E-Commerce Strategy for Swarovski Crystal Austrian Jewelry

Swarovski Crystal is one of the most popular brands of crystal in the world. Because of its widespread branding as a luxury good, the crystal has particular desirability as a potential B2C (business-to-consumer) Internet business. Individuals will seek out the Swarovski name on the Internet in an effort to find the best place to buy such products, particularly if the goods are not available locally. From the business perspective, this substantially decreases the need and cost for initial advertisement in a medium where the customer directs their own search toward the most desirable places for shopping.

One of the greatest difficulties for any new business on the Internet is simply getting potential customers aware of the product's quality and existence. However, this proposed business targets a specific line of Swarovski Crystal—bracelets and earrings from the Austrian line. The marketing of these European jewelry items, as opposed to the American and Asian lines, would stress the allure and beauty of this unique gift and adornment. As stated on the official Swarovski website: "From timeless and classic designs to current trends, Swarovski has your style" (Swarovski Official Website, 2004). This heritage positioning provides immediate market credibility.

The presumed customer desire to purchase European Swarovski jewelry at a reasonable price creates a specific market opportunity. The official Swarovski site operates as a traditional "click and mortar" model, similar to Barnes and Noble Booksellers, yet appears even more intent on leveraging the well-known nature of the crystal's name (Rappa, 2004). However, a key distinction exists: customers specifically buy Swarovski crystal for its brand name and prestige, whereas customers visit major book retailers to purchase books at the cheapest price. In the luxury goods context, brand identity is the primary driver, not price competition alone.

Two distinct operational models must function for this proposed business. First, a B2B (business-to-business) model must be deployed to obtain goods directly from the manufacturer, allowing the retailer to display them in ways that appeal specifically to customers seeking Swarovski's Austrian line—items not readily obtainable in their local areas, whether in America or globally. The Swarovski manufacturer would recognize that this specialized line opens the brand to new consumer segments and generates greater name exposure.

The B2C side of the operation would be comparatively easier to manage. B2B transactions are inherently more complex because selling to another business involves negotiation over prices, delivery schedules, and product specifications. Swarovski would need to embrace introducing its Austrian jewelry line at both a specific and wide scale to American Internet consumers. From the consumer's perspective, the challenge becomes convincing buyers why they should purchase from a new, specialized site rather than the official Swarovski company site.

Along B2C lines, potential customers might choose an independent retailer for reasons beyond convenience. The lack of availability of this particular product in their local area, combined with faster shipping from a specialized distributor compared to the official site, could drive purchasing decisions. The business model must account for these customer needs to compete effectively against established channels.