Us Luxury Jewelry Brand Tiffany How To Conquer Young Chinese Consumers

From Western Valentine's day, Christmas day to Chinese traditional Tanabata and Spring Festival, apart from celebrating with family and loved ones, more and more festivals also become popular.

A carnival of people.

Under this trend, as the most remembered gift, American luxury jewelry brand is the first choice.

Try to convey the "festival culture" that has been precipitated for many years to the hearts of Chinese consumers.

In the past double holidays of new year's day, Tiffany takes the "Tiffany Holiday" as the core theme, and displays a series of interesting window displays to the brand legend shop window.

Gene Moore paid tribute to the design of the window display in 1960s.

In addition, Tiffany moved a giant robot CL-T, 15 meters tall, to Hongkong square in Shanghai, and held a 2018 Festival lighting ceremony in November 23rd last year, causing widespread concern among Chinese consumers.

CL-T is a robot with the same name as Tiffany founder Charles Lewis Tiffany, and is made up of a logo Tiffany blue box.

Tiffany Ouyang Zhaohua, vice president and managing director of China, said on the day of the campaign that the lighting ceremony has always been the festival tradition of Tiffany. Now the American jewelry brand has extended this beautiful heritage to Shanghai, China. "Apart from the commercial considerations, the brand hopes to communicate with the Chinese consumers in a more modern and unique form of creativity, and to resonate with the Chinese consumers to meet the new start of 2019."

In order to better celebrate the festive atmosphere of the festival, Tiffany specially invited Zo star Kravitz, Ju Xiaowen, Naomi Campbell, Karen Elson and many other star supermodels to play the new "Believe in Dreams dream" holiday season blockbuster. As of now, the movie has been broadcast at micro-blog more than 3 million 40 thousand times.

In October last year, Tiffany was also rated as the most popular WeChat brand friend circle advertisement. During the double holiday period, Tiffany's popularity in WeChat also increased significantly, and it was recorded as high as 800 thousand.

It is not hard to see that Tiffany and various festivals are unconsciously becoming a new brand in China. The concept and lifestyle of love and dream represented by Tiffany are permeating into the daily life of China's new generation of consumers through different forms.

Dreamer Tiffany

If marriage is the ultimate dream of people who yearn for love, the ring is the carrier of people's love and dreams. The first person to turn a diamond engagement ring into a love token is Charles Lewis Tiffany.

Although Tiffany is famous for its jewellery products, Tiffany was only a small stationery store when it was founded in 1837, and later became famous for its silverware.

The turning point occurred in 1848, when the French king Louis Philippe was forced to abdicate, and Charles Lewis Tiffany, who was eager to get a share from the European jewelry brand, bought a number of precious stones from the fleeing Royal aristocracy. It was once called "king of diamonds" by New York media.

According to the world clothing and shoe net, in 1886, Tiffany launched the most classical Setting series diamond ring. The six claw platinum design laid the diamond on the ring of ring, and the diamond was set up to the utmost extent. Its ray of light was refracted in all directions and quickly won the favor of the American upstart. The six jaw mosaic method became the international standard of engagement engagement.

In 1878, Charles Lewis Tiffany bought the world's largest and best quality 287.42 Carat Yellow Diamond raw stone. After being supervised by Gemstone expert George Frederick Kunz, it weighed 128.54 carats and was named Tiffany Diamond. It is now placed in the brand New York flagship store for tens of thousands of consumers every year.

In addition to the high quality diamond source in the hands of Charles Lewis Tiffany, Tiffany has become the hero of dreamers and the brand's first creative director, Jean Schlumberger.

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Jean Schlumberger joined Tiffany in 1956. He was born in Paris. He used colorful and layered design to inject French style into Tiffany's American brand. Its iconic works include Star Moon Necklace, Sixteen Stone ring and enamel bracelet and so on, and quickly get the love of Jacqueline Kennedy, Elizabeth Taylor and other celebrities.

By the end of the nineteenth Century, Tiffany had slowly grown into a brand comparable to European jewelers. There were many European royalty and rich among its consumers.

After nearly two centuries of love and beauty, romance and dreams, Tiffany has gradually become one of the pronoun of the American dream.

In 1960, the movie named "breakfast of Tiffany", which was starred by Hollywood actress Audrey Hepburn, released a wave of "Tiffany" in the industry. It even continued to this day. Audrey Hepburn filled with all the women's fantasies and desires for beauty and romance with full of functional beauty and soft and delicate feelings, and successfully aroused more consumers' desire for the romantic and dreamlike lifestyle represented by Tiffany.

After more than 20 years of development, Tiffany opened its first European branch in 1986 in the old Bond Street in London, officially expanding its territory to the European continent, breaking the monopoly of luxury brands in Europe.

At the time of its 150th anniversary establishment, Tiffany listed on the NYSE at a price of $1.84 per share, and held the tiffany silver jewelry and jewelry retrospective exhibition at the Museum of American history, the Metropolitan Museum of Art of New York, the Boston Museum of art and the Chicago Museum of natural history. At present, the stock price has doubled 80 times.

In 1999, Tiffany introduced engagement diamond ring Lucida, meaning Latin star in galaxy.

Lucida's diamonds are square, and its lines are simple and charming. The cutting of diamond crowns makes diamond more hierarchical, not only emitting light from inside and outside, but also different rays when moving.

In 2004, Tiffany carried out the first cross-border cooperation with architect Frank Gehry, who combined the two conflict elements of straight line and arc surface into Tiffany jewelry design, with concise style and full of tension.

In 2009, Tiffany launched the new iconic product "Tiffany Keys", inspired by the key to brand collection treasures.

In the past 182 years, Tiffany has not only inherited the classics, but also evolved into a leader in the luxury jewelry industry through continuous innovation. Its Tiffany Blue Box used to load all kinds of products has also become the symbol of love and dream. It is called the most successful color marketing in history.

Metamorphosis in change and invariance

No one will be the eternal winner, even Tiffany, one of the founders of love.

Market changes began as early as 2014, and the declining marriage rate indirectly led to a slowdown in the sales performance of the major luxury jewellery brands.

Some analysts pointed out that the low sales of wedding jewellery is mainly related to the change of people's idea and behavior of buying diamonds.

According to earlier forecasts, the jewelry market, valued at US $60 billion in 2016, has shrunk by 6.3%. The decline will last until 2022, and consumers' enthusiasm for high-end jewelry consumption is waning.

As far as consumption scenario is concerned, the concept of brand with the core of engagement ring and wedding culture seems to be out of date. Millennial women are more respectful of self reward and "spoil themselves". The opportunity to buy luxury jewelry products will not only relate to weddings, but may be any reason and any occasion.

At the same time, the connotation of diamond jewelry has gradually evolved from love to fashion and self reward, no longer confined to important moments to commemorate family or romantic relationships, but also to remember the joy and achievement of any moment, such as finding a new job or getting a promotion.

Greater economic participation and higher incomes encourage women to buy jewelry and other luxuries for themselves.

Aware of the changing market trend, Tiffany was determined to reform the group business in 2017 and appointed Alessandro Bogliolo, CEO of Bvlgari and Diesel, as chief executive. He hoped that he could bring more recognizable design to the brand, impress more millennials and bring value returns to shareholders.

When Alessandro Bogliolo first joined, it has become a top priority to lead Tiffany how to recover the lost market share from many competing brands.

After taking office, he put forward six strategies, including expanding brand influence, launching new products, strengthening store display, establishing a full channel sales system, consolidating the leading position of brands in key markets, establishing efficient business models and strengthening team building. Over the past year, Tiffany product mix and marketing methods have been diversified.

In October 2017, Tiffany launched its first perfume in 15 years, and opened the world's first Cafe Blue Box Caf E in Fifth Avenue flagship store in New York the same year in November.

On the eve of the Christmas holiday season in 2017, Tiffany has become a hot topic in the social media with its nearly 10000 yuan 18 Karat Gold Clip large size bookmark, wool ball and other high quality boutiques. The brand search index of WeChat in China has surged to 245.42%, and has successfully created second peaks after the net red coffee shop.

In addition, Alessandro Bogliolo's team also adjusted the proportion of Tiffany products to provide millennial generation products suitable for many occasions, such as the first jewelry series rhyme (Paper Flowers) created by the new chief design officer Reed Krakoff in May last year, 2018 new Tiffany Blue Book high jewelry, and the previously launched T series jewelry.

In July 2018, Tiffany opened the world's first Style Studio new retail concept store in London, with an area of about 200 square meters, close to Covent Garden, a luxury retail business district.

Distinguished from the traditional image of Tiffany's traditional stores, the Studio employees do not need to wear formal clothes, and can wear and match jewelry products according to their own preferences. In addition, a self operated vending machine selling Tiffany's latest perfume, carved carvings and leather embossed products is also placed in the store.

Careful observation reveals that Alessandro Bogliolo has taken all kinds of measures to lead Tiffany, and has revolve around love and dreams. "A brand has its own cultural heritage and DNA is a good thing, but as a leader, my responsibility is not to consolidate this legacy, but to inject fresh blood for it to continue," Alessandro Bogliolo said in her first interview after a year in office.

At present, the price range of Tiffany products ranges from 200 US dollars to millions of dollars, including the daily fashion jewelry series and the high-end wedding series.

It is reported that Tiffany will launch a new series every two years in the future. It is higher than the previous three or four years to launch a new series of frequencies to meet the fresh needs of young consumers.

The success of the younger strategy has made Tiffany rejuvenate in the Asia Pacific and North American markets.

Despite widespread recession in recent years, Tiffany has gained more than analysts' expectations in the past five quarters.

In the first three quarters of October 31st, Tiffany sales increased by 10% to $3 billion 120 million over the same period, and net profits rose 23.3% to $380 million.

Among them, the income of classic jewellery products recorded an increase of 8% in the third quarter, and the income growth in the first three quarters was 15%, while the income of wedding jewellery products increased by 2% and 7% respectively.

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However, as the most representative luxury jewellery brand in the United States, Tiffany can not be taken lightly. After all, it still faces challenges from European luxury brands such as Bvlgari and Cartire, and most of its competitors rely on luxury giants such as Kai Yun, Li Feng and LVMH.

Last October, Louis Vuitton also appointed former Tiffany executive Catherine Lacaze as the new leader in jewelry business.

Alessandro Bogliolo believes that in the market with competitors a good thing, in contrast, Tiffany's brand culture is more inclusive and low-key, "European jewelry brand products are often too formal, and Tiffany's product design will be more flexible, daily wear can also be worn."

Surprisingly, even though luxury fashion brands have been hit hard by the online market, and the continuous rise of rents in Fifth Avenue in New York has caused a fatal blow to many retailers, Tiffany resolutely decided to spend $250 million to decorate its flagship store at the corner of Fifth Avenue and fifty-seventh street in New York, which accounts for 10% of its total annual sales.

Alesssandro Bogliolo describes Tiffany's new flagship store as a palace of jewelry. "Consumers will feel the balance of Tiffany from the other side of the shop."

Conquer young consumers in China

Tiffany was famous all over the world for the movie "breakfast of Tiffany", but it did not enter the Chinese market until 2001. The first store was located in the Xpu Ha Palace Hotel lobby of Beijing. Now it has expanded to 34 stores in 21 main cities.

According to the 2017 diamond industry insight report, mainland China has become the world's second largest diamond jewellery consumer market and the second largest market in the world in Tiffany.

For Tiffany, China's high-end consumer awareness market has a strategic significance.

Alessandro Bogliolo emphasized earlier that Chinese consumers have become the main driving force for the global luxury industry. The average customer price in the Tiffany group far exceeds that of consumers in the US, Europe and even Japan, which is very important for the future development of the brand.

Unlike some luxury brands, Tiffany did not specifically launch the new series while accelerating its penetration into the Chinese market. Instead, it chose to invite Chinese brand spokesmen and organize creative activities to infect young Chinese consumers.

To compete for young consumers, Tiffany launched a flash store on Tmall luxury platform Luxury Pavilion in August last year to sell its latest rhyme Paper Flowers series, which has milestone significance for Tiffany, which is the first time that the brand has released new jewellery online.

In September 6th of the same year, Tiffany shifted the Central Park couch, the vending machine in the subway station and the graffiti walls on the street to the classic buildings on the banks of the Huangpu River, and lit the Shanghai people's livelihood art pier with classic blue light, so that every visiting guest seemed to be in New York.

In addition, Tiffany also launched the "Tiffany love tour" limited experience exhibition in China. This is the first interactive experience Exhibition for the public. It offers consumers five different scenes of sweetness to provide consumers with a scene experience, which is more interesting and rich than the usual monotonous product exhibition. It aims to make more consumers read Tiffany and convey the brand's understanding of love.

To meet the rising demand of Chinese local consumers, Alessandro Bogliolo said in an interview that Tiffany is moving more products to China.

He believes that luxury brands should pay more attention to long-term sustainable development than the present. Both domestic and global consumer markets are still full of potential.

Although some investors are worried about luxury brands or being betting on the Chinese market recently, in Alessandro Bogliolo, Chinese consumers' demand for luxury goods is not slowing down, but will gradually flow to China's local market.

"We can infer all the reasons for the decline of tourists outside China, but the fact is that sales in mainland China continue to grow strongly enough to prove that Tiffany brand is still attractive to Chinese consumers," Alessandro Bogliolo explained in the latest quarterly earnings conference call.

Recent reports in the industry also support the view of Alessandro Bogliolo.

Bain's 2018 "luxury market research" report shows that during the period from 2015 to 2018, Chinese consumers' luxury purchases in China increased by two times that of overseas consumption, and their share in global spending continued to rise. At present, it is estimated to account for 33% of global luxury expenditure, while the proportion of luxury goods sales in mainland China has increased from 9% last year to 9%. In 2025, Chinese consumers will occupy nearly half of the global luxury market.

McKinsey said in a report that Chinese luxury consumers spend more than 500 billion yuan per year, accounting for nearly 1/3 of the global luxury goods market. Among them, China's post-90s generation has become an incremental consumer of luxury goods.

However, in this changing era, whatever marketing strategy is phased.

A century ago, Tiffany bundled the brand image with Tiffany's breakfast, creating a dream of Tiffany diamond ring with a blue box package for many female consumers.

Nowadays, Audrey Hepburn is no longer standing in the window looking. Sitting in the flagship store of Fifth Avenue is not far away.

Some analysts believe that Tiffany really changes its way of communicating with young consumers.

Consumption is divided into demand and desire, while luxury goods are responsible for manufacturing desire, and creating millennial emotional links is an important means to ensure the growth of luxury goods sales.

Michael Silverstein and Neil Fisk wrote in the co authored Trading Up, "many brands' premium is always based on emotion, and consumers have a stronger emotional resonance with other commodities."

To be sure, Tiffany's efforts to attract young consumers have already shown signs of success. Whether it is the 15 meter tall robot in Shanghai or the Tiffany Studio in London, the Centennial brand is rapidly turning around, learning to communicate with young consumers in new ways, and locking consumers with emotion.

After awakening the curiosity of consumers, Tiffany's strategy is continuing. Just like Tiffany's insistence on love and beauty, romance and dreams, the queen of jewelry world, who is good at dreaming, still holds the crown firmly in her hands.

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