The luxury jewelry customer is changing -- Winning brands will adapt to their changing demands
No doubt you've seen the latest headlines on Tiffany & Company, like this from the Wall Street Journal, Tiffany Again Cuts Outlook, with its report that profits dropped 30 percent on "weaker demand, weighed down by high precious metal and diamond costs."
In studying the analysts' reports, it looks like Tiffany, which has historically led the luxury jewelry industry, continues to pursue strategies that worked successfully in the past, but may not be appropriate for today's changing and challenging jewelry market. If Tiffany is set in its ways and keeps repeating its 'same-old, same-old' strategies, it gives more adaptable companies an opportunity to capture market share lost by Tiffany.
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Unity Marketing's latest Luxury Tracking Study finds dramatic changes in the luxury jewelry market
In our most recent survey of luxury jewelry customers, we found that the share of luxury consumers who purchased jewelry rose from 13 percent to 15 percent. While this measure of demand still lags the 18 percent tracked in 2010, it points to people's willingness to shop once again for jewelry items.