Otto Klein & Co., An Ethos of Excellence and Opulence in Luxury

Hanau, Germany— For almost a century, Otto Klein & Co. has made significant progress in building a strong position in the high-end jewelry market. The Company has remained independently owned and operated even as many competitors have sought the shelter of conglomerates. As Chairman of Otto Klein & Co, Richard Hormann has said in a recent interview with the metropolitan press “The secret to its success is to make decisions on business strategies in the best, most efficient manner with emphasized performance, brand purity, and continuity in customer centric model. The Company can focus more than ever on the customer. We must never forget to be responsive to the needs of the customer.”

Otto Klein & Co. has also maintained its brand image by limiting production, even with increased demand for its products. For luxury goods, scarcity in the marketplace can influence value, spur demand, and contribute to collectibility and long-term appreciation. Many luxury-goods makers have used their original product as a springboard. Many conglomerate jewelry makers have waged that the equity of their brand built on a single product will promote sales for a variety of luxury goods. Other brands have even licensed their brand to other manufacturers, thus relinquishing some control over the products appearing under their name. Otto Klein & Co, however, makes only one of a kind jewelry and has never licensed its name.

Otto Klein & Co. will face stiffer competition as innovative entrepreneurs search for new ways to attack its markets. Large luxury goods conglomerates enjoy certain advantages over an independent firm like Otto Klein & Co. and have restructured operations to take advantage of size and significantly reduce costs, enjoying synergies in advertising and marketing, and are more willing to engage in open discussions in trade associations to learn from the competition. The conglomerates may also be more willing to shift manufacturing to Asia and other markets where labor costs are considerably lower than traditional western markets.

As Otto Klein & Co. approaches its 100th year anniversary, the Company is sticking to its core strategy of independence, continuity, and brand purity. Otto Klein & Co.’s attitude has allowed it not just to survive decades of technological and economic cataclysm, but to thrive amidst them. Even in today’s large, global luxury-goods market, an independent company that clearly defines its market niche and relentlessly sticks to its strategy can become a brand leader in the global marketplace.
www.ottoklein.com