In this 28th installment in a series on the world's high-end brands, Yomiuri Shimbun staff writer Yoko Tanimoto interviewed Thomas O'Neill, Harry Winston chief executive officer (CEO), at the firm's head office in New York, to ask him about the brand's attraction. A New York native, O'Neill holds a PhD in international business, economics and business history from McGill University in Canada. He assumed his current position in 2004, after serving in senior executive positions at Tiffany & Co. and LVMH Fashion Group, Americas. He is also president of Harry Winston Diamond Corporation, which owns 100 percent of the shares in Harry Winston.
The Yomiuri Shimbun: What's the philosophy of your brand?
Thomas O'Neill: Harry Winston has two strategies: The first is about sourcing and offering our clients the best diamonds in the world. The second is to take the best diamonds in the world and to put them into the most beautiful designs in the world.
Compared to any other brands...the core of the brand's business is about diamonds. Harry Winston is a diamond jewelry-designing company.
The philosophy behind our design is very simple — diamonds look the most beautiful on a woman's skin. So, as a result, our designs use the diamonds as focus of the jewelry. There's a minimum amount of metal to the eye when you wear the diamonds.
YS: Has the current global recession affected your firm's sales strategy?
O'Neill: Certainly, the financial, economic conditions throughout the world are affecting all aspects of all businesses. So, Harry Winston certainly isn't immune. But having said that, our core business is about emotion. It's about [the] emotional impact of diamonds — what they need, what they represent.
The two largest diamond-consuming markets in the world are the U.S. and Japan. In both countries, they're giving our diamonds for marriage. So, even during [economically] challenging times, people both in America and Japan still get married.
We're very aware that the diamond-bridal business is a very personal experience. As a result, in our salons in Japan, where we have five now, business is by appointment. Why is it by appointment? Because we are dedicated to offering a full and complete service for the customer.
YS: How do you view the Japanese market?
O'Neill: Japan will always be the principal market for Harry Winston. We find that our Japanese clients are not only buying our diamond wedding jewelry but also, increasingly, women are buying jewelry for themselves. At the very high end, there [is] a select group of clients who are collectors of our jewelry — this would be JPY 100 million or more, roughly the equivalent of $1 million.
YS: In 2007, you opened a new store specializing in watches and men's jewelry in Roppongi, Tokyo. Are you putting a special emphasis on exploring the men's market?
O'Neill: Our Japanese clients' return gift to a man is often the Harry Winston watch, and sometimes cufflinks. Men's jewelry has been a part of Harry Winston for many years. We didn't actively promote men's jewelry until we made the arrangement with [U.S. designer] Thom Browne. I must say that one of the reasons we increased or intensified our men's jewelry was the demand from two markets, Japan and America.
YS: Tell us about how Harry Winston took advantage of celebrity opportunities to promote diamonds.
O'Neill: It was Harry Winston who collaborated with the very large film houses in Hollywood to bring glamour to the Academy Awards back in the 1940s. It was a way to promote glamour and diamonds.
YS: How has the company been growing, after a diamond-mining firm purchased Harry Winston's shares in 2004, and what are your future plans?
O'Neill: You see huge increases from year to year — more than 20 percent. How can we do that? The combination of new merchandise and new store allocations. When we acquired the company, we had six stores or salons in the world, and two of those were in Japan. Now, we have 20 stores, and we have five in Japan.
Diamonds are a natural substance, so there's a limit to how many diamonds there are in the world. There's an even greater limit on how many exceptional diamonds there are. We think that the most salons we could ever have throughout the world would be 40. We have 20 now, so we're halfway [there].
YS: What do you think is the brand's mission?
O'Neill: We need to stay very close to our heritage, which is about diamonds and fine designs. You draw a line, over which you don't cross. For example, we don't have silver jewelry, we don't have gold-only jewelry, we don't have platinum-only jewelry, other than for wedding bands.
For our Japanese customers and our customers throughout the world, it's about style; it's about a style that never becomes old-fashioned. So, our customers are very secure [in the knowledge] that when they buy a Harry Winston piece, they know they'll be able to wear it their entire life, and pass it onto their daughter and granddaughter. There aren't many brands in the world that offer customers this sort of attraction.
