Tiffany Moving Away From Jewelry?
Recent Shifts Signal Long Term Strategic Changes
Marty Hurwitz
CEO
MVIMarketing.com
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Cate Blanchett wearing Tiffany & Co jewellery at this year’s Oscars ceremony. Photograph:
Buckner/Variety/Rex/Shutterstock
A few key recent items in the news combined with a seismic shift in consumer
demographics and spending, have made us wonder about the long-term strategy
for iconic jewelry retailer Tiffany & Co.
Here’s what we’ve seen that has driven our speculation that Tiffany may actually
be moving away from jewelry:
Tiffany Moving Away From Jewelry July 2016
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1. Affluent millennial consumers are avoiding jewelry stores, which they
perceive as old world luxury, and unfortunately Tiffany’s brand is leading
that snub.
2. In January 2016 Tiffany announced an agreement with Coty to develop,
produce and distribute a collection of fragrances.1
3. In their most recent quarterly earnings report, the retailer reported its
steepest drop in quarterly sales since the peak of the great recession.
“Decline in customer share is evident among most shopper segments,
including more affluent households,” said Neil Saunders, the chief
executive of research firm Conlumino. 2
4. This past week Tiffany & Co. announced a new collaboration with
renowned fashion and interior design creative visionary Reed Krakoff.
Saying that he will work on the new Gifts, Home and Accessories
collections for 2017.3
5. The once mighty margin category of diamond engagement rings is now a
commodity and even the status of the Tiffany brand is struggling to retain
market share.
1
https://www.luxurydaily.com/tiffany-entrusts-perfume-license-to-coty/
https://www.theguardian.com/business/2016/may/25/tiffany-co-sales-losesparkle-tourists-shun-high-end-jewellery
3
http://press.tiffany.com/News/NewsItem.aspx?ID=286
2
Tiffany Moving Away From Jewelry July 2016
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Reed Krakoff
Photo: Andrew H. Walker
Getty Images
So where is all this leading for Tiffany & Co.?
Well to be sure they know the entire traditional jewelry industry is struggling at
retail with the new generation of consumers. And as is the case with all jewelry
retailers and manufacturers, they are looking to re-define themselves as quickly
as possibly.
How far will that re-definition take them from their jewelry roots? Only time will
tell. But given the incessant, quarterly pressure of the stock market, I’m sure we’ll
be hearing more soon.
Tiffany Moving Away From Jewelry July 2016
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