For over a century, Victorinox has been synonymous with the Swiss Army Knife. A brand known worldwide for its famous pocket knife, Victorinox has remarkably transformed and adapted itself to the times. By reinventing its core product, the company has staved off threats to its business, for example, from the heightened security at airports internationally, which has led to a ban on the pocket knife in carry-on baggage. Today, Victorinox has grown to include other merchandise, though it still focuses sharply at the quality and ingenuity of its Swiss Army Knife. At Baselworld 2012, Watches, Luxury & Beyond spoke at length with Carl Elsener, CEO Victorinox AG. Here are the excerpts:

WL: What is Victorinox doing in emerging markets? What is your strategy for the new class of buyers in these countries?

CE: Our key markets at the moment for Victorinox are Europe and North America. But, also, the Asian and Latin American markets are growing markets. . In India and in China, people like western brands. Switzerland has a special appeal because these products are perceived as quality products - functional, innovative, and with iconic design. So we see big potential with our products in Latin America and Asia. We also started investing in these markets over ten years ago. And in the key markets like China, Japan, India, we have subsidiaries.

WL: Victorinox has always been considered a brand which is identified with the Swiss Army Knife. And then you’ve managed to integrate that brand into new things like USB drives etc. Do you see that as a restriction or as a great positive?

CE: The challenge for us is to always keep this tradition and reliability, but still be open to development of new trends globally. Our team tries to make sure we are open, that we can adjust our products to new desires of our customers and still retain the reliability, quality and heritage of our brands . When you look at the big companies who are in the stock markets, many of them are driven by short-term values like short–term profit. We are a family company; we don’t think quarterly instead we think in terms of generationsWe want our company to be successful for the next generation and mutual trust and respect is important. We focus on our employees, customer satisfaction and quality and functionality of our products. My father always told me that when you make these three things right, not too much can go wrong. And I think success and also profit are a natural result of this.

WL: Do you think that the Victorinox buyer is a universal buyer? Is he no different when from North America, Europe, Asia or Latina America?

CE: I think there are differences, but I think in general, with people in North America, Europe and Asia, there’s a growing part who like to come back to long-term values, quality and functionality. For quite sometime now, things had become unsustainable and short-term but people are always looking for a partner. We all have our personal stories with the Swiss Army Knife, for example “When my father first gifted me a S.A.K”. And we get very nice letters every week from all over the world in which people tell us how happy they are with the product. They tell us niceand sometimes dramatic stories where it has been used to save someone’s life. So people tell us it’s not just a knife but a companion for life. And we try to integrate this companionship into power communication. We put the stories of our customers at the centre.

WL: Can you tell me a little about your India strategy? Right now, I see Victorinox more visible in multi-brand showrooms.

CE: In India, till 10 years ago, imports were restricted. Therefore the market was closed for the SAK. It’s only been 10 years since this category has come into the market. As you rightly said, we are present in all multi-brand outlets. In the beginning, some of them had a big mind-block. How could they sell a pocket knife when they didn’t have a department where they could fit it in? Then, we brought in Basecamp, where it educated these departmental stores as to how you can integrate different products under the same roof. We used to think Chennai was a very conservative market which is why our South Head Office was in Bangalore, but Chennai is doing fantastically well. Going by the response, we are thinking of opening another store in Chennai.

WL: The brand perception of Victorinox is very strong in India but within a very small section of the population. Do you see the possibility of expanding this brand awareness?

CE: Today, in India, the Swiss Army Knife is at a certain price point where only the middle class can afford it. We did try and experiment in Vijaywada in Andhra Pradesh, we have got success as far as our pocket knives are concerned but it is trickling slowly. So, eventually we have to go to the C towns and villages because he is the right user of the pocket knife. Once a farmer uses our knife, he has bought for life because he knows that the quality of the knife is so good. For example we are with the specialized forces in Siachen, and they swear by the knife. It’s just been 10 years since we have come into India and have already achieved so much.The market has accepted us and they are talking to us in the positive direction and they are inviting us in. Of course, there is also the whole issue of European buyers being largely homogenous, whereas India is very different and there is not much homogeneity, so it takes a while to build the brand.

We are present right from Guwahati in the north east to Chennai in the south. We are totally covered in the west and in the east we have covered Calcutta, Assam and Guwahati, but there is a big gap over there. You know that not all products can reach there, I mean even for a Titan watch to reach some of those pockets is difficult. But I think that is the challenge we need to take up. That’s the goal we have set for our team.

WL: Will you also look at bringing in a brand ambassador?

CE: We are currently launching a new brand campaign and with this we will appoint some brand ambassadors. Especially for Asia, we are looking at having brand ambassadors. We think it’s absolutely necessary because with these kinds of figures, people trust them and in turn trust the brand. We have not named anyone at present but we will in the future. The strongest brand ambassador we have is the Swiss Army Knife because everybody knows and trusts it.People as brand ambassadors are very important, but if we look at the world, our strongest and best is the little red knife, no doubt about it! The Dalai Lama once said that I always carry my tooth brush and my Swiss Army Knife.

WL: You also have a very large moding community, people who work on your used knives, refurbish them. Do you see them as a potential base for people who can grow and disseminate the values of your company?

CE: Yes, we had some people who really are friends and fans of our brand and we have, therefore, in the past few years invested in limited editions especially for this community . Many people have some stories which are connected to the knife. So we get many people who send us their knives and tell us, please don’t replace this, just repair the blade or sharpen it or replace the handle because we have nice memories with the Swiss Army Knife and we would like the same knife back. So there is always an attachment with the SAK.

> muraliswami@thehindu.co.in

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