Jewelry Brand Tiffany Fell For Six Consecutive Quarters

It is reported that the United States

Tiffany (Tiffany & Co.) last week announced its first quarter earnings in 2016, operating income fell 7.4% to 891 million 300 thousand U.S. dollars, far below the expected $924 million 100 thousand, and profits plunged 16.7%, which is the six consecutive quarterly decline.

"According to Conlumino CEO Neil Saunders, a retail research and research firm, in the eyes of the millennial generation, Tiffany's inflexibility has become synonymous with old-fashioned luxury, and Tiffany has lost the charm of attracting young people."

Tiffany's sales in the same store all over the world dropped by an average of 9%, far worse than analysts' forecasts had dropped by 4.6%.

Asia Pacific market and European same store sales declined by 15% except Japan, while us same store sales fell 10%.

In addition to the Asian market in Japan, Hongkong's sales have become the worst hit area, which has offset the growth of sales in the mainland and South Korea.

Since January this year, the company's share price has fallen by 15%, and its share price has fallen by 30% over the past year. The capital market has shown a pessimism about Tiffany. The company pointed out that the slowdown in tourism consumption and the rise of online brands are the reasons for the pressure on share prices.

However, some industry analysts have pointed out that the reason why Tiffany has failed is that it has made a mistake. It is to sell the same old products to young consumers who are seeking fresh and new products. More and more millennials feel that Tiffany is getting old and outdated.

This phenomenon is particularly evident in the middle and high income millennial generation with annual income ranging from 10 to 250 thousand dollars. Their income is not low, but it is also not known as the rich class. This millennial generation prefers emerging brands.

Edward Jones analyst Brian Yarbrough said high-end fashion retailing is becoming more and more difficult and department stores are struggling. Young consumers are constantly pursuing new products instead of having the same product that everyone has, which is why they now prefer the Danish jewellery brand Pandora because they can wear thousands of different brands on their hands.

In Tiffany, you can't have that.

According to Pamela Danziger, an analyst at Unity Marketing, a market research firm, Pandora and Alex and Ani are more popular among the Millennials. These two brands are dividing the market share of Tiffany, and more importantly, they provide customized jewelry services to attract young consumers.

In addition, today's young consumers are accustomed to the fast fashion prices and jewelry brands. Brian Yarbrough points out that Tiffany may be used to increasing prices in the US market, and the US market accounts for 49% of total Tiffany sales.

Some analysts pointed out that although the brand's younger Tiffany T Series sales reflect well, but did not lead to sales growth of other products, Tiffany's product innovation is still too thin.

Conlumino CEO Neil Saunders, a consultancy, pointed out to customers in the previous quarter that Tiffany has tried to rectify the problem through a fresh and more stylish design series, but the brand is still facing another problem. Even older consumers do not like to buy luxury brands. According to US retail data, American consumers are now shopping away from clothing accessories.

Tiffany CEO Frederic Cumenal held last week at the international top level.

The summit also hinted that the company needed change. He pointed out that Tiffany could not stop in traditional industries. The company did not object to change. Tiffany had its own genes, and the gene would change over time. He also mentioned that Tiffany had taken a homosexual couple's advertisement six months before the legalization of homosexual marriage in the United States.

Now, the problem that Tiffany may need to solve is how to attract a lot of consumers' attention.

Brian Yarbrough predicts that these problems will not be overcome by Tiffany this year. Although he believes that the company will eventually win the attention of consumers, the situation is very serious now.

Brian Yarbrough points out that the performance of Tiffany data is getting worse and worse. When back to history, these figures are the worst since the financial crisis.

Tiffany's main problem now is how to build influence on the millennial consumer groups and re establish connections with consumers.