Image credit: Swarovski
The family-owned company based in Wattens, Austria, estimates that total sales of its goods may fall by 30 percent, plummeting to € 1.9 billion in 2020 from € 2.7 billion in 2019.
Competition from Chinese manufacturers producing the same kind of goods coupled with the coronavirus pandemic put the company in a tough spot, AFP said citing Swarovski CEO Robert Buchbauer, who believes the business needs drastic change and that the company should produce less focusing on larger and more colorful products that can be sold at a higher price.
In his opinion, the company's previous products, such as manicure sets and mobile phone cases graced with Swarovski crystals, have no place in the future, which will require closing about 750 of its 3,000 stores worldwide and laying off about 6,000 employees.
However, not everyone in the company management agrees with this, pointing out that customers will not buy products at higher prices and are already turning to competitors offering cheaper goods. Opponents include Paul Swarovski, shareholder and former board member, Nadja Swarovski, board member, and other family members.
The way the company, which turns 125 this year, will take its next course could affect the flow of tourists to Wattens who travel there to visit Swarovski. Each year, Wattens is visited by 650,000 people providing significant support to the city's economy.
Vladimir Malakhov, Rough&Polished
