（このコンテンツは、Udemyのオンライン・コース「マネジメント・コンサルタントのための英語トレーニング・コース：マーケティング編 Tiffanyケース」のための教材の一部です）
Will It Come Back In The Game?
Tiffany has come under extreme pressure from its investors as its sales have dropped drastically in the main US market as well as in Asia. Tourists to America are also significant customers of the company, but as the US dollar shows strength everyday, they are quite hesitant to open their wallets for purchases.
The luxury brand jewelry market is already overcrowded. Tiffany has been losing its customers to many high-end luxury brands selling jewelry, such as Roberto Cavalli and Lanvin. There are many reasons why this situation has unfolded in such a severe way for the 100 year old brand.
A major source of its income was the baby boomers, but this demographic has been inclined to curb their expenditures. This factor is also becoming a major cause for the sharp decline, not only in Tiffany’s core market in the US, but especially in the European and Asia Pacific markets as well.
Tiffany has lost its crown to its competitors. They decided to take things up a notch… But it forgot one key element? It needed to change its ways and bring more fun and edgy products to the market. However, the fatal flaw was that it didn’t focus on the biggest section of today’s buyer – the young generation. Over the years, customers’ preferences have changed significantly. They want more youth-centric and personalized jewelry. Tiffany can really benefit by bringing more limited-edition pieces and tailored experiences; something that Louis Vuitton has achieved with grace. As far as the youth-centric product line is concerned, Cartier has targeted them in an effective manner with its Juste un Clou as well as the Love and Trinity collections. In comparison to these fresh ideas, Tiffany’s traditional approach simply doesn’t reverberate with this demography. On top of that, its prestigious image is becoming diluted and affluent consumers are drifting away.
The company seems unwilling to embrace a modern marketing mode in exchange for the traditional one.Since its establishment in 1837, Tiffany & Co have been the most renowned luxury brand of fashion jewelry in America. However, with the beginning of the millennial era, the company started losing its luster. With more and more millennials browsing on mobile devices and shopping online, Tiffany has established itself as an “old” and “traditional” brand, not a good sign in this era of technology.
The regularly advancing technology has resulted in an exponential increase in the competition. The rise of online shopping has revealed tech-savvy shoppers to a broader array of smaller brands and has conditioned them to wait for deals. The millennials were born and bred into the age of internet and technology, so they do most of their shopping online and look for more customized products. Above all, they don’t buy costlier products when they can easily wait for online deals. A brand like Elizabeth Locke, that is a much more niche participant in the industry, has also been successful in attracting customers from Tiffany.
The company needs to make strategic marketing shifts if they want to be back in the game. For example, a separate unit dealing with wealthy clients and high-end unique jewelry is a great move and it must be kept alive and extensively promoted. For millennials, on the other hand, they can use a new promotional strategies much like the Blue Book Event and more youth-centric silver jewelry under the price range of $500. Hopefully, it helps renew the tired and boring image of Tiffany.
Tiffany should also focus on creating a global presence for promoting overseas sales. New product lines like Lady Gaga HardWear, Return to Tiffany, and the Infinity Collection are definitely what the company needs.
Tiffany needs to modify its store design in order to attract younger customers as it will have a significant impact on the company’s image. Its 5 Avenue flagship store continues to reflect the 1960s “Breakfast at Tiffany’s” legacy, but today’s consumers expect to engage the brand and experience it digitally also.
Tiffany started a luxury watch line for male customers. The watch line focused on male customers because Tiffany wanted to generate reliability in a market where 70% of the buyers are male. Competition is fierce in this segment as well. Creating something new takes a while for acceptance. The company has expended a lot of effort in establishing a name in the high-end watch market, to no avail. Until it becomes a major portion of Tiffany’s business, the revenue it brings will be limited.