Luxury Writing Instruments and Stationery in South Africa

PROSPECTS

Gifting can lead to repeat purchases

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.

The lure of destination purchases hinders domestic sales

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.

Challenges to justify the high prices among competing products

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

Montblanc fills in the blanks with a wide price range

Montblanc leads retail value sales by far 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.

Upper-end standard brands are regarded as luxurious by consumers

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.

Low brand-awareness and sporadic distribution leave their mark

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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