Tiffany & Co are well known around the world for their luxury diamonds. New York Times recently wrote that the company has been struggling since last decade with online competition and seems to lose its luster with younger shoppers. But, profits seem to gain momentum now as shoppers in China snapped up its luxury goods.
Tiffany &Co’s high-end jewelry was the company’s strength in its previous quarter. Most of its sale came from the Asia-Pacific region, while sales surged 15 percent by approximately $283 million. This happened mainly due to the high demand in China. In addition to this, sales in Europe also rose up by approximately $110 million.
But in other parts of the world, the sale was not that good. In Japan, sales dropped around 8% to $139 million. Tiffany also managed to squeeze out a 1% sales increase in the US regions, but this was below the expectation of the company. The company said that this happened due to the foreign tourist’s slowdown that led to soft sales.
Sales at stores also dipped by 1%. Under Chief Executive Alessandro Bogliolo, the company has been trying to attract the more millennials who are not coming to their online stores. The company said e-commerce sales have gone up faster than the overall sales growth.
The New York-based company has tried some new strategies for boosting its marketing, using celebrities like Janelle and Zoe Kravitz in advertising. They are also focusing more on lowering the price of popular items such as $95 bone china cups which are becoming quite demanding in China.
According to company officials, the ups and downs are the part of the market and they hope that sooner or later things will change and they will be able to capture the market.