Swarovski was founded 125 years ago and is the most famous crystal jewelry brand in Austria. But recently, due to various reasons, its operation has encountered bottlenecks.
First of all, under the influence of the epidemic, the demand for luxury goods in Asia and the United States has dropped sharply, which is really a big blow to Swarovski, who has been playing the card of earning less and selling more. Swarovski predicts that the annual sales of the core crystal business may drop by more than 33% to 2 billion euros this year, which was previously expected to increase by 4% to 5%. ?
Secondly, Swarovski relies on the business model of celebrities and online celebrities advertising with goods and traffic, opening a large number of offline physical stores and online stores, dispersing funds and manpower, and the impact of globalization. Its rapid development led to the soaring operating costs of Swarovski, increased financial pressure, and was eventually dragged down by the huge offline sales network in the epidemic.
Swarovski has now started a restructuring plan to seek survival and profitability.
On July 22nd, Swarovski announced that due to the impact of the COVID-19 epidemic and the subsequent operating pressure, the company will lay off 65,438+0,000 people in its German office in the autumn of 2020. By the end of June, Swarovski has laid off 600 people in the global market, 200 of whom are located in its Austrian headquarters.
Also, Swarovski will quit the wholesale business with fierce competition and meager profits and turn to the development and optimization of high-end jewelry.
Finally, Swarovski said that it is not excluded that the family behind him will give up part of the equity and seek capital injection to help out by listing on the stock exchange or seeking strategic partners.