As German writing instruments manufacturer Lamy celebrates the 50th anniversary of the influential Lamy 2000 model this year, the brand is set to begin a new chapter in travel retail too.
Through newly appointed duty free and travel retail distribution partner AM International, the company has big ambitions to grow in the channel, as The Moodie Davitt Report discovered on a recent visit to Lamy’s headquarters in picturesque Heidelberg, Germany.
There the company is preparing to celebrate ‘50 years of Lamy Design’, which marks half a century since Gerd A. Müller created the Lamy 2000 model. The Lamy 2000 defined a new era of Lamy pen designs and continues to be instrumental in the development of new products today.
Amid these anniversary celebrations Lamy is aiming to hit new sales heights too, and travel retail will play a key role in the brand’s international development, says Export Sales Manager Karl Gustav Siegel. “If everything goes according to plan, then Lamy should cross the magic border of €100 million [turnover] this year. The entire company is eager to achieve this record-breaking success in our anniversary year 2016. Establishing an excellent presence for Lamy within the travel retail and duty free channel is a key strategic target for us.”
In travel retail, Lamy’s core markets are Europe and Asia Pacific, with its home market Germany the largest for both domestic and travel retail sales. The brand has two shop-in-shops in the channel, at Frankfurt and Singapore Changi airports, over 20 back walls, counters and gondolas and more than 50 tower displays. Lamy has earmarked Europe, Asia Pacific, the Americas and the Middle East as growth regions for 2016 and 2017.
“In the last four years, Lamy has established a sustainable business model for the [travel retail] channel,” says Siegel. “AM International’s main task will be to replicate this successful model in as many additional retail stores and airlines as possible. AM International has already secured listings for our new travel retail self-service and gifting tower display and will now be focusing on a large scale roll-out of this display through all main international airports.
“Our priorities are airports and airlines, then cruise ships, diplomatic stores and border shops. We are looking forward to a substantial amount of suitable new customers and points-of-sale within the travel retail channel.”
2016/17 will also see Lamy upgrade all existing points-of-sale by implementing new display and merchandising solutions such as shop-in-shops.
Siegel says the brand targets consumers who are looking for a premium lifestyle accessory or gift, either for themselves or for others, within a price range of US$10-45. The brand’s bestselling lines in travel retail are AL-star, Safari, Logo and Econ. Considerable sales are also generated through Lamy’s premium ranges, which retail between US$50-400. “In those points-of-sale where the retailers allow us to install large scale furniture such as shop-in-shop systems we see that a substantial part of our turnover is generated through our premium ranges, which include the Pico, Dialog 3 and Imporium lines.”
According to Siegel, the brand’s main target consumers [Chinese, Koreans, Japanese, Americans, Arabs and Europeans] like the availability of special assortments in travel retail. “These key nationalities enjoy substantial price advantages compared to their domestic markets when buying Lamy products in airports, and Lamy proves in many travel retail locations that it can pull additional customers into each store.
“Retail stores carrying our brand have realised that we offer them an excellent chance to capitalise on the “Asian opportunity” as our brand appeals to travellers such as Chinese and Koreans.”
Siegel attributes Lamy’s popularity in Asia to the fact that consumers trust the authenticity of the products because they are made in Europe. Lamy produces all its pens, over seven million a year across 250 SKUs, at its in-house production facilities in Heidelberg.
“In the last ten years, we have more than doubled sales, therefore production has also doubled,” explains Siegel. “This is possible because it is all done in-house and we do not rely on suppliers.
“We are experiencing double-digit growth in a declining market and have the potential to grow the [writing instruments] category. We want Lamy to be recognised as a leading global brand.”
In Siegel’s view, some travel retailers have not yet realised the potential that the writing instruments category can bring. “Our most important task is to make airports and retailers understand that a few selected brands within our industry are perceived by the end consumer as a highly valuable lifestyle accessory and gift – rather than as a simple pen.
“This means that Lamy holds the potential to bring the writing instruments category to totally new heights by transforming an entire product category in the same way that Swatch once transformed the watch category and brands such as Ray-Ban has transformed the sunglasses category.”
Today, the attention is firmly on the 50th anniversary celebrations. These will be marked with events such as the Lamy Design Festival at Heidelberg Castle this Autumn along with a “larger than and better than-ever” assortment of new launches, special editions and anniversary editions.
“We will launch a special edition of the Lamy 2000 model to mark the 50th anniversary and have a new product in the pipeline, which will be a big hit in domestic and travel retail markets,” Siegel reveals.
“We are also currently working with AM International to expand our range of travel retail exclusive airline set offerings and are discussing suitable top end promotional activities. It will be an exciting year for Lamy both in the domestic markets and the travel retail channel.”
