New store shows Montblanc confident of growth in SA

THE global luxury-goods sector may not be in mint condition, but Montblanc still sees opportunities to extend its reach in SA.

The Richemont-owned brand has opened a revamped 119m² boutique in Sandton’s diamond walk, designed by French designer Noé DuchaufourLawrance. It is Montblanc’s first neoconcept store in the region, a design that it says allows dedicated areas within the space for the three core categories in its portfolio: writing instruments, watches and jewellery, and leather goods.

Montblanc Middle East, Africa and India president Eric Vergnes said the boutique would be the blueprint for other stores still to be refurbished or opened in the region. SA had been chosen to pilot the design as the country was an important market for the brand with strong growth potential.

“Local economic conditions are challenging right now and the luxury goods market is struggling, but in these difficult times it is the best time to accelerate,” Vergnes said.

Unlike other luxury-goods makers, Vergnes said, Montblanc gained market share during downturns in the economy due to its diverse portfolio.

“Our portfolio is large. Even when times are hard, consumers still have moments of indulgence. This store is to respect those customers who come to us. It will make their shopping experience more pleasant and bring the boutique on par with global standards,” Vergnes said.

At the rear of the boutique, calf-hide leathers priced at about R15,000 line a well lit shelf where sales consultant JeanPierre Fernandes said there was something for everyone.

“It all depends on what the customer is looking for. But ultimately at Montblanc we do functional and beautiful. Montblanc isn’t flashy. It is simple and elegant,” he said.

According to the Bloomberg Intelligence Africa Luxury report, there are only 50 directly operated single-brand luxury stores in Africa. LVMH (owner of Louis Vuitton) and Richemont account for a combined 60%. About 80% of those are in Morocco and SA.

In the diamond walk, Montblanc shares the space with brands such as Gucci, Dolce & Gabbana, Louis Vuitton and Cartier. The walkway was near empty on Tuesday, despite the bustle in the rest of the mall.

Discretionary spending all over the world has fallen, while preferences are changing from goods to experiences.

Richemont’s trading update earlier in September reported a 14% drop in sales in the first five months to August compared with the year-earlier period. Richemont said the negative environment was unlikely to reverse in the short term.

Vergnes said the new store concept would make better use of its space and displays.

“The sophisticated and contemporary boutique invites existing connoisseurs and new generations of customers to discover the maison’s rich heritage and enjoy the wide selection of products showcased.”