Herend Porcelain loses money for first time


Herend Porcelain Manufactory Ltd, a seller of china to European royalty and Hollywood stars, makes a loss for the first time in 180 years of business. Hence, the company is cutting jobs and targeting younger buyers. Herend reduced its workforce by 17 % to about 1,150 three weeks ago and is selling a new, cheaper range of china. The company, which exports four-fifths of its output, has suffered from a weaker dollar and a flood of cheap Chinese porcelain to Europe, said József Kovács, who was Herend's chief executive from 1990 to 2003.

``The last thing people would buy is porcelain,'' said Kovacs, 61, now commercial director. ``It's simply not the time now for luxury purchases,'' he added.

Herend gained notability when Queen Victoria ordered a dish set at the 1851 World Exhibition in London, and more recent customers include the Sultan of Oman and Harrison Ford. Herend, iconic in Hungary like Waterford Wedgwood Plc is in Britain, is among the most recognized Hungarian brands abroad, along with Tokaj white wine and Pick salami, the tourist board said.

Production at Herend has dropped by 20 % in the past four years, including to its main U.S. market, where hand-painted Herend dishes and figurines are sold in shops such as Neiman-Marcus
Group, Marshall Fields and Bergdorf Goodman to stars including California Governor Arnold Schwarzenegger.


May PMI Falls to 57.1 Analysis

May PMI Falls to 57.1

Parl't Approves Amendments to Legislation on Judiciary Parliament

Parl't Approves Amendments to Legislation on Judiciary

Motorists Pay HUF 50,859 in Vehicle Insurance Premiums Automotive

Motorists Pay HUF 50,859 in Vehicle Insurance Premiums

BKK Steps up Airport Shuttle Bus Service City

BKK Steps up Airport Shuttle Bus Service


Producing journalism that is worthy of the name is a costly business. For 27 years, the publishers, editors and reporters of the Budapest Business Journal have striven to bring you business news that works, information that you can trust, that is factual, accurate and presented without fear or favor.
Newspaper organizations across the globe have struggled to find a business model that allows them to continue to excel, without compromising their ability to perform. Most recently, some have experimented with the idea of involving their most important stakeholders, their readers.
We would like to offer that same opportunity to our readers. We would like to invite you to help us deliver the quality business journalism you require. Hit our Support the BBJ button and you can choose the how much and how often you send us your contributions.