Following shareholder approval, LVMH is set to acquire Tiffany and Co for $15.8 billion. What will that mean for the luxury jewellery company? The deal, which is set to close early this year will be the 75th brand that LVMH has acquired through acquisition.
Tiffany & Co, once a staple in the world of luxury jewellery, has been on a steady decline in the past few years. Already the deal has led to controversy, with many within both businesses unsure about the direction that they will head.
LVMH as of late has been able to reinvent brands with great success, from Louis Vuitton’s collaboration with Supreme to establishing Rimowa as the trendy suitcase in everyone’s overhead locker. However, dealing with Tiffany & Co may be more difficult, purely due to the heritage that they have tried to hold on to. Despite success in mainland China in 2020, it has lost its appeal in the west, with many finding it antiquated and lacklustre. This is seen especially in their new products, such as the Tiffany T1 Wide Hinged Bangle Bracelet, which Benedict Auld, founder of Lapidarius said it was as if it were “designed by an intern.”
So what does Tiffany & Co do next? According to analysts quoted in Business of Fashion, changes at the jeweller “may include a product overhaul, a review of its store network and a more aggressive digital marketing strategy. It is also safe to assume that there will be an expansion, potentially through collaboration with other brands (both in the LVMH stable and outside). Think Tiffany & Co. blue Rimowa suitcases or sparkling Givenchy jewellery. These would be the kind of moves that could see success with Tiffany & Co. And certainly, LVMH has a track record of marketing products through collaborations. We could also see the luxury jewellery company collaborate with more hyped, Gen Z labels such as the Japanese brand AMBUSH, who are recognised for their contemporary jewellery.
In the end, regardless of the direction that LVMH will take with Tiffany & Co, it will be up to the customers to decide. Unless LVMH can reinvent Tiffany & Co for a more modern and younger crowd, it’ll be a failure on both sides.