Luxury Writing Instruments and Stationery in South Africa

PROSPECTS

Luxury writing instruments make popular corporate gifts

Blue chip companies, especially those in the financial industry, are renowned for awarding their top-performing employees with luxury writing instruments as corporate gifts. According to trade interviews, it is through such corporate gifts that employees are introduced to luxury brands and often become returning customers, more open to trying other products or higher-priced items in the same brand line.

Destination shopping limits growth opportunities

Luxury writing instruments are inaccessible to many consumers in South Africa. A small group comprising wealthy local shoppers, aspirational consumers with high-paying jobs, collectors and corporate clients drive sales.

Category suffers competition from other entry-level luxury categories

Some brands carry such high pricing that they are only accessible to a small pool of consumers. At the price at which they retail, they must compete with other luxury items for aspirational consumers’ cash.

COMPETITIVE LANDSCAPE

Iconic Montblanc remains the leading brand

Montblanc leads retail value sales within luxury writing instruments and stationery in South Africa. The brand is a favourite among luxury shoppers and very popular as a corporate gift item.

Brand perception characterises the category

Brands such as Parker are perceived as being luxury brands in South Africa, although they are not tracked under luxury goods by Euromonitor International. Luxury brands such as Montblanc have to compete with such brands, which take sales away from them.

Lack of brand awareness hampers category progress

Apart from brand perception, a lack of brand awareness is another factor affecting sales. However, this is true only for consumers who are new to the world of luxury and who may not be in possession of all the necessary information prior to making a purchase.

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