Innovation and tradition

A beautiful, solid massif with a name that is easy to pronounce internationally. That was Fritz Gegauf's impression of Piz Bernina. The four-thousand-meter peak impressed the manufacturer so much that he dedicated his first household sewing machine to it in 1932. Today, "Bernina" is one of the 50 best-known brands in Switzerland. And the premium sewing machines also enjoy a great reputation internationally. Particularly in the USA, where Bernina International AG now generates 60 percent of its turnover, people are downright grateful for the Swiss company's excellent sewing and embroidery computers. That's according to someone who knows the US market very well: Hanspeter Ueltschi - owner and Chairman of the Board, Fritz Gegauf's grandson, rock star of the sewing industry. The 66-year-old received the latter title at a retailer event in America. Although he delegated operational management to CEO Claude Dreyer three years ago, Ueltschi does not miss the opportunity to go on dealer tours in person. However, he is not seeking admiration when he appears as "Owner from Switzerland". Rather, his aim is to bring the philosophy of the family business from Steckborn to the various markets. After all, family and tradition are Bernina's core brand values: "We are the only private company in the industry and also the last European one," says Ueltschi.

Competition lies in the Far East

Bernina shares the market with SVP Worldwide, the umbrella for the Husqvarna Viking, Singer and Pfaff brands, as well as Brother and Janome. According to Ueltschi, they have two competitive advantages: "They produce everything in the Far East and they currently have fewer currency worries than we do." The strong Swiss franc is preventing good growth. "We've had to increase our prices over the last four to five years, which has made our machines unaffordable for some segments," the company owner continues. Despite the difficult environment, the family business has so far managed to maintain its market share. According to Ueltschi, this is between 80 and 90 percent in Switzerland and between 25 and 30 percent internationally, depending on the country. The establishment of a Bernina plant in Thailand has also helped. Ueltschi is expecting a mediocre result for the current financial year. However, this will not stop him from reinvesting six percent of turnover in innovation every year. Around 40 employees are involved in the development of new machines at the Steckborn site.

Size matters

Before 2000, Bernina launched a new model every four years on average. After that, the development period was reduced to one to two years. Ueltschi says: "Today, we try to launch a new model range every year." In 2008, the company presented the world with the "biggest and fastest Bernina ever". The Rolls-Royce of sewing computers weighs an impressive 26 kilograms. Cost: 11,000 Swiss francs. It is not surprising that 80 percent of the Bernina 830 (see picture) is sold in the US market, as size matters across the pond. In 2010, three sewing machines were launched with the 3 series for design and quality-conscious sewing beginners and this September the 5 series was launched. However, Ueltschi does not see the innovation of his own products in the technical features: "It is the combination of simple operation and beautiful design that makes Bernina machines unique. " And the quality. The company wants to guarantee this despite partially outsourcing production to Thailand. "However, all development and testing will always remain in Switzerland," says the Bernina boss, adding: "I am Swiss and I want to create jobs in my home country. But this must be done within a reasonable economic framework." It is not only the fluctuations in the currency environment that are challenging. The image associated with the activity of sewing and handicrafts has also changed time and again. Whereas people used to sew and mend their own clothes for economic reasons, the market has shifted to the hobby segment. According to Ueltschi, there is currently a great deal of interest in textile design. This can be seen, among other things, in the fact that more fabrics and mercerie are being sold and more sewing machines are being repaired. DIY platforms such as Etsy.com and Dawanda.de confirm and reinforce the do-it-yourself trend. "We are noticing a rejuvenation of the target group. Many young people are exchanging ideas on the subject on social media in particular." The low-end "Bernette" range, which was developed especially for new markets such as Russia, is also benefiting from this trend.

Encourage creativity

The Bernina brand itself has also undergone a makeover this year (Advertising Week No. 20). The associated cross-market campaign has the motto "Ingredients - ingredients for creativity" and is intended to do one thing above all: inspire customers. This is also illustrated by the new slogan "Made to create". Because inspiration is a top priority at Bernina: Sewing and embroidery computers and the matching software have features that set virtually no limits to users' creative ideas. "Inspiration" is also the title of the company's own magazine, which provides its subscribers with ideas from the areas of fashion and home decoration four times a year.

However, Steckborn is aware that all the encouragement is useless if the machines cannot be operated. "Sewing is not an easy hobby. It takes practice," says the Bernina owner. Anyone who buys a "Model 830" or "820" receives up to eight hours of training - free of charge, of course. For the lower categories it is around four hours. Bernina also organizes courses at the "Creative Centre" in Steckborn, which are led by a textile artist. What falls into the "nice to have" category for customers is an absolute must for sales partners: training. "You can only become a Bernina dealer if you undergo at least two to three weeks of training beforehand," emphasizes Hanspeter Ueltschi. When a new product is launched, it is very important that the dealers are trained again for at least two days. After all, they must also be able to familiarize customers with the purchased machine later on. The company therefore relies on the expertise and infrastructure of specialist dealers worldwide for sales. According to Ueltschi, the sales network currently comprises around 2000 points of sale. Although the Bernina boss keeps a close eye on his subsidiaries and distributors to ensure that they select good dealers, he is not a fan of centralism: "I want to give people responsibility so that they can develop their own ideas and make their own decisions. If everything is chewed up in advance, motivation also decreases." Nevertheless, he knows: The success of his company stands and falls with the selection of retailers.

Conclusion: A great piece of tradition, 40 innovative minds, a portion of Swiss quality, a thousand inspiring ideas, a quantum of professional training, 2000 sales partners, a successful Swiss family business and countless creative amateur seamstresses. Simone Fankhauser