Ralph Simons
CEO
Tane
/
Insight

Mexico's Culture Proves a Hit

Wed, 05/08/2019 - 10:03

In today’s luxury retail segment, engaging customers is crucial and the best way to do that is to create and tell a gripping story, says Ralph Simons, CEO of Tane. “If there is one element that is gaining importance each day in the luxury market given the digital revolution, it is storytelling.” Tane, Mexico’s only high-end jewelry brand with 77 years of experience, is part of Grupo BAL. The retailer is undergoing a transformation to create a narrative that it expects will not only please existing customers but also attract new consumers. “Posting pictures on Instagram or any other social media is not enough,” Simons says. “Nobody is going to engage with it unless there is a story that they can relate to.” 
Simons believes that part of the brand’s storytelling must depend heavily on its Mexican origins and the company’s silversmithing tradition. “For the past 77 years, we have worked to reflect the unique elements of Mexico through our pieces. We have always been specialized in handmade jewelry and art objects and we are one of the last vertically integrated silver houses in the world. This gives us a very unique feature.” To highlight its Mexican origins and attract younger customers, Tane has launched México mi Amor (Mexico my love), a collection that taps into different elements of the Mexican culture. “México mi Amor is a very good example of a collection that highlights our Mexicanism and our origin,” Simons says. In particular, he says the collection has reached a younger demographic. “With this collection, we have generated significant engagement with customers aged 25-34 years old.”

The success of a collection largely based on Mexican elements obeys a shift in the attitudes of Mexicans toward locallymanufactured products. “For a couple of years, there has been a growing interest in locally-made products. Before, everything that came from abroad was perfect. However, we have seen that more and more people appreciate locally made products and have a sense of pride for what the country has to offer.” adds Simons. “As the only truly world-class Mexican luxury brand, Tane fits perfectly in that picture.”

The México mi Amor collection is also attracting the attention of consumers from abroad. Tane will soon reach those consumers with a new e-commerce platform. “Creating an exciting brand experience for our customers both off and online and expanding geographically are important focus areas for Tane, which is why we will launch our e-commerce platform for domestic sales in 2019. By 2020 we will expand to reach more countries,” says Simons. As a luxury brand, Simons understands that visiting the store is an essential part of the customer journey, but he is positive its e-commerce venture will be attractive to consumers. “We do not expect our e-commerce platform to become our No. 1 store but we are confident that it will perform well as part of the company’s omni-channel strategy.”

E-commerce is one element in a commercial strategy to boost the number of clients it can reach but physical retail will continue to play a major role. “Our market strategy has a healthy mix of 25 standalone stores and boutiques inside El Palacio de Hierro, as well as other channels including a corporate sales division,” Simons says, adding that this combination improves the brand’s sales dynamics. “Traffic at El Palacio de Hierro boutiques tends to be higher on average and the company’s special promotions add to the business’ dynamism, while standalone locations provide clients with the complete brand experience.” 

Tane will continue to invest in its physical locations, Simons says. “In fact, a key element of our strategic three-year plan is the renovation, expansion and innovation of our sales channels, which means that all our retail locations will be remodeled in the next years, starting with four stores in 2019.” The goal is to modernize them and to appear more accessible and engaging. “We want to create a luxurious, welcoming and comfortable environment that makes our customers feel special and at home.” The luxury market has been growing globally and Mexico is no exception. “Mexico is the most important luxury market in Latin America. We are seeing an increase in the demand for luxury products,” says Simons. To ensure it grabs a good portion of that demand, the company is also accelerating the modernization of its product portfolio, to rejuvenate its image and captivate new customers, while remaining attractive to its existing and loyal clientele. “We are introducing about 300 new products in 2019.”