Shanghai,China-Oct.7th 2022: large Tiffany Co. flagship store at Huaihai Road with many walking people
Tiffany & Co. is reportedly vacating half of its 12,000 sq ft flagship store in Shanghai as luxury sales plummet in China.
The two-floor store (pictured), at the city’s Hong Kong Plaza, opened in 2019, with a bold design featuring almost 7,000 handcrafted glass diamonds.
But LVMH, the luxury conglomerate that owns Tiffany, has been hit by the economic slowdown globally and by government restrictions in China on ostentatious consumption.
In Q2 of this year LVMH posted a 14 per cent drop in sales for Asia (excluding Japan), which includes China. Profits globally for its watch and jewelry operations fell by 19 per cent during the quarter.
Tiffany will give up half the space at its Shanghai store later this month, according to a Bloomberg news report, and the landlord is in talks with potential new tenants.
It said Tiffany had asked property development and investment Lai Fung to reduce its rent.
Tiffany & Co is reported to be losing staff after setting unachievable sales targets.
Employees at the flagship Fifth Avenue store – newly rebranded as The Landmark – have received lower commissions as a result and many have moved elsewhere, according to sources who spoke anonymously to Fashion Network.
The fashion news website says staff at The Landmark, which generates 10 per cent of all Tiffany revenue, were set a $60m sales target for December 2023, compared to $30m the previous year.
Before the LVMH acquisition of Tiffany, for $16bn in 2021, monthly targets were typically increased by 5 per cent or 10 per cent.
Employees at The Landmark reportedly sold $50m last December. A hefty increase on 2022, but not enough to meet the company’s target.
Tiffany has also been falling short of the $25m monthly targets set for Q1 of 2024, according to the Fashion Network report.
It said some employees claimed they’d been told three quarters of the store’s 350 staff had left in a year.
A Tiffany spokesperson said earning for its top 20 client advisors were up by as much as 75 per cent on the previous year.
The new Tiffany Collection comprises 35 gems, including an unusual red stone, from the Argyle Diamond Mine in Australia.
About a year ago, a representative of the Argyle Diamond Mine — a site in Western Australia that was the pre-eminent source of pink diamonds until it closed in 2020 — approached Tiffany & Company’s chief gemologist with an unusual offer: the chance to purchase a collection of diamonds that were among the last stones taken from the mine.
The decision, Tiffany executives said, didn’t require much consideration.
“We had to do it,” Anthony Ledru, the brand’s president and chief executive, said in his bright office in New York’s Flatiron district. “It’s perfect with what we stand for.”
The purchase, which was finalized several months ago, involved 35 diamonds of various shades: pink, almost purple and even one red gem, an especially unusual color for a diamond. The gems, which had already been cut in various styles, “checked off all of those boxes: rarity, scarcity and beauty,” said Victoria Reynolds, Tiffany’s chief gemologist.
But the stones are small, ranging from 0.35 carats to 1.52 carats, considerably more petite than the statement-size gemstones frequently used in engagement rings and solitaire necklaces.
“These are small, there’s no doubt,” Ms. Reynolds said, “but for connoisseurs, collectors who understand how rare these are, it’s incredibly appealing.”
How much did the jeweler pay for what it now calls the Tiffany Collection? Mr. Ledru wouldn’t disclose the sum, but said it was “probably not enough compared to what it’s going to become in the next five, 10 years.” (He did note that it was Tiffany’s largest single purchase of 2022.)
Exactly how the diamonds will be used in jewelry hasn’t been decided, although Mr. Ledru said it was likely that they all would be used in one-of-a-kind designs. In the meantime, the diamonds are being shown to select clients in New York City and, next month, in Doha, the capital of Qatar.
The eventual prices are sure to be high. “You pay a premium for anything that says ‘Argyle pink diamond,’” said Renée Newman, an independent gemologist and author based in Los Angeles.
For the first time in its history, iconic New York jeweler Tiffany & Co. has launched engagement rings for men.
This May, Tiffany unveils the Charles Tiffany Setting, a collection of solitaire men’s rings with sizable round-brilliant and emerald-cut diamonds measuring up to 4.3 carats.
Tiffany, which did more than $4 billion in jewelry sales last year, is on the cusp of a new era. In January, the company was acquired by the luxury-goods behemoth LVMH for $15.8 billion, and now the iconic Blue Box brand belongs to the French. And, after nearly 180 years in business, the jeweler is finally embracing the idea of diamonds for all.
“Why not diamonds for men?” asks Frank Everett, senior vice president, sales director for Sotheby’s luxury division in New York and a man known for his own collection of jeweled and diamond brooches. “Most men love diamonds but haven’t necessarily thought about applying them in their own jewelry.” While there’s always been a segment of men who favored a diamond pinkie ring, Everett says that men’s diamond rings were especially popular in the late ’70s and ’80s, but then they faded out.
He predicts Tiffany’s new engagement rings will help create a greater market for men’s diamond rings. “Once men break the ice and wear a diamond, it becomes comfortable and natural,” explains Everett.
For the first time in its history, iconic New York jeweler Tiffany & Co. has launched engagement rings for men.
This May, Tiffany unveils the Charles Tiffany Setting, a collection of solitaire men’s rings with sizable round-brilliant and emerald-cut diamonds measuring up to 4.3 carats.
Tiffany, which did more than $4 billion in jewelry sales last year, is on the cusp of a new era. In January, the company was acquired by the luxury-goods behemoth LVMH for $15.8 billion, and now the iconic Blue Box brand belongs to the French. And, after nearly 180 years in business, the jeweler is finally embracing the idea of diamonds for all.
“Why not diamonds for men?” asks Frank Everett, senior vice president, sales director for Sotheby’s luxury division in New York and a man known for his own collection of jeweled and diamond brooches. “Most men love diamonds but haven’t necessarily thought about applying them in their own jewelry.” While there’s always been a segment of men who favored a diamond pinkie ring, Everett says that men’s diamond rings were especially popular in the late ’70s and ’80s, but then they faded out.
He predicts Tiffany’s new engagement rings will help create a greater market for men’s diamond rings. “Once men break the ice and wear a diamond, it becomes comfortable and natural,” explains Everett.
