Companies
Zippo to sell more than lighters in China
Updated: 2011-05-18 18:08
By LU CHANG (chinadaily.com.cn)
BEIJING – Zippo Manufacturing Co, which has been known for its "windproof" lighters, has geared up its expansion in China by launching products beyond cigarette lighters.
As China starts to ban smoking in public places, Zippo is hoping to capitalize its brand by offering a wider range of products from men's fragrances, apparel, watches, to outdoor camping supplies.
"The real strength of Zippo does not only lie in making the wind-proof lighters, it is also a lifestyle brand, since Zippo has gained more than 50 percent brand awareness in China," said David Bruce Warfel, global marketing director of Zippo in an interview with China Daily.
Zippo will push its expanded product line overseas at first and then gradually in the United States, because foreign consumers are familiar with the brand's durable image without it being "almost tied to cigarette lighters", Warfel says, while US consumers "are so tied to Zippo lighters that it's tough for the customer to make the jump to these other products".
The campaign is to sell Zippo-brand products through Zippo boutique stores and travel-retail stores that would fit into airports in duty-free shops worldwide.
Warfel estimated that Zippo is exploring the opportunity to open its first flagship store in China.
In 1995, the family-owned company, based in Bradford, Pennsylvania, began marketing in China and already sells its lighters in more than 160 countries and regions — but it does so in China through its distributor, New Frontiers Ltd. It has so far opened more than 1,000 outlets across the country.
"China is a very important market for Zippo and it is the largest international market in terms of sales," Warfel said.
"We have kept an annual growth rate from 10 percent to 15 percent in the last ten years, primarily down to the pocket lighters."
About 60 percent of Zippo's annual sales came from overseas markets. China, with its 320 million smokers, saw 10 million lighters sold a year.
"However, Zippo is not all about lighters, especially in China, where Zippo had the highest product attribute scores for quality, durability and good looks," said Liu Jinghua, the first Chinese employee hired by Zippo as the development manager in China.
Due to the limited market for lighters and growing brand consciousness in the global market, Zippo has diversified its production lines and purchased the W.R. Case & Sons Cutlery Co, a manufacturer of pocket and hunting knives, in 1993. It acquired an Italian leather goods company called Zippo Fashion Italia in 2004.
It has already introduced a fragrance for men in Italy, which will be available in China next year.
In addition, Zippo has been selling men's sportswear in South Korea and will bring most of its products in China and other countries in Asia. "We want Chinese consumers to be aware that buying Zippo products is not an indulgence but an appreciation of American way of life," Liu said.
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