Name: MPW London 2019: How the Swarovski Brand Stays Timeless in a Digital Age
Uploaded: 2019-06-06
Duration: 19 min 24 s
Description: The 125-year-old company is embracing its technological roots in a digital age.

Nadia welcome. Thank you. She's wearing her crystals. Now, I would like to know first of all, this is a very basic question, and many of you probably know this. But What is the difference between a diamond and a crystal? Well they both are incredibly brilliant. But in terms of a chemical point of view, there is a difference in hardness. So crystal has the hardness from the scaleof 1 to 10, of 8. 3. And the diamond is a 10 So that chemical ingredient is certainly a difference, but the price point is tremendiously different. And you can be so much more creative with a crystal because the loss factor is less, ya know and that's who'll you. [ CROSSTALK ] The loss factor is less, what do you mean? Yes so you play around with the design. The design might not be good. Well at the end of the day it might be a handful of crystal. And you can not run that risk working with diamonds. So, So but crystals are manufactured and diamonds are found in the earth. Correct? Correct. So, that is another difference. Absolutely. And I have to say from my point of view when I first started in this in my career of working in the family business, which I never wanted to do initially I always had this confrontation about truly the diamond versus the Crystal. And the way I find myself really promoting Crystal is to try to explain to people how hard it is to make a Crystal. You know there are so many different chemicals that are involved in making a Crystal. They are melted They come out like honey from this big melting pot and they drip into molds. You have to let the the hot glass, so to speak, cool off. Then it has to be cut, then we have a very strict quality control. Not one crystal leaves the factory with a scratch on it or a bubble in it. So I grew up seeing this incredibly labor intensive process and I was always a little bit disappointed to see people dismiss the crystal compared to a diamond. So it was really the engineering and the technical element that I always had to go back to and embrace. Were you a girl who just wanted diamonds? No, I was a girl that wanted crystals. [ LAUGH ] [ LAUGH ] Okay, okay, okay. Now can you tell the difference between a diamond and a crystal? So I have to say I did study geology I can tell the difference the brilliance of the diamond is incredible. The reflective index is higher than that of crystal, but then again the thing about crystal you can use it on so many different surfaces again back to the creative element and. Often you don't see the crystal, you see the impact the crystal has. You see the hue. You see the refraction. You sense the energy on a gown or a jewelry piece. Right. So this is really where we have almost used crystal as fairy dust on the various different objects, whether it's jewelry, interior Lighting, decor and so on. I was just telling Nigel backstage. This friend of mine from the most powerful women community. Her husband built a house for her in Florida and he decorated the whole house and she went down and she saw it for the first time and he said. These curtains are Swarovski crystals. And then he told her the price and she's like, what? [ LAUGH ] But anyway, what is the most Sort of out there. application of Swarovski crystals. Back to say we've seen many fascinating applications and sometimes we cannot control how our customers use. The product, sometimes it's truly shocking and sometimes it's absolutely inspirational. I don't know if you that live here in London have seen the little Mercedes driving around, covered in Swarovski crystal. That's a customer of ours, that's nothing that we would have done. [ LAUGH ] But because sometimes I can slightly go off. It's really important for us to demonstrate really beautiful examples of how crystal can be used and hopefully, therefore inspire the industry of how to do that. So for example, we've worked with Academy for the last 12 years. To decorate the stage at the Oscars we recently had the honor to work with the architect Daniel Libeskind to create the star at Rockefeller Center which is always such a wonderful sensation at Christmas time in New York City. So, so this is fascinating and Naja just mentioned this to me backstage. This is a deal that you had the idea to do that, and just explain that, the Swarovski Crystal star for the first time last Christmas on the top of the Rockefeller Center tree. Explain how that came about. Well first of all our philosophy is always and actually our purpose is to spark Delights, we are truly there to enhance the world and really bring joy to people's lives. So Daniel Libeskind and I collaborated on a project where we created a chess set for him and each little- The architect Daniel Libeskind .>> Exactly. Yes. He created the Freedom Tower to replace the Twin Towers, but each chest that was one of his buildings. And I just thought this man is so kind. He's so wonderful and I am looking for a new architect to create the star of the Christmas tree. But I realized Daniel was Jewish and I asked him, would he be interested to do that? He's like, of course, and this star is about hope, it's about faith, and we concluded, nowadays, it is so much about hope and faith. It's not necessarily Necessarily about religion. Religion is being used too many times as an excuse. So we just felt this is a wonderful moment to really take an object and adorn the environment, and truly bring joy to people. And That's wonderful. Will you being that again this year with him? Absolutely. Yes, we will. What is the one Sort of dream you've had about using your crystals for some cultural or big event where you haven't been able to do it? My gosh, that's a really long list. [ LAUGH ] But I have to say we've been so lucky to really, I think because we've chosen the architects and the designers that we work with so carefully We, therefore, have been able to get into beautiful locations. So, for example, we- You can't name one that you are hoping for. Absolutely, let me [ LAUGH ] I don't know which one. But I just wanted to give an example of where we are now. We've created the first permanent contemporary installation in Versailles. And this is really because we worked with these young, French designers called the [ FOREIGN ] brothers, actually, because I wanted a permanent installation, and it was a big competition, the [ FOREIGN ] brothers won, and they really wanted to create a chandelier, and as an Austrian country, we're so honored to be chosen for this installation, and the French historic monument, versus other French crystal manufacturers. And it's a chandelier that basically lights up as it gets dark and it dims down as it gets light outside. And the modernity of that piece is such a beautiful juxtaposition to the very very Classical and traditional environment. So we're very proud about that. We also, with the same architects, created these fountains at [ UNKNOWN ] just a few months ago and it was absolutely extraordinary, because as you know, and we talked about it yesterday, the yellow vests were destroying so much in Paris Including the Svarovsky store, actually. But these fountains that are made of crystal are untouched, right here on the Champs- Elysees. So I can't help but think that the product truly, or the emotion that the designer invests in creating something, permeates out to the end consumer. And in that case, there's so much kindness and sincerity involved in the creations How many of you have seen the movie Rocketman? It only came out last week. Not many, it just opened. You still have time. I think a lot of us are dying to see it. But one million Swarovski crystals are, I haven't seen it yet so They adorned Elton like 1 million at one time? Yes. Hm. Is that true to life? Did he really wear Swarovski? Not at all. So, that was the time period when he actually, when sequins was very popular. Really cleanse. And this was actually really before we have reintroduce ourselves to the film industry to the fashion industry. But I have to say it was wonderful to work with Julian Day, the costume designer, and it was really the Dodgers outfit that Elton John wore which was fully covered in crystal. Wow. And, again, we see that over and over, we really started from the very beginning of the silver screen to adorn The actors and actresses, all the jewelry in Breakfast at Tiffany's, including Audrey Hepburn's tiara, that's all Swarovski crystal. [ LAUGH ] And you mentioned to me backstage who your first customer was. Yes, and that was Queen Victoria. And we are so Proud to see that peaceful cohabitation of diamonds and crystals. Well Queen Victoria is wearing her diamond jewelry. Her gowns are adorned with crystals and that was via the British quarterly worth who was based in Paris. And we're so excited to still today are able to dress her granddaughter. The queen, and I'm so honored to also mention that we've just received the royal warrant for the supply to her household of Swarovski Crystal. And we've worked with her dress designer Angela Kelly. On her costumes and again, you don't necessarily see the crystal. You sense it subconsciously, you sense that there is just this huge. So you mentioned that I was going to ask you and I'll ask you right now, choice Or destiny working for the family business you actually mentioned that you didn't really want to go into the family business so why are you here? [ LAUGHS ] .>> So basically I just, I grew up in this, in this, I grew up in the factory basically my father, my grandfather they were the engineers of course. Every weekend, we had to go look at all the machines. And I thought, God, can't we do something else? And it wasn't until eventually, you know, I studied Art History. My father kept on calling, asking me how my Engineering study was coming along. And I would. Blow into the phone saying that I can't hear you. Hello bad connection after art history class. In any case, I felt very strongly about finding my own passion and my own identity, and I definitely did not believe in nepotism and then eventually I found myself working at Google's in gallery and so the [ UNKNOWN ] in New York City And then eventually in the fashion industry working for European fashion brands, family businesses like the Missoni family, Trussardi, Valentino, and then I thought, well wait a minute actually, I also do have a family business that has its roots in fashion. It's based in Europe. And that was really my aha moment because at that time, Raska was really known for its crystal animals. And I was just remembering all these stories that my grandfather used to tell me about working with Coco Chanel and Christian Dior, and my question was will where all the designers where are they know what they are noticed I miss Ross is not working with the designers. So that was my Aha moment to come back to the business, copy what my grandfather did. And I was in search for my Christian Dior and that ended up being Alexander McQueen. So what year did you enter the business? So that was a 1995. And I instantly actually worked in Hong Kong for two years. And it was really great bird's eye point of view far, far away from headquarters. And I would run into these designers and then I would say to them, yeah, let me see. Let me send our sales people to show you the crystal Then I'd went on to the sales people on a way to the designer, wearing the grey suit, the little suitcase. They have done zero research about the designer and I thought, well, that's not gonna happen. So I thought, that's it. I have my idea, I'm going back In New York City I'm creating the show room and I developed this apothecary concept of the crystals really shorten the 350, 000 different variations of crystals. And I just thought, you know, just alone the psychology of being able to invite somebody to your space, and then pointing everything out, and then show them what has happened in the past in all these things like Dorothy's slippers. Covenants for [ UNKNOWN ] crystals, nobody knew it but everyone has seen it. You know, was this really a matter of getting back to our history and showing the current design community what has been done and what yet can be done in the future. So, connecting the brand to sort of the culture, the global culture and the sort of cultural Zeit Geist, and I know that so Nadja also Six years ago I set up a foundation which Swarovski never had. Set up a sustainability department which Swarovski never had, and you've made great strides in that area. Feel free to address that, but I do wanna open it up to you. Who has questions? Yes, right here. Hi, thank you very much. [ UNKNOWN ] professor of entrepreneurship at a technical university. So you mentioned wonderflu things in reconnecting the brand back With the designing and arts and architecture, etc ., community, I just wondered do you ever work back with technical universities, in terms of connecting the technology? Absolutely. Back to all of this. And if we can support you, I'm more than happy to [ INAUDIBLE ] Yes, I'd love to talk to you. And we do Absolutely we work with Cambridge University, M. I. T ., the [ UNKNOWN ] Hofer Institute. And that's actually important. And I have to say my great grandfather was such an inventor. Innovation was so important to us and we really believed that innovation will be what will take us into the future. So absolutely. Anyone else, to the point of innovation. So you're actually manufacturing diamonds now. That's right. Explain that. Okay, so the next innovation, the next disruptor to the industry is Lab grown diamonds and Swarovski has started to cut gemstones in the 60s and we cut them in the same or similar technology as we cut the crystal. We are master cutters. We did try to start cutting diamonds in the 60s and My father and grandfather received death threats so we stopped the diamonds. We continued with gemstones and, you know, yes as you mentioned I started the Sustainability Department and I thought- Let me just address this so, I mean you know, they are making diamonds And I like the diamonds come from the earth. And Nadia says no, these are real diamonds that we are making in a lab because they have all the Components- Exactly. The chemical components of diamonds. Their bio- identical, and they are incredibly sustainable, because they use very little energy to produce, and they certainly don't affect people or planet. And we just felt it is our answer to our sustainability initiative. Again, yes, we have been talking to diamond people and I can only say or that my answer to them was, you know, we are totally for everything that sparkles. And the minute you Are able to mine the Diamond sustainably we will be your customer. If Swarovski can have a positive impact by you using create a Diamond in order to make the miners more sustainable, that is a positive impact on the world, and I truly believe there are enough customers. I really believe in the Era of collaboration versus competition. But how is the diamond industry responding to this so far? They are very worried. They are very worried. I mean we see what DeVers have down. They're now starting their own created diamonds which is wonderful. Again they do amazing colored diamonds. So I've already Express my interest in color diamonds, [ LAUGH ] if they ever starts delivering to external people. I think at this point they just want to keep the color diamonds to themselves. But now the industry is reacting, the entire world is reacting, and again, it's the will of transparency. It I mean we have so many organizations you know from the U. N to GIA the Geological Institute. It is truly about better ways and the reason why we're not there yet is because companies did not want to invest the money or the time to come up with better ways of extracting materials from the earth. But it's totally doable. And what is the price point of these manufacturer diamonds versus real done Initially the lacquer and diamonds were 50 % less than the real diamonds but now that two beers is really creating such a huge supply The price will go down. But I find that's okay. So we've just launched a collection of creative diamonds designed by Penelope Cruz who has expressed that she would like to work with us because she shares our values of sustainability. Of course, we were so honored by her proposal. So she's created a collection of red carpet jewelry for herself We've worked with Stephen Webster, the British jewelry designer. And just now we launched a collection by Prince Dimitri of Yugoslavia in Las Vegas last week at the jewelry fair. And Dimitri is a gratitumologist. He was head of jewelry in Celapese. So he really comes with a very strong fine jewelry background. And that's such an honor for us that he is embracing the created diamonds. So the point is a matter of the design and the storytelling. Kind of like Coco Chanel When she started to design she really mixed crystals and glass and diamonds. She wanted to keep people guessing what the ingredients are but the most important element was that it was beautiful design. And can you tell the difference between a natural diamond and a manufactured diamond So it's so hard because clearly the I mean the Man made diamonds do have flaws and inclusions, but it's mainly really the flawless ones that are being cut, so it's hard to tell. But in our case, anything that's above . 5 carats we laser engrave We make sure that our logos in there you know this is not about counterfeiting. This is really about showing a product that is sustainable. Well I certainly learned a lot Najar. And I think the group here are the most powerful women [ UNKNOWN ]. So thank you very much. We'd love to have you back. Don't let this be your last. Yeah, It's such an honor. Ok. Thank you. [ APPLAUSE ]

MPW London 2019: How the Swarovski Brand Stays Timeless in a Digital Age

Luxury

The 125-year-old company is embracing its technological roots in a digital age.