Business
Zippo out to prove it's more than just lighters
Updated: 2011-05-31 09:03
By Lu Chang (China Daily)
BEIJING - Zippo, known for its windproof metal lighters, is gearing up to spark a new line of products beyond cigarette lighters.
With more and more cities in China beginning to ban smoking in public establishments, Zippo is hoping to capitalize on its brand name with 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 windproof 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.
The company, Warfel told China Daily, will initially push its expanded product line overseas and gradually release the new products in the United States. He said they've taken this strategy because the company believes foreign consumers are more familiar with the brand as something more than just cigarette lighters, while US consumers, Warfel said, "are so tied to Zippo lighters that it's tough for the customer to make the jump to these other products".
The new campaign is to sell the new products through Zippo boutique stores and retail travel stores or duty-free shops in airports.
Warfel said that Zippo is exploring the opportunity to open its first flagship store in China.
The company,based in Bradford, Pennsylvania, first began marketing in China in 1995, and now sells its lighters in more than 160 countries. In China, it sells its lighters through 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 10 years, primarily down to the pocket lighters."
About 60 percent of Zippo's annual sales come from overseas markets. An average of 10 million lighters sell annually in China, which has 320 million smokers.
"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, Zippo's development manager in China and also the first Chinese employee hired by the company.
Due to the limited market for lighters, Zippo 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. Zippo has also been selling men's sportswear in South Korea and will bring most of its products to 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 the American way of life," Liu said.
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