By George Anderson
Tiffany & Co., the venerable luxury goods retailer, is looking to build on its recent success under its flagship banner by broadening its offerings to attract a greater number of consumers.
Instead of going the "all things to all people" route, however, Tiffany has decided to create a new store banner (yet unnamed) targeted to younger consumers than the typical Tiffany's shopper. A USA Today report says the new concept will be "fashion-forward stores built around pearls."
The new stores are due to open in the second half of the year and fill a niche not presently occupied.
Jewelry Industry Research Institute analyst Ken Gassman told USA Today, "Pearls are a hot item. People are always buying pearls and get introduced to them at an early age. So there's a huge market here, and Tiffany can tap it. They will be differentiated enough by product and service to compete."
Mark Aaron, head of investor relations for the retailer explained the reason behind Tiffany's plans.
"The market for our product is so substantial that Tiffany wants to take a greater share, but there are limitations about what we can do from a design standpoint," he said.
Moderator's Comment: What are your thoughts on Tiffany's plan to open stores featuring pearls under a new retail banner?
Seth Siegel, chairman of the Beanstalk Group told USA Today he thinks Tiffany has got it right. "They could do pearls under Tiffany, but this gives them authority to reach a different kind of consumer without having to make excuses about what Tiffany is or compromise on Tiffany's brand. This is the reverse of taking a famous name and licensing it. Here, a famous brand is taking its extraordinary infrastructure and utilizing it to create a new brand, which can reach other consumers without any damage to the core brand." - George Anderson - Moderator