TOUS posts a 37% increase in turnover in 2021 and sees a return to pre-pandemic levels one year ahead of schedule
The company reports sales of 384 million euros, returning to pre-Covid levels as it moves into 2022 with enormous potential for growth.
2021 was marked by an in-depth exercise in transformation around the TOUS Next project, which has produced excellent results in terms of competitiveness and the growth of the jewelry firm.
TOUS made a commitment to innovation and creativity during the year, promoting projects such as SUOT STUDIO, an experimental jewelry project.
TOUS, the Spanish firm dedicated to the jewelry business since 1920., once again saw strong growth in its business in 2021, during which it reached a turnover of 384 million euros, a 37% increase in comparison with figures for 2020, which was in the region of over 280 million euros.
These figures have made it possible for the company to return to pre-pandemic levels one year ahead of schedule, thus once again demonstrating its sound business model and resilience. There was a gradual recovery in the rate of sales over the fiscal year, in which the business hit its highest figures that were even above those for 2019, a trend that has continued in 2022.
This is despite the fact that the year is still in the grips of the restrictions arising from the pandemic scenario, as well as being impacted by the reduction in the commercial reach put in place by TOUS due to strategic decisions. Based on comparable figures in terms of markets, stores open and the capacity for opening establishments in the context of Covid, the company's strength would have enabled it to consolidate sales 12% above those in fiscal year 2019.
According to TOUS CEO Carlos Soler-Duffo, "Even more important than the growth in sales in 2021 is the strategic renewal and transformation process we have undertaken over the last two years. As a result of this transformation we have returned to pre-pandemic sales levels a year ahead of schedule and that will have a positive impact on results for years to come.”
In 2021, TOUS maintained its commitment to digitization as the key to evolving from a model based on traditional commerce to an omnichannel model focused on the end customer, to the extent that the impact of the digital business on operations as a whole grew exponentially as a result of the pandemic to exceed the rate of growth in the previous fiscal year and that now translates as a stable reality for 2021.
Furthermore, in the year the company consolidated its international distribution by focusing on 46 countries and securing a solid network of stores in those areas and regions with the best outlook for long-term growth and consolidation. TOUS ended the year with a total of 703 stores worldwide, unchanged from the year before.
TOUS currently has more than four thousand employees worldwide, distributed across its network of stores and global corporate teams, which allows it to adapt its global strategy to local consumers.
Digital commitment and consolidation of e-commerce
The digital business continued to grow during the year at a rate of 30%, following an upward trend that began in 2020, with online sales now double what they were in 2019. Online sales in 2021 accounted for more than 20% of the total, in peaceful coexistence with the digital transformation happening in stores. TOUS currently has e-commerce operations in 26 countries.
Some of the key projects undertaken in 2021 included the implementation of a revamped customer relationship model with new CRM technology, the creation of a new Data Intelligence area and the use of the Salesforce platform to manage business processes. These efforts to evolve from a traditional store model to a fully omnichannel model have been recognized with a SAP Quality Award in the innovation category.
Work continued during the year on the digital hub, an initiative created by the firm in the city of Barcelona in 2019, where a cross-cutting team works to attract digital talent and develop innovative new projects that go hand-in-hand with new technologies.
TOUS Next and transformation as a driver of growth
Fiscal year 2021 was marked by transformation at TOUS, with the company embarking on a project that will lay the groundwork for the organization's future competitiveness and growth. The results of the TOUS Next initiative have surpassed expectation by creating a more agile, digital and efficient way of working.
In the words of TOUS’ President, Alba Tous, “The second century of our company’s existence has begun with a truly exceptional year, laying the groundwork for solid long-term growth with a profound transformation that cuts across all areas of the company."
As part of this transformation process, the company has reinforced its executive team with the addition of Alu Rodriguez, Chief Transformation Officer (CTO) and Chief Information Officer (CIO), who has joined Comex and reports directly to the CEO. Alu is driving a series of projects for the jewelry firm, including the personalization of the consumer experience, the digitization of stores and the automation of processes, among others, always in keeping with the three cornerstones of TOUS Next: customer focus and digitalization; corporate responsibility and sustainability; and processes that deliver maximum efficiency and agility.
This desire to transform and anticipate the future of the business is also reflected in the remodeling of the headquarters, an innovative project with talent as the centerpiece and the creation of synergies between the different teams through more centralized and flexible management. The company has completely renovated the workspaces in line with the principles of Feng Shui, neuroarchitecture and biophilia, all of which promote creativity, inspiration, innovation, health and vitality.
In the process of remodeling the corporate facilities, the company has also reformulated its logistics management, now unified in a single location which has made it possible to introduce new fully omnichannel systems and unified stock management. This transformation has made it possible to handle day-to-day operations and the major campaigns planned at the retail level organically, thanks to a logistics center capable of receiving, storing and dispatching more than 7 million products a year, distributing them from Manresa to all points of sale.
The new organizational model includes new work units which serve as the drivers of the company's digitization process and reinforce the firm's commitment to the most innovative and creative talent.
Creativity and innovation, at the core of our connection to consumers
The exploration of new territories also applies to the fields of design, marketing and communications, with new data-driven creativity initiatives that have enjoyed great success and recognition.
SUOT STUDIO is an experimental jewelry project headed by Marta Tous of the TOUS Group which is intended to encourage creative freedom and explore new paths in the world of jewelry. The project aims to blend artisan tradition and experience with creativity to establish new synergies by implementing all the jewelry innovation processes developed by the TOUS Group. In this way, SUOT STUDIO will offer contemporary jewelry designs of the highest quality through experimental jewelry in order to attract a creative and innovative audience.
At the same time, TOUS has launched a new unit, the Content Factory. This new TOUS unit is an internal photography studio that is meant to handle the high volume of audiovisual material generated by the brand through flexible and efficient processes. The idea is to create a vast TOUS audiovisual archive and provide added value to the graphic resources.
In the marketing and communications area, the company, confident in the market appeal of its products, is firmly committed to reaching out to consumers with innovative campaigns such as MADE OF TOUS, which enjoyed a great deal of visibility in the month of December. The jewelry firm, as a pioneer in influencer strategies, has strengthened its partnerships with Eugenia Martínez de Irujo and Tamara Falcó, as well as other international figures such as the Mexican singer Belinda or the Russian actress Elizaveta Boïarskaïa, and has added new names such as Aitana, Sara Sálamo and Alba Galocha, among others.
TOUS advances in its commitment to sustainability and the jewelry trade
TOUS set up an Executive Committee of the Board of Directors in 2021 to deal with Sustainability. The company thus continues to strengthen its engagement with this issue. It has further pursued its commitment through partnerships and other actions that have a social impact.
Notable here is the second collection produced in collaboration with Tracemark, a pioneer in guaranteeing the complete traceability of jewelry pieces, which works with companies that are certified by the RJC (Responsible Jewellery Council), a certification that TOUS obtained in 2020.
The TOUS Jewelry Trade and Artisans School, the firm’s pioneer educational project that promotes craftsmanship as a vocational training opportunity for young people, has added a new school in Spain, bringing the total number of jewelry schools to 10, attended by more than 200 students from around the world.
At this point, the TOUS Jewelry Trade and Artisans School has perfected the program in digital format and is preparing to transition to a hybrid model. The virtual format and in-person teaching in corporate spaces will be maintained, while students will also be able to attend local workshops. In addition, a new format will be introduced in which some stores have their own workshops run by jewelers who have completed the program. All of this has made the program more global by providing access to students in countries where the school does not have a presence and consolidating its work as an employer brand.