No lines at Tiffany's. And it appears that Tiffany was "stung by its own success." Meaning what, you may be asking? Marketwatch explains: The company has done a dazzling job of marketing itself as purveyor of luxury to the affluent. The truly wealthy are, by definition, sheltered from such tawdry concerns as jobs and mortgages. So it would follow that Tiffany would also be sheltered from a weak economy.
Turns out, however, that Tiffany's clientele is heavily weighted toward "aspirational" customers (as they politely refer to them in the shopkeeping trade) who get a thrill dabbling at the top end of the consumer pyramid, even when they have no business being there.
Lowering the bar has been a deliberate part of Tiffany's plan. It has spent a lot of time and energy luring entry-level customers off the street with little baubles and bangles that are proudly carried home in those exquisite little turquoise boxes.
But when times get tough, aspirationals are the first to bail. As they do, they expose Tiffany as a purveyor of fantasies, and fantasies don't pay the bills. Hard-nosed investors should have seen through that long ago.
And still I see stories and posts about certain stores selling $2,500 cashmere hoodies. I guess they serve the real rich and not aspirational customers. Wonder how long they will last.
