Many companies are having trouble marketing to millennials and Tiffany & Co is no exception. While the company behind Audrey Hepburn’s famous “Breakfast at Tiffany’s” movie has made an effort to appeal to new customers, sales have stayed flat. Despite building an Instagrammable cafe in the 5th Avenue flagship store and getting celebrity influencers such as Lady Gaga on board, sales haven’t grown. An offer from luxury giant LVMH at the end of October caused its stock to rise, and by the time we’re all finished with our Thanksgiving turkey, the $16 billion deal should be finalized.
Influencers are Key
LVMH is a French luxury goods conglomerate that owns gleaming brands such as Louis Vuitton, Fendi, Chanel, Hermes, Prada and Christian Dior. They seem to have a handle on how to appeal to the new generation of buyers using influencers. Kylie Jenner and Cardi B are two celebrities that have endorsed or promoted LVMH products. Along with fashion brands, LVMH also owns Moët, Hennessey, Bulgari, and TAG Heuer. The hope is that the acquisition of Tiffany & Co would boost sales in the luxury watches department for LVMH.
LVMH’s brands are stronger in Europe and China than Tiffany, though China has been uneven. With its geographical reach, LVMH hopes to expand Tiffany’s presence where they have been weak and they’re hoping the blue-boxed jewelry company has growth in it.