Editor’s Note
This article examines Tiffany & Co.’s unique market positioning, revealing how a premier luxury brand strategically incorporates accessible price points. It offers a compelling look at pricing strategies that defy conventional industry norms.
Tiffany is a world-renowned, top-tier luxury brand. However, alongside its opulent image, did you know it also offers jewelry at accessible, reasonable price points? Through the lens of Tiffany, we explore the pricing strategy of a luxury brand that operates in a manner “completely opposite” to typical products. (By Kenichi Suzuki, Director, GLOBIS AI Management Education Research Institute / Faculty, GLOBIS Graduate School of Management)
What comes to mind when you hear the name Tiffany? The iconic Tiffany Blue box and jewelry with simple, refined designs. More recently, you might think of brand ambassadors like Snow Man or BLACKPINK’s Rosé. Furthermore, those aged 60 and above likely have a strong memory of the “Tiffany phenomenon” in the late 1980s, where men formed long lines during the Christmas season to buy Open Heart pendants as gifts. At the time, the popularity was so immense that production couldn’t keep up, reportedly resulting in a one-month waiting list for the Open Heart pendant.
Tiffany holds a place among what is often referred to in Japan as the world’s top five jewelers (Tiffany & Co., Cartier, BVLGARI, Van Cleef & Arpels, Harry Winston). Founded in New York in 1837, it is the oldest brand among these five major jewelers.
Incidentally, the luxury brand sector has seen significant conglomeration. Among the top five brands, Tiffany and BVLGARI are part of the LVMH group, while Cartier and Van Cleef & Arpels are under the Richemont group.
