The Wall Street Journal‘s questions about Tiffany: where does the great American Maison go? Note: A few days after this article, Tiffany appointed Ceo Alessandro Bogliolo ♦
Read also: Alessandro Bogliolo is a new jewel of Tiffany
A few hours before a historic initiative for Tiffany, the movie with Lady Gaga broadcast during the Super Bowl in February 2017, the board of directors sent a message to Ceo Frederic Cumenal. Congratulations for the play of the pop singer? No: a letter of dismissal.
Starts from this episode a long article from the Wall Street Journal, the world’s leader of financial newspapers, which analyzes the New York company’s prospects. That now is leaded by former Ceo Michael Kowalski, called back to service. Yeah, but to go where? According to the American newspaper, Tiffany’s main problem is a decline in appeal among the Millenials and, more generally, among young people. Lady Gaga’s engagement, for example, had the purpose of combining Tiffany’s image with that of a very popular star. Just as, in intentions, the collaboration with Vogue Usa’s former creative director, the veteran Grace Coddington, would be refresh the look of company products.
A strategy that the financial newspaper judges with some doubt was also the idea of bringing Tiffany jewels to the online shops of Net-a-Porter and Dover Street Market. All the initiatives that, at the moment, have not brought about any concrete results. Indeed, in the US, according to the latest quarterly report, sales fell by 3%. And the US market accounts for 90% of revenues, according to Forbes.
One of the problems identified by the Wall Street Journal concerns Tiffany’s sales quality: Nearly half, in 2016, came with jewelery at an average price of $ 530 or less. In short, jewels that certainly are not exclusive. This inclination to propose very popular jewelery would have lost the character of brand exclusivity.
Other negative: new collections represent less than 10% of sales. Deduction: The novelty is not perceived or appreciated. Objections to which Kowalski, who is now president, proudly replied: in his view, the wide variety of prices and styles offered by Tiffany are a strong point. And collections signed by historian designers like Jean Schlumberger and Elsa Peretti continue to be bestsellers. Who is right? The last word will be on budget numbers.
In Milan, meanwhile, Tiffany inaugurated a new boutique in the central Piazza Duomo. A very popular choice. Federico Graglia