Tiffany's Little Blue Box May Be Losing Its Luster
Weakened holiday sales from luxury jeweler Tiffany may signal a change in the way American shoppers buy jewelry
Stevens, PA January 12, 2012 -- The recent holiday gift advertising was rife with fantasies of gifts that are treasured as much for their brand as for their functionality -- think of the ads filled with luxury cars topped by oversize bows and jewelry in boxes so coveted that they need no wrapping. Certainly, the king of this luxury gifting fantasy is Tiffany, whose iconic blue box has become so synonymous with luxury that it serves as a status symbol all its own.
But the 2011 holiday season may have signaled a change in the way U.S. consumers think about their jewelry purchases, as Tiffany has just released news of weakened sales during the holiday season, driving a dip in its earnings per share forecast. Clearly, many consumers decided against the luxury of the little blue box this holiday.
"I believe the drop in U.S. holiday sales for Tiffany signals a change in shoppers' jewelry preferences," says Pam Danziger, president of Unity Marketing and author of the newly released Putting the Luxe Back in Luxury. "They are not going for the glamour or the glitz, but favoring brands that deliver value without the added cost associated with a prestige brand name."
Danziger continues, "In our latest study of the jewelry market, entitled The Jewelry Report 2011, we discovered that customers are increasingly interested in jewelry that is affordable while allowing the wearer room to customize, such as the popular PANDORA line of charms. Products such as these virtually guarantee that the wearer will have a unique piece of jewelry, while even the most expensive purchase from a jeweler like Tiffany might also sported by a friend or neighbor."
>>Luxury consumers are putting substance before style -- Result: Tiffany loses
"Additionally, the little blue box may be losing some of its luster, as affluent consumers shy away from the more conspicuous symbols of affluence. Luxury consumers don't want to be seen as part of the much maligned '1%,' and this manifests as a preference for luxury goods that are individual, but not overtly status oriented."
To navigate this challenging landscape, jewelry marketers need to understand the newest luxury consumer attitudes and behaviors. Unity Marketing's newest study examines how the jewelry market has changed over time and what consumers think and feel now about their purchases of jewelry.
About the Jewelry Report 2011
The Jewelry Report 2011 is based upon the results of a consumer survey conducted March 31-April 1, 2011 among 553 recent purchasers of jewelry (average income $76,080; average age 45.1 years; 64 percent female/36 percent male) identified from a statistically-representative sample of 1,055 U.S. households. The results of the latest survey were compared with a similar survey conducted in July 2007 among 753 recent jewelry buyers (average income $75,400; 41.6 years; 63 percent female/37 percent male). Further an analysis of the luxury segment of the jewelry market is provided from the results of Unity Marketing's Luxury Tracking study.
The latest study of the U.S. jewelry market includes:
- Size of the costume and fine jewelry sector of the market
- What's hot and what's not in terms of jewelry products, such as rings, necklaces and earrings or for men, tie tacks and cuff links.
- What types of metal jewelry consumers favor today, including gold, sterling silver and platinum as well as various plated metals.
- Where people shop for jewelry, including dramatic shifts away from jewelry stores toward a wider spectrum of shopping destinations including art galleries, department stores, warehouse club outlets and direct-to-consumer channels such as the internet and television shopping.
Further the report presents the latest demographics that describe the jewelry consumer market, and an in-depth look at the luxury sector of the jewelry market, which accounts for more than 50 percent of total industry sales, including which jewelry brands and national retailers the luxury shopper favors.
Specific Jewelry Data Included
This study examines both the fine and costume jewelry market segments, as well as the high-end luxury sector. It provides details about jewelry choices and spending in these major categories of jewelry:
- Fine jewelry designed for men and women
- Costume jewelry for men and women
- High-end/Luxury sector of the jewelry market
For the fine jewelry category, detail data is also included about metal of composition, such as fine gold, platinum, sterling silver; and gemstones, such as diamonds, precious gemstones, such as rubies, emeralds, etc., pearls, and semi-precious stones, such as amethyst, topaz, etc.
It explores what type of jewelry is bought within each category, such as necklaces, earring, bracelet, brooches and pins and how much shoppers spend on specific fine jewelry pieces. Through the level of purchase detailed analyzed, marketers and retailers can discover the typical pricing parameters for each type of jewelry based upon what the typical jewelry buyer spends.
Jewelry Shoppers and Their Shopping Preferences Are Also Examined
The study is of great value to jewelry retailers, both those that already compete in the category and those that want to grow their share of the market. It reveals the stores where jewelry consumers prefer to shop, including the primary shopping destinations for jewelry consumers, including:
- Department stores
- Discount stores
- Specialty independent jewelers
- Chain jewelry stores
- Fashion clothing stores
- Non-stores, including mail order, television and internet
This important new research study is an investment in the future of jewelry marketers and retailers. It provides data and insight so that jewelry marketers and retailers can maximize their opportunities in the jewelry market today, as well as to plan for their future.
Special Features in Jewelry Report, 2011
Included in this report are:
- Brand preferences in high-end/luxury jewelry
- Profile of the affluent, luxury consumer market for jewelry, newly updated with data from the Luxury Report 2011.
- Powerful guidance for retailers and marketers in pricing of different jewelry items, based upon research findings of what the majority of consumers are paying today when they make their purchases.
July 2011 (~110 pages)
Published Price: $1,995
