Description
Analyze the Tiffany & Co Case (available to purchase via Course Pack under Syllabus) and answer the following questions: List and discuss some of the benefits of luxury brands moving into the omni-channel market space. What are some of the potential pitfalls?Cite some examples of brands (outside of the luxury domain) that have succeeded well in omni-channel retailing. What are some of the reasons for their success?If you were the marketing and communication manager for Tiffany, discuss the key considerations (in terms of external market factors and internal organizational considerations) for the introduction of Omni-channel retailing in Singapore? Justify your answer with statistics provided in the case. Discuss the aspects of business operations that you (as the marketing and communications manager) would pay specific attention to, if you considered bringing the Tiffany brand into a full-scale omni-channel platform, in relation to the following: a) store operations, c) branding, and c) customer service.
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JESSE BOB DAVIES
57 Demarest pl, Maywood NJ,07607, 5513185867 [email protected]
PROFESSIONAL SUMMARY
Accounting, Finance, and Auditing professional with 13 years of experience in accounts payable/receivable,
reconciling payments, cash management, auditing, financial reporting, and budgeting working in an
energy/electricity generating and transmission company,
KEY SKILLS
• Accounting and Finance: Analyzing and
• Bookkeeping and auditing, end-of-thepreparing financial reports, bank
month accounting
reconciliation compliance (cash and credit
• Detail-oriented, highly organized, and
card reconciliation), internal inventory
attention to detail
control, journal entry, internal and external
• Analytical and problem-solving
audit, payroll, accounts payable/accounts
abilities
receivable (AP/AR), cash management,
• Computer and Software skills:
general ledger, budgeting forecasting,
Microsoft Office (Word, Excel,
processing staff expense reports,
Outlook, and PowerPoint), Microsoft
vendor/grant invoices, and generally
Great plain, AS400
accepted accounting principles (GAAP)
• Language Skill: English
Excellent written and verbal
communication skills
PROFESSIONAL EXPERIENCE
Staff Accountant
06/2022 – Present
Wacoal-America, INC.
One Wacoal Plaza
Lyndhurst, NJ.07071
• Prepared Inventory Reconciliation reports.
• Supervised Inventory cycle counts Staff.
• Prepared and posted journal entries.
• Worked with company financial statement to prepare purchase schedule(Raw materials,
Finished goods consumed).
• Prepared, processed, and reports Inventory cycle counts variance.
• Processed and reported negative variances.
• Worked with the AS400(PKMS, PICKPRO) software.
• Worked with Corporate controller on months-end closed.
• Worked with cost and financial accountants.
• Any other duty assigned by the corporate controller.
Staff Accountant 12/2015 – 08/2021
Electricity Generation and Transmission Company, Freetown, Sierra Leone
An energy generating company that generates electricity for the whole country with over 1000+ employees.
• Entered 50-100 accounts payable vouchers, purchase orders, financial transactions including travel
advances/liquidations, processing staff expense reports into QuickBooks accounting systems thereby
increasing 100% burn rate of the organization.
• Analyzed and processed about 50-100 vendors invoices for payments, and subcontractors’ invoices to
ensure compliance with organizational policies and release payments daily.
• Prepared audit, tax, and bank reconciliation reports monthly for management to establish a benchmark
for improvement using Microsoft Office Suite
• Processed journal entries for remittances, bank charges, and payroll using general ledger, charts of
account, and analysis code.
• Compiled and analyzed financial information for entries in general ledger account, and detailing assets,
liabilities, and capital contributing 100% accuracy of the balance sheet.
•
Processed over 50 payments requests and ensured these accounts are reconciled on a regular basis and
cleared out prior to calendar year-end.
Finance Officer
2012 – 10/2015
National Power Authority, Sierra Leone
Electricity Company generating electricity to the whole country with over 1,500+employees.
• Prepared monthly and year-End general ledger closing, cashflow Reconciliations, monitoring, and
reconciling bank transactional activity
• Researched all sponsors statements, analyze inconsistencies, correspond with sponsors, and make
corrections to all account’s balances
• Prepared journal entries and general ledger reconciliation, consolidate month end reports using Microsoft
office suite.
• Reported financial results and issues to CEO and directors.
• Researched all sponsor’s statements, analyzed inconsistencies, correspond with sponsors, and made
corrections to all account balances.
Accounts – Clerk (Entry Level)
7/1/2008 -2012
National Power Authority (NPA)-Sierra Leone
Electricity Generation company that generates electricity for the whole country with over 1000+employees
. Filling financial records
. Updating and maintaining the accounting database
. Processing backups
. Writing payments vouchers
. Providing accounting and clerical assistance to the accounting department
. Typing accurately, preparing, and maintaining accounting documents and records
. Preparing bank deposits, general ledger postings, and statements
EDUCATION
Master’s in business administration (MBA)
Present
Montclair State University. NJ-United States of America
Bachelor of
Science in Applied Accounting
2020
Institute of Public Administration and Management – University of Sierra Leone, Sierra Leone,
Ranked country’s top-rated business university accredited by the Ministry of Education
• Equivalent to U.S Bachelor’s degree in the field from an accredited institution according to World
Education Services (WES), (NY),2019, 2019. Evaluation available upon request
•
PROFESSIONAL DEVELOPMENT/AFFILIATIONS
• Inventory Management Training, Electricity Generation and Transmission Company
2015
• Auditing Training – certificate in principle and practice of modern auditing techniques 2019
JESSE BOB DAVIES
57 Demarest pl, Maywood NJ,07607, 5513185867 [email protected]
PROFESSIONAL SUMMARY
Accounting, Finance, Auditing, and administrative professional with 13 years of experience in accounts
payable/receivable, reconciling payments, cash management, auditing, financial reporting, and budgeting
working in an energy/electricity generating and transmission company,
KEY SKILLS
• Accounting and Finance: Analyzing and
• Bookkeeping and auditing, end-of-thepreparing financial reports, bank
month accounting
reconciliation compliance (cash and credit
• Detail-oriented, highly organized, and
card reconciliation), internal inventory
attention to detail
control, journal entry, internal and external
• Analytical and problem-solving
audit, payroll, accounts payable/accounts
abilities
receivable (AP/AR), cash management,
• Computer and Software skills:
general ledger, budgeting forecasting,
Microsoft Office (Word, Excel,
processing staff expense reports,
Outlook, and PowerPoint), Microsoft
vendor/grant invoices, and generally
Great Plain, AS400
accepted accounting principles (GAAP)
• Language Skill: English
Excellent written and verbal
communication skills
PROFESSIONAL EXPERIENCE
Staff Accountant
06/2022 – Present
Wacoal-America, INC.
One Wacoal Plaza
Lyndhurst, NJ.07071
• Prepared Inventory Reconciliation reports.
• Supervised Inventory cycle counts Staff.
• Prepared and posted journal entries.
• Worked with company financial statement to prepare purchase schedule (Raw materials,
finished goods consumed).
• Prepared, processed, and reports Inventory cycle counts variance.
• Processed and reported negative variances.
• Worked with the AS400(PKMS, PICKPRO) software.
• Worked with Corporate controller on months-end closed.
• Worked with cost and financial accountants.
• Any other duty assigned by the corporate controller.
Finance Office
12/2015 – 08/2021
Electricity Generation and Transmission Company, Freetown, Sierra Leone (West Africa)
An energy generating company that generates electricity for the whole country with over 500+ employees.
• Entered 50-100 accounts payable vouchers, purchase orders, financial transactions including travel
advances/liquidations, processing staff expense reports into QuickBooks accounting systems thereby
increasing 100% burn rate of the organization.
• Analyzed and processed about 50-100 vendors’ invoices for payments, and subcontractors’ invoices to
ensure compliance with organizational policies and release payments daily.
• Prepared audit, tax, and bank reconciliation reports monthly for management to establish a benchmark
for improvement using Microsoft Office Suite
• Processed journal entries for remittances, bank charges, and payroll using general ledger, charts of
account, and analysis code.
• Compiled and analyzed financial information for entries in general ledger account, and detailing assets,
liabilities, and capital contributing 100% accuracy of the balance sheet.
•
Processed over 50 payments requests and ensured these accounts are reconciled on a regular basis and
cleared out prior to calendar year-end.
Staff Accountant
2012 – 10/2015
National Power Authority, Sierra Leone (West Africa)
Electricity Company generating electricity to the whole country with over 1,500+employees.
• Prepared monthly and year-end general ledger closing, cashflow Reconciliations, monitoring, and
reconciling bank transactional activity.
• Researched all sponsors statements, analyze inconsistencies, correspond with sponsors, and make
corrections to all account’s balances.
• Prepared journal entries and general ledger reconciliation, consolidate month end reports using Microsoft
office suite.
• Reported financial results and issues to CEO and directors.
• Researched all sponsor’s statements, analyzed inconsistencies, correspond with sponsors, and made
corrections to all account balances.
Accounts – Clerk (Entry Level)
7/1/2008 -2012
National Power Authority (NPA)-Sierra Leone
Electricity Generation company that generates electricity for the whole country with over 1000+employees
. Filling financial records
. Updating and maintaining the accounting database
. Processing backups
. Writing payments vouchers
. Providing accounting and clerical assistance to the accounting department
. Typing accurately, preparing, and maintaining accounting documents and records
. Preparing bank deposits, general ledger postings, and statements
•
EDUCATION
Master of Business Administration (MBA) Management-General April – 2022 – April 2024
Montclair State University. United States of America
•
Bachelor of Science in Applied Accounting – 2015 – 2019
Institute of Public Administration and Management – University of Sierra Leone, Sierra Leone,
Ranked country’s top-rated business university accredited by the Ministry of Education
•
Equivalent to U.S. bachelor’s degree in the field from an accredited institution according to World
Education Services (WES), (NY),2019, 2019. Evaluation available upon request
PROFESSIONAL DEVELOPMENT/AFFILIATIONS
• Inventory Management Training, Electricity Generation and Transmission Company
2015
• Auditing Training – certificate in principle and practice of modern auditing techniques 2019
MKTG583-OMNI CHANNEL AND RETAILING
Analyze the Tiffany & Co Case (available to purchase via Course Pack under Syllabus) and
answer the following questions:
1. List and discuss some of the benefits of luxury brands moving into the omnichannel market space. What are some of the potential pitfalls?
2. Cite some examples of brands (outside of the luxury domain) that have
succeeded well in omni-channel retailing. What are some of the reasons for
their success?
3. If you were the marketing and communication manager for Tiffany, discuss
the key considerations (in terms of external market factors and internal
organizational considerations) for the introduction of Omni-channel
retailing in Singapore? Justify your answer with statistics provided in the
case.
4. Discuss the aspects of business operations that you (as the marketing and
communications manager) would pay specific attention to, if you considered
bringing the Tiffany brand into a full-scale omni-channel platform, in
relation to the following: a) store operations, c) branding, and c) customer
service.
For the exclusive use of J. Davies, 2024.
SMU Classification: Restricted
SMU-17-0026
TIFFANY & CO: OMNI-CHANNEL STRATEGY FOR THE ASIAN
LUXURY CONSUMER
The key to being successful in Asia is to operate in all tiers, and we believe in being where
our customers are.
– Erica Kerner, VP Marketing & Communications, Tiffany & Co.
As Erica Kerner drove into work on a muggy April morning in 2016, her mind was filled with
thoughts about the meeting she had scheduled with her marketing associates. Kerner, the Vice
President of Marketing & Communications, Asia Pacific at Tiffany & Co (“Tiffany”), believed
that Singapore offered great opportunities for the luxury jewellery and specialty retailer to
embark on an omni-channel retail strategy.
Although Tiffany maintained a strong online presence across the globe, it only offered ecommerce solutions in a few select markets. Online sales accounted for a low six percent of its
total sales, with limited integration between its brick-and-mortar outlets and online presence.
However, it was becoming increasingly apparent that macro-trends, particularly high levels of
digitisation, had led to an evolution in the consumer’s search and purchasing patterns of luxury
products. Consumers were using multiple devices and channels for different purposes during
their shopping journey from browsing to post purchase. And irrespective of the platform being
used, they expected the same rich experience associated with luxury brands, demanding
consistency in the services offered and reliability in the information provided. Social media
further added to the complexity.
In Kerner’s view, the Singapore market provided a perfect test-bed for Tiffany to develop and
execute a fully integrated omni-channel strategy, given the island city-state’s high levels of
internet usage and mobile penetration. 1 She explained,
Here in Singapore, we want to optimise every opportunity to deliver extraordinary products,
services and experiences to our customers, be it leveraging the proximity of our physical
stores to the ability to get to know and engage with them wherever they are.
Tiffany had not yet developed an e-commerce website specific to Singapore, and Kerner was
eager to hear her team’s thoughts on the matter. What would be the best way forward towards
implementing an omni-channel strategy? What would be the key factors to success? How would
this step enable the brand to differentiate itself from other luxury brands?
And yet, while Kerner was looking forward to hearing their views, she could not help but wonder
whether the online medium was in fact an antithesis of all that a luxury brand stood for. Indeed,
1
As of 2016, Singapore’s internet usage was 87% as compared to the global average of 46%; and mobile penetration was 145%
compared to the global average of 51%. For further details, refer: We are social, “Digital in 2016”,
http://wearesocial.com/sg/special-reports/digital-2016, accessed August 2016.
This case was written by Professor Srinivas Reddy, Geoffrey da Silva and Dr Sheetal Mittal at the Singapore
Management University. The case was prepared solely to provide material for class discussion. The authors do not
intend to illustrate either effective or ineffective handling of a managerial situation. The authors may have disguised
certain names and other identifying information to protect confidentiality. This case was developed with the support of
Centre for Marketing Excellence’s (CME) LVMH-SMU Asian Luxury Brand Initiative and Retail Centre of Excellence (RCoE).
Copyright © 2017, Singapore Management University
Version: 2017-11-10
This document is authorized for use only by Jesse Bob Davies in MKTG 583 Spring 2024 taught by ARCHANA KUMAR, Montclair State University from Jan 2024 to Apr 2024.
For the exclusive use of J. Davies, 2024.
SMU Classification: Restricted
SMU-17-0026
Tiffany: Omni Channel Strategy for the Asian Consumer
personalisation and customisation had always been considered critical to building customer
loyalty for a luxury brand. Was this move to an omni-channel strategy wise?
The luxury goods industry
In 2015, despite currency fluctuations, geopolitical instability and economic slowdown in some
regions over the year, the personal luxury goods industry managed to grow at four percent in real
terms, exceeding US$317 billion in sales worldwide. It was expected to clock a compound annual
growth rate (CAGR) of 3.3 percent by 2020. 2
The industry operated through three key selling channels. The wholesale channel was the largest,
accounting for 66 percent of sales in 2015. Retail through directly operated stores was gaining
share on account of network expansion and growth from comparable store sales. Globally, 750
new stores had been added in 2014, and another 600 in 2015. The third channel, representing
online sales, accounted for eight percent of the industry’s total sales, reaching US$25 billion in
2015 compared to just three percent in 2005—a 134 percent rate of growth over the 10-year
period. With brick and mortar retail continuing to decline, the share of online sales was projected
to increase by over ten percent by 2020. 3
The personal luxury goods industry comprised a broad range of products with the top five
categories being designer apparel and footwear; luxury jewellery and timepieces; luxury leather
goods; super premium beauty and personal care; and fine wines/champagne and spirits. Although
designer apparel and footwear was the largest category, luxury jewellery and timepieces was
second, at 20 percent of the total industry or US$64 billion.4 From 2010 to 2015, this category
grew at a CAGR of four percent. 5
Globally, the luxury jewellery industry was very fragmented and dominated by local players.
The ten largest jewellery groups had captured only 12 percent of the worldwide market, of which
only two brands, Cartier and Tiffany, were among Interbrand’s top 100 global brands. 6 The
majority of the market was controlled by small and medium size enterprises that operated singlebranch stores, or by strong national retail brands, such as Christ in Germany or Chow Tai Fook
in China.
Regionally, while Western Europe remained the largest market, Asia Pacific grew at a CAGR of
over 4 percent from 2007 to 2012—twice that of any other region. With its average GDP growth
rate at 7 percent over 2005 to 2014 (less than 2 percent in North America and Western Europe);
the region saw disposable incomes doubling during the period, and a 40 percent increase in the
number of affluent households over 2010 to 2015. 7 It was thus not surprising that discretionary
spending had shot up, with a growing population in the region craving prestige brands. This
triggered luxury retailing to take off in a big way with the world’s leading brands investing
heavily in the region.
However, the period from 2013 to 2015 witnessed a slowdown in Asia Pacific (excluding Japan).
Sales in Hong Kong, Macau and Singapore dampened with a decline in the Chinese tourist
Euromonitor International Report 2016, “Global Luxury Goods Trends”, 2016.
Bain & Company, “Luxury goods worldwide: Market study”, 2015,
http://www.bain.com/Images/BAIN_REPORT_Global_Luxury_2015.pdf, accessed August 2016.
4
Ibid.
5
Ibid.
6
Interbrand, a global brand agency, part of Omnicom Group Inc., releases annual best global brands ranking. Refer:
http://interbrand.com/best-brands/best-global-brands/2015/.
7
Euromonitor International Report 2016 “Luxury Goods in Asia Pacific”, 2016.
2
3
2/22
This document is authorized for use only by Jesse Bob Davies in MKTG 583 Spring 2024 taught by ARCHANA KUMAR, Montclair State University from Jan 2024 to Apr 2024.
For the exclusive use of J. Davies, 2024.
SMU Classification: Restricted
SMU-17-0026
Tiffany: Omni Channel Strategy for the Asian Consumer
footfall, the biggest consumer market for luxury goods. China itself was also slowing down,
largely on account of the weakening Yuan and the government’s clampdown on luxury gifting
to prevent corruption. But with the number of affluent households expected to grow the fastest
in Asia Pacific (at 113 percent over 2015 to 2030), the region only harboured short-term concerns,
and continued to hold priority as the market for luxury goods over the long term (refer to Exhibit
1 for regional growth of affluent households). 8
Singapore: unapologetically wealthy and fashion-oriented
The Singapore market was a luxury brand’s paradise. Singaporean consumers loved to shop,
having both the taste and affluence required for luxury products. In 2015, they were the wealthiest
consumers in all of Asia, with an average disposable household income of US$97,762, 9 second
only to that of the US globally. Singaporeans were also found to be the most generous gift-givers
in Asia, with affordable luxury gifts within the consideration set of many.
As a cosmopolitan city, Singapore was home to sophisticated consumers well versed in global
brands and labels. Singaporeans were fashion conscious and kept abreast of the latest trends in
the West via fashion blogs and social media sites. International labels and icons had a huge
following in the country, and were accorded a higher status than the local ones. The consumers’
high proficiency in the English language enabled these international players to engage with them
effectively, unlike other Asian markets that posed significant language and cultural barriers. In
many respects, Singapore was a fashion hotspot, hosting international fashion shows such as the
Audi Fashion Festival and Digital Fashion Week to create awareness and familiarity with
consumers.
This unique consumer market with high levels of global brand familiarity attracted many luxury
brands other than Tiffany—such as Cartier, Bulgari, Michael Kors, Tory Burch, Kate Spade,
Prada, Valentino, Christian Louboutin, LVMH, Chanel and Chopard. And with the country
having the best retail set up in Asia, luxury shopping was a key attraction not only for locals but
also tourists. As Kerner shared,
Asia-Pacific and Singapore in particular, presents long-term growth potential with a large
appetite for luxury. The retail environment here is definitely challenging with intense
competition and sophisticated consumers.
Tiffany & Co
Tiffany & Co. was a holding company that operated through its subsidiary companies, and was
engaged in product design, manufacturing and retailing. Its principal subsidiary -Tiffany and
Company was a jeweller and specialty retailer whose offerings comprised of jewellery (which
brought in 93 percent of net sales as at fiscal year 2015), timepieces, sterling silverware, china,
crystal, stationery, fragrances and accessories (refer to Exhibit 2 & 3 for images of select
products and the product line classification).
The company also had deep historical roots and a modest beginning. Founded by Charles Lewis
Tiffany in 1837, Tiffany & Co. began as a single store in New York City’s downtown Manhattan.
Up until the 1970s, operations were largely centred in the US, with a limited presence in Japan,
where it retailed its branded products through department stores and shops of Mitsukoshi Limited.
Ibid.
Jen King, “Singapore Offers Unapologetic Luxury”, The Luxury Daily, May 13, 2015, https://www.luxurydaily.com/singaporeoffers-unapologetic-luxury-with-97k-in-disposable-hhi-report/, accessed September 2016.
8
9
3/22
This document is authorized for use only by Jesse Bob Davies in MKTG 583 Spring 2024 taught by ARCHANA KUMAR, Montclair State University from Jan 2024 to Apr 2024.
For the exclusive use of J. Davies, 2024.
SMU Classification: Restricted
SMU-17-0026
Tiffany: Omni Channel Strategy for the Asian Consumer
The company ventured overseas in the 1980s, with Tiffany-branded stores opening in London,
Zurich, Munich and Hong Kong. In the 1990s it entered Taiwan and Singapore. By April 2016,
it was operating 308 stores with 124 in the Americas, 81 in Asia-Pacific, 55 in Japan, 43 in
Europe and 5 in UAE (refer to Exhibit 4 for growth in stores over 10 years).
From 2010 to 2015, Tiffany achieved a CAGR of 9.4 percent in its worldwide sales, reporting
total revenue of US$4.1 billion for the year 2015 (refer to Exhibit 5 & 6 for more details on
financials and regional contributions).
As part of its long term strategy, Tiffany was focused on expanding its presence by renovating,
relocating or building new stores in both existing and new markets. The company was also
evaluating opportunities to expand its e-commerce sites to augment its online turnover. At 6
percent of its total sales in 2013, 2014 and 2015, e-commerce revenue continued to be lower than
the industry average of 8 percent. In 2016, it tied up with Net-a-Porter, the leading online luxury
specialist and retailer that sold to shoppers in 170 countries.
While Tiffany had a wide range of products, it was recognised across the globe as a leader in
bridal and engagement jewellery. Its signature blue box was ubiquitous in the luxury market (refer
to Exhibit 7 for an image of the blue box), and its iconic bestselling engagement ring had been
acknowledged as the worldwide standard for engagement rings for over 100 years. While the
brand enjoyed strong equity amongst its existing consumers, Kerner was well aware of the new
paradigms in luxury shopping on account of digitisation and also the need to gain more traction
with the new generation of luxury shoppers. She emphasised,
As we’re developing our campaigns, digital is not just a channel: it’s a strategy unto itself.
The Tiffany brand was at the forefront of social media and digital activations through various
platforms, including Facebook, Instagram and You Tube and topped the L2 Digital IQ index 10
for the watch & jewellery sector in 2015. It had continuously invested in website enhancements
in a bid to make the virtual experience as close to real as possible. For example, in 2010 it
launched the Tiffany & Co Engagement Ring Finder. This mobile app allowed consumers to
browse the entire collection with detailed descriptions on the carat weight of the rings, and also
helped them find the right ring size by virtually trying on the rings (refer to Exhibit 8 for the
image of the app).
To gain favour with modern affluent consumers, Tiffany wanted to refresh its branding and create
a more youthful and contemporary image, a “with-it” brand. And for that, it was expanding its
footprint on popular social media platforms for younger consumers. For example, it was one of
the first luxury brands to leverage Snapchat. It brought its selfie lens on the ‘#LoveNotLike’
campaign in celebration of the new Return to Tiffany collection, and shared it globally through
Facebook, Instagram and Twitter (refer to Exhibit 9 & 10 for details on the campaign and images
of Snapchat filter).
Kerner strongly believed that a multi-channel approach with innovative use of technology would
help provide the brand relevant touch points to connect with the next generation of luxury buyers.
Tiffany in the Asia-Pacific market
Tiffany had a special focus on the Asia Pacific region, which saw the strongest growth in new
store openings over the last decade, from 25 stores in 2005 to 81 in 2015. However, in 2015,
10
L2 was a member-based business intelligence service that benchmarked the digital performance of brands.
4/22
This document is authorized for use only by Jesse Bob Davies in MKTG 583 Spring 2024 taught by ARCHANA KUMAR, Montclair State University from Jan 2024 to Apr 2024.
For the exclusive use of J. Davies, 2024.
SMU Classification: Restricted
SMU-17-0026
Tiffany: Omni Channel Strategy for the Asian Consumer
Tiffany’s performance in the region was not as strong as expected, and sales decreased by 2
percent over the previous year. 2016 too was not showing any signs of improvement. Comparable
store sales in the first quarter ending May 2016 had witnessed a decline of 15 percent in the
region. 11 But to a large extent, Tiffany’s challenges were universal and faced by all in the luxury
market. While many brands were struggling, Tiffany continued to perform better than most.
Tiffany in Singapore
Tiffany had decided to take a long-term view to continue strengthening its presence in
Singapore’s fashion-oriented market. With growing affluence, the market for luxury jewellery in
Singapore had grown at a CAGR of 6.4 percent over 2010 to 2015, and stood at SG$4.9 billion
(US$3.6 billion). 12 Kerner commented,
Recent declines in tourist numbers and spending due to the impact of a softening global
economy has made this market even more of a luxury battleground. However, with one of the
highest concentrations of ultra-high net worth individuals, Singapore remains a destination
and showcase for major luxury brands.
In line with global trends, the Singapore market was also witnessing a change in luxury
consumption patterns, especially with the rise of millennials, who were Internet savvy,
information hungry and very discerning about their brand choices. Digital penetration was also
high with the Internet and smart phones reaching 82 percent and 145 percent of the population
respectively. 64 percent of Singapore’s consumers were active on social media and more than
half of the users were under 35-years old (refer to Exhibit 11 for digital metrics). This set was
increasingly using online retail channels to make purchases. High speed Internet, mobile apps
and command of the English language had driven mass adoption of e-commerce into the society.
At the same time, younger consumers were selective in their choices and perceived the brands
they wore as an extension of themselves. Kerner explained,
I think one of the things with the younger customers is customisation and personalisation.
The millennial customer wants to have a product that is all his or her own.
In Singapore, Tiffany had six brick-and-mortar stores (refer to Exhibit 12 for an image of the
flagship store). It also had a website, but did not have e-commerce capabilities. The website
featured all of the company’s products, along with detailed descriptions, but did not provide
pricing information and the option to purchase online.
While the brand enjoyed tremendous social capital (4.9 million followers on Instagram and 8.8
million fans on Facebook across the globe), it had not been able to leverage it effectively in
Singapore. This presented an opportunity for the company to review its retail expansion strategy
in the region, hitherto limited to brick-and-mortar presence.
Kerner knew that the brand’s online presence served as an effective marketing tool to actively
engage the customers (refer to Exhibit 13 for perceptual mapping of Tiffany and other luxury
players’ omni-channel presence). However, a more integrated approach including e-commerce
would enable higher sales conversions while extending the brand’s reach and appeal to
11
Lauren Sherman, “Turning Around Tiffany”, The Business of Fashion, July 19, 2016,
https://www.businessoffashion.com/articles/intelligence/tiffany-grace-coddington-frederic-cumenal, accessed September 2016
12
Euromonitor International Report 2015, “Luxury Goods in Asia Pacific: What Happens When the Good Times Stall”, accessed
August 2016.
5/22
This document is authorized for use only by Jesse Bob Davies in MKTG 583 Spring 2024 taught by ARCHANA KUMAR, Montclair State University from Jan 2024 to Apr 2024.
For the exclusive use of J. Davies, 2024.
SMU Classification: Restricted
SMU-17-0026
Tiffany: Omni Channel Strategy for the Asian Consumer
millennials—not just in Singapore—but also in neighbouring states. Kerner commented,
In Singapore, we also see a confluence of luxury seekers from neighbouring countries like
China, Indonesia, Vietnam and India. Tiffany may not have the bricks and mortar set-up in
some of these countries, so one of the key opportunities is to be able to tap into this
demographic.
But the question remained: how best could this in-store and online experience be balanced?
Bricks or Clicks?
The luxury sector and the digital platform could not have been more different from each other.
Luxury was synonymous with being superior, elusive and premium, a sensory-rich experience
meant for a privileged few. In contrast, the online world stood for democratisation and minimal
to no cost, a ubiquitous experience meant for all. Additionally, along with quality, heritage and
tradition, the luxury brands’ customer equity was based on their ability to provide shoppers
unique and tailored experiences. On the other hand, the mass market reach of the online medium
rendered it quite unsuitable for such personalised interactions, and had initially led the industry
to shy away from active digital engagement. 13 Most luxury players had focused predominantly
on physical retail environment for delivering the brand promise and driving meaningful customer
relationships.
Regardless of what Tiffany did or did not do, new media and technology were increasingly
intertwined in consumer lifestyles; it was where they could be reached. As a result, customer
buying behaviour, shopping patterns and expectations had changed tremendously. Online
medium’s instant connectivity, 24/7 availability and real time access to numerous multi-media
sources was extremely empowering, and was the first port of call for most when seeking to buy
anything, looking for cohort reviews or sharing f
