The Hindu Business Line : ‘The pen business is not dead’

Montblanc’s Karl-Heinz Handke is very touchy about pens. He believes the love letter must not be written with anything other than the good old fountain pen. Some things may just be wishful thinking, but wishing never did anyone any harm, did it ?

With technology taking over, is the pen still relevant in today’s day and age, forget the future? Yes, it is, says Handke, President – Western Hemisphere and Member of the Executive Board, Montblanc International. “The fountain pen is still special. Especially to express personal feelings … to write a love letter … hopefully,” he chuckles, before adding: “But the pen market today is not a huge market. So we have to come out with special edition pens and rare pieces to keep that market alive. But pens are still contributing a little less than 50 per cent to our sales – in absolute terms, as one product category. The rest is from watches, jewellery, and so on. So, it’s not that pens are dying or decreasing in sales, it’s just that other product categories are growing faster than pens. But the pen business is not dead.”

In terms of growth, pen is not “de facto number 1 anymore,” says Handke. “But pens are still our root. We will never give this up.”

Handke is obviously proud of Montblanc’s pen history. But admittedly the brand has evolved and come a long way from its early pen days. Today, Montblanc is a luxury brand as popular for its jewellery, watches, leather goods and other accessories as it is for its classic fountain pens.

Globally, Montblanc has over 350 boutiques selling its whole range of products; India alone has 16 of them across cities such as Bangalore, Delhi, Pune and Mumbai. Montblanc is looking to set up four new stores in India this year. Chennai and Kolkata are on its radar.

While expansion plans in turbulent times may seem a bit ambitious, the brand believes this is the way to beat the blues. This is not to suggest that the global financial crisis has not affected Montblanc. It has. But the company is not willing to sit around moping.

The luxury brand says it will continue its investments and retail strategy around the world, including India, the financial slowdown notwithstanding. “Of course, we have been impacted globally. During Christmas, which is an important sales period, the crisis was at its peak. There was less corporate gifting and so on. But we are not going to be sitting around and crying. We will continue investing and keep opening stores around the world. For instance, we opened our biggest boutique in Dubai in January,” explains Handke.

India will be a key part of the company’s expansion plans. “In India, there is hardly a recession. We are going strong in double digit percentage figures. India is a fast- growing market. We will continue to invest here and open boutiques in India as well.”

In fact, India was the chosen one when Montblanc decided to open a jewellery salon. The company recently opened its first jewellery salon worldwide in Mumbai’s Taj Mahal Palace and Towers.

Why India? Handke says, “We are testing the concept now. While worldwide we have a strong pen history, in India we are perceived more as a luxury brand. So it was easier to use that brand perception and move onto a jewellery salon in India than elsewhere in the world.”

Montblanc plans to open more jewellery salons in Paris, West Asia and South America. But it is in no hurry to open several all over the world. “The jewellery salon which has some special rare products will lose its mystique if it is everywhere,” emphasises Handke.

But can mystique alone see Montblanc through when luxury products all over the world are taking a beating? Will the brand resort to lowering prices to keep going? Brands such as Prada and Christian Dior have tweaked their pricing to bolster sales. Though they have not slashed prices, these brands have widened their price brackets – resulting in cheaper products being available.

Handke says Montblanc is not interested in the price game. “We will not lower prices. The consumer wants brands and products that are safe and reliable to make investments in. They also want rare handcrafted, unique limited pieces. We are not in the price game or in the discount business. We will never have special sales or packages. Today there is a thunderstorm but the sun will come. I am optimistic about the future.”

The world could, as Handke hopes, do with some sunshine.

Do send in your queries, suggestions and feedback to brandline@thehindu.co.in

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