Wednesday, 19 May 2010
When many companies were struggling to stay in business during the recent recession, Tiffany & Co. were sky rocketing in sales. The company not only survived during this tough financial landscape, but they prospered.
Tiffany & Co. finally released their annual report last week, documenting each successful strategy that helped the company stay afloat in the recession. Playing with the nature of scenario shopping within the recession was a key factor that seemed to influence the company’s strategy.
Namely, they lowered the prices of their fashion jewellery, which were more vulnerable to optional purchases, and to counteract, they raised the prices of their bridal jewellery, knowing well that such purchases were safely confirmed.
It should be noted that in addition to reducing advertising and out-sourcing, Tiffany & Co. also achieved a high operating margin of 22.9% to further keep the cash flowing, and those little blue boxes generating.
Image credit: tiffany.com
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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, www.moluxury.com.au