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Tiffany’s holiday 2011 campaign
Although jeweler Tiffany Co. did not do as well this holiday season as forecast in November, it could be that the results are generally indicative of the economy and consumers’ moods, not necessarily of the brand’s marketing.
The brand did not do as well as it hoped, but it was still up 7 percent from last year. Carrying the sales were Asia-Pacific and Japan, both regions seeing double-digit growth.
“I think that this report illustrates the bigger pressing issue of all global luxury brands – there is growth in Asia but it is limited in the United States,” said Chris Ramey, president of Affluent Insights, Miami. “Affluent consumers in the U.S. remain in a funk because the sales are down.
“However, no one is doing better marketing than Tiffany,” he said. “The funk is more of a result of economic condition and mood of the affluent than it is of the excellence and leadership that Tiffany continues to show.”
Mr. Ramey is not affiliated with Tiffany, but agreed to comment as a luxury marketing expert.
Tiffany did not respond before press deadline.
Carats and stick
Tiffany’s worldwide net sales rose 7 percent to $952 million. Its overall comparable sales increased 4 percent.
In the Americas, Tiffany sales rose 4 percent to $503 million. Comparable branch locations – there are 102 – rose 3 percent while the New York flagship on Fifth Avenue declined 1 percent, according to Tiffany.
In addition, combined Internet and catalog sales saw a 4 percent drop in this region.
Tiffany holiday collection
In Asia-Pacific, Tiffany saw a 19 percent increase to $165 million. On a constant-exchange-rate basis, comparable store sales grew 12 percent due to growth in most countries. Asia-Pacific has 57 Tiffany branches.
Sales in Japan increased 13 percent to $160 million. Total sales rose 5 percent and comparable stores sales from the region’s 55 branches increased 6 percent, according to the brand.
European sales increased 1 percent to $117 million. Comparable store sales from the region’s 32 Tiffany locations declined 4 percent.
Other sales including sales to independent distributors within emerging markets and wholesale sales of rough diamonds increased 8 percent, according to Tiffany.
Stepping it up
Although Tiffany’s holiday season was underwhelming, the jeweler saw phenomenal growth in the first three quarters of the year.
Tiffany saw a 20 percent year-over-year increase in quarter one, 30 percent rise in quarter two and 21 percent growth in quarter three, according to the jeweler.
These results prompted the brand to increase its full-year economic outlook.
Nonetheless, Mr. Ramey believes that Tiffany’s marketing had nothing to do with the less-than-expected finish to the year.
Tiffany’s holiday campaign, “Some Holidays are Unforgettable,” was pushed through mobile, social media, video, in-store and Web site advertising.
Tiffany holiday 2011 campaign
The Some Holidays are Unforgettable effort even made Luxury Daily’s top 5 luxury jewelry holiday campaigns (see story).
In addition, Tiffany decked out its flagship windows in New York with a carousel theme inspired by the digital storybook “The Winter Carousel” (see story).
Tiffany’s holiday windows
“Tiffany approaches the market on a 360-degree perspective,” Mr. Ramey said. “They do traditional marketing and social media as well as anyone – they are the leader regardless of the category.
“One of the exciting things they do is that they sell on an emotive basis – they sell love before they sell their jewelry and the results will be positive for them,” he said. “The economic conditions in the U.S. don’t reflect the rest of the world and the opportunity to further advance the cause isn’t always immediately rewarded.
“In my opinion, their sales are an anomaly. I wouldn’t read too much into it.”
Final Take
Rachel Lamb, associate reporter on Luxury Daily, New York
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Article source: http://www.luxurydaily.com/tiffany-holiday-sales-results-not-indicative-of-its-marketing/
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