Having closed the deal on the purchase of the Tiffany jewelry house worth 15.8 billion dollars, LVMH holding announced the changes that await the American company in the near future. The head of the conglomerate and the richest man in France, Bernard Arnault, plans to redefine Tiffany's range, shifting the focus from silver pendants and rings to gold and gemstones to create an "aura of exclusivity."
It is known that silver jewelry provided the brand with high gross margins and attracted younger and poorer clientele. Prices for these Tiffany pieces start at $ 150. However, the brand will be able to match the level of LVMH only by releasing more goods worth from 100 thousand dollars. Experts say that in this way the French giant risks losing its loyal audience, but in the long term, the reorientation to a more expensive segment will bring more benefits to the company.
It is known that, in addition to the product line, LVMH intends to revise the design of Tiffany stores. The trade networks of the brand will also be expanded in Europe and Asia.