Wednesday, 9 September 2009

Wal-Mart Trumps Tiffany & Co. In U.S. Consumer Poll – 9/9/09

Welcome to the jewellery wars. On one side stands a $500 Tiffany & Co. piece, elegantly packaged in an eggshell blue gift box. Meanwhile, the other side contains a strikingly similar Wall-Mart item, worth $250, in a nondescript plastic bag. Which one would you choose?

If you choose the Tiffany piece, you are in the minority. Only 10 percent desired the luxury brand. A whopping 78 percent picked the Wal-Mart jewellery, while the others remained undecided.

Surprised? Yes, so were we. This survey conducted by Zogby Interactive involved 41,175 adults, and concluded that, "People [in the U.S.] are moving toward a simpler, less materialistic lifestyle."

What does that mean for Tiffany? Well, it could mean continued expansion of their 'entry point' high volume sterling silver lines like the Keys collection. (as discussed in The MO Down on 21 March). Or, they could continue happily wooing the 10 percent who can’t live without Tiffany’s timeless masterpieces. Let’s face it, Tiffany has never really been aimed at the masses however they are a brand that has some excellent elasticity and this is not always easy to achieve.

To read the full Reuters report, click here.

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Who's behind the MO DOWN

Melinda O’Rourke is the founder and Director of MO Luxury, a dynamic, Sydney-based management firm specialising in luxury brands and services. Melinda and her associates at MO work with local and international brands across prestige retail, fashion, fine jewellery, timepieces and specialised services. Melinda is well-connected, well-read, and well-versed in the demands of the luxury market and its client base. Her advice is firmly based in objectivity and ultimately, accountability. Melinda offers constructive counsel and both strategic and creative thinking and is able to draw upon a strong network of specialised talent to compliment the MO Luxury team as needed. Melinda enjoys excellent industry relationships and is regularly quoted in the business and fashion media. Read more about MO Luxury,