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    Economy

    Mixing writing pleasure with luxury offers growth for stationery firms(2)

    1
    2016-05-18 09:37China Daily Editor: Feng Shuang

    The introduction of technology settings is one of the reasons why the company will soon relocate its Asia office from Hong Kong to Shenzhen, one of China's busiest technology hubs.

    Even though imported stationery remains a niche market, representing just 3 percent of the total domestic demand of $11.6 billion, premium products have a loyal clientele among Chinese consumers.

    Imports of stationery products reached $352.7 million in 2015, helped by the use of technological advantages and solid brand reputation, according to a market report by business intelligence firm IBIS World.

    "As most domestic companies in the industry operate as manufacturers rather than brand-holders, the Chinese market is still reliant on imports of high-end products," wrote IBIS.

    Imports of stationery products are forecast to grow to $384.5 million in 2020, as more leading foreign enterprises will enter the Chinese market over the next five years.

    Milan-listed Moleskine Spa came into being in 1997 with the idea of reviving the style of the iconic pocket-size black notebooks used by legendary artists and thinkers like the US writer Ernest Hemingway and Spanish painter Pablo Picasso.

    In early 2013, the Italian company opened its first Chinese store in Shanghai and in a period of just two years, the brand inaugurated 21 directly operated stores across the country, with a flagship store in central Beijing.

    "The brand has been enjoying a growing popularity in China ever since we opened in Shanghai," explained Moleskine CEO Arrigo Berni.

    Given the high demand for premium stationery products, Moleskinew expects to open six new stores in China this year.

    Last year, the company generated revenues of 23.06 million euros ($26.12 million) in the Asia Pacific region, a 64 percent growth on the year, thanks to continued retail expansion.

    "In China, there's a natural passion for writing and writing instruments, which stems from its rich and ancient writing civilization," said Berni.

    Moleskine notes that writing instruments, particularly pens and pencils, limited-edition notebook collections dedicated to the literary icon The Little Prince, and cartoon character Doraemon are among the most popular items in China.

    As technology evolves towards a paperless world of electronic devices, the brand is also improving its products.

    Moleskine has been recently focusing on digital services, particularly in developing applications for smartphones and tablets.

    "We never believed in competition between paper and technology. Our brand actually grew up in the digital era," added Berni. "A study showed that more than 60 percent of people now use both notebooks and digital devices to write."

      

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