TOUS holds its own in 2020 and launches an ambitious transformation
With stores closed for more than a third of the year and world economies at a standstill, the company demonstrated its capacity for resilience and softened the pandemic’s impact on sales.
The jewelry firm posted a 72% rise in e-commerce in 2020 to now represent 20% of turnover.
TOUS Next is the name of the transformation project to bolster competitiveness and grow the organization.
TOUS, the leading Spanish fine jewelry and accessories brand in the affordable luxury segment, posted end consumer sales of €318 Mn in 2020.
The sales figure is explained by two impacts with regard to the previous year.
On the one hand, the impact of the pandemic. Although company stores were closed 35% of the time in 2020, in-store sales fell by 26.7%, a sign of TOUS’s ability to withstand an unprecedented context.
The firm also stepped up a number of strategic decisions to pivot the business and focus on areas and regions as it had planned to do that will enable it to set the stage for long-term growth, divesting from some of its outlets. This produced a second impact of an 8% reduction with respect to 2019.
TOUS reviewed its international distribution and decided to focus on 45 priority countries to build a solid, forward-looking network that could offer the same TOUS experience to people the world over, prioritizing service excellence and customer outreach. It must be also highlighted that in 2020 the company took over the direct management of its business in Poland, made up of 46 stores and a team of 190 people. In terms of retail outlets, TOUS ended the year with 703 stores internationally, 6.4% down on the previous year.
2019 sales were €487 Mn. The company believes these initiatives are ideal for undertaking a business recovery, starting with the push for commercial sizing appropriate to the long term and with the expectation of generating new opportunities soon.
2020 saw TOUS shore its commitment to investment in digitalization and omnichannel marketing. E-commerce grew 72%, from 8% to 20% of company turnover. Stock and logistics management were also key to improving the customer journey.
The firm enhanced website functionality, implemented online appointments and rolled out a care service and new ways to meet customer requirements remotely. In addition, the speed of the delivery service has been stepped up from 96 hours to 48 hours anywhere in Spain, a pick-up service has been rolled out so that products can be collected in 2 hours, an express 24-hour delivery service for online orders has been set up and orders can now be sent from stores.
TOUS’ CEO, Carlos Soler-Duffo, highlighted that: “2020 was a challenging year but it also confirmed the robust position our century-old business has developed that enables us to deliver the goods in even the toughest times. Following on from the business concentration we enacted, TOUS continues to strive to get where it wants to be - ready to take on the future and enable sustainable growth”.
TOUS Next: transformation to drive the business forward
The company engaged in the implementation of a crosscutting transformation project that will lay the groundwork for its competitiveness and growth going forward. TOUS Next is the name of the initiative which the company aims to leverage to better reach out to consumers and society with a more streamlined, digital, and effective work method that will keep us at the top of the affordable luxury segment.
There are three cornerstones to the project: customer focus and digitalization, the drive for responsibility and sustainability, and a process review to deliver maximum efficiency and agility.
TOUS president Alba Tous said: “We are beginning 2021 with excitement,knowing there is a fabulous new century ahead for the firm. TOUS Next is the upshot of group work that will span all business areas. It is a bold and holistic overhaul where the talent and contribution of all our staff will be key.
Consumer outreach and social commitment
2020 was also the year when the company tweaked its real-time communications with empathy and sensitivity for a complex situation. To do so, it was necessary to work in a streamlined and innovative manner, reviewing annual plans to create campaigns that would connect with consumers and convey tenderness.
And despite the complexity of 2020, the jewelry firm upheld its social commitment in the form of different initiatives. One of the most significant was that TOUS became a certified member of the Responsible Jewellery Council, the world’s premier organization for setting standards across the jewelry and watchmaking industry, after successfully passing its audit requirements. With regard to craft, the company has continued to work with the TOUS Jewelry & Artisans School (ETJOA), which it set up in 2018 when it also launched a process for its digitization. TOUS corporate vice-president Rosa Tous also became a deputy vice-president of the Jewelers, Gold and Silversmiths, Watchmakers and Gemologists Association of Catalonia (JORGC).