Tiffany Has No Luxury In China'S Market Expansion.

< p > in 2013, when luxury companies suffered major sales setbacks in China, Michael J. Kowalski, chairman and CEO of tiff, claimed that China's performance was "very good". He recently visited China to help promote the Tiffany Diamond of Tiffany's flagship store in Fifth Avenue, New York.

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< p > this is a pillow shaped yellow drill weighing 128.54 carats, which was purchased by Charles Luis Tiffany, the brand founder in 1878, and named after his surname.

The diamond on the necklace worn by Audrey Hepburn in the 1961 movie "breakfast of Tiffany" is the diamond.

It has recently been shown to the public in the Tiffany flagship store in the three phase of China World Trade Center, Beijing.

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< p > Michael J. Kowalski attributed the growth of China to the growing understanding of consumers and the expansion of stores in the past few years.

At present, Tiffany operates 24 stores in China, and will grow by 3 to 4 per year.

Michael J. Kowalski told reporters that Tiffany's sales growth in China will be far higher than 10% to 12%.

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< p > Tiffany company's third quarter earnings report released in November 26, 2013 showed that the net income of the company increased by 50% compared to the dismal 2012 figure, and Tiffany's single day share price rose 8.7%, the largest single day increase in the year.

Among them, sales in the Asia Pacific region increased by 27% to $238 million and the same store sales growth rate reached 22%.

The two percentages in the world are 7%.

Kowalski acknowledges that the Chinese market is the main force in this beautiful performance. He told reporters that the yellow diamond was brought to China at this time because it wanted to express Tiffany's ambition to develop rapidly here.

"It represents the highest quality, design and cut of our brand, and it also represents our history."

For a long time, the sale of the jewellery dealer in New York is mostly driven by US consumption, but now the situation is changing.

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Less than 12 years ago, Tiffany opened the shop for the first time in China. They vigorously promoted the design of a company that came out in 1886: Tiffany Setting Diamond Solitaire Ring (Tiffany Setting Diamond).

This way of cutting and embedding ensures that diamonds can shine as far as possible.

In fact, Tiffany is an important commercial force linking diamonds with engagement. It is precisely because of this company that the diamond ring has become a tradition.

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P now Tiffany wants to continue this traditional influence as much as possible.

"People see the six paw diamond ring as the standard of" a href= "//www.sjfzxm.com/news/index_c.asp" engagement ring "/a.

This is very helpful to our wedding jewelry sales in China. "

Stephane Lafay, President of Tiffany Asia Pacific, told reporters.

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< p > it is worth mentioning that whether or not it is echoed with the exhibition of legendary yellow diamond, the yellow diamond series is currently the best seller of Tiffany.

When buying diamond products, how much cutting and gemstone related terms are known as "know how"?

For many Chinese consumers, nouns such as "six claw" are like brands, which are directly linked to price, grade and quality assurance.

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< p > Chinese consumers really favor this company's engagement diamond ring products.

Generally speaking, Tiffany's jewellery products are divided into four categories.

According to the company's 2012 earnings report, the average price of high and medium jewellery and luxury jewellery sold was $5500; the average price of engagement diamond ring and wedding jewellery was 3800 dollars; 925 silver, gold and RUBEDO metal jewelry, 260 dollars; Designer Series jewelry, 490 dollars.

Among these four categories, sales of engagement rings and wedding jewellery account for 36% in the Asia Pacific region, most of which are diamond products, and the figure is only 29% worldwide.

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< p > the product category of the main engagement diamond makes Tiffany's brand appear a kind of personal color in China, which is very different from rival Cartire, Bvlgari and so on. The latter likes to advocate the brand history and noble tradition.

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< p > you can see this from advertisements in several companies.

Tiffany's advertisement is characterized by warmth. There are no star models and dazzling jewellery in the advertisements. Only the little blue boxes hidden behind the lovers at the warm table, or a blue shopping bag carrying Tiffany at the gate of the flagship store at the five avenue of snowflakes, and Cartire, with its French royal Luxury Show, such as the 2012 Cartier L "Odyssee fantasy journey", a three minute and half half million dollar advertising blockbuster, a puma roamed Europe, the United States, Russia, India and China, and the momentum was great. Finally, there was a supermodel Shalom Harlow showing up.

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< p > > a href= "//www.sjfzxm.com/news/index_c.asp" > Cartire < /a > choose to advertise in CCTV Golden (1226.70, 1.50, 0.12%) time. Tiffany's advertising target is bean soup station. It co works with "great Gatsby" movie entries, and prints the photos of Per Day Tiffany jewelry in the advertisement of the stills page.

By the end of 2012, the number of French jewelry brand Cartire stores in China was 224, almost ten times that of Tiffany. At the same time, Cartire has entered the top ten list of the three luxury items in Bain's China Luxury Market Research for two consecutive years in 2012 and 2013. However, Tiffany, who has no name in the sale of engagement diamond rings and wedding jewellery, has surpassed this opponent.

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< p > "people celebrate the most important and happiest time in their lives with Tiffany."

Stephane Lafay said, but Michael J. Kowalski acknowledged in the interview with the Wall Street journal that the company had gone through many detours before finding the right marketing method.

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"P >" when we first entered the Chinese market, we were also cautious in presenting the brand, but there was a problem.

People can't see our brand logo completely.

They don't understand what this store is for.

In terms of how to communicate brand information, we must be more direct and not too elaborate.

When we tell the brand story, we need to do better and establish a deeper, richer and stronger brand image in the eyes of consumers.

We realize that although our brand has gained wide popularity among consumers, we still need to make great efforts to further increase consumer's deep understanding of brand.

People have limited understanding of our brand heritage. We do not know that diamonds are our core business, nor do we know that we cut diamonds ourselves. "

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Less than P, now Tiffany learns to present its brand more directly, such as increasing the volume of Logo at the front door of a store.

This is completely different from the style of the flagship store in Fifth Avenue, where only the Tiffany on the granite side of the gate is inscribed with a length of 60 cm and 15 cm wide, and this is the only place where flagship stores have Logo.

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< p > another proven marketing method is the large-scale use of the brand's trademark blue.

Whether it is the appearance of a specialty store or a handbag, this color has been repeatedly emphasized.

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< p > compared with the Royal background of competitors, < a href= "//www.sjfzxm.com/news/index_c.asp" > Tiffany < /a "tends to emphasize a brand spirit similar to the American dream.

Michael J. Kowalski claims that Tiffany represents "ambition, not who you are, but who you can be."

This may be an abstract Manifesto of the brand, but Tiffany really doesn't have many luxury goods: they tagged the price of products on the official website, promoted the silver ornaments of $125, and sent emails that marked the price range of products.

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< p > but to increase the attraction of Tiffany's future to Chinese consumers, strengthening the brand image with personal rewards and American dream is not the most reliable development path.

In the third fiscal quarter of October 31st, Tiffany's same store sales in the US for at least one year increased by only 1% compared to the same period last year, most of which came from the main tourist oriented flagship store in New York.

Michael J. Kowalski hopes to turn tourists into regular customers. He says he must further improve the operation level of stores, such as increasing professional salesmen who speak Mandarin, though such people are hard to find.

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