What Happened To Montblanc?

[Blade Runner]

 

I think we have to ask who is buying MB pens? It is certainly not the person who wants a pen to use every day, that person will buy one of the many good quality cheap pens available today. So it seems that the bulk of MB's market are "pen collectors" and that market is shrinking fast.

It's true that most folks today use cheap bps. That's why most fp companies have adopted MB's high end strategy. Such companies, including MB, attract collectors, but also many who use the pens daily, buy them as gifts, or buy them to mark a special occasion. Some companies have done well in emulating the MB model, while others like CS (the poster child of a brand with high end pretensions with little pen making know how) haven't.

Edited September 28, 2014 by Blade Runner

[jar]

 

It is certainly not the person who wants a pen to use every day, that person will buy one of the many good quality cheap pens available today.

 

Why would I buy a cheap pen instead of a Montblanc? What do you consider as a "good quality cheap pen"?

[Matlock]

It's true that most folks today use cheap bps. That's why most fp companies have adopted MB's high end strategy. Such companies, including MB, attract collectors, but also many who use the pens daily, buy them as gifts, or buy them to mark a special occasion. Some companies have done well in emulating the MB model, while others like CS (the poster child of a brand with high end pretensions with little pen making know how) haven't.

 

It is difficult to compare CS, with a staff of 4, to large companies like MB. I think enough has been said about CS on another forum.

[Matlock]

 

Why would I buy a cheap pen instead of a Montblanc? What do you consider as a "good quality cheap pen"?

 

I have used a Pelikan M400 since 1990. That is what I consider a good quality cheap pen. I have a MB 149, 147 and a beat up old 144. I bought the 147 in 1996 from Harrods and I use it when travelling. The 149 gets very little use and the 144 sits on my desk and is used for notes etc. The M400 is a better pen by far in my opinion but each to his (or her) own.

[karmakoda]

The Montblanc Boutique in Manhattan is just up Madison from it's much larger, former, location, a space now occupied by "Fendi". This downsizing strategy is probably wise. In what would seem to be one of the more significant market places in the World, things are changing, for instance, Art Brown's International Pen Shop is gone completely.

The generation that once had a life experience connection to fountain pens, is no longer the most important in purchasing power. When I was in school, we actually used fountain pens, but the younger members of my family, young adult, teen, and pre-teen, have the iPhone, synched to an iPad, and a Cloud of instant information from all over the planet. This powerful part of the purchasing public has little interest in antique furniture, collectible china, or fountain pens.

Doing my little bit, I have gifted many of these younger consumers with fountain pens, and although appreciated, they do not fit the life style of younger people. Too expensive, easily damaged, messy and what is the reward? Obscure aesthetic pleasure? Doesn't fly.

Montblanc has weathered many storms, and will be OK, but they need new marketing strategies for a new World.

[Matlock]

The Montblanc Boutique in Manhattan is just up Madison from it's much larger, former, location, a space now occupied by "Fendi". This downsizing strategy is probably wise. In what would seem to be one of the more significant market places in the World, things are changing, for instance, Art Brown's International Pen Shop is gone completely.

The generation that once had a life experience connection to fountain pens, is no longer the most important in purchasing power. When I was in school, we actually used fountain pens, but the younger members of my family, young adult, teen, and pre-teen, have the iPhone, synched to an iPad, and a Cloud of instant information from all over the planet. This powerful part of the purchasing public has little interest in antique furniture, collectible china, or fountain pens.

Doing my little bit, I have gifted many of these younger consumers with fountain pens, and although appreciated, they do not fit the life style of younger people. Too expensive, easily damaged, messy and what is the reward? Obscure aesthetic pleasure? Doesn't fly.

Montblanc has weathered many storms, and will be OK, but they need new marketing strategies for a new World.

 

All very true. Yes MB will weather the storm but probably by selling more and more "collector's items". As to selling pens for use I give the classic comparison between MB's top pen, the 149, and Pelikan's M1000. I can pay £620 for the 149 or £353 for the, better, M1000. Who, other than pen nuts like us (me included) would buy the 149 on those terms? Yes I have both the 149 and the M1000.

[littlepen]

With regards the digital aspect Montblanc have brought out inserts and standalone pens it will be interesting to see how these sell.

[littlepen]

I do wonder where Montblanc will go with the pens. With the latest writers edition costing £100+ more than the 149 90th edition seams to me a very strange point. When you add that the John Lennon was sold for £620 just adds to the confusion is this just a blip or is this there new pricing structure?

[jar]

 

I have used a Pelikan M400 since 1990. That is what I consider a good quality cheap pen. I have a MB 149, 147 and a beat up old 144. I bought the 147 in 1996 from Harrods and I use it when travelling. The 149 gets very little use and the 144 sits on my desk and is used for notes etc. The M400 is a better pen by far in my opinion but each to his (or her) own.

 

But why would I buy a Pelikan M400 instead of a Montblanc 144 or Generation?

[Blade Runner]

 

All very true. Yes MB will weather the storm but probably by selling more and more "collector's items". As to selling pens for use I give the classic comparison between MB's top pen, the 149, and Pelikan's M1000. I can pay £620 for the 149 or £353 for the, better, M1000. Who, other than pen nuts like us (me included) would buy the 149 on those terms? Yes I have both the 149 and the M1000.

I would. I find the 1000 unwieldy even un-posted, and the nib feel of modern Pels isn't to my taste. Pelikan's nib QC is also quite hit or miss. More miss in my experience.

[max dog]

In my line of work for example there is no need for pens anymore. I can go weeks without having to write anything. The digital era has basically made the pen obsolete. The question is whether there is a large enough hobbyist/ collectors market to sustain the high end pen manufacturers. Just this week I held a beautiful 90th aniversery SE pen in my hands, but decided not to buy it for I have no use for it. My last MB purchase was over 3 years ago and I fear my pen purchasing days are permanently over.

 

The fact that Montblac keeps raising prices, a marketing ploy in an attempt to create an image of exclusivity, says nothing about how well sales are really doing. Reducing prices would be the final death blow to any high end goods manufacturer. Stores are often void of customers.

 

I hope I'm wrong. Time will tell.

It's for this very reason Montblanc decided several decades ago to abandon the low end pen market, leaving it to the others, and focussed on high end pens. They marketed their pens as highly desirable, quality crafted, precious items. They saw the writing instrument market was headed to becoming nothing more than cheap utilitarian disposable widgets in the digital age. They needed to differentiate their pens some how and marketed them as timeless works of art that people would buy not only for the writing performance/pleasure but also for it's beauty and elegance on par with high end watches and jewellery. All in all they were successful commanding brand recognition eclipsing all others and thriving, while every other high end pen company struggled to survive or simply went under.

 

Some don't like Montblanc because they think it is nothing more than a status symbol, but I disagree. They did their market research many decades ago and made wise choices in the direction for their company and their products to set themselves up to survive in the digital era, and their pens and inks are very well made which is why loyal customers continue to buy their products and Montblanc continues to succeed as the premier pen brand. They could not have achieved this on hype.

 

I think they will have their ups and downs, but will continue to succeed as long as they stay on the ball with the quality of their products and services, and continue to anticipate the direction of the pen market. I see they are trying hard to penetrate the growing Chinese and other Asian markets.

Edited September 28, 2014 by max dog

[Michigan]

Well, LVMH does funky things with the Louis Vuitton business. Basically, they use its cash generation for other things and work hard to bury the profit margin of the handbags.

 

I would expect more accounting imagination than some landslide in MB's actual business.

 

It seems doubtful it is becoming insolvent.

 

It also astonishes me that people are comparing a few hundred dollar difference between a Pelikan and a Montblanc for their respective resin models and seeing meaning there. Luxury goods do not, and are not intended to, work that way. If someone buys a leather good at Tiffany & Co. do they discern great meaning from the fact that cheaper equivalent products can be bought from Coach? Well, I just bought someone a very expensive wallet from T&Co. and assume I could have gotten an equivalent for about half the price from Coach. But my wife loves Tiffany stuff and she wanted it to match her purse. I bought it because of her emotions, not because I counted stiches per inch and did some spreadsheet work. That is the market they are looking for at Montblanc as well. They want to cater to your dreams if your pocketbook is large enough. I really don't think they care very much what Pelikan charges.

[Michigan]

I think all the luxury goods stuff is a little silly, in its own way. If you're a man or woman of the world, why do you need to go to a boutique to buy much for yourself?

 

If you're a connoisseur, why not show you really know your stuff by getting a good deal? I call this the Rex Mottram school of living. He was a minor character in Brideshead Revisited, but he was influential on me. You buy diamonds loose and have a ring made. You buy high yield bonds when others are running away. You negotiate knowing some level of your own power and worth. Frankly, the next time I buy a custom knife, I hope to get a mammoth ivory star in the deal for my 146.

 

When I shop for myself, retail is for suckers.

Edited October 1, 2014 by Michigan

[Blade Runner]

I think all the luxury goods stuff is a little silly, in its own way. If you're a man or woman of the world, why do you need to go to a boutique to buy much for yourself?

 

If you're a connoisseur, why not show you really know your stuff by getting a good deal. I call this the Rex Mottram school of living. He was a minor character in Brideshead Revisited, but he was influential on me. You buy diamonds loose and have a ring made. You buy high yield bonds when others are running away. You negotiate knowing some level of your own power and worth. Frankly, the next time I buy a custom knife, I hope to get a mammoth ivory star in the deal for my 146.

 

When I shop for myself, retail is for suckers. When I shop for others, retail is for suckers. But then I am the sucker because I know I won't have an issue getting good service.

Buying from a boutique or AD is convenient. Sure it's generally cheaper buying used, but not uncommonly a used pen, especially one from ebay requires work, sometimes a lot. Sometimes it needs to be sent to MB for service and parts, sometimes the nib requires a nib tech to get it smooth, and sometimes a new nib is required. And there is the cost and hassle of sending the pen to these places. In the worst case scenario, the total cost is the same as that of a new pen with much greater effort. For some people the convenience is worth the extra cost. It's not for anyone to denigrate that choice.

[Trom]

 

Why would I buy a cheap pen instead of a Montblanc? What do you consider as a "good quality cheap pen"?

 

an iPad

[Trom]

I do wonder where Montblanc will go with the pens. With the latest writers edition costing £100+ more than the 149 90th edition seams to me a very strange point. When you add that the John Lennon was sold for £620 just adds to the confusion is this just a blip or is this there new pricing structure?

 

They have to increase their prices in the shrinking long-established markets (Europe, US and Japan), hoping there are just enough 'rich' people who buy another exciting pen.

On the other hand it's just inflation (money creation). There are (hidden) price increases in many luxury goods markets.

 

see, http://www.economist.com/blogs/schumpeter/2014/02/luxury-goods-market

Edited October 2, 2014 by Trom

[jar]

 

an iPad

 

LOL

 

See, I find iPads about a brain dead as any object ever created.

[Trom]

 

LOL

 

See, I find iPads about a brain dead as any object ever created.

 

i, i, i, i that's a blunt statement........

[littlepen]

Interesting article if that's the case I will be interested to see if the standard pens and special editions will have similar price increases and how the established markets react.

[Trom]

Interesting article if that's the case I will be interested to see if the standard pens and special editions will have similar price increases and how the established markets react.

 

They already went up in recent years. Let's see what happens next year.