Point, Click, Swiss Knives Link to Technology

Struggling back from a sales slump since the Sept. 11 terror attacks, the two makers of Swiss Army knives are trying to lure back customers by adding new designs and features like computer memory chips, butane lighters and alarm clocks.

Victorinox and Wenger, which evenly split the rights to provide the Swiss military with knives complete with corkscrews, can openers and screwdrivers, saw the attacks evaporate much of their traditional market -- travelers who buy knives as souvenirs and gifts.

Pocket knives suddenly became less attractive when airport screeners began confiscating anything sharp or pointed, including nail files.

Demand in the United States plunged 50%, said Patrick Merlotti, finance director of Wenger. Sales plunged in Europe too.

“We used to sell many pocket knives in the duty-free section, but now this happens increasingly less because they must be packed before flying,” said Hans Schorno, press spokesman for Victorinox, Europe’s largest knife producer.

Victorinox lost 8% to 10% of its pocket knife market, said Urs Wyss, marketing director of the 120-year-old firm based in Switzerland’s German-speaking state of Schwyz. Wenger, in the French-speaking state of Jura, lost 20% to 25%, Merlotti said.

Wenger, the No. 2 producer of the Swiss Army’s “Offiziersmesser” (officer’s knife), said roughly half of its pocket knife sales in Switzerland go to tourists, many of whom make their purchases “spontaneously,” just before boarding flights.

“The crash of 2001 hurt a lot,” said Rebecca Kaeslin, Wenger’s head of marketing and communications. “Luckily, this did not last too long -- people realized that having a pocket knife does not make you a terrorist.”

Both Victorinox and Wenger are growing again, but say their sales remain below their 2001 peaks.

Victorinox is pinning its hopes for growth on computer adaptability with the promotion of its “SwissMemory” series, introduced in March at the Hamburg Computer Fair. It offers knives with a computer chip that can store up to 512 megabytes of data and plug directly into a computer’s USB port.

“We have been planning this for a long time now -- since USB first came on the market -- but until now, the technology was too big and complex to be put in a pocket knife,” Schorno said.

The SwissMemory series also includes a special flight set, designed to meet international air transport regulations. Swiss and European authorities permit passengers to have knives in their carry-on baggage if the blade is shorter than 2.4 inches and cannot be locked open.

The series adds to more than 400 pocket knives in Victorinox’s inventory, including glow-in-the-dark and flashlight versions.

Wenger has embarked on a perhaps riskier strategy -- making significant changes to the external appearance of the century-old icon of pocket knives. Its “Evolution” line released in November upgrades the knife’s hand grip, making it easier on the thumb and palm when using.

Wenger, a family-run company that does not release financial results, says its annual revenues are one-fourth those of Victorinox, also family owned. Wenger hopes that the changes will give the company a modern image and a badly needed spark.

“The competition has now gotten much more aggressive in recent years,” Kaeslin said.

Her company’s six new knives -- four full-size and two miniature models -- are available in Switzerland and other countries, and are to be on the American market within the new year.

Wenger offers more than 300 pocket knife variations, from the luxury platinum-plated Porsche series to more practical innovations such as laser pointers, cigar cutters and bike wrenches.

Despite the innovations, there are no plans for the new versions to “replace the classic [model] -- they will be complementary,” Kaeslin said.