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continued. . .
At one time, seasonal represented the lion’s share of Nikko’s
annual sales volume, but as the fortunes of that category diminished, stalwart
collections like Christmastime and Happy Holidays faced double digit decreases.
In the ’80s and ’90s, Nikko’s best-selling seasonal triumvirate (Winter
Wonderland rounds out the three hearty holiday hits) sported hundreds of SKUs,
sold millions of pieces, and generated tens of millions of dollars. Molbury
acknowledges the loss. “Holiday at one time brought in as much as 70% of our
sales volume and those were good year-round sales,” he says. “Today, we sell
Christmas three months of the year.” While the category continues to contribute
nicely to Nikko’s coffers – as much as 25% every year – its heyday, admittedly,
is long gone. (During the robust ’80s, these patterns helped Nikko U.S. return
$50 million in annual sales one year to the next.)
Happily, Molbury is quick to add, bridal has given a boost to the bottom line
and that category generates 60% of yearly sales. “In the past two years, we’ve
seen double digit growth as we’ve turned the business around,” Molbury informs.
“Many dinnerware manufacturers find the bridal business difficult; at Nikko, we
look to this category for continued growth.” Molbury chalks this up to more
saleable collections, competitively alluring price points, and innovative
techniques that work hard to separate Nikko from the crowd. “The perceived value
of our patterns is clear even to those not in the trade,” Molbury avers. “Nikko
designs specifically for the U.S. We understand what brides want and we’ve
worked hard to give them what they want.”
Nikko is a soup-to-nuts supplier, one of the few who
continues to produce everything in-house including decals. The Nikko compound –
a string of factories comprising 30 acres in Hakusan City, some two hours north
of Kyoto on the Sea of Japan – now employs 700 (down from its 1,500 peak).
Downsizing has been tough since Nikko very much remains an enterprise that
believes in the longevity of its employees. V.P. Kenji Anzai has split his
almost two decades with Nikko between Japan and the U.S. “Nikko believes in
lifetime employment,” says this jack-of-all-trades who oversees private label,
commercial sales, warehousing, and any number of other jobs at this bare bones
operation. “Our workers have been with us ten, 20, 30, even 40 years. We have
second and third generations working at Nikko which is unique in 2007,” Anzai
apprises. And which makes a centennial milestone all the more poignant, even for
the usually taciturn Japanese. “One hundred years is an important anniversary
for us,” Anzai informs. “It’s a time for congratulations of our history. The
culture of Nikko has been to strive for the highest possible quality matched
with a strong price value relationship. That’s been our mission from the start.”
Industry veteran Molbury has been eager to tout the 100th anniversary,
American-style, with a bit of fanfare. “Making it this long means something to
our retail partners who see a company with stability, reliability, resilience,
and quality,” he declares. “I’m not sure it means all that much to the consumer,
but for our partners it’s still an achievement worth recognizing.”
continued . . . .
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