Editors’ Note

Nicolai Lindhardt began his career as an Account Manager with PI Advertising in New York. He proceeded to hold a number of senior executive positions with L’Oreal Denmark, later serving as Country Manager for Mattel Northern Europe and Managing Director of Britax Scandinavia. He was appointed to his current position in April 2007. He is a graduate of California Lutheran University, Copenhagen Business College, and Thunderbird University.

company brief

Founded in 1775 and based in Copenhagen, Royal Copenhagen (www.royalcopenhagen.com) is a producer of high-end and high-quality porcelain products, renowned for their classic designs and craftsmanship. With operations in the United States, Europe, and Asia, Royal Copenhagen employs more than 500 people. The company is owned by Royal Scandinavia, a financial holding company, and its main shareholder is private equity fund Axcel. The North America division, Royal Copenhagen Inc., is based in Manhattan and Poughkeepsie, New York.

Are you happy with Royal Copenhagen’s current level of brand awareness in the North American market?

We have really good brand awareness among the top 2 percent of the U.S. population. People who are in the luxury industry and affluent consumers are definitely familiar with Royal Copenhagen. Having said that, we need to take it to the next level. We are sometimes perceived as being too formal, and we want to reposition ourselves as representing casual luxury.

In terms of our target market, we want to gear our products to affluent consumers 40 years old and younger, who typically spend about $12,000 a year on tabletop products.

Royal Copenhagen operates as a global brand. Do you use the same messaging in all of your markets around the world?

In the past, Royal Copenhagen used to have a different image in the U.S. than it did in Asia and elsewhere. But we have a new CEO in Copenhagen, who came onboard in 2002, and now we aim to have a corporate identity that is more or less the same on a worldwide basis. But we are a global company, and we do follow the popular adage, “Think global, act local.” That’s why we will be developing new products specifically for the U.S. market going forward.

Are you happy with your existing distribution channels in North America?

We are happy with most of our distribution, but there are definitely some areas where we can do a better job. Specifically, we need to step up the training of some sales associates and get more in-store visibility.

In terms of training, how much time do you need to spend with sales associates in order for them to truly understand the history and the essence of the brand?

One thing that has really surprised me since coming to the U.S. is that people in the stores actually say, “Please come and do more training.” That is unique, in my experience. Usually, we have to push all the time. We are delighted with this attitude, and it makes sense, because the more the sales associates know about the product, the more they will sell.

Is it difficult to show the uniqueness of your brand in such a crowded marketplace?

For me, it’s all about the in-store execution. If all we have on an entire floor is one plate sitting on a shelf, it will get lost in the pack. So that is a challenge. In my view, it’s all about building customer relationships, so the point of purchase is very important. Ultimately, we want to have products that sell well in the marketplace, and that’s what we will be focusing on moving forward. The Internet is here to stay, and we are using that more and more effectively. We’ve just upgraded our Web site, where an increasing amount of consumers go to get information; then they go to the stores to buy the products.

How challenging is it to create new products that have a modern feel but which also maintain the company’s traditional identity? Is it hard to find that balance?

The launch of the Royal Copenhagen Mega line is a perfect example of a contemporary product that appeals to people 40 years old and younger. As well as being modern, it’s completely in line with our heritage, because it’s actually a larger version of the Blue Fluted pattern, which was first launched in 1775. In 2008 we’re going to come out with some other patterns that are based on our heritage, dating all the way back to 1790.

Are you planning to expand your product lines, or will they remain relatively consistent going forward?

From talking to our customers and key retailers throughout the U.S., we’ve learned that we need to bring in more patterns. Blue is very popular in the U.S., so we plan to develop more patterns with blue designs.

Is technology impacting the design and production of your products, or does your brand rely more on fine handcraftsmanship?

I think there’s room for both. Most of our products are hand-painted. We have tested out a few printed versions, made in a very elegant way. We will be launching a product in 2008 in two versions: a printed version and a hand-painted version. We will be offering these products at different price points. The printed version will be more of an entry-level product. It’s a bit like a Mercedes Benz, with the A-Class and the C-Class. You can move up within the portfolio, and it’s similar in our industry.

In your career, you’ve worked for some leading luxury brands. What excited you about this opportunity, and so far, has it been what you expected?

Having the opportunity to work in New York is fantastic. Beyond that, I think the fact that I am a Dane myself really made a difference. To a Dane, working for Royal Copenhagen will always be very special. Like every other Dane, I was raised with Royal Copenhagen. My parents have these products and my friends have them – everybody’s got them in Denmark. So I was very excited when I heard about the opportunity to be part of building the brand in the U.S., just like we’ve done in Europe and Asia. It was an opportunity that I simply couldn’t pass up.