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How Does Sigg Get Away With Charging $25 For A Water Bottle?

  • Forbes, Friday, March 20, 2009 11:16 AM
First, know your customer. There's the "Whole Foods Woman," who lives in a city, practices yoga and buys organic produce. Then there's the "Geek Chic Guy," who listens to Radiohead and wears vintage Converse sneakers. Then there are five other "sectors," all of which are addressed when Sigg Swizterland executives gather in Manhattan each year to pour over designs to slap on their aluminum reusable beverage vessels in the fall.

Every year, Sigg chooses from 3,000 different designs; winners get names like "Girlie Skull" and "Samurai Spirit." The U.S. marketing strategy is built around Sigg's three "brand pillars"-- its Swiss heritage, its design and its eco-friendly function. Sigg USA's sales have increased 130% a year since the 100-year-old company, which was exclusively sold in specialty outdoor stores, was repositioned as "a lifestyle necessity for the eco-guilty," writes Helen Coster.

"Using bottled water is now perceived as immoral as smoking," says Robert Rheaume, who heads Sigg's U.S. outpost. "But in some minds, so might spending 25 bucks on an 'eco-hydration bottle,'" concludes Coster.

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