"Hard Luxury" Is Barometer Of The Economy Tiffany Sales Decline In The Three Quarter

Following the issuance of profit warning by domestic jewelry brand Zhou Dafu and Lufu group, the Tiffany report of the world-famous jewellery brand also showed that sales fell in the third quarter, and the annual profit drop is expected to be higher than previously expected.

As of the three quarter of October 31st, the results showed that Tiffany sales fell 2.2% to 938 million US dollars.

For this reason, Tiffany adjusted its profit forecast for the whole year. It is expected that profits in the current fiscal year will fall by 5% to 10%.

In 2015, growth was sluggish at the macroeconomic level, to a certain extent, inhibited.

Consumption.

On the other hand, jewellery brand has a high degree of dependence on raw materials. Price fluctuations of raw materials such as jewelry, stone, gold and diamonds and fluctuation of exchange rate have certain risks for jewelry enterprises, which is an important reason for the fluctuation of profits.

Comments: at home and abroad

Profit warning has been issued and profits decline, which means that the winter of jewelry industry is really coming.

Products with local brands are single.

Unlike the reasons for the lack of value-added technology, the decline in Tifffany sales is more pronounced from the strength of the US dollar exchange rate.

Sales of more than half of the brand's products come from outside the United States. The fluctuation of exchange rate not only reduces the consumption of all kinds of people in the United States, but also makes the book value of other currency sales finally be converted into dollars.

According to the insiders, the above objective reasons are the main factors leading to the decline of the profits of many jewelry enterprises at home and abroad. In fact, the role of jewellery in the investment field has been decreasing, while the decorative function is relatively simple, and the increasingly strong substitution in the pluralistic era is an important inducement for the whole industry to enter the cold winter. This means that jewellery enterprises must accelerate the pformation.

On the one hand, we should increase the development and service of individuation and customized products. On the other hand, we should realize the "crossover" of products with a more open mind, and better integrate the decoration and functionality to enhance the repeat purchase rate of consumers.