tiffany is taking frequent actions to open more stores in the chinese market
2024-09-11
한어Русский языкEnglishFrançaisIndonesianSanskrit日本語DeutschPortuguêsΕλληνικάespañolItalianoSuomalainenLatina
tiffany & co., a high-end jewelry brand under the lvmh group, is planning to reduce the size of its flagship store in shanghai hong kong plaza. the store opened in 2019 with an area of more than 1,100 square meters, making it one of the brand's largest stores in china and asia.
it is understood that tiffany will vacate part of the space later in september, and the mall where the store is located is already negotiating with new tenants. at the same time, tiffany has also asked the landlord, li fung holdings, to reduce the rent.
industry insiders said that lvmh group's watch and jewelry division's revenue fell 3% year-on-year in the first half of the year, becoming one of the worst performing divisions, and the division's recurring business profit fell 19%. tiffany's adjustment is seen as one of its strategies to cope with market changes.
tiffany store.
tiffany is indeed having a hard time.
earlier media reports said that a large number of employees resigned from tiffany's flagship store in manhattan, new york, because the management set key performance indicators that were impossible to achieve. the management set a sales target of $60 million for the store by december 2023, doubling the previous year. although the employees worked hard to sell, they only achieved $50 million in the end, which led to a decrease in employee commissions and bonuses, causing dissatisfaction among many employees.
in addition, the store set a sales target of $25 million in the first quarter of this year, but employees still failed to meet the target, and the brand's other stores in the united states also failed to achieve sales targets.
jean-jacques guiony, chief financial officer of lvmh, said at the first quarter analyst meeting in 2024 that jewelry customers in the united states were "slightly negative" in the quarter, which naturally had an impact on tiffany's performance. guiony mentioned a key data at the meeting-nearly half of tiffany's performance was generated by the us market.
rogerio fujimori, an analyst at a u.s. investment bank, told the media: "when the (u.s.) market becomes more difficult, the problems that lvmh sees as growth opportunities are exposed."
this also exposes another problem: tiffany's internationalization goals have not yet been achieved.
it is worth noting that although tiffany reduced the store area of shanghai hong kong plaza, it also launched an expansion plan in the chinese market.
in early august this year, tiffany's nanjing ifc boutique officially opened. the brand said that as the second store opened by the brand in nanjing, the new boutique not only integrates the latest design concepts, but also further demonstrates tiffany's market insight and investment in this historic capital.
tiffany also said that it plans to formulate new opening plans in more cities such as beijing and shanghai next year, and the brand is accelerating the adjustment and layout of its stores in china.
tiffany has "increased its investment" in the chinese market since the beginning of this year. relevant data shows that it has implemented nearly 30 projects in the first half of the year, including the newly opened nanjing ifc store, xiamen mixc store, fuzhou mixc store and the renovated hangzhou building store. currently, 1/4 of the store network has been renovated.
after the brand announced its entry into tmall luxury and the opening of its tmall flagship store in mid-january, it launched the tiffany knot series two-tone gold and diamond necklace for the first time in the chinese market in april. in july this year, tiffany launched its new tiffany lock series two-tone gold and semi-paved diamond small necklace for the first time in the world at its tmall flagship store.
for many years, chinese consumers have been an important driving force in the high-end consumer goods industry. industry insiders believe that although the high-growth stage of the high-end consumer goods industry has become a thing of the past, the chinese market still has a certain amount of growth, and in the future, brands will need to constantly adjust their development strategies and meet the consumption needs of chinese consumers through more in-depth and detailed research and layout.
(reporter chen qingwen/photo)
