Sometimes it takes an outsider to unmask a company’s opportunities for growth.
That’s the case with the London-based Monica Vinader, a demi-fine jewelry brand known for craftsmanship, responsible practices and affordability — and no longer content with the status quo.
A year ago almost to the day, Sebastian Picardo became chief executive officer, succeeding Monica Vinader, the designer and cofounder of her eponymous brand, who continues as artistic director.
“We need to keep doing what we’re doing, maintaining the brand DNA and its values, and also take the Monica Vinader business to a higher scale,” Picardo said during a recent visit to New York. “We have multiple opportunities to grow the business significantly over the next three to five years while ensuring the quality of that growth is very high, [meaning] full-price selling, great partnerships, high-quality consumers, and high-quality locations.
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“Our next phase of growth depends on raising awareness in the markets where we are under-penetrated. The U.S. is the most important of those. The real change is in how we allocate our marketing investment, with materially more of it going to the upper-funnel work that builds reach and brand heat. Our partnership with [British singer-songwriter] Sienna Spiro is the clearest example of the approach: identifying culturally relevant talent at the right moment rather than buying reach.”
Three years ago, Bridgepoint, a midmarket investment firm, purchased a majority interest in the 18-year-old Monica Vinader business. In its last fiscal year, the company generated $150 million U.S. volume, and is profitable, according to Picardo. The company operates 20 freestanding stores in the U.K.; two in the U.S., in Manhattan’s SoHo neighborhood and the Fashion Island center in Newport Beach, Calif.; three in Hong Kong, and two in Singapore.
Monica Vinader has an exclusive wholesale partnership with Nordstrom, which sells the jewelry in 80 doors and has Monica Vinader concession shops in three. Internationally, the brand is sold at Selfridges, Harrods, John Lewis and other retailers, as well as through its website and other e-commerce sites including Zalando, Farfetch and Tmall.
Picardo, the first outsider to hold the CEO position at Monica Vinader, previously served as CEO of Canada’s Holt Renfrew and, before that, as deputy president of Asia’s Lane Crawford.
He cited an opportunity to expand the brand’s offer in “a very sustainable and high-quality way, but not dramatically. It’s going to be measured. That is important for existing markets where we already have a customer, and can maybe offer them more options. One product extension we’ve been developing is the engagement and wedding ring category [introduced last April]. The 14k solid gold ring with a one-carat lab-grown diamond, under $2,000, has been a huge success. That’s a single product, but we have opportunities to extend here.”
Picardo also said that Monica Vinader’s unisex range is resonating with customers, creating an opportunity to produce men’s bracelets, rings and necklaces. “We will run some tests probably next year before we do a full launch.”
Beyond introducing new categories like men’s jewelry, there are also product expansions in existing categories that have traction. “For example, with 14k gold, we’re seeing success in many markets, especially the U.S.,” Picardo said. “How do we continue to build that range to better cater to the demand?”
Additionally, “We’re looking at prioritizing markets where we already have a significant web presence. Examples are Germany and Australia. Other markets would be Ireland and the Netherlands. With our successful, long-standing partnership with Nordstrom for over 10 years we still see a lot of potential to grow. We have a very strong online business with Nordstrom and the ability [for further] customer acquisition and development through relationships we have with Nordstrom associates. There’s also a lot of traction in our personalized services with Nordstrom. Recently, we rolled out more machines that do engraving. Engraving is a very popular service.”
Picardo raised the possibility of partnering with “a very select number of others in select markets” in the U.S. “We want to do it in a very high-quality way. For example, we’re launching in Canada with Holt Renfrew next month, at two doors and online. Holt has a fabulous customer base and an amazing sales force we can partner with.”
On the marketing front, Monica Vinader has been heavily focused on performance marketing, which is specific to driving traffic to the website and converting that into sales. “So we plan to invest in raising brand awareness, communicating who we are and what we stand for, so there will be more spent on the branding, and potentially less on the transactional,” Picardo said. “Part of the strategy is to communicate with more clarity the products that make Monica Vinader truly distinctive and successful. We have the MV Siren, MV Alta, MV Signature, and MV Odyssey” collections, among others. “We plan to raise awareness of those and communicate very clearly that those collections offer signature, iconic products that are very clearly Monica Vinader.”
Vinader has always been moved by art and nature, and is recognized for her distinctive stackable designs, asymmetric shapes and engraving service. The MV Odyssey collection is inspired by rockpools, sand and water, and designed with softly hammered textures, fluid sculptural forms and bespoke gemstones. MV Siren offers lab-grown stones custom cut in asymmetric silhouettes hand-set in 100 percent recycled gold. MV Alta, inspired by midcentury sculpture, offers handmade jewelry in 18k gold vermeil and sterling silver. MV Signature, which is inspired by 20th-century modernism, balances geometric lines with fluid curves in 18-karat gold vermeil and sterling silver. Prices range from a $75 slim chain necklace to a $4,495 charm necklace in 14-karat solid gold.
Some management changes have been made. “To grow in our existing markets through product extensions and customer development and enter select markets outside the core, we did redesign the organization, to bring more regional perspectives,” Picardo said. “We appointed three managing directors covering North America, namely the U.S., Canada, and Mexico. All were in place as of last August. They manage the markets across all channels to bring a better understanding of what’s happening in the markets from a customer perspective, of what other brands are doing, and how we can better work with local, multibrand partners.”
There is also a U.K. managing director, and a managing director for international covering all the markets outside the U.K. and North America. “We need to be more aware of different holidays. Mother’s Day is celebrated on different dates in the U.S. and the U.K., and aware when people travel for festivals and other occasions to different cities or countries.” Monica Vinader employs 425 people including 117 in London, 226 across its retail, customer care and other operations elsewhere in the U.K., 14 in its Norfolk, U.K. design office, 44 in North America, and 24 in Asia-Pacific.
Store openings are being considered “in a very nuanced way with a handful, possibly in California and further penetrating the U.K. and U.S.,” Picardo said. “But a lot of our focus will be to continue to grow our web business and our existing partnerships.”
When it comes to promotional activity, “Demi-fine is expanding well beyond Black Friday into spring gifting, summer and category moments such as diamonds,” Picardo said. “But we are broadening the toolkit rather than deepening discounts such as with gifts with purchase, exclusive access, services and personalized experiences that add value without reducing prices,” he said. “Ultimately full-price demand comes from distinctive design, exceptional quality, craftsmanship, personalization, a brand experience that feels welcoming rather than intimidating, all at an accessible price.”
