reflected in its ‘Glam & Soul,’ ‘Karma Beads,’ ‘Rebel at Heart,’ ‘Charm Club,’ and watch collections. Along the way, Thomas Sabo also brought a few brand ambassadors on board, which today include British fashion model, Georgia May Jagger (daughter of Mick Jagger and Jerry Hall); Formula 1 driver, Nico Rosberg; and violin virtuoso, David Garrett. And last December, it made its first foray into television advertising that ran not only in Canada, but in Sweden, the United Kingdom, Australia, and Germany.

The list of accomplishments and stats don’t end there. Since first entering the Canadian market about five years ago, Thomas Sabo has opened 11 concept stores across the country and grown its client list to just over 200 independents. Aside from the flagship store at the Eaton Centre, at least two more concept stores are slated to open in the Greater Toronto Area this year.

Winzer says a great deal of consideration goes into opening a concept store in a geographical area that is already served by a Thomas Sabo retail partner. Ultimately, these locations help promote a brand, he explains, and that’s a good thing for jewellers who carry the line.

“If we didn’t have any concept stores, no independents would buy into Thomas Sabo because they would say it isn’t recognized in the market,” he says. “What we’ve seen in every market we operate is that you need both. You need solid distribution through your own concept stores, plus independent retail partners with the right brand appearance. One doesn’t happen without the other.”

A considered approach

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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.”

Counteracting copycats

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As Thomas Sabo’s managing director for the United States and wholesale director for North America, Erwin Wieser is in charge of growing the brand in what is considered the largest consumer goods market in the world. Competition is good, he says, helping to drive innovation to remain relevant to a loyal and growing consumer base, as well as to present retailers with a tried-and-true brand.

“It’s very important for retailers to have new and exciting products, but it’s even more important to have stability,” he says. “They need a brand they can count on to do a certain amount of turnover year after year. That way, they can plan and budget their business for the whole year.”

Protecting a brand’s integrity is also a necessity, particularly with copycat product so easily purchased online and pushed on unsuspecting browsers.

As part of its efforts to reach consumers, Thomas Sabo revamped its website last year, overhauling its e-commerce capabilities to optimize navigation and provide access to more than 2000 items of jewellery and watches. The company’s online efforts also include ensuring consumers purchase true Thomas Sabo product.

“We spend an enormous amount of money protecting our brand on search engines and making sure copycat websites don’t pop up every time someone researches Thomas Sabo,” Hazan explains. “We’re really investing in protecting the brand’s identity and making sure our partners also benefit from it.”

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