What initially started as a rumor several months ago was finally confirmed to be true in 2021. The Austria-based crystal cutting company no longer makes new crystals since September 2021.
This came as a shocker to many of us who have always loved the gorgeous man-made gems. If you have been hit hard by the news of the discontinuation, the least you can get is closure. In this post, we shall look at what led to this unfortunate turn of events.
What is happening with Swarovski?
In the early months of 2021, a big announcement by the Austrian brand Swarovski made the headlines when it became official that they will discontinue the manufacture of new crystal beads and stones as of September 2021.
The brand attributed the changes to restructuring in its internal structure. In the past, the company has had something for everyone including standard products.
The changes will focus more on higher-quality brands and unique designs that are more profitable. What stands out is that only producers and designers who have a signed agreement with Swarovski will have access to the fancy stones and beads.
What is unclear is whether the crystals giant will require the existing suppliers to continue selling the crystal with their name until they sell them out.
If the company discontinues the use of its brand name, the way around it will be labeling the crystals with a generic name such as ‘Austria Crystal’ on the crystals to authenticate their origin to beaders.
So far, Swarovski has been mum on this issue and suppliers have continued to sell the crystals with the Swarovski name on them.
Why are Swarovski Crystals being discontinued?
There have been rumors surrounding the discontinuation of the DIY crystal lines by Swarovski.
However, the company has come out to explain to its customers to bring clarity to its market.
1. Internal Restructuring
Swarovski has made changes to only avail their brands to selected luxury brands. The DIY retail sellers for dance, DIY, costumes, and nail art will have to seek an alternative as they will no longer be eligible to sell the Swarovski crystals.
The company’s senior management has released limited information on the same.What we do know is that there shall no longer be loose components from this company.
The drastic move was aimed at streamlining its global distribution by maintaining only close partnerships with top luxury brands.
The CEO, Robert Buchbauer said that these measures were long overdue and as much as they would hurt several people, the company had to do whatever it takes to survive.
2. Pandemic Effects
As close associates have revealed, the global crystal giant has been struggling to keep up with the ever-changing consumer tastes and preferences.
The pandemic did nothing to make it easy for the crystal brand. With over 3,000 boutiques all stationed in empty malls after the global lockdowns, this threw the company into a pit.
Revenues fell to a level that has never been seen before, and drastic changes to keep the company that began in 1895 alive were inevitable.
3. Focus on More Profit
The Swarovski global distributor has come out to give a list of items that will no longer be available. The list included a variety of rhinestones, trims, and crystal pixies.
The main reason to discontinue these items is to rid the company of low-margin bulk market goods and shift focus to more profitable ones.
As you can imagine, beads are mass-produced and sold in bulks, yet they have a very small profit margin. Ditching these for slower-moving but more profitable products is a great strategy.
Conclusion
As the saying goes, desperate times call for desperate measures. A global company like Swarovski was left with no choice but to give up some of its consumers for more profitable markets.
This wake-up call was attributed to the effects of the pandemic and an ongoing struggle to keep up with changing market demands.
As the CEO said, a Swarovski crystal on a ten-Euro T-shirt does nothing for their brand except hurt it with almost zero profit margins.
As it is, change is never easy but there are always alternatives like the preciola brands.
Stephanie is a jewelry lover when she was a teenager. Her major was fashion design when she was in college. She is a jewelry designer at SOQ Jewelry and other design companies. Now she is also a writer for our website. She writes a lot of designs&brands posts with very actionable tips.