By JOSÉ LUIS ZARAGOZÁ
Lladró’s new owner has made a clean break away from the past to relaunch the Brand
PHI Industrial, owner since 2017 of the historic Valencian porcelain firm, recovers the sales volume it inherited -46 million- and expects to grow 10% in the coming years.
Dancers, shepherdesses, water girls, harlequins, dogs, cats, birds… Lladró’s porcelain figures were best sellers all over the world, especially in the United States. For decades they satisfied the demand of 2.5 million collectors who turned the Valencian family saga’s surname into one of Spain’s most recognised international brands. In its golden age, Lladró had an annual turnover of around 200 million euros and grossed huge sums of money. It came to employ 2,500 workers. But that is now the history of a company that went into free fall with plummeting sales after the tragic 9/11 in New York (2001) and, shortly afterwards, with the family conflicts over the retirement of the three brothers who founded the empire in 1953: the now deceased Juan, José and Vicente Lladró Dolz.
“Lladró was somewhat anchored in the past and we have changed,” says Ana Rodríguez, the current CEO of the company, which has been in the hands of the investment fund PHI Industrial since 2017. The “commitment” of Lladró’s current owners, who control 100% of the company, is “long-term”, explains its main executive. “There are no concrete plans to bring in new investors. The main objective is to maintain the company’s successful course with the current ownership and to make it grow,” says Rodríguez. The next shop will be opened in India.
That being said, it still has a long way to go. Lladró’s consolidated turnover in 2022 amounted to 46 million euros, a figure that equals that of 2017, although it is a far cry from the company’s heyday, which for the time being has decided not to relocate production and to maintain its headquarters in Tavernes Blanques, where it houses its factory, creative and management team.
The business group has reduced its workforce to 382 in Spain and 162 abroad. It is present in just over 120 countries. Its sales channels consist of 13 shops, two showrooms, 30 corners in shopping centres, 3 sales outlets and 1,200 authorised distributors. It sells through large chains such as El Corte Inglés, JD&Tmall (China), TataCliq (India), Privalia and Veepee, among others. It is also sold in a dozen countries through Amazon. Japan accounts for 25% of total sales. It aims to grow further in that market.
Accustomed to creating idyllic and romantic figures, the firm has changed its commercial strategy to give a modern touch to its creations. The latest line, for example, focuses on the classic Star Wars film saga. “In 2020, we lost 21% of turnover due to the Covid pandemic, although a year later we had a growth of 25% and in 2022 11%”, explains Rodríguez to highlight the upward trend of this business in the luxury sector. In 2023, she expects it to grow by 9%, and in the following years, a minimum of 10% per year.
Two sides
So, which is the new style? The new Lladró collection shows two sides: one sculptural and ornate; the other minimalist and refined. Lladró’s current managers say that in this new trajectory, Lladró has opted for the main international forums for design, interior design, home decoration, jewellery and high decoration. It shows to the professionals of these business sectors its new creations in Paris, Milan, New York, Dubai, Tokyo… Lladró chooses these world centres to make its presence felt.
In recent years, Lladró’s artistic production has been divided into three main categories: Heritage (which includes the most classic figures), New Concept and Lighting, which in turn group together different product lines. In addition, New Concept encompasses the most innovative proposals and is the space for experimentation with collections signed by internationally renowned artists (Jaime Hayon, Marcel Wanders and Bodo Sperlein, among others). “It has been and continues to be a very exhaustive development. We deal with creations linked to emotions, traditions or culture”, explains Rodríguez.
Are idyllic and romantic figures old hat? “We believe that the key lies in the way of storytelling, in the various expressive paths. We offer original creations with their own language, the result of the creativity of an expert in-house team and collaborations with artists and designers from all over the world, which are expressed through the same material: porcelain. Proposals that have been able to adapt to the evolution of the brand and trends without losing their essence and identity”, says Lladró’s CEO.
In her view, all areas are essential. “We have reviewed them so that they work and interact in the most coordinated way. The porcelain we need for lighting is not the same as the porcelain we need for jewellery. That’s why the laboratory plays a key role. And, without a doubt, so do all areas of planning and marketing. This balance is essential between centralised production in Valencia and distribution to more than a hundred countries”, she points out.
Lladró’s manager also recognises that the internet sales outlet is an objective for most brands and the way to target a younger public is related to digital channels and new shopping experiences. She highlights the importance of social media, the new digital sales outlets, “because they are essential for building branding, visibility and presence. And the experience at points of sale,” she adds, “whether physical or digital, are essential, beyond the sale, because they communicate the brand values that allow for an emotional connection with these new generations”. “It is important to be attentive to their interests and their ways of communicating in order to make ourselves known and spark interest in our brand,” Rodriguez adds.
In search of an increase in turnover, online sales continue to grow. “This year we are 15% ahead of last year and we are strengthening our digital channel in countries such as China, India and Japan. Lladró’s strategic point of sale has always been the physical shop and large retailers”, although the health crisis caused by the coronavirus boosted its online sales. “In 2020 alone [the year the pandemic broke out], online sales generated 95% of the total”, Lladró’s manager recalls.
Growth markets
Today, Lladró’s main goal under the ownership of PHI Industrial fund (also owner of Insurance Broker, PPC Insulators, Lapp, Mascioni and Blue Sun), managed by executives Alexander Wit and Jordi Bricio, is to make it great. It aims to regain business volume in the United States and Europe, as well as to continue to grow in markets with such potential as China, South Asia, Latin America and the Middle East.
It has been present in Asia for many decades and Japan is its main market. It works in many countries such as India, which is becoming increasingly important for Lladró, where it will open the aforementioned new shop. And places such as Indonesia, Malaysia, Thailand and Vietnam, where last year it inaugurated new boutiques; without losing sight of the activities, it is carrying out in China in locations such as Shanghai and Beijing. In America, it is outlining a plan to open new stores in Mexico. It also plans to strengthen its presence in Panama, Colombia, Venezuela and Brazil.
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