TIffany & Co. Bridal Dress Proposal

BRAND EXTENSION OF TIFFANY & CO. BRIDAL DRESSES IN THE U.S. Mudan Yang Savannah College of Art and Design M.A. Luxury and Fashion Management Final Project Proposal

Table of Contents 1.0 Biography 2.0 Abstract 3.0 Area of Interest 4.0 Company Over view 5.0 Market Over view 6.0 Target Consumers Identification 7.0 Methodology 8.0 Timeline 9.0 Annotated Bibliography 10.0 Appendix

1.0 Biography

2.0 Abstract

Mudan Yang is from Fuzhou, China. She finished her undergraduate education in Zhejiang Sci-Tech University in China, majoring in advertising in the school of art and design. Because Yang is interested in the fashion and luxury market, she decided to go to the Savannah College of Art and Design to pursue a master's degree in luxury and fashion management. Yang does not have much work experience related to fashion. However, last summer, she got the opportunity to intern for Coach, which helped her practice knowledge relevant to her major and gave her a good opportunity to enter the fashion industry and gain enriched fashion experience. After review, she will focus on her M.A. Final Project. and get ready to graduate in this fall quarter.

Nowadays, high-end fashion and luxury brands are highly competitive with each other, consumers have their own preferences for products and brands, especially millennials. They are also the main force of the current wedding market. As a luxury jeweler, Tiffany & Co. is built on the concepts of quality, tradition and craftsmanship, making the efforts to innovate and produce many exquisite and classical products with unique craftsmanship in the luxury market. Its engagement and wedding rings are particularly famous and popular for many couples to pursue. On the other hand, the wedding market is well maintained, because wedding expenses have continued to rise in recent years, even with the global economic downturn. This shows that the wedding industry will be a promising market and has a well-developed growth trend in the future.

Since the net sales of Tiffany & Co. have been falling in recent years, many competitors of Tiffany & Co. have begun to be more and more welcomed by millennials. Based on the current market situation and product combination of the wedding industry, this project will create a wedding dress brand extension for Tiffany & Co., aiming to improve its brand image and gain a larger market share. The proposal will introduce the background of the company, the current situation of the wedding market and the target consumer. The project will be done through primary and secondary research over a period of 10 week.

3.0 Area of Interest

Tiffany & Co. is one of the most iconic luxury jewelry brands in the world. For over 175 years, it has created positive brand awareness and has become synonymous with luxury and style. The excellent design of its products and far-reaching brand culture are the secrets of the company for capturing loyal consumers. Moreover, the brand has many exclusive collections by famous designers, such as Tiffany Keys, Tiffany Victoria and The Atlas Collection.

Currently, Tiffany already has some product collections that are specially for couples’ engagements and weddings. They are always popular for couples because of their unique quality and design. Its engagement rings have already become many couples' testimony of love. The brand also has excellent consulting services for engagement and rings, which receive high recognition from many couples.

On the other hand, the United States is the largest wedding market worldwide. A report of the U.S. average wedding costs from 2012-2016 illustrates that wedding costs keep increasing each year, so the wedding industry is developing well. Bridal dresses have a lot of market spaces in the luxury market. Based on the fast development of the wedding industry, and a good combination of product lines of wedding rings, the addition of wedding dresses would be a logical brand extension for Tiffany & Co.

4.0 Company Overview 4.04 SWOT Tiffany & Co. is a holding company that operates through its subsidiary companies (Tiffany official website). It was founded in 1837 when Charles Lewis Tiffany opened a store in downtown Manhattan. Tiffany went public in 1987. The headquarters is located on Fifth Avenue, in New York City. The company’s main subsidiary is Tiffany & Company, a jeweler and specialty retailer whose merchandise offering is jewelry, but it also sells timepieces, leather goods, sterling silverware, china, crystal, stationery, fragrances, and accessories. The Company's segments include Americas, AsiaPacific, Japan, Europe and Others. The target market is men and women ranging from young adults to seniors (2554 years old), which is 70% of gift-givers and 30% affluent self-buyers. Tiffany & Co. is actively involved in selling its products through the internet, business-to-business and wholesale operations. Currently, Tiffany & Co. has more than 300 stores to serve customers around the world.

4.01 Vision & Mission “To be the world’s most respected and successful designer, manufacturer and retailer of the finest jewelry.”

4.02 Current Service Tiffany strives for excellent customer service, which is something the customer seeks out, such as cleaning, check up and repair services. Tiffany offers professionals to stand by to help their needs when customers go to the stores. The engagement consulting and services is very full and systematic. It provides insights and suggestions of their purchases to help them choose the perfect and the most suitable product and make a decision to suits their needs.

4.03 Products

S

Iconic jewelry brand with global recognition; Strong sourcing and manufacturing capabilities; Blue box equity; Excellent, personable customer service; The strongest geographical advantage of stores

W

High prices; Overstretched Expansion; Too focused on expanding rather than on the competition with current products

T

Increasing presence in the fast growing Asian luxury market; Positive outlook for the global travel industry; Large global distribution New lines for men

O

Counterfeit goods; Increased labor wages in the US; Comparable products

5.0 Market Overview 5.01 Economic Bridal wear represents luxury, allure, femininity, and unparalleled elegance. Even though there is the prospect of an economic recession, the bridal dress market still globally continues to expand. Economic recovery and rising disposable income have continued to boost wedding budgets. The couples who postpone marriage commonly generate stronger incomes, translating to higher wedding budgets.

5.02 The Current Market Situtation According to a new report by Global Industry Analysts, Inc., rising levels of extravagance in the wedding industry have driven the global Bridal Wear market. Driven by rising cultural expectations of lavish weddings, and increasing influence of celebrity weddings and social media, the global market for bridal wear is projected to exceed US$80 billion by 2020.

Extravagance also continues to influence fashion trends in the global bridal wear market. As the largest wedding market, the United States also achieved the highest average wedding cost in 2016 in the last five years, which is $267,000. The average wedding price for millennials is $31,000. The wedding dress is ranked in the forefront of the total cost of the wedding and is a major retail purchase consideration for consumers.

5.03 Customers

5.05 Competitors

According to the 2016 American Wedding Study, today's couples are willing to spend more money to hold the wedding that they want. Their financial level and personal involvement represent that they are finding inspiration and ideas on a larger scale than before. Couples like to have personalized weddings because they are focusing on more details that can demonstrate their style. Thus, they pay more attention to investing in their wedding, which has reached new height. For instance, the average cost of a wedding dress is $1,517, up from $1,380 in 2014.

For the millennial bride, they try to make the wedding process more meaningful and enjoyable for all guests. For example, brides require their bridesmaids to wear special dresses, with 66% wanting them to wear a same color. In addition, Grooms are also concerned about the details, because they want to make the big day more personal and reflective of their style as a couple. In addition, to meet the market requirements, premium fashion brands have extended their focus from affluent to young consumers by including affordable bridal wear in their collections.

5.04 Future Outlook In the past few years, bridal dresses with themes revolving around sophistication, elegance, sensuality, femininity, mischief, and playfulness, have motivated further growth in the market. As the maturing millennial generation attains the age of matrimony, future growth in the market will be driven by increasing demand in developed and maturing markets, as well as demographic shifts in population. Moreover, there are some main factors such as fabric innovations and advancement, growing popularity of celebrity bridal wear, and innovative and distinctively designed bridal wear being launched each season, which will all increase in focus in the coming years.

Founded in 1990, Vera Wang opened her first flagship salon in NYC. Then she helped many celebrities such as Jennifer Lopez, Michelle Williams and Kate Husdon to design bridal gowns and became the one of most famous and successful designers throughout the world.

Key Product Offerings: bridal gowns, ready-to-wear, accessories, home products, fragrance, beauty Price Range: Vera Wang Bridal Collection starts at $2,900, The Luxe Collection starts at $6,900 Services: all of Wang’s bridal gowns are specialorder, modification of gowns Distribution Channels: includes brand’s private store and some top retail brands sold in 51 countries

Kleinfeld was founded in 1941. For more than 70 years, it has had the most magnificent store and offers the largest and finest selection of designer wedding gowns in the world. Nearly 200 dedicated professionals and 79 designers are responsible for the specific details and understanding customers' individuality for every bride to provide the best product.

Key Product Offerings: plus size gowns, evening wear, accessories Price Range: $3,500 and higher to order gowns, specialorder gowns start at $2,500, a limited collection of gowns under $2,500 Services: Modification of gowns, guidance for choosing a wedding dress, cleaning and preservation of gowns, private contact information for each bride who requires special needs after the store closes Distribution Channels: Official website for viewing designs, one store in NYC

It is a family operated business that established in 1973 in NYC. With over 40 years of experience, Bridal Reflections salon has over 40 designers in bridal and evening wear and has a very high reputation from customers.

Key Product Offerings: bridal gowns, bridesmaid dresses, flower girl gowns, bridal accessories, evening wear Price Range: Bridal $1,000-$20,000 Services: Wedding dress preservation, modification of gowns, personal alterations Distribution Channels: Official website for viewing designs, 3 stores in NYC

It was founded in 1985 by Amsale Aberra. In 1996, she opened the Amsale flagship salon on New York’s Madison Avenue. Her wedding gowns have appeared in many films and are very popular with many celebrities, including Katy Perry, Julia Roberts and Halle Berry.

Key Product Offerings: Bridal gowns, bridesmaid dresses Price Range: Bridal $3,000-$10,000 Services: Modification of bridal gowns, alteration of bridal gowns Distribution: Official website for viewing design, flagship salon in NYC, dresses sold in some retail stores(Nordstrom)

Mark Ingram Atelier joined the famous bridal house Amsale as National Bridal Sales Director in 1995. He opened his own bridal company in 2002, which has become the premier bridal salon for sophisticated brides all over the world. The company has 19 famous designer labels.

Key Product Offerings: Bridal gowns, evening dresses Price Range: $5,000 to $20,000, with an average price point of $7,000 to $10,000.

Services: custom modification of gowns, personal alterations, expert consultants for wedding process Distribution: One store in NYC

6.0 Target Consumers Identification 6.01 Demographic The main market of Tiffany & Co.’s Bridal Dresses is females ranging from the ages of 25-45 in the U.S. They are the easiest Millennials and Generation X. They are well educated and middle or high income at least. This segment generally lives in big cities or close to metropolitan areas, and they are planning to propose, planning their marriage, and married couples.

6.02 Behavioral Currently, there is a high penetration of top-end mobile handsets, and Millennials are also fans of new technology and internet. They are constantly consumed and connected with all technological devices. They are conscious of brands who are sustainable, so they are also concerned about social and environmental issues. Many like to attend and hold the charity events in order to help social development. Furthermore, they are willing to spend extra money on better quality products.

6.03 Psychographic This type of customer focuses on relationships, especially romantic (engagement, wedding). Tiffany shoppers live the life of glitz and glamour. They have a strong interest in fashion, shopping and luxury products. Enduring value products, unique and customized items always attract their attention. They pursue optimistic, elegant and high quality items, but their lifestyle is low-key and luxurious. Their consumption behavior is concerned with satisfying their life pursuits as enjoyment.

6.04 Customer Profile

• Name: Chloe • Age:32 • Marital Status: engaged • Occupation: fashion director • Education: master's degree • Income: $130,000 • Interest: art, fashion, magazines, social networking • Lifestyle: pursues optimistic, elegant and high quality lifestyle,

collects unique and innovative art works and

products, likes to attend and hold the charity events

7.0 Methodology

8.0 Timeline -&& * * $

7.01 Primary Research The primary research will include online surveys (Survey Monkey), questionnaires and interviews to receive effective data and get more information about the market and consumers. They will include the target customers' attitude of wedding products, their lifestyle and consuming behaviors. Based on the consumers' needs and preferences, the product categories, pricing, distribution and promotion will be clearer.

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7.02 Secondary Research

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I will visit Tiffany & Co. competitors’ official website to understand their products, pricing, marketing strategies, and services deeply. Similarly, Tiffany & Co. website will be useful to get knowledge about the brand and their products. Scholarly journals, website resources, newspaper articles and case studies will also be good resources to understanding the current wedding industry situations and trends. They all can help the researcher decide the company future potential competitive product to promote brand values and business prospects.

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9.0 Annotated Bibliography Thomas, J. B., & Peters, C. O. (2011). Which Dress Do You Like? Exploring Brides’ Online Communities. Journal of Global Fashion Marketing, 2(3), 148-160. doi:10.1080/20932685.2011.10593093. Retrived from http://www.tandfonline.com/

doi/abs/10.1080/20932685.2011.10593093 This article introduces that brides usually consult bridal magazines, bridal fairs, family, and friends to find their dream wedding dress. Brides like to use online resources because it can help them easily get information, plan and purchase wedding products and services, and communicate with wedding providers directly.

BRIDES American Wedding Study 2016 Unveils the Latest Wedding Trends and Spending Habits of Engaged Couples. (n.d.).

Retrieved from http://www.marketwired.com/press-release/brides-american-wedding-study-2016-unveils-latest-wedding-

trends-spending-habits-engaged-2149673.htm The article analyzes the newest wedding trend and spending habits of engaged couples in the U.S. in 2016. It includes key costs, social media, engagement, wedding details, wedding dresses, groom’s attire, wedding party and so on.

Schlossberg, M. (2015, October 18). The most expensive clothing item for women has gone mass market. Retrieved from http://www.

fosters.com/article/ZZ/ 20151018/business/310189936 This article reports that wedding dresses have gone to the mass market. The average wedding dress costs $1,357, but plenty of brides would pay over $2,000 because of the wide disparity of wedding costs in each state. However, on the other side, some brides who are limited budget would like to choose mass market retailers to save on cash, which also benefits for mass market, such as J. Crew. After launching the bridal line, it is a profitable industry for J. Crew and help it has an important growth business.

M. (2015, October 25). The Median Age of Marriage in Every State in the U.S., in Two Maps. Retrieved from https://mic.com/

articles/92361/the-median-age-of-marriage-in-every-state-in-the-u-s-in-two-maps This article introduces that marriage in the U.S. seems like to be less popular than ever. The average marriage ages for both of males and females are in different areas in the U.S. The northeast people usually get married in an older age, but people who are from the South and the West tend to get marriage younger.

Douglas, M. (2016, March 16). Part 3: The Past, Present and Future of the Wedding Industry. Retrieved from http://www.huffingtonpost.com/

matt-douglas/part-3-the-past-present f_b_9479272.html This article reports the past, present and future of the wedding industry. The author also analyzed and compared the differentiation of some specific wedding details, such as wedding attire, wedding venues, wedding photography and wedding website.

Attracting Luxury Wedding Clients. (2016, March 18). Retrieved from https://blog.qceventplanning.com/2016/03/attracting-luxury-wedding-

clients/ This article introduces some tips to attract luxury wedding clients, such as building a business style, increasing prices and following the high-end couples. A styles comes from a personal taste, which is also an essential element to attract customers. As a luxury wedding company, expensive prices will be concerned by customers because it also means excellent quality, which is the point that potential customers are looking for.

What’s your wedding dress doing? (n.d.). Retrieved from https://www.quotev.com/quiz/3657476/Whats-your-wedding-dress This article introduces some ways that more and more women are finding novel ways to finally get rid of their 'big day' gown to make the dress more meaningful. They sell their dress to raise funds for charity or swap their frocks on clothing exchange websites. Others cut the dress to become a christening gown or worn it while running and walking.

Tiffany & Co. - Company Profile, Information, Business Description, History, Background Information on Tiffany & Co. (n.d.). Retrieved from

http://investor.tiffany.com/ This article introduces Tiffany & Co. history, specifically the company's main key growth. They are selectively expanding its distribution channels around the world without affecting the long-term value of the Tiffany & Co. trademark. Moreover, there is other information, such as its principal subsidiaries, principal competitors, chronology, key dates, which makes readers understand Tiffany & Co. value and structure.

"A vision of love and luxury": The commercialization of nineteenth-century American weddings (n.d.). Retrieved from http://www.journals.

uchicago.edudoi/10.1086/431007 This article narrates the commercialization of weddings in the second half of the nineteenth century. Jewelers and silverware manufactures began to offer special bridal goods and services because they recognized the possibilities of the bridal industry. They also tried to expand the market demand by seeking to the fashionable weddings.

10.0 Appendix