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“Despite the challenging economic environment, we are succeeding and we continue to look forward“ |
Greg Booth President and CEO Zippo |
Zippo is set to celebrate a landmark year at the upcoming TFWA World Exhibition. The US maker of the eponymous lighter and allied lifestyle products recently produced its 500 millionth lighter in its 80th anniversary year.
Speaking to The Moodie Report in the run-up to the 2012 TFWA World Exhibition, where the company will be showcasing its wide product assortment [Stand number: Red Village M30], Zippo President and CEO Greg Booth said the milestone was “very, very exciting”.
“Zippo started in Bradford, Pennsylvania, my hometown,” he said. “I’ve watched it grow to a worldwide, very well honed business. We’ve produced our 500 millionth lighter at a time when the economic environment is challenging, and we’re still growing our business. We’re doing business now in 160 countries around the world.”
Booth added that he was “proud of the growth and the heritage” of the brand, which offers a lifetime guarantee on all its windproof lighters.
Over the past year, Zippo’s sales have been “outstanding”, Booth noted. “Looking back over the past three years, in 2008/09 we all suffered in the economic crisis. Then the business rebounded very strongly. In 2010 we were up +10% and in 2011 we were up +20%. In the first six months of 2012 we were up nearly +30%.”
Booth attributed the upswing to a number of factors, including “brilliant leadership”, he said with a smile. “We have a fabulous product that we deliver through a distribution network that is very important to us. Also, our PR and marketing [in Zippo’s 80th anniversary year]. It’s a combination of all that.”
He added: “Despite the challenging economic environment, we are succeeding and we continue to look forward. We’re expanding our business into other areas and we have been very successful so far.”
Like Zippo lighters, which are windproof and made for the great outdoors, these new line extensions have an outdoorsy theme. Items include outdoor gear, writing instruments, leathergoods, sunglasses and watches, all with a rugged, masculine feel.
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To coincide with Zippo’s 80th year, the company has revamped the brand’s concept store, which is located inside the headquarters in Bradford, Pennsylvania |
Why did Zippo decide to expand the range? “Ten or 11 years ago when there was pressure on the smoking industry in general, we felt compelled as a company to diversify the Zippo brand name,” explained Booth. “The Zippo name is renowned worldwide and registers 90% recognition among consumers in some countries. We did research on what else we could market and we looked at other men’s lifestyle products such as pens and watches, sunglasses and fragrances. During our research it became clear that the consumer felt confident that Zippo could market these products.”
Three years ago, Zippo launched its first men’s fragrance line – a very successful launch, said Booth. A second men’s fragrance followed, and now two more are planned, including Into the Blue, a lighter fragrance for the Asian market, whose soft launch will take place this October at the TFWA World Exhibition. And, for the first time, Zippo will introduce a women’s fragrance, called Zippo Woman, at the Cannes show, which Global Licensing Director Violet Snyder described as “fresh, and with beautiful packaging consisting of a frosted glass bottle with pink tones”. Zippo’s fragrance licensee is Mavive, whose exhibition stand at Cannes will be next to that of Zippo on the trade floor.
Zippo started tackling the travel retail market with its fragrance line, and now the company is set to be “more aggressive” with this initiative in the channel, said Snyder. “We have unique packaging for travel retail but it’s a secret until the show,” she added.
As time goes on, Zippo will continue to launch more fragrances and men’s lifestyle products, including the launch in spring 2013 of a range of barbecue grills and stoves, according to Booth.
Asked which markets are the fastest-growing for Zippo, Booth listed “Asia, particularly Japan, India and China”. The latter is a country which Booth described as experiencing “explosive” growth of +50% this year. There is “great acceptance” of the brand and some 70% brand recognition among consumers in China. A new clothing line will be launched soon in China, targeted at the 18-30 male market. A launch in India is expected to follow the Chinese debut.
Booth visits China frequently and recently held a meeting for retailers in which some 125 Zippo dealers were present, out of a total of 600 Zippo dealers in mainland China.
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Zippo lifestyle products such as watches and pens will be on display at the Cannes show | |
Refurbished concept store
To coincide with Zippo’s 80th year, the company has redone the brand’s concept store, which is located inside the headquarters in Bradford. The retail outlet shows what a Zippo store can look like in various formats, whether it be a kiosk in a mall, a shop-in-shop or a corner.
“We want a consistent global look in our stores, whether we are in Beijing, London or New York,” said Booth.
“We are very flexible on store formats in travel retail,” added Snyder. “The look and feel will be the same as the Bradford concept store, but it depends on the space available.” She confirmed that the company’s stand at the TFWA World Exhibition would also replicate a Zippo retail area.
Zippo has tripled its travel retail store locations since seriously targeting the channel in 2010 with the help of Bart Collins, CEO of CITRA Inc and the global representative for Zippo in the travel retail channel. Zippo’s sales are performing well in the US following the roll-out in Hudson News stores of a range of destination-themed Zippo lighters centred on major cities such as New York, Chicago and Las Vegas.
In addition, Norwegian Cruise Line offers a line of customised lighters which have been very successful as souvenir merchandise. “We can put any photograph on a lighter and the quality of the pictures is incredible,” enthused Booth. “We think travel retailers will love it.”
At the TFWA World Exhibition, Zippo’s focus will be on building its business in Europe and Asia. The brand’s customisation programme will also be a key selling point, Collins told The Moodie Report. “We developed a lighter featuring the Chicago skyline which is selling very well at O’Hare Airport – it can be purchased only at that location. That makes it a very unique and collectible item for all travellers – it’s not just attractive to smokers. Zippo is very flexible and only requires a 30-piece minimum for the personalisation programme. We can do company names, personal inscriptions, people’s names and messages.”
Zippo has amassed over 150 points of sale in travel retail, including 50-60 locations in US airports and train stations, as well as border stores inside and outside the US. A new listing has been achieved with Prestige Supplies in its Mongolian border shop. Collins is now turning his attention to cruiselines, ferries and train stations in Europe, for example, and airport arrivals stores.
“We recognise that we aren’t going to be listed in every airport in Europe because some don’t allow lighters to be sold, but we can target certain arrivals stores,” he said.
In addition to the famous Zippo lighters, the extended lifestyle line has “old American values behind it, making it a safe purchase in travel retail”, observed Collins. “As you will see in Cannes, our iconic Zippo logo is recognisable from a distance and we support the lifestyle line by offering the full Zippo concept modular sales environment – whether it’s a counter, a backwall or a shop-in-shop.”
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Left: Souvenir lighters are one of Zippo’s best-sellers; Zippo can customise its lighters with any company logo, photograph, inscription or message | |
