US luxury jewelry and specialty retailer Tiffany & Co have made a substantial investment to increase its presence and boost its brand recognition in China. The company officially opened its largest Asian flagship store in Shanghai on Thursday last week.
Tiffany & Co stated that the store is meant to showcase its full assortment of jewelry items and that it will become an experience-driven shopping venue for its customers in China and the rest of Asia. China is currently the company's second-largest market right behind the United States.
The new flagship store is located in a renovated two-story building in Shanghai's downtown Huaihai Road. The shop, which faces the street along the central road, is twice as large as the company's previously largest store. The flagship outlet features the company's Tiffany Blue Box Café, the first in China. The café allows customers and visitors to enjoy food and drinks while they shop for jewelry at the outlet.
Tiffany & Co CEO Alessandro Bogliolo explained that the idea for the store is for it to become a one-stop-shop for the company's permanent line-up of products and its limited-edition items. Bogliolo stated that the younger generations in China are now becoming more knowledgeable about jewelry and this has become evident in the increased amount of spending in the country for jewelry when compared to the rest of the world.
For its latest quarter ending in October, the company reported double-digit growths. Bogliolo credits the jeweler's increased growth in China to the increase in young professionals interested in jewelry. The executive explained that young professionals, as opposed to the ultra-rich, are becoming the backbone in the company's continued growth.
To further boost its sales in China, Tiffany & Co had launched a new Chinese-language e-commerce platform earlier in the year. The platform works in conjunction with the company's new flagship store and its existing 34 physical stores in mainland China.
According to global spending data, Chinese consumers spent more than $109.9 billion on luxury items last year. This is equivalent to about a third of the global amount spent on luxury goods for the period. Consultancy firm McKinsey & Co predicts that the number could more than double by 2025 as the country sees an increase in mid to high-income earners.
Local spending has also dramatically increased over the past two years as the government rolls out relevant tax reforms. Luxury spending at home has also been supported by more favorable exchange rates, making it more sensible to purchase luxury goods locally.
