ANNUAL REPORT 2013

FISKARS 2013

CATEGORY LEADERSHIP FROM IDEA TO SHOPPING CART

Fiskars has a legacy of creating best-selling products and building strong brands, access to the largest trade accounts in the world and a wide own branded retail network. To take our business to the next level, we aim to excel in all areas of our value chain.

Innovation is our DNA

Continuous innovation and renewal is the prerequisite for maintaining our leadership position. It also provides the foundation for our ambition to expand into new categories that strengthen our existing business and build upon our capabilities and competences. Fiskars strives to innovate both in terms of design and technology to create unique propositions that others cannot replicate. By incorporating that innovation into products and platforms across product generations we create an exclusive place for ourselves in the market. The design of every product starts with the consumer and understanding his or her everyday needs and preferences. New products are developed in close co-operation with users, brand management and manufacturing, and the product creation process evaluates the commercial potential of new ideas and concepts carefully.

Innovation priorities:
  • In-depth consumer and market insight
  • Co-operation with core users and category specialists
  • Accreditation by leading organizations
  • Rigorous testing to ensure safety and performance
  • Creation of ownable technology
 

A demand-driven supply chain

Working as an integrated company gives us the benefits of scale in manufacturing, sourcing and logistics. Fiskars goal is a flexible and efficient, demand-driven supply chain that fulfills the requirements of our customers effectively. The Fiskars EMEA 2015 restructuring program was launched in 2013 to optimize our supply chain and strengthen its competitiveness. Our production strategy is based on combining our own manufacturing with carefully selected supply partners. Our production facilities have an important role in product development. In manufacturing, they will focus on core areas in which the company has either special expertise, such as colored design glass, or a competitive process.

The share of manufacturing partners will increase, and our goal is to build a strong partner network which lives up to our corporate values, high quality standards and our customers’ expectations. Our own manufacturing units serve as competence centers, which support and lead the development of our partner network.


Supply chain priorities:
  • Strong competence centers with a focus on selected technologies and materials
  • Efficient and flexible manufacturing facilities
  • Consolidation of the supplier portfolio and building a lasting partner network
  • Ensuring sustainability of the supply chain
  • Regional logistics structures with fewer local distribution centers
 

A strong partner for trade and a skillful retailer

Fiskars can differentiate from competitors by combining extensive consumer insight with unbiased trade insight. Through our category management expertise we aim to assume a trusted advisor role and strengthen our partnership with selected retailers. This will enable us to build the Fiskars brand experience and expand our retail presence, while providing retailers with increased turnover. Our ambition is to be a category leader who together with the trade defines and drives the entire category, its innovation and growth. This entails not only planning which products to bring to market, but also where they are in store and how they are merchandised both in store as well as online so that sales are boosted for both the brand and the retailer. In these efforts we benefit from our experience in building and managing an own international branded retail network in the Home business.

It is important for our success to strategically plan placement, both in store and online, to make it easy for consumers to find the products and to maximize marketing opportunities to guide consumers throughout the shopping experience.

Trade and retail priorities:
  • Consumer and trade insight
  • Increasing brand experience at point of purchase
  • Digital marketing excellence
  • Continuous development of retail strategy
 
CASE: Leading the scissors category

Fiskars conducts continuous research on how consumers shop and how they use our products. In 2013, Fiskars Americas deepened it’s collaboration with our key retail customers to develop the scissors category. As a result, we were able to implement improved signage in stores with information ranging from how to select the best scissors for the task at hand, to inspirational imagery and project handouts. In-store demonstrations and educational classes for consumers also offered hands-on interactions with Fiskars products. Digital solutions reinforced in-store messaging, and posts from retailers with a large social media presence significantly increased the reach of Fiskars messaging to consumers on their path to purchase.

 

CASE: Color is the heart and soul of Iittala

The Iittala brand is known for its expertise in colored glass and ceramic products. Getting the most out of our materials and developing an extensive color palette calls for a thorough understanding of the materials used and the ability to experiment with them. This is why we have a strong focus on the research and development of color technology, both in glass and ceramics, and the library of thousands of secret recipes is one of our key intellectual properties. Iittala’s glass mass, lead-free crystal is vibrant, bubble-free, and free of faults. The mouth blown Aalto collection brings out the brightness of Iittala glass, and the Vitriini boxes, Kivi candleholders and Kartio glasses show the color range of the pressed glass in full scale. Iittala’s mouth-blown birds and unique art glass pieces open up new ways of making use of color and techniques only mastered by our glass blowers.