Tif­fany leads the way in pre­ci­sion ad-buy­ing

China Daily (Canada) - - SHANGHAI - By XU JUNQIAN in Shang­hai xu­jun­qian@chi­nadaily.com.cn

Amer­i­can jew­elry brand Tif­fany & Co.’ s Spring En­gage­ment ad­ver­tis­ing cam­paign, which reached 9.15 mil­lion peo­ple in the coun­try, is the per­fect ex­am­ple of how lux­ury brands in China can lever­age the power of pro­gram­matic buy­ing to grow their busi­ness in this dig­i­tal age, ac­cord­ing to MEC China.

Pro­gram­matic me­dia buy­ing is the process of pur­chas­ing ad­ver­tis­ing space in real time.

“There is no doubt more lux­ury brands will be mov­ing into pro­gram­matic buy­ing in or­der to take ad­van­tage of the busi­ness op­por­tu­nity and en­hance the con­trol of tar­geted mes­sag­ing. Tif­fany is a true pioneer in the lux­ury jew­eler cat­e­gory,” said Gor­don Dom­lija, CEO of MEC China, the me­dia agency that part­nered Tif­fany said that the im­pact of the cam­paign still re­mains to be seen, not­ing that the process of buy­ing a wed­ding ring can be a rather long and time­con­sum­ing one. Un­like buy­ing a bag or dress on a spur, she said, such a sig­nif­i­cant ac­qui­si­tion usu­ally re­quires months or even years of plan­ning.

“It’s pretty hard to eval­u­ate the ef­fect of one cam­paign. But we be­lieve in the power of each mes­sage be­ing sent out,” said Mah.

In Novem­ber, Tif­fany re­ported its first rise in sales in eight quar­ters thanks to strong per­for­mances in Ja­pan and China. The com­pany said sales in China have grown by dou­ble dig­its, off­set­ting the neg­a­tive per­for­mance in its home mar­ket in the United States. The com­pany was quoted say­ing last month that anti-Trump protests had re­sulted in un­der­per­form­ing sales at its flag­ship store in New York.

Based on sta­tis­tics by China’s na­tional civil af­fairs bureau, there were 200 mil­lion sin­gle­tons in China in 2013, rep­re­sent­ing a mas­sive mar­ket that Tif­fany and other jewel­ers can tap into.

China’s lux­ury in­dus­try has been ex­pe­ri­enc­ing slug­gish growth in re­cent years due to the eco­nomic slow­down, a weaker Chi­nese yuan and the govern­ment crack­down on gift­ing. How­ever, the 179-year-old Tif­fany brand has showed no signs of al­ter­ing its strat­egy or cut­ting bud­gets in the world’s sec­ond-largest lux­ury mar­ket.

Tif­fany cur­rently op­er­ates 30 stores in China, ac­count­ing for about 10 per­cent of its global sales net­work. Chi­nese con­sump­tion, how­ever, ac­counts for nearly half of Tif­fany’s over­seas sales.

Last year, the brand in­tro­duced its T Col­lec­tion with the hope of con­nect­ing with the younger gen­er­a­tion of Chi­nese who are more likely to re­ward them­selves with jew­elry rather than view it as some­thing closely as­so­ci­ated with love or mar­riage. The com­pany said that the col­lec­tion has been a huge suc­cess.

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