Tiffany's Tricks To Curry Favor With The Millennial Generation To Seize The Chinese Market

The US jewelry brand Tiffany recently released the key financial data for the second quarter. Data show that the company has a "larger than expected" drop in sales than the stores, but the profit is better than expected. Tiffany's performance in the Chinese mainland market is getting better and better, achieving two digit sales growth. Tiffany, who has tasted the sweetness of the Chinese market, is selling all kinds of jewelry online and selling coffee on the line in order to please the Chinese consumers.
Data showed that in the second quarter, Tiffany net sales amounted to US $1 billion, down 3% from the same period last year, down 1% at the constant exchange rate, and 4% lower than that of the stores, down 3% from the exchange rate effect, which is higher than the 1.3% expected by analysts. Net profit of $135 million, diluted $1.12 per share, down 5.8% over the same period last year.
Tiffany CEO Alessandro Bogliolo stressed in the conference call after the release of the earnings report that although most of the world's tourist consumption expenditure declined, it was estimated by internal estimates that the sales of local consumers in main markets of the second quarter of the 2% quarter increased by 2% according to the fixed exchange rate. The sales growth in mainland China was even more than two digits, which means that Tiffany still has great potential for growth.
Tiffany said he will continue to develop the Chinese mainland market, maintain rapid growth in the region, and strengthen the network of stores, especially three key cities in Beijing, Shanghai and Hongkong. In the next two quarters, Tiffany will open a flagship store in Hongkong and Shanghai respectively, expand the sales network of the airport duty-free shop, plan to set up the first Tiffany duty free shopping area at Beijing airport, expand the scale of duty-free shops in Hongkong airport, and strengthen online sales channels, especially for two or three line cities without entity store network.
China Daily News reporter learned that Tiffany, China's official website of the electricity supplier service has been formally launched recently, the goal is aimed at brand yet to enter, but has great potential of the three or four line cities. It is understood that Tiffany sells many kinds of goods on the official website, ranging from high-end jewelry to home accessories. And can order online, enjoy free distribution services.
Tiffany customer service staff told reporters that any purchase of goods on the official website of the company supported seven days without reason to return.
It is undeniable that Tiffany's move has brought many conveniences to consumers in the three or four tier cities. Ms. Zhang, from the three tier city, told reporters that even if she did not try to experience the product, she would feel relieved to buy it. The seven day no reason to return the humanized service to Zhang's interest in Tiffany greatly increased.
Meanwhile, in order to better arouse the attention of new consumers and enhance the loyalty of existing customers, Tiffany will also launch the Tiffany Blue Box cafe in Hongkong and Shanghai, which is only opened in the flagship store of New York Fifth Avenue. The Tiffany Blue Box cafe is selling Tiffany's breakfast and classic Tiffany blue as a selling point. It has become New York's "net red punch card".
New York Fifth Avenue Tiffany flagship store staff told reporters that many tourists came to the cafe, it is difficult to find empty seats, usually need two weeks in advance to make an appointment.
Reporters in New York Fifth Avenue Tiffany Blue Box found that the majority of young people came to the shop after 90. A tourist from China told reporters that as a net red card, he booked the seat of the cafe two weeks in advance. This is the first stop for his visit to New York.
Insiders believe that the cafes in Hongkong and Shanghai will be supported by the younger generation and lead a wave of Marketing craze.
In addition to the "Chinese market", "product innovation" and "younger marketing strategy" have also become the key words of Tiffany's performance report. Alessandro Bogliolo said that in view of the change in consumer attitudes, Tiffany emphasized that the brand itself was centered on love, while DNA also met the needs of young consumers through products such as pendants, earrings and other relatively priced products. It competed with Pandora, Signet jewelry and other low price market competitors to compete for market share.
Reporters browsing the Tiffany China official website found that some of the accessories ranging from $4000 to $6000 were in short supply. Customer service staff told reporters that most of the shortage products had been sold out and would be replenished later.
It is widely believed that the future online market will be the main low-lying land for luxury goods. Judging from the current situation, Tiffany has firmly grasped the hearts of young consumers through social networking, big data mining and brand culture.