Product details

The internationally renowned jewellery company, Tiffany, had been facing problems in their second largest market, Japan, since 2002. After performing commendably, even during the times of deep economic recession in Japan, Tiffany’s sales in Japan began slipping over the last couple of years, while other jewellery retailers were flourishing. The case explores the probable reasons for Tiffany not performing as per their expectation. Tiffany’s core customers had remained the affluent class, but to attract younger and less affluent customers, it also introduced and promoted less expensive products, which tarnished its elite image. Their retailing strategy of opening majority stores in department stores through which traffic of their target customers was decreasing, had backfired. Tiffany’s principal strategy in Japan had been to focus on their expensive bridal jewellery especially traditional engagement rings. With changes in the Japanese traditions, preferences of Japanese consumers and with the ageing of the Japanese population their strategy has become questionable. Managing the fluctuation in the yen-dollar exchange rate, also became a matter of concern.