By giving a boost to its legendary store on 5th Avenue in New York, the jeweler Tiffany wants to fuel the momentum driven by its new owner, the French luxury giant LVMH.
The tarpaulins and scaffolding that covered the facade of the store immortalized in the film for several years Diamonds on couch (Breakfast at Tiffany’s in English) fell.
The leaders officially inaugurated the establishment on Wednesday April 26, 2023, completely renovated for the first time since its opening in 1940, before opening to the public on Friday April 28.
The objective, according to the general manager of the company Anthony Ledru, is to offer “a unique customer experience”, with “a blend of art, craftsmanship, heritage and lifestyle”.
In general, Tiffany seeks to remain faithful to its origins while remaining “relevant” culturally, he explains in a message to AFP, saying he wants to open up to “all generations”.
Storefront of Tiffany, the day of its reopening on April 26 (KENA BETANCUR / AFP)
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Founded in 1837 in New York, best known for its diamonds, silver jewelry and engagement rings, sold in blue boxes, the company was acquired by LVMH in early 2021 for just under $16 billion.
It employs 14,000 people and manages some 300 points of sale around the world.
During the annual presentation of LVMH’s results at the end of January, its CEO Bernard Arnault had pointed out that “Tiffany was going to exceed $1 billion in recurring operating income for the first time.”
“We were barely halfway when we acquired this business,” he noticed then.
Anthony Ledru, assisted by one of Bernard Arnault’s sons, Alexandre Arnault, undertook a refresh of the brand, calling on the most prominent couple in American show business, Jay-Z and Beyoncé, to promote its products, launching a campaign around the provocative slogan “It’s not your mother’s Tiffany” or by partnering with Nike shoes.
“Tiffany was a sleeping beauty”, says Erwan Rambourg, specialist in the luxury sector for HSBC bank. She was resting on a “very strong notoriety” but was also “very conservative in its choices, very slow and quite locked in the short term” to satisfy the shareholders, he explains to AFP.
The new management, spurred on by “the spirit of conquest specific to Bernard Arnault” repositioned the image of the brand by putting a little less emphasis on wedding-related products and silver jewelry and raising some prices.
“The old management communicated a lot about the lowest prices, which is not necessarily a good approach in the luxury sector”remarque Luca Solca du cabinet Bernstein.
Its marketing and communication are “more modern”, a necessary strategy “to recruit younger consumers”, says the analyst.
Recognizable jewelry
The jeweler has also launched new, more recognizable products, with, for example, the T by Tiffany or, more recently, Lock ranges.
“It’s quite difficult to put a big logo on a ring, a bracelet or a pendant, but the shape of certain so-called iconic products can, at 20 meters in a restaurant or a bar, make it possible to identify that it is a Tiffany, Cartier or Van Cleef jewel”, notes Erwan Rambourg.
According to the specialist, the group has also developed a new approach for its stores, opting for a concept “more feminine, warm, welcoming”.
The renovation of the New York store, initiated under the previous management in 2019 before being taken over by the current management, represents the “biggest (investment) made in the world of luxury” for an operation of this nature, according to the entourage of Bernard Arnault.
In addition to the sales counters, the ten floors include several exhibition spaces, a café run by chef Daniel Boulud and a landing reserved for VIPs.
The store accounted for around 10% of Tiffany’s sales before the works, during which customers could go to a temporary space next door.
Without wishing to advance on specific objectives, Anthony Ledru ensures that the group has “set the bar high” and anticipates “millions of visitors from all over the world” every year.
2023-04-27 07:00:00
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