【韩国】How Did Tiffany Shed Its ‘Grandma Brand’ Image?

In the early 2010s, Tiffany & Co., boasting 167 years of history, faced a severe crisis. According to an analysis by the Luxury Brand Consumer Survey, young consumers perceived Tiffany as a brand that “belongs in your grandmother’s drawer.” 78% of consumers aged 18-34 responded that it was a “brand for their parents’ generation,” and 65% rated it as having a “style that doesn’t suit me.”
A report by WWD magazine revealed even more shocking figures. In the early 2000s, 68% of Tiffany’s customers were over 45 years old, and for high-jewelry product lines priced over $20,000, the purchasing share of those over 50 accounted for 62%. The brand was being completely ignored by the MZ generation, the future protagonists of consumption.
Many companies in such situations resort to discount promotions or focus on short-term sales activities for immediate revenue growth. But Tiffany was different.

Tiffany chose bold brand innovation. According to Marketing Week, it targeted women aged 20-35 through the “Not Your Mother’s Tiffany” campaign.
An analysis by Vogue Business shows more specific changes. The brand replaced its previous brand ambassadors, who were over 45 with a classic image, with trendy influencers in their 20s and 30s like Elle Fanning and Lupita Nyong’o. Currently, BTS’s Jimin also serves as a brand ambassador for Tiffany. Advertising content also shifted focus away from traditional events like marriage and engagement to self-expression and everyday styling.
There were also major changes to the product line. Forbes analyzed the ‘Tiffany HardWear’ collection launched in 2017, noting that its bold design inspired by New York’s industrial architecture and the introduction of a unisex style precisely targeted the tastes of the younger generation. Sales in the first month of launch reached 300% of the target, with buyers aged 25-34 accounting for 58% of purchases.

What were the results of this branding innovation? According to an analysis by Business of Fashion, the sales share from customers aged 25-34 significantly increased from 23% to 38%. Online sales grew from 12% to 31%, and new product lines came to account for 35% of total sales.
Particularly noteworthy are collaboration cases with streetwear brands like Supreme and Nike. According to a report by Hypebeast Magazine, collaborative products with Supreme sold out within 2 hours of launch, with an average premium of 350% formed in the resale market. The Gen Z customer base increased by 178%, and social media mentions grew by 312%.
The in-store experience was also completely transformed. An analysis by Retail Design World indicates that Tiffany moved away from the appearance of a traditional jewelry store to become a modern lifestyle space equipped with customization stations, digital jewelry fitting zones, and Instagram photo zones. As a result, average in-store dwell time increased by 32 minutes, and the average transaction value rose by 28%.

Sales without branding easily become a ‘discount competition with no exit.’ If the only reason customers visit your store is because it’s ‘cheap,’ they will leave the moment a cheaper store appears. In reality, many small business owners experience the following vicious cycle:
Sales are sluggish.
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Hold a discount event.
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Sales increase temporarily.
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Profitability declines.
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Offer bigger discounts.
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Ultimately close down due to worsening profitability.
On the other hand, businesses with solid branding are different. Let’s look at Tiffany’s case again. Even when sales were declining, they did not engage in indiscriminate discounting. Instead, they re-established their brand identity and communicated it consistently. As a result, they achieved higher profitability and sustainable growth.
Ultimately, branding is the work of creating ‘the reason why customers should choose our store.’ This must come first for sales activities to gain strength. It’s about implanting the perception that this is a place ‘worth paying this price for,’ not just a ‘cheap price.’ That is the core of branding.

However, the smaller the business, the more important branding is. Why is that?
First, due to limited marketing budgets. Large corporations can recover from short-term mistakes with massive advertising budgets, but small stores don’t have that luxury. Therefore, it’s important to have a clear brand identity from the start and deliver a consistent message.
Second, because differentiation is essential. To survive among numerous competitors in the same commercial area, you need something more than simply “quality products” or “good service.” Customers must be able to recognize “that store’s unique specialness.”
Third, it enhances the effectiveness of word-of-mouth marketing. The biggest marketing weapon for a small brand is ‘word-of-mouth.’ However, it’s difficult to create powerful word-of-mouth with simple evaluations like “it’s delicious” or “it’s good.” When there is a clear brand story and differentiation, customers become more proactive in recommending it to others.
Regardless of the brand’s size, branding is essential for a successful business. An effective branding strategy becomes the key to success, generating significant sales with a small budget.

Branding is not ‘something grand that costs a lot of money.’ All activities that clarify the strengths of your store and consistently communicate them to customers are branding. Even changing one menu item or one signboard, contemplating whether it aligns with our store’s identity, is the beginning of branding.
As Tiffany showed in the article above, a proper branding strategy brings about the following results:
Securing a clear target customer base
Increase in average transaction value
Increase in customer dwell time
Improvement in revisit rate
Spontaneous word-of-mouth marketing
Ultimately, branding is an ‘investment,’ not a ‘cost.’ It effectively communicates the intrinsic value of products or services to customers and builds a differentiated positioning from competitors, laying the foundation for sustainable growth. Focusing only on short-term sales is like trying to pick fruit without planting a tree.
Tiffany’s case is an excellent example showing how branding strengthens a company’s fundamental competitiveness, which in turn leads to sales performance. Please remember that only by planting and nurturing the tree of solid branding can you continuously harvest the fruit of abundant sales.

Beyond simply “delicious food” or “good service,” places with a clear, unique identity survive longer. Just as Tiffany successfully transformed from a “traditional jewelry brand” to a “modern and trendy luxury brand,” your store also needs a clear brand identity.
Immediate sales are also important. But increasing sales without branding is like a sandcastle. As shown in Tiffany’s case introduced today, proper branding leads to tangible sales growth, not just an image. The first button to differentiate your business and drive sustainable growth is branding.