Tiffany & Co set up a pop-up store on the Luxury Pavilion, which is the luxury platform of Tmall, and start pre-sale the latest jewelry, Paper Flowers. This is the first time that Tiffany & Co launched their new jewelry on an online platform in more than 180 years
The Tmall luxury platform is not well known to those who are not 88 super members. You must exactly type “Luxury Pavilion” on the TMALL app (Not provided for PC) to get into this platform. The average price of the series product is 20,000RMB – 30,000RMB, the other limited product, platinum diamond necklace’s price is up to 670,000RMB on TMALL and there are only 2 pieces in the whole country. Customers who purchase the paper flower series during the pre-sale period will have the chance to be invited to the news conference in Shanghai.
Should luxury brand develop e-commerce business?
As a channel, E-commerce is not distinguished by its merits and demerits. The key point is how to take full advantage of the diversity of a good channel to better serve consumers. As long as there is a customer channel, it is worth a shot. Luxury brands that has a self-built E-commerce platform should focus on the building of brand image and marketing.
It seems simple to set up an e-commerce website, but it is actually not that easy. From store design, warehousing and logistics to after-sales service. If outsourcing to an E-commerce partner, the service experience cannot be fully controlled.
Luxury goods are not about quantity
Ordinary consumers may buy one or two items per brand each year. If the experience of service goes wrong, it will be reflected in the customer lifetime value directly. Improving experience of service makes luxury goods prohibitive to e-commerce. Therefore, multi-brand platforms, such as Yoox and Net-a-porter, are still relatively successful in the luxury e-commerce industry.
The common misconception of e-commerce is that，an increase of online businesses proportion means success. In fact, online and offline businesses should be interconnected. Every established brand has a healthy online business proportion, though higher doesn’t necessarily mean better.
Online and offline luxury goods should be unified, not identical
Due to the limitations of online experience, the imagination of social media should be given more space to show brand image and interact with consumers.
There is no exact point in online and offline price consistency. Tiffany & Co main price range is $20,000 to $30,000, along with a $670,000 product catching everyone’s eye. It is worth mentioning that, no matter 20,000 or 670,000 products, the deposit will all be 2,880RMB, making the 670,000RMB product attractive.
Tiffany & Co provides a gift card service, though it is a little old-fashioned. Open the gift card interface, type in your name or the person you want to gift, and then a gift card will be generated and shared. Although it shows a sense of customization, it extremely lacks interaction and creativity.
In this event, Tiffany & Co had no plans to blow up the social network. It is unclear whether it is an attempt to go online for the first time. It is also unclear how online sales will affect its brand and that it hopes to deal with social media marketing in a low-key manner
Tiffany & Co pop-up store is now here. Products are launched exclusively, and matches with offline activities, but the pre-sale pace still takes too long, the marketing is old-fashioned, and it is difficult to stir any waves in e-commerce, it is more like an online experiment of Tiffany & Co. Therefore, it can be seen that luxury brands are more cautious about e-commerce. As a luxury brand, compared with the self-established e-commerce website, establishing a pop-up store and moving into luxury e-commerce platforms are safer choices.