Tiffany’s retail footprint in the US is important for the French luxury group.
This article comments on LVHM’s (Louis Vuitton Moet Hannessy) recent acquisition of Tiffany & Company for $16.2 billion. The author states that Tiffany doesn’t command the same prestige it had once did and has moved towards the “more affordable end of luxury”.
However, the brand has historically been popular among Asian tourists in the US. Under its CEO, Alessandro Bogliolo, Tiffany & Co. has paved its way into mainland China, which is a significant area of growth for the overall luxury sector.
This strength is paramount for LVHM as that adds a major American brand in its otherwise Europe-centric brand portfolio. According to Moran Stanley’s report, the wilting demand of Chinese tourists in the US makes an expansion across Asia “a necessity”.
[2 minute read]