Tiffany, whose performance has fallen into a trough in recent years, is trying to find new growth points and start to force the men's jewelry market.
On August 26, it was reported that Tiffany plans to launch its first men's jewelry collection in October this year. Men's Jewelry includes hundreds of products, ranging in price from $200 to $15,000, in addition to jewelry accessories, including cocktail shakers, ice pliers, beer mugs, and handmade sterling silver and 18K gold-plated chess sets. In a group of men's jewelry series of promotional photos, jewelry and baseball gloves, wrenches, compasses and other male materialization symbols placed together, temperament is very hardcore.
According to Reed Krakoff, Tiffany's chief creative director, the men's collection will be sold in Tiffany's 300 stores and will be displayed separately, showing the brand's attention. Although Tiffany has previously introduced men's jewelry accessories such as cufflinks and rings for male customers. However, it is the first time that the entire men's jewelry collection has been launched.
In the past year or two, Tiffany seems to be deliberately blurring the gender boundaries in terms of brand attributes. From the Chinese market alone, in 2018, Tiffany hired traffic Xiaosheng Xu Weizhou to become a Chinese brand ambassador. In March of this year, he joined forces with Liu Yuran to launch the T ture series. Before the Tanabata, the modern keys couple key pendants by Liu Yuran "endorsement" kept on the circle of friends. By strengthening the relationship between men and brands, Tiffany seems to want to remove the label of pure women's jewelry.
According to the analysis, Tiffany's launch of men's jewelry is an important step for the brand to broaden the customer base. But from Tiffany's brand history, male accessories have never been the focus of Tiffany. According to Reed Krakoff, the brand's chief creative director, half of Tiffany's consumers are men, although most of them buy women's jewelry, but it also shows that this is a good attraction for potential consumers. opportunity.
The opportunity Tiffany sees is the fast-growing men's jewelry market. According to data from market research firm Euromonitor, global men's fine jewelry sales reached $5.8 billion in 2018, a 23% increase over the five-year period in 2013. The sales of women's high-end jewellery market was as high as 33.2 billion US dollars last year, which is nearly 6 times that of the male market. However, compared with the sales data of 2013, the growth rate is only 14%, and the growth rate is much lower than that of the male market. “You can find on social media that men around the world are starting to wear more jewelry and accessories,” Reed Krakoff points out, and the male market is becoming the next incremental market for jewelry.
Affected by factors such as the decline in China's luxury consumption and the decline in the wedding jewellery market, Tiffany's overall performance has declined in recent years. In recent years, Tiffany's revenue growth has slowed down and net profit has fallen. Data show that in FY2017 (as of January 31, 2017) and FY18 (as of January 31, 2018), Tiffany's revenue was $4 billion and $4.12 billion, respectively, a year-on-year increase of only 3%. Net profit was $440 million and $370 million, respectively, down 18.9% year-on-year.
In FY 2019 (as of January 31, 2019), Tiffany's revenue and net profit both rebounded significantly, thanks to a series of young innovations initiated by Tiffany in 2017, including small launches around the world. Blue box coffee shop, launched the first Tiffany perfume in 15 years, cross-border home products, using the high-priced wool thread and paper clip to explode the topic list, in the Tmall first flower rhyme series. But this trend did not last long. In the first quarter of the 2020 fiscal year (ending April 30, 2019), Tiffany's performance declined again, sales fell 5%, and net profit fell 12% year-on-year. Men's fine jewellery may provide a new growth point for Tiffany, whose performance is bottlenecked.
However, competition in this market is not difficult. Optimistic about the growth potential of men's jewelry category, many luxury brands are planning to eat this piece of cheese, Louis Vuitton has previously launched men's jewelry accessories, including necklaces, earrings bracelets, etc., prices range from thousands to 10,000 yuan. Gucci also launched jewelry accessories for men, such as necklaces, leather bracelets, necklaces, rings, brooches, etc., the price is also thousands to 10,000 yuan. Hermès also has a separate men's jewelry category. From the price point of view, these big-name jewelry and Tiffany men's jewelry are almost in the same price range. Consumers' choice depends largely on brand loyalty and recognition of design. Whether Tiffany's men's jewelry can be bought by consumers is still unknown.
Zhang Peiying, the honorary consultant of the Luxury China Alliance, said that the specific effect of Tiffany's development of men's jewelry series can promote the performance of the entire brand. It depends on Tiffany's comprehensive work in marketing operations and promotion, which may become a detonation. The point, it is also possible to slowly return to dull. But for brands, the attempt to get involved in male jewelry is still worth encouraging. At present, all luxury brands, including fashion brands, are paying more and more attention to the male market, which is a trend of diversified brand development.
Zhang Peiying believes that in the men's jewelry market, although Tiffany may form certain competition with luxury brands such as Gucci and LV when luxury brands develop new market segments, the priority is still the original customer group or the loyal fan group. Acceptance and conversion. In this respect, although there is competition with similar luxury brands, Tiffany's men's jewelry still has a market.