The shine of Austrian jewelry makers keeps sparkling on the local market. Swarovski opened its doors in 2004 and now has eight boutiques in the country, while its rival Frey Wille entered a year later with three shops currently offering enamel jewelry and gold designs.
Imported jewelry accounts for only about 10 percent of Ukraine’s market. However, Swarovski and Frey Wille say the Ukrainian market is promising due to the rising demand for their wares among local customers.
Swarovski has no representative office in Ukraine, while half of its boutiques operating under the brand are located in Kyiv. The crystal jewelry maker is also known for home decor items and even flash cards made of synthetic crystals and platinum metals.
“We have a diverse price policy as we have exclusive jewelry and a mass market one,” Tetyana Tabachuk, manager of a Swarovski boutique in Kyiv explains. “At least, Swarovski wasn’t hit much by the leap in prices during the (2008-2009) crisis as happened to gold.”
A Swarovski pen can cost as much as Hr 370. Jewelry ranges from Hr 2,000 to Hr 6,000, while home décor items can be as expensive as Hr 18,000.
The two-year warranty Swarovski provides its clients is also part of the company’s marketing strategy, Tabachuk says. “The client can approach any Swarovski boutique and we will replace the (damaged) jewelry,” she says.
Moreover, Swarovski holds twice-a-year sales: in January and July with price discounts of up to 50 percent.
Established in 1895, Swarovski sells brand accessories through more than 2,350 retail outlets worldwide. The company’s 2012 turnover was $3.2 billion.
Two of Frey Wille’s shops are in Kyiv and one is in Odesa. It is best known for colored enamel, a mixture of minerals and glass, and a design that resembles the works of the world’s most prominent artists like Austrian Gustav Klimt and Friedensreich Hundertwasse, French Claude Monet, Czech Alphonse Mucha, and Russian traditional art.
When asked about its financial performance, Frey Wille Ukraine general manager Oksana Fandul says the company’s in-country business is profitable. Confirmation of this is its expansion plans to Kharkiv and Donetsk, Fandul adds.
The range of Frey Wille’s jewelry includes female watches, earrings, rings and necklaces made of enamel encased in 18-karat gold or rolled gold as well as palatines and scarves made of silk. They also have ties, collar buttons, and pens for men. Prices range from Hr 3,000 to Hr 10,000 for a piece encased with rolled gold while one with 18 karats of gold may cost from Hr 10,000 to Hr 40,000. The price for men’s accessories ranges from Hr 1,700 to Hr 14,500.
The Viennese company was founded in 1951. Today it has 102 boutiques around the globe with a presence in the most luxurious cities like Monaco, Paris, Dubai, among others.
Austria at a glance:
Area: 83,871 square kilometers
Population: 8 million (2013)
Government type: Federal Republic
Head of government: Chancellor Werner Faymann (since December 2008)
GDP (PPP): $399.6 billion (2013)
GDP (PPP) per capita: $39,970 (2012)
Main industries: construction, machinery, vehicles and parts, food, metals, chemicals, lumber and wood processing, paper and paperboard, communications equipment, tourism
Ukrainian-Austrian relations:
Trade: $1.95 billion (2013)
Exports from Austria to Ukraine: Chemical products, machinery and vehicles, processed goods, food and animals
Exports from Ukraine to Austria: Raw materials, processed goods, machinery and vehicles
Austrian investment in Ukraine: $3.26 billion (as of December 2013)
Ukraine’s investment in Austria: $5.7 million (as of July 2013)
More than 150 Austrian companies have representative offices in Ukraine. Around 20 Austrian companies have production facilities in Ukraine.
Source: State Statistics Service, Austrian Embassy in Ukraine, CIA Factbook
Kyiv Post staff writer Anastasia Forina can be reached at [email protected]
