Tiffany Plans to Enter India Market
On August 7, 2019, Tiffany & Company and Reliance Brands Limited made it known that they are planning on entering the India market. This will be done via a joint venture, which will see Tiffany opening new stores in Delhi and Mumbai in 2019 and 2020 respectively. This will enable Tiffany to capitalize on its already strong brand awareness and image in this style-conscious, emerging luxury market.
As an international luxury jeweler that has stores in a number of the most important cities in the world, the emergence of Tiffany in these commerce centers in Indian, which have an increasing luxury consumer base, present a unique opportunity for the company. This move will further expand their brand equity in this significant marketplace.
About Reliance Brands Limited
Reliance Industries Limited (RIL), with a market-cap conglomerate of US$120 billion, is the parent company of Reliance Brands Limited (RBL). Where profit in Fortune Global 500 rankings is concerned, RIL is the number 1 company in India. In 2007, RBL started operations with a directive to launch and build global and national brand equity in the premium to luxury division across lifestyle and fashion space.
Tiffany & Co. Announces Exhibition in China
The exhibition, dubbed “Vision & Virtuosity,” which will be staged in Shanghai, China, was announced on July 8, 2019. It is being presented in celebration of the greatest creative masterpieces of the renowned jeweler. “Vision & Virtuosity” is the first of its kind for the company and it was conceived as a historical expedition, an exploration of the brand codes of Tiffany and a foretaste of what is to come.
The exhibition is designed to provide an immersive view into the much-admired house that pays homage to its past while revealing the significance of this exceptional history to the present. The installations of the exhibition contextualize the trailblazing moments experienced by the brand. It will also document the numerous “Tiffany firsts,” which includes the institution of the contemporary engagement ring, the Tiffany Setting.
“Vision & Virtuosity” is scheduled to be at the Fosun Foundation Shanghai and will be open to the public on September 23, 2019. It will last until November 10, 2019. As an international capital with international influence and a rich cultural heritage, Shanghai is a suitable destination for an exhibition of this stature.
Additionally, the location was most likely strategically selected as it was reported in January 2019, based on sales figures over the holidays, Tiffany experienced double-digit sales growth in China in the last two months of 2018. This was accomplished even though the overall holiday sales of the company fell flat.
Back then, CEO, Alessandro Bogliolo stated that China is a major area of focus and that the holiday period has actually been quite positive. He further stated that there was a boost in marketing spending in mainland China about a year prior and this is a sign that it had started to pay off.
After completing an analysis of Tiffany and Co.’s resources, there are three VRIO resources that can be seen. Tiffany has continued to strategically grow over the years in operation and have expanded into being an international luxury-jewelry company. This demonstrates their ability to succeed within a competitive industry as saturated as the industry is, this accomplishment is very important.
The company’s brand is unparalleled and is always thought of with luxury and passion. The company’s key trademarks also give Tiffany a competitive advantage. This vast list includes the “Tiffany blue” color of the box and the white ribbon; the symbolic Tiffany packaging and color.
The location of Tiffany stores is also a resource, as they are strategically placed in shopping areas surrounded by other luxury stores and in trendy neighborhoods, enhancing customer perception of the company. Having the ability to maintain and grow a loyal customer base, continuing expansion across the globe into emerging markets and having a brand that is easily identified by the vast majority of luxury-jewelry consumers make their brand a VRIO resource.
Tiffany’s relationships with suppliers gives the company a valuable resource, allowing them to have more buying power and enabling them to have influence in the ethics regarding mining practices. Their supply chain management is essential to their success because the company is able to do something others cannot.
When it comes to designing and manufacturing, most jewelers do not have this ability because they do not handle the product as closely as Tiffany. Tiffany is able to recruit and retain highly-skilled diamond cutters. These experts allow them to produce high-quality, prestigious products that are difficult to replicate, which will keep their wealthy customers coming back. This gives Tiffany more control and flexibility in their product offerings and pricing.
The company controls the majority of the process after the initial diamond is extracted. Being in control of production, manufacturing and retail operations, allows Tiffany to commit to ethical practices and standards that are unparalleled by the luxury-jewelry industry. In the media, this is essential, especially when taking into account the amount of “bad press” the industry as a whole receives for not being ethical. These strong relationships amount to a quality product that has been produced and manufactured by quality employees and advanced technology, creating a sustainable competitive advantage for Tiffany’s.
Finally, the product line is responsible for making luxury jewelry companies successful. The company offers jewelry priced from fifty dollars to over one million dollars. In addition, They have also expanded into China and provide products such as stationery, fragrances, accessories and various leather goods. Without quality product offerings, Tiffany would not be able to attract and retain a loyal customer base.
The market is relatively saturated, so it is essential to continue innovating and offering new and exciting products to diversify and enhance their product line as a whole. With products ranging from fifty dollars to over one million dollars, Tiffany product line can be classified as a VRIO resource. Overall, within the luxury-goods industry there is a trend towards diffusion line stores. This trend links to Tiffany’s current product line, which is considered a key VRIO resource for the company.
By creating a diffusion line that carries Tiffany and Co.’s more affordable product offerings, a greater focus can be placed on the in-store customer experience, which will better cater to both sets of consumers.
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