No one thought that LVMH would continue to run Tiffany&Co as it is, least of all Tiffany, and with the takeover now finally complete, the French luxury conglomerate has announced the changes that would be coming to the American luxury jewellery brand.
According to Reuters, there would be an increased focus on gold and precious gems with plans to take its silver bangles upmarket. Sources also say that Tiffany’s new owner would likely revamp the appearance of the jeweller’s stores and boost its presence in Europe and Asia.
More than a third of Tiffany’s 320 shops are in the United States and two sources described some of them as out-of-date, shoddy and in need of refurbishing.
These new plans were unveiled at a Town Hall meeting in New York, a day after LVMH put in place a new leadership team. Speaking to attendees, Reuters learnt that the new focus would be on high-end, sparkling jewellery while another familiar with the group’s thinking said it was considering building out Tiffany’s lineup in watches.
Compared with rivals, such as Richemont-owned Cartier and Van Cleef & Arpels, as well as fellow LVMH brand Bulgari, Tiffany’s products are a broad range from $150 silver pendants to diamond necklaces priced in the tens of millions. Silver jewellery has gross margins of around 90% and offers an entry point for younger, less wealthy shoppers, but top industry names also need the medium to high range – with a price tag above $100,000 – to create an aura of exclusivity, experts say.
LVMH announced on the 7th of January 2021 that it had completed its acquisition of Tiffany & Co after a public and legal squabble, and a reduction by $425 million from the initially agreed price. That same day, it installed new leadership, naming Anthony Ledru as CEO; Alexandre Arnault Executive Vice President, Product and Communications, and Michael Burke as Chairman of Tiffany Board of Directors.