The web sparkles as a sales channel for Tiffany
Tiffany & Co. is well on its way to making the web its dominant direct marketing channel. Today, more than 60% of Tiffany’s total direct sales are generated online. In 2006, web sales for Tiffany reached an estimated $120 million, according to Internet Retailer’s forthcoming 2007 edition of the Top 500 Guide.
While Tiffany isn’t formally breaking out specific e-commerce sales, the company, No. 147 in the Internet Retailer Top 500 Guide, does note the web is replacing its catalog as its biggest direct marketing channel. Tiffany also notes that its web sites are generating substantial annual sales.
“Each year we exceed $100 million in sales,” says a Tiffany spokeswoman. Tiffany distributes a selection of more than 2,800 products through Tiffany.com for purchase in the United States.
Today, most direct shoppers at Tiffany also are web shoppers. “The company continues to experience increased web site traffic and orders, as well as consumers shifting their purchases from catalogs to the Internet,” Tiffany says in its annual report. “While the number of catalog orders declined in both years, catalogs remain an effective marketing tool for both retail and Internet sales.”
Tiffany, like competitors such as Blue Nile, is targeting the Canadian market because the high-end of the online retail market has a growing base of affluent shoppers and affluent wannabes who like spending money on luxury brands, particularly in Canada where the online jewelry segment still is developing. Tiffany.ca, which launched in 2005, is a near replica of the retailer’s e-commerce sites in the U.S., Japan and the United Kingdom. The site carries five major merchandising categories that include diamonds, jewelry, watches, table settings, gifts and accessories. Customers can shop by jewelry selection or by brand.
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