Amid a retail environment clouded by slowing global growth and the rise of technological trends that threaten to displace traditional retailers, the boss of German luxury brand Braun Buffel said change will hold the key to survival.
“Mankind tends to stay with what they know and sometimes people are not open to changes. But to survive in the long run, we need those changes,” owner and managing director Christiane Brunk.
The more than century-old label, founded by Johann Braun in 1887, is best known for its handcrafted leather goods and accessories, but has in recent years ventured into new segments such as sunglasses and watches – a step which Mrs Brunk described as “enhancing the brand’s experience”.
Such nimble thinking is also evident in the introduction of more colours and shapes to its product line. According to Mrs Brunk, Mr Braun’s great granddaughter and the fourth generation to helm the family business, these changes made the historical European brand “a little bit more fashion forward”.
The leather used in products sold worldwide also differs, so as to cater to the varying preferences and climate in various parts of the world. For example, the leather used in products sold in Asia has to undergo special treatment to suit consumer preferences and the climate in this part of the world, according to Braun Buffel’s master craftsman and production manager Manfred Goll.
“In Europe, the consumer prefers softer materials, but leathers which are stiffer and have other surfaces do better in this region,” Mr Goll said through a translator. “Leather in Asia also needs to be treated to avoid any reaction to the humid climate.”
Meanwhile, the company is also embracing the rising trend of e-commerce, with plans to roll out an online retail platform in Asia soon.
While analysts have identified Internet retail as a key threat for brick-and-mortar retailers, Mrs Brunk thinks otherwise: “As a traditional company, we might not belong to the group of early adopters … but this is something that we can’t exclude from our distribution channels.”
Christiane Brunk, Managing Director of Braun Büffel.
FLAGSHIP BOUTIQUE OPENS IN SINGAPORE
Change is also evident with the official opening of a flagship boutique at Singapore’s Marina Bay Sands on Tuesday.
The 1,500-square-foot store, which features Braun Buffel’s trademark leather extensively in the form of an Italian fine-grain leather wall and bespoke leather armchairs in the lounge area, is the first in the world to roll out the brand new design concept.
According to Mrs Brunk, it will serve as a test bed for future store designs and understanding consumer preferences in the region, especially the Indonesian market which the brand is keenly eyeing.
“Singapore is always a good and important base for us in the Asia-Pacific region because there’s good global connectivity and a multicultural population which gives you great customer insights,” said Mrs Brunk, who took the reins at the 129-year-old label in 2005.
“In Singapore, we always get very good and precise feedback so it was clear to choose here as the first location in Asia-Pacific again,” she added, referring to how the German leather goods label picked the Lion City as its first Asian market back in 1982.
Braun Buffel’s latest Fall-Winter 2016 collection on display at Marina Bay Sands. (Photo: Tang See Kit)
“GO SLOW AND STEADY”
But while change is the only constant in keeping up with competition, the well-established leather goods manufacturer prefers to stick to its own pace.
For one, the brand new boutique in Singapore – Braun Buffel’s fifth store in the Lion City –was a year in the making.
“When we do things, we try to do it as perfectly as possible. That’s our principle so we took our time to go over details such as choosing the leather for the wall,” Mrs Brunk said.
This “slow and steady wins the race” approach also applies to Braun Buffel’s expansion plans.
“We don’t dance (at) too many parties,” Mrs Brunk said. “There are fields such as product quality and development where we take the lead, but in terms of store expansion, sometimes you have to wait. These are huge investments and as ‘careful merchants’, we need to make sure our investments are successful.”
Apart from Indonesia where a booming middle class means untapped opportunities for the German luxury brand, China is the other emerging market where Braun Buffel has set its sights on.
When asked whether she is worried about the spending power of Chinese consumers amid an ongoing anti-graft campaign, slowing economic growth and a turbulent equity market, Mrs Brunk said: “During the past 130 years, we have overcome several crisis including wars, and in an economy there will always be ups and downs. I think we are doing a quite good job in China now and even though the market is slowing, we still see room for expansion.”
She added: “We now have nearly 200 point-of-sale in China. We are very keen on certain locations in big cities like Beijing and Shanghai. But it’s not our strategy to expand very fast so we are not under pressure (from the slowing economy).”