Difficulties At Omas In Bologna ?

[fabri00]

Peneconomics prophesied the fate of Delta,

http://www.peneconomics.com/blog/2015/10/30/delta-drama

Let's hope he was wrong

That artcle seems to me based on very personal and subjective principles and points.

Personally I dont read anything I can call "prophetic" on it.

 

The tentative of the mother company to controll the selling price adopted by a retailer is extremely common here in Europe.

Talking about pens, if you visit the web page of some of the biggest italian web-shops for the mid-expansive to expansive models you dont see the price, but the sentence "ask for quotation".

 

So, I dont agree on a theory that starting from this point try to preview the future of a company .....

[rafapa]

That artcle seems to me based on very personal and subjective principles and points.

Personally I dont read anything I can call "prophetic" on it.

The tentative of the mother company to controll the selling price adopted by a retailer is extremely common here in Europe.

Talking about pens, if you visit the web page of some of the biggest italian web-shops for the mid-expansive to expansive models you dont see the price, but the sentence "ask for quotation".

So, I dont agree on a theory that starting from this point try to preview the future of a company .....

I agree with you, the arguments are quite weak.

Merriam-webster definitin of prophecy is:

3: a prediction of something to come.

I was using it in that sense.

[aardvarkbark]

The faceted Omas Milord and vintage Paragon fit my hand so very well, and their celluloids are spectacular. I've never had a problem with any of their pistons as I have with Delta. Plus, US distributor Kenro has provided nothing but spectacular service when I've had a problem (with Bock nib) or wanted nib exchange.

 

The 'M' in the Delta link sells pens made for them and similar to the well-known models, but a clear step down in quality. They don't sell a DolceVita; they sell something similar. Cap band has motif laser engraved rather than the relief on the DV. You get what you pay for. It's no different than Polo making slightly lower quality items similar to what's available in most retailers, then selling at a 'discount' at their outlet stores. 'M' is a Delta outlet store in my mind.

[rafapa]

The faceted Omas Milord and vintage Paragon fit my hand so very well, and their celluloids are spectacular. I've never had a problem with any of their pistons as I have with Delta. Plus, US distributor Kenro has provided nothing but spectacular service when I've had a problem (with Bock nib) or wanted nib exchange.

 

The 'M' in the Delta link sells pens made for them and similar to the well-known models, but a clear step down in quality. They don't sell a DolceVita; they sell something similar. Cap band has motif laser engraved rather than the relief on the DV. You get what you pay for. It's no different than Polo making slightly lower quality items similar to what's available in most retailers, then selling at a 'discount' at their outlet stores. 'M' is a Delta outlet store in my mind.

I am sorry but I am lost. What do you mean in the last paragraph?

Thanks

[katanankes]

Wow, that's pretty big. I am an huge fan of the brand, my last purchase of the Omas Burkina. Years ago when Omas was under the LVMH management and I was working in Bologna I approached the CEO to look for a cooperation. Nothing happened but I had a chance to have a look at their income statement (it is a public document) and I was amazed that they were not covering 50% of their costs... The new ownership tried to use Omas to complement their offering in the luxury watch retail and for some time, around 2010, there were Omas corners in watch boutiques selling Tag Heurs and other brands owned by the Chinese group. Apparently it did not work. More recently with their limited edition strategy Omas seemed to be on the right track... but apparently not enough to post a profit. They have always been niche.

 

My personal prediction was that they would become an on line retailer selling directly to the customer bypassing the distributors. They recently established an on line boutique with e-commerce capabilities and in my opinion for a niche producer this might be the best way: limited production runs with high margins.

 

An employee-led buyout would make a lot of sense, in Italy there is even a law to support coops taking over business in liquidation.

 

MM

[mmg122]

I would find it a sad world if no more Omas pens were to be produced. I was attracted to them from my beginning interest. I initially tried to purchase one of each brand but somehow I couldn't stop with "one" Omas. I am grateful I ordered the Ogivia in Burkina this year & consider it my "grail pen." Out of the box from Italy it has been EVERYTHING I hoped for & I can't say that about any other pen I have wanted & subsequently purchased.

The Ogiva Burkina is a gorgeous pen. I started my love affair with Omas when I purchased the Omas Bibliotheque Nationale in 1993...and continue to like most of the pens they produce. It will be a real shame if this fine company shuts down. Really hope the employees can rescue it.

[flipper_gv]

Wow, that's pretty big. I am an huge fan of the brand, my last purchase of the Omas Burkina. Years ago when Omas was under the LVMH management and I was working in Bologna I approached the CEO to look for a cooperation. Nothing happened but I had a chance to have a look at their income statement (it is a public document) and I was amazed that they were not covering 50% of their costs... The new ownership tried to use Omas to complement their offering in the luxury watch retail and for some time, around 2010, there were Omas corners in watch boutiques selling Tag Heurs and other brands owned by the Chinese group. Apparently it did not work. More recently with their limited edition strategy Omas seemed to be on the right track... but apparently not enough to post a profit. They have always been niche.

 

My personal prediction was that they would become an on line retailer selling directly to the customer bypassing the distributors. They recently established an on line boutique with e-commerce capabilities and in my opinion for a niche producer this might be the best way: limited production runs with high margins.

 

An employee-led buyout would make a lot of sense, in Italy there is even a law to support coops taking over business in liquidation.

 

MM

 

Direct to customer would be perfect to keep the brand afloat but would need some investment to install the infrastructures needed.

[aardvarkbark]

I am sorry but I am lost. What do you mean in the last paragraph?

Thanks

 

Just reiterating what the author of the article in the link you posted is saying. Delta is selling pens to a single Italian retailer M (discussed in a couple of other threads here about 'psuedo DolceVita' and 'good deal on ebay'). These pens are similar to, but not as expensive to make as, ones they sell through all other retailers. To me, it's no different that any manufacturer selling something similar but not quite at the level of quality of their iconic products to certain outlets who can offer an item with the brand, but not of same level quality, at a lower price. There will be consumers for both. I would not care to own the DV knock off offered by M, even though it's made by the same folks who make the DV and bears their brand. Others won't mind the subtle differences and will appreciate the lower price.

Edited November 15, 2015 by aardvarkbark

[rafapa]

I see. My experience is different. The couple of DV bought to M looks like and feel like the real thing. Could you post some photos of the laser engraved bands you mentioned? Mines even have the sterling mark.

[rafapa]

BTW, i am always talking about Delta Dolcevita non Delta Dolcevita Federico.

[Phormula]

The company is joint venture between the Chinese Group O-Luxe (90%) and Louis Vuitton (10%).

According to the news, the ownership will place the company into voluntary liquidation today.

 

The number of employees was already reduced from 30 to 17.

Two employees have advanced a proposal for a management takeover with the support of an external sponsor, but no decision has been taken.

There are also rumors of a couple of interested companies.

[freakman]

I called OMAS today and they're going to close down at the end of January.

I'm still trying to find if there's anyway to help the brand.

[freakman]

I checked and seems that Oluxe is not doing well recently according to there stock performance in HongKong market. And this might be the main reason that they decided to close down OMAS.

I've phoned Oluxe and see if they're willing to sell the brand or are there any other possibilities to save OMAS.

[flipper_gv]

I really hope the brand just doesn't die, it's one of the rare brands that is still pretty old school.

I guess I need to save money fast for a paragon.

[Phormula]

According to the Italian news, a decision will be taken today and then we'll know if the company will be sold or shut down.

[Keyless Works]

I wonder how much it would cost to buy the company.

[Phormula]

I wonder how much it would cost to buy the company.

 

I think that the question is not how much cash you have to put in to buy the company the first time but how much you have to continuously inject to cover the losses and keep it alive.

[Russ]

I messaged Kenro today regarding what communication, if any, Omas sent regarding its intentions toward pens it received for repair. I sent a Milord, piston-fill, for repair and it reached the factory on or about October 15, 2015. It is such a good pen I truly would like to see it repaired, or at least returned.

 

I hope the employees can manage the buyout and then manage to keep it afloat. This is a reminder that buying pens new supports companies we know and love. Pre-loved is nice, but companies can't survive on love. lol

[graystranger]

I don't think that is fair. If the company isn't profitable then it's the owners right to sell or shut down the operation.

 

Most Italian pen brands got their start imitating American pens.

 

That can be true and it can also mean that the owners of the company are intentionally beating the company into the ground in order to shut it down. Withholding needed capital to keep the infrastructure running, micromanaging, etc. This happens more than we know. One company will buy a smaller company and shut it down after a while, especially when the new owners develop another manufacturing facility in their own country and no longer have any need of the small company.

 

This Chinese holding company that owns Omas also holds the Omas brand name and can produce Chinese made Omas pens at a fraction of the production costs in China than in Italy.

 

I love my Ogiva Alba, a most wonderful pen. If Omas is shut down that will be very sad. But, it does not mean that Omas would not be profitable if it had not been sold to a large Chinese holding company. It only means that the previous owners of Omas took the money from China and ran away from Omas. And the Chinese holding company is not interested in keeping production in Italy and paying Italian salaries to make Omas pens.

[Keyless Works]

I think that the question is not how much cash you have to put in to buy the company the first time but how much you have to continuously inject to cover the losses and keep it alive.

I am interested in how much a small but important pen company is worth with what sound like perpetual losses. It would be fascinating to me to see their financials.

 

It's also interesting that the latest article says the Chinese owner bought the company so they could use the pens as gifts.