Svetlana Baskakova, Procurement Director for Business Gifts and Stationery at MERLION, told GIFT Review how things are going with sales and summed up the challenging year of 2020.
GIFT Review: How do you assess 2020 for the entire portfolio of MERLION souvenir brands?
Svetlana Baskakova: Of course, the year turned out to be difficult, but we at MERLION cannot note a drop in sales despite the general panic. This became possible due to the variety of brands and the vast range offered by the company. The products of world-famous brands will always be in demand. As for the changes - indeed, they exist. The most global thing is a fast and most likely irreversible transition to online. This trend has already been observed over the past two to three years and has sharply intensified during the pandemic. Unfortunately, traditional retail is now having a tough time: turnover has dropped, many stores have closed. But online offers excellent benefits for both buyers and manufacturers. In particular, marketplaces are an excellent opportunity to promote sales through a dynamic distribution channel, present the entire range of products on a specific site, while it is not always possible to do this offline. In turn, the buyer gets the opportunity to purchase a product even in the most remote corner of the country, without leaving home.
GR: Did the events of 2020 affect the demand for premium gifts? Are buyers ready to pay for expensive European brands in the current situation?
SB: Despite the pandemic and two months of quarantine, the demand for luxury gift products has not fallen. Firstly, one cannot say that everyone has gone to the cheap segment; there have always been people who love this or that brand and are not ready to refuse these purchases. Secondly, no one canceled holidays and birthdays. Yes, on the one hand, buyers have begun to save money, but here it is more likely that consumption is becoming more reasonable and conscious. After all, on the other hand, people continue to pay attention to quality products, and brands with a certain philosophy will always have a strong position in the market. I repeat that online sales offset the losses from the traditional retail crisis; new online stores are opening, marketplaces are strengthening their positions. In general, the gift business has adapted quite well online and has even acquired a faster pace of development.
GR: Buying behavior sorted out. And what about the manufacturers? Do they keep releasing new premium collections?
S. B.: The release of new products is an important moment for our development. MERLION partners expect the timely entry of new products into the Russian market from us as the largest distributor. And it is important for us to preserve this privilege for them. This year, despite the circumstances, MERLION announced the sale of several significant collections of Luxury and Premium writing instruments. Probably one of the highlights was the Classic 205 Moonstone SE special edition from one of the oldest stationery brands, Pelikan. The unique combination of materials and the unusual gray color of the writing instruments' body is reminiscent of the mystical moonstone. The stainless steel nib fountain pen is equipped with a differential piston mechanism, while the push mechanism ballpoint pen ensures ease and comfort of use. In 2020, Pelikan presented a special edition gift set with the same name ink - Edelstein Color of the Year 2020.
I would also like to highlight the Klein Blue® limited-edition capsule collection from Caran d'Ache. This unique series consists of seven iconic products and was created by the Swiss brand in collaboration with one of the most outstanding artists of its generation, Yves Klein. The body of all items is made in the color of "endless blue ultramarine" with an engraving of the artist's autograph. Any copy from the Caran d'Ache + Klein Blue collection will be a fantastic gift for fans of premium writing instruments and art lovers.
GR: And what about business haberdashery - diaries, planners? Has the demand for this category of goods changed?
S. B.: Even though demand, in general, switched to cheaper products, this process has less affected world-famous brands, especially those that, even in the current situation, may surprise with interesting novelties and creative projects. For example, the famous Italian brand Moleskine has recently released an absolutely stunning collection dedicated to the legendary Mexican artist Frida Kahlo's work. The Moleskine Frida Kahlo limited edition notebook series was created to pay homage to her inimitable style. The vibrant colors evoke a reminder of the iconic artist's amazing legacy and may inspire many to create their own. By the way, about creativity: many of those who continue to work remotely are looking for ways of self-development and implementation. People began to read more, take notes, drawings, take records. Therefore, notepads and notebooks remain quite in demand, just like the dated diaries and weeklies, which have not lost their relevance, either. For example, the series of elegant weeklies Letts PASTEL is very popular. The sleek, rounded forms of the covers are presented in soft pastel colors, the pages are cut in silver, and the application is made in the style of Parisian street signs. All this gives the notebooks a special elegance and aristocratic simplicity.
GR: Yes, you're right, these are wonderful things! Please tell me if there are categories of goods in the premium segment, the demand for which has not changed in any way due to the pandemic.
SB: Yes, for example, kitchen knives from the famous Swiss brand Victorinox. People's appetites in the literal sense of the word have not changed and perhaps even increased. In any case, people have definitely started to cook at home more often. And Victorinox kitchen knives are what you need: they vary in designs and price points, but they are all functional, reliable, and good value for money.
GR: A traditional question at the end of our conversation - what are the results of 2020 and your future plans?
SB: We are grateful to all our partners who have passed this challenging year with us. Tough times really test the team's abilities and capabilities and strengthen the bond between colleagues. Nevertheless, 2020 was dynamic, exciting, and once again proved that you must always be in good shape and increase productivity in all business areas to achieve good results. We, as always, have grandiose and ambitious plans, and we are continually looking for new ideas and brands that are of interest to our partners and us. MERLION continues to work in full force and does everything to become better, bigger, and stronger.
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