176 years of rich heritage and a name that is still synonymous with timeless
luxury, Tiffany has strong brand equity. Its ability to command higher prices and drive sales,
particularly in the Asia-Pacific region, continue to fuel growth. At
the close of Q1 2014, Tiffany reported
50 percent growth in net earnings, with USD $1 billion Q1 revenue. Building on
that, Q2 results were better than expected, suggesting that recent management
changes are taking effect.
The company is appealing to
a broader consumer base with its lower cost Atlas collection and
the more contemporary Tiffany T line, the
first designed by new Design Director Francesca Amfitheatrof. It remains to be seen if this strategy will diminish
the premium image of the brand over the long-term. The
luxury "blue box" brand, for example, is the company's main asset. But, so far,
the approach has paid off.
In 2013, Tiffany invested USD $247.5 million (6.1 percent
of worldwide net sales) on advertising, marketing, and public and media
relations. The company's continued sponsorship of high profile
events like the U.S. Open tennis tournament, and its association with the 2013
Great Gatsby, consistently reinforced the
brand's image of exclusivity, prestige, and uniqueness. Though a
joint venture with Swatch caused the brand some problems, costing Tiffany USD
$449 million in damages, the ruling does not
appear to have impacted the brand's short or long-term business plans.
Tiffany has also been playing up
the theatricality of its in-store displays and launched
a redesigned website last year. By putting greater emphasis on storytelling and
providing more engaging content, including video and high-resolution images of
jewelry, Tiffany clearly understands that its customers want more than just us
a shopping experience-they want to "immerse themselves in the world of Tiffany."
With an e-commerce
experience that mirrors the class and opulence of its in-store experience-and innovations
like an Engagement Ring Finder app that assists
consumers in finding the ring of their dreams-Tiffany & Co. will be
relevant for years to come.