What Made Tiffany Make All Kinds Of Innovations?

Newly renovated Tiffany flagship store in New York

According to the world clothing and shoe net, although the performance has been improved, but the United States

brand

The internal high-level continued unrest, while three board members left, the group also welcomed a new member to join.

It is reported that the members who left the board were Charles Marquis, an investment adviser, Gary Costley, former chief executive officer of California international food company, and Michael Kowalski, former chairman and chief executive officer of Tiffany, while the newly appointed board members were Annie Young-Scrivner, chief executive officer from Godiva Chocolatier.

It is noteworthy that Annie Young-Scrivner is the third female member of the board of directors, and the other two are Burberry former chief executive officer Rose Marie Bravo and Pitney Bowes Inc. executive vice president and chief marketing officer Abby Kohnstamm.

The entry of female board members in the industry seems to enable Tiffany to look at problems from the perspective of female consumers when formulating a pformation strategy.

The pformation of Tiffany has been a long way.

For the past year, Tiffany first launched the HardWear series with the American female singer Lady Gaga, and spent tens of millions of dollars to launch the new series of advertising videos taken by Lady Gaga for the first time to the US Super Bowl rugby match. Then it worked with the beauty group Coty to return to the perfume business after thirteen years, and specially invited the Chinese actress Xu Weizhou to take a series of publicity pictorial as an image ambassador, creating a very high sales volume in a short time.

Tiffany perfume

At the flagship store in Fifth Avenue, New York, the world's first coffee shop, Blue Box Caf e, has been widely exposed at home and abroad by the symbol of Tiffany blue and full of maiden hearts. In China's social platform represented by micro-blog and WeChat, Tiffany has become a hot topic with nearly 10000 yuan pin, Mao Xianqiu and other high priced home products.

WeChat's search index surged to 245.42%, making second peaks after the net red coffee shop.

Blue Box Cafe

These bold innovative initiatives did make the group's performance recover. Tiffany sales increased by 4% to $4 billion 200 million in the year to January 17, 2018, compared with the same period last year.

Yet all this seems to have avoided the core product of Tiffany, the diamond engagement ring.

In last year's earnings report, wedding jewellery sales became the only category that the Group recorded.

Does this mean that high-end jewellery represented by diamonds is losing market?

The data give us the negative answer.

In the first quarter of March 31st, the world's largest luxury group LVMH, with the strong sales performance of Bvlgari watches and jewellery department, increased its organic revenue by 20% to 959 million euros. Chaumet's new high-end jewelry series is also popular among consumers.

Italy's high-end jewellery manufacturer Vhernier S.p.A sales in 2017 reached 38 million euros, an increase of 35% over the same period in 2016, but also exceeded 10% in 2017, which accounted for 50% of overseas sales.

Italy's luxury jewelry and watch brand Fope also performed well in 2017, with sales growth of 21% year-on-year.

Net profit increased by more than 100%.

Although the global jewellery market continues to be unpopular since the 2008 economic crisis, the market still has its market demand and growth potential.

McKinsey, the world's leading management consulting firm, points out that the annual sales volume of the global jewellery market will grow at an annual rate of 5%-6%, and will reach a total of 250 billion euros in 2020, in the 2020 forecast report of the jewelry industry.

Tiffany rings

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So what made Tiffany make all kinds of innovations? Or what factors are changing the whole jewelry industry?

One of the most important factors is the replacement of the main consumer group and the change of consumption concept.

The millennial generation has gradually become the target of the market. They pursue individuality. At the same time, most of them do not have so many dinners to participate in daily life. Jewelry only plays a decorative role to show their unique personality.

Therefore, when buying jewelry, they prefer to choose fashionable jewelry with unique design and not so expensive materials, instead of gold and diamond value hedging jewelry, so that they can keep up with fashion trends, and do not worry about frequent economic upgrading.

Pandora, the Danish luxury jewelry brand, is capturing the psychological needs of the millennial consumers in a timely manner. It creates a series of techniques for the sale of the ornaments and the pendants, and returns the right of collocation to the consumers, effectively reducing the psychological cost and increasing the repeat purchase rate.

The price of each string is also approachable. Consumers will not be able to buy a pendant for any reason at any time or occasion.

It can also be artificially added to collect meaning and commemorative significance. It is no wonder that in the overall weak market environment of the luxury goods market, Pandora can achieve a double-digit increase in revenue for four consecutive years in a miraculous way. The profit has kept double-digit growth rate in 2015, and has become the global sales volume third jewelry brand.

Similar to Pandora, there are Alex and Ani from Rhodes island in the US and APM Monaco from Monaco. These lightweight luxury jewelry brands are constantly dividing the low end market share of high-end jewelers such as Tiffany and Bvlgari.

Pandora string ornaments

According to the relevant data survey, in 2015, 77.8% of the 12001-14000 level jewelry were female, 75% of the jewelry in 20000 yuan or above, and the proportion of female consumers in high-end jewelry was far more than that of men.

The rise of female consumers has become an important force in promoting the continued growth of the jewelry market.

In recent years, the prevalence of Feminism (Feminism) has been prevailing and imperceptibly affected the consumption concept of female consumers.

High end jewellery is no longer limited to the gift meaning or the testimony of wedding and love. More and more women will buy themselves a favorite jewelry when they are celebrating themselves. "Girls who buy their own Tiffany with their own decent money are the coolest," and so on.

The awakening of this independent feminist consciousness will also increasingly influence and perhaps subvert the entire jewelry industry.

Similar to the clothing industry, both high-end luxury jewelry and light luxury fashion jewelry are faced with the invasion of fast fashion culture.

In terms of the product itself, the boundaries between precious jewelry and fashion jewelry are blurred in terms of selection, design and price.

German retailer Tchibo can sell gold diamond rings at the price of 90 euros, while the fashion jewelry of Roberto Cavalli is priced at 1000 euros.

Tiffany&Co. sells more than 10000 yuan of wool balls and paper clips and other home products.

Small house built with Tiffany boutique

As far as enterprises are concerned, on the one hand, high-end clothing brands and leather goods brands such as Dior, Louis Vuitton and Herm s have begun to introduce jewelry series products. On the other hand, cooperation between brands and niche designers and fashion designers has become more and more common.

Not long ago, Dior announced that Japan's tide brand Ambush co founder, Yoon Ahn, will serve as jewelry designer for its men's wear department.

These measures can make the design more routine and more aesthetic in design, and also a timely reflection of fast fashion consumption.

Fast fashion also includes the acceleration of supply chain.

In the past, the industry standard of the jewelry industry was an average of two new series in one year, and now the product from concept formation to upper shelf sales is growing faster and faster.

The German jewellery brand Beeline will launch hundreds of new products every month. This amazing speed seems to be an impossible task for the traditional jewellery brands that emphasize the crunches.

Finally, the development of the electricity supplier industry has also enabled jewelry brands to cater to the huge online market.

Not long ago, in January, Cartire's parent company, the Swiss luxury goods group, offered a comprehensive offer to the world's largest luxury goods supplier, Yoox Net-a-porter Group SpA, and bought a 51% stake in YNAP with a bid of about 2 billion 770 million euros to achieve full control of the latter.

Mr. Li said he hoped to strengthen the group's competitiveness in digital channels through this paction.

However, because precious jewelry has the characteristics of high price, low frequency and no standardization, most consumers still rely more on the store, hoping to feel the effect of wearing these jewelry and having the real shopping experience, so the impact of the development of online business on the jewelry industry may not be too intense.

For precious jewellery, McKinsey predicts that by 2020, online jewelry sales will account for more than 10%, and for fashion jewelry, this proportion may reach 10%-15%.

Sales focus is on physical shops.

To expand the scale of physical stores, improve shopping experience, increase the number of physical stores, or cooperate with more jewelry stores, we can promote brand sales more effectively.

The rise of the millennial generation has pformed jewelry consumption from investment consumption, ritual consumption to light luxury consumption and quasi fast consumption.

In order to attract more young consumers successfully, the whole jewelry industry may have more innovations and changes in products, business models and marketing methods, so that jewelry can be sold better and better.

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