In 2018, American luxury jewellery retailer Tiffany & Co. (Tiffany) came to good news.
Recently, Tiffany announced its first-quarter earnings, with global sales up 15% year-on-year (more than 28% in the Asia-Pacific region represented by China), driving share prices up 23%. This achievement is undoubtedly a shot in the arm for the management of Tiffany’s new CEO, Alessandro Bogliolo.
China, the second largest market for Tiffany, is also the strategic focus of Zaful Coupon Code the brand. Recently, Tiffany announced that it will first test the water flash shop in the luxury pavilion of Tmall’s exclusive luxury channel in September this year, aiming to provide a seamless omni-channel shopping experience for Chinese consumers.
The “omnichannel model” is part of the reform strategy pursued by Alessandro Bogliolo. In October 2017, Alessandro Bogliolo became the CEO of Tiffany. The appointment was somewhat imminent. At that time, Tiffany was experiencing a downturn, and comparable sales including the same store and online had not increased for 12 consecutive quarters.
Less than a year after taking office, Alessandro Bogliolo carried out a major reform and proposed to become the company vision of “The Next Generation Luxury Jeweler”.
[Alessandro Bogliolo is a veteran of the luxury jewellery industry and has worked in Bulgari for 16 years. In 2012, he joined Sephora, the world’s largest beauty retailer, as the North American Chief Operating Officer. 】
It is undeniable that millennials are becoming the backbone of the growth of the diamond jewelry market. For luxury brands, whoever firmly grasps young consumers will have a greater chance of winning.
To achieve this vision, Alessandro Bogliolo put forward a series of priority strategies after taking office, including expanding the brand reform volume, providing an omni-channel shopping experience, and updating products.
Omni-channel layout, firmly embrace e-commerce
First test water line flash shop
The luxury brand “electric shock” is the trend of the times. The attitude of luxury jewellery brands in the Internet shopping wave has also loosened their attitude towards e-commerce.
As early as 2016, Tiffany reached a partnership with luxury e-commerce company Net-a-Porter to sell some products. Previously, Tiffany’s e-commerce channel was limited to the official website of the brand, but only some markets were opened.
If the cooperation with Net-a-Porter two years ago is more testing, then this year the brand ushered in the second home appliance partner Farfetch, which shows its firmness in embracing e-commerce. Tiffany entered Farfetch in early March to sell a range of jewellery products in more than 40 countries.
Since entering the Chinese mainland market in 2001, Tiffany has only 36 stores in the mainland, and most of them are concentrated in the core cities of Shanghai and Beijing. Online channels are undoubtedly the best choice for brands to reach more Chinese DressLily Promo Code consumers, but at present Tiffany has not opened a channel for electricity in China (WeChat and official website can not buy).
In this case, Tiffany chose to work with Luxury Pavilion to test China’s e-commerce platform with the lighter attitude of online flash stores, with the following considerations:
First of all, the online flash shop can meet the needs of the brand in a short period of time to reach more users, especially to grab the attention of young users. Obviously, Tiffany’s intention to open a flash shop is not only in sales, but also to obtain user portraits of the Chinese market and collect relevant data for accurate marketing.
In addition, the brand can also create new or classic products through the flash shop. For example, Tiffany’s flash shop with Tmall will launch the new Tiffany Paper Flowers? 8 products in China, including a platinum necklace with a price of 673,000 yuan. The necklace is in China. The limit is only two pieces.
Tiffany’s online flash shop style in Tmall follows the brand’s classic Tiffany Blue color. The homepage is a blockbuster movie by Hollywood popular actress Elle Fanning. The page expands to preview this time. New products for sale. In addition, the flash shop also launched a Tiffany card, inviting consumers to synthesize their mind cards online, and customizing their wishes for friends and relatives.
And offline, Tiffany has also upgraded the shopping experience by renovating stores and opening new stores. Last month, Tiffany’s world’s first Style Studio new retail concept store was unveiled in London.
The image of the “mysterious and high-cold” traditional store of luxury jewellery brand is very different. The atmosphere created by this new store is more casual. The clerk does not even need to wear formal attire. Tiffany hopes that customers will enter the store and throw the impression of luxury tradition. Rear. In addition to a range of classic products, the store also sells leather goods, perfumes, household products and more. In addition, a vending machine is set up in the new store. In addition to selling products, private custom jewelry services are also available.
A series of practices mark Tiffany’s new approach to the luxury retail experience, trying to provide customers with a more interesting and relaxing shopping experience by watching, playing and interacting.
Create “freshness” and speed up the release of new products
Tiffany Paper Flowers? Flower rhyme series first listed in China
Today, luxury brands need to constantly create a sense of freshness in order to win consumers. Tiffany knows this, “Newness” is the word repeatedly mentioned by the brand’s executives on a recent conference call with analysts.
In May of this year, Tiffany Chief Art Officer Reed Krakoff released his first jewellery collection since his appointment, the Tiffany Paper Flowers? Inspired by the “decorative petals of paper-cut art”, the collection combines diamonds, fancy diamonds and tanzanite in platinum to create the shape of the petals, blending clean modern design with natural themes.
The entire collection includes bracelets, pendant necklaces and earrings. Check out the US official website, which sells for between $2,500 and $79,000. The core of a necklace in the collection is set with a 68-carat pear-shaped diamond that lasts up to 5 months. According to Reed Krakoff, these extravagant raw materials and whimsical designs are designed to avoid formalization and to escape the design of traditional fine jewelry.
Reed Krakoff is the rising shareholder of the American luxury brand Coach. In January 2017, he became the new chief art officer of Tiffany. After taking office, he was responsible for overseeing the creative work of jewellery, luxury accessories, stores, e-commerce and advertising. The new partner of Reed Krakoff and Alessandro Bogliolo, who is a fashion designer, is also highly anticipated.
In addition to developing new designs, introducing new materials and speeding up the release of new products is also a key part of Tiffany’s “making a sense of freshness”.
Under the leadership of Alessandro Bogliolo and Reed Krakoff, Tiffany built an innovative factory called JDIW (Jewelry Design and Innovation Workshop) in June this year, with the main task of improving the brand’s efficiency from idea to finished product.
In Tiffany’s view, this innovative factory is more like a space for developing innovative manufacturing technologies, powering the development Coupon Code for Shein and production of the new series, and also a way to shorten the jewelry production cycle. The ultimate goal is to achieve large-scale production and improve product development efficiency. Currently, the Innovation Factory is preparing for the jewelry collection to be launched in 2020.
Attracting millennials with an enterprising attitude that focuses on change
Into the Chinese market, play holiday marketing
According to The Diamond Insight Report 2017, mainland China is the world’s second largest market for diamond jewelry consumption, with demand reaching $10 billion in 2017. There is no doubt that the Chinese market is almost a position that all luxury jewellery brands are vying for.
Tiffany opened nine new stores throughout the fiscal year 2017. As of the first quarter of this fiscal year, Tiffany operated 314 stores worldwide, including 87 in the Asia Pacific region. From the perspective of sales, Greater China is the second largest market for Tiffany. How to better integrate into the Chinese market? This is evident from Tiffany’s festival marketing in China.
In 1886, Tiffany launched the first six-prong inlay engagement ring, which is believed to have created a tradition of diamond ring marriage proposal. In its 181-year history, it always believes in the concept of “love and commitment.” When coming to China, Tiffany will naturally not miss deep interaction with consumers on important festivals related to love.
For example, during the Spring Festival and Valentine’s Day in February this year, Tiffany put a flip card advertisement on WeChat, and the slogan “Like love because of the name of love” triggered a wide resonance of the audience.
On the past May 20th (520 Valentine’s Day), Tiffany held a limited-time experience exhibition called “Love Journey” at Shanghai Henglong Plaza, setting up cafes, cinemas, AR interactive areas, boutiques, etc. Five experience zones, and invited Chinese brand 挚 ambassadors Du Jiang and Huo Siyan to come and help.
The upcoming Tanabata is regarded as a battleground for the marketing of major luxury brands. A week ago, Tiffany put a friend circle advertisement on WeChat, hoping to further convey the brand concept through the star effect of Du Jiang and Huo Siyan couple.
In addition, Tiffany’s online sale of the flash shop opened pre-sale on August 16th, two weeks ahead of the sales of offline stores, and this time node just happened to be on the day before Tanabata on August 17th, guessing maybe The brand is also hoping to take advantage of the Tanabata as the new product to warm up in China.
Introducing the surrounding products to attract heat, the brand topic has increased greatly
In the 1960s, the classic film “Breakfast at Tiffany’s” starring Hollywood legend Audrey Hepburn gave the Tiffany brand a romantic aura that never fades. However, as a luxury jewelry retailer, in its more than 100 years of history, Tiffany’s business has never been in contact with food and beverage, but recently, Tiffany has taken the pace of cross-border development.
In November 2017, Tiffany opened the world’s first coffee shop, Blue Box Cafe, at the flagship store on Fifth Avenue in New York and served breakfast, which made Tiffany’s breakfast a reality and instantly became a global social media. Hot topic.
In the same month, Tiffany released the Everyday Objects series designed by Reed Krakoff, a $1,500 paper clip, and a $9000 yarnball to make eyeballs, especially in the spread of social media including Chinese Weibo and WeChat. Next, after becoming the Net Red Cafe, there is another hot topic.
In July of this year, when the Everyday Objects series launched a bubble toy with a price of 2,250 yuan, it once again screened social media. Chinese netizens screamed that “poverty limited the imagination series to the second season.”
This series of actions is seen as a marketing tool, and its intention is also obvious. Tiffany tries to make the brand active in the millennial vision by launching peripheral products. The industry believes that Tiffany’s marketing is successful, and it has caused heated discussion among young people, which has greatly increased the brand’s popularity.
In the 2018 luxury brand Digital IQ Index published by L2, the digital marketing agency in New York, Tiffany ranked first in the jewellery and watch segment with the highest rating of “Genius”. L2 pointed out that Tiffany performed very well on all social media channels (especially Instagram).
Build emotional connections with young consumers and bid farewell to “the luxury of the old world”
In addition to expanding its peripheral products, Tiffany has also strengthened its interaction with consumers through the form of advertising. Recently, Tiffany released the new image advertisement “Believe in Dreams” in 2018. The film invites Hollywood actress Elle Fanning to perform the classic jewelry of the brand, fresh and bright, and the elves and ghost horses, further explaining the enterprising attitude of the brand’s focus on change. .
In this ad, Elle Fanning appeared in the black and white movie, standing in front of the window of Tiffany’s Fifth Avenue flagship store in New York, recreating the classic scene of the 1961 classic “Tiffany’s Breakfast.” The picture follows Elle Fanning and comes to the real world. The re-edited classic song “Moon River Moon River” is written by Elk Fanning, an American rapper A$AP Ferg.
Neil Saunders, managing director of GlobalData Retail, a US retail data provider, affirmed the new ad, which he believes will help strengthen the emotional connection between the brand and young and contemporary consumers, which is critical to the company’s performance. .
He said: “Tiffany finally Yoins Coupon Code realized that most consumers of all ages no longer need the luxury of the old world. They need modern, fresh and inspiring things that inspire and motivate them.”
The data also proves that Tiffany’s approach to attracting young people is fruitful – despite the overall decline in marriage rates, especially in the millennial consumer group, the jewellery consumption opportunity is no longer just a “wedding culture”, they are more respectful of “female Self-reward, but this does not seem to affect Tiffany, whose core business is engaged. Its first-quarter earnings report showed that Tiffany’s love of engagement products sales grew by 11%.