There are plenty of lists that rank jewelry brands,
but which companies have the highest “digital IQ”? That’s
what business intelligence firm L2 Inc. investigated in a February report that
ranked 70 luxury jewelry and watch brands according to their competence in
e-commerce, digital marketing,
social media and mobile.
The top 10 on that list are a who’s-who of distinguished
heritage names, as well as a few new brands that are nearly as familiar. Here’s
a look at the companies that outdid themselves in digital, and in other areas
of marketing as well.
TIFFANY & CO.
Profile: Founded in 1837 by Charles Lewis Tiffany and John
B. Young as a stationery and “fancy goods” store, the business shifted its
focus to jewelry after Tiffany took control of it in 1853. Today, it’s one of
the best-known luxury brands in the world, with 315 stores in approximately 20
countries.
Brand awareness: Tiffany has been a marketing innovator from
the start: It partnered with circus mogul P.T. Barnum for promotions, set the
standard for sterling silver, and published its iconic Blue Book in 1845. Its
signature Blue Box has become a symbol of luxury, and the film
Breakfast at
Tiffany’s helped secure the brand as a fixture of American culture.
Digital footprint: The company has a well-rounded program
featuring best-in-class product pages and robust digital marketing, social
media and mobile platforms. Its Instagram account has 8.1 million followers.
The online Tiffany Tattoo Shop launched on Valentine’s Day 2018, ensuring a
large social media buzz.
Challenges: For some time, the jeweler seemed to have an
identity problem, trying to appeal to younger consumers while maintaining its
highbrow Upper East Side identity. Last year, its CEO and high-profile design
director were forced out of the company.
Successes: In 2017, it appointed new CEO Alessandro
Bogliolo, who is credited with revitalizing the Diesel brand. It also hired
Reed Krakoff — known for reversing the fortunes of leather goods company Coach
— as chief artistic officer, giving him control over much of the company’s
creative operations, including store design, e-commerce, advertising and
marketing. In another high-profile move last year, Tiffany opened the Blue Box
Café at its flagship store in New York.
Meanwhile, the Tiffany Save the Wild collection — the
profits from which go entirely to the Elephant Crisis Fund — reinforced the
company’s established sustainability-friendly image.
CARTIER
Profile: Founded in 1847 by Louis-François Cartier, the
Parisian jeweler is a symbol of French high-jewelry design and craftsmanship
throughout the world. Its hand-made jewels and art objects are distinctive in
their quality and artistry. Cartier now serves as the flagship of the powerful
luxury holding company Richemont Group, accounting for about half of the
conglomerate’s revenue, and has boutiques in more than 60 countries.
Brand awareness: The company ranks 61st on the
Forbes list
of “The World’s Most Valuable Brands,” with a value of $9.3 billion (as a basis
for comparison, Tiffany didn’t make the list).
Digital footprint: Its YouTube channel boasts more than 121
million views.
Challenges: During the early part of the decade, the brand
was perceived as a bit too elitist for younger people.
Successes: Cyrille Vigneron, who became CEO in 2016, took on
the mission of bringing Cartier to the people. Among his initiatives was a
series of exhibitions in 2017, in which Cartier presented its high jewels to
the public free of charge in London, New York and Japan. Earlier in the year,
the company held a pop-up experience called the Panthère Studio at a popular
New York restaurant.
SWAROVSKI
Profile: Quartz is one of the most abundant minerals on
earth. But place this common substance in the hands of the creative geniuses at
Swarovski, and it turns into a sought-after work of art. Bohemian jeweler
Daniel Swarovski founded the company in 1895 in the small town of Wattens in
the Austrian alps, not long after he patented an electric cutting machine that
could cut crystal more precisely than by hand. Today, the family-owned,
privately held Austrian company is synonymous with the jewels of the Swarovski
Crystal Business — the highest-grossing of the company’s three business units,
with a global reach of approximately 2,800 stores in around 170 countries, more
than 27,000 employees, and revenue of about EUR 2.6 billion in 2016.
Brand awareness: Aside from its main business, Swarovski
crystal is used in building-design materials, optical instruments and
construction tools. It sparkles on stage clothing, movie and television set
designs, art installations and chandeliers. The star on top of the Rockefeller
Center Christmas tree in New York is a Swarovski. There’s even a crystal-themed
museum, Swarovski Crystal Worlds.
Digital footprint: The brand’s high site traffic and active
Instagram presence are among the features L2 praises. It also cites Swarovski’s
mobile-optimized website, which has detailed product pages and user-friendly
navigation.
Successes: Nadja Swarovski, an executive board member of the
Swarovski Crystal Business, has given the division new life by creating crystal
accessories and objects in partnership with world-class artists, architects and
fashion designers.
ALEX AND ANI
Profile: The Rhode Island-based, privately held company that
Carolyn Rafaelian founded in 2004 has achieved enormous success in a short
time. All of its affordable jewels are manufactured in America, mostly from
recycled materials, and sold worldwide in its own branded stores and other
retail outlets.
Brand awareness: It is known for producing affordable jewels
with inspirational messages and motivational quotes.
Digital footprint: As a young company that sells meaning as
opposed to jewels, Alex and Ani has a strong digital presence. Its first mobile
app, which launched in 2015, hit 80,000 downloads in the first three weeks.
Challenges: This kind of growth doesn’t come without some
pain. The company’s most successful CEO left in 2015, and since then, it has
had trouble keeping executives. Additionally, on January 14, its distribution
deal in Australia and New Zealand ended; the countries’ websites were abruptly shut
down, and for a while, residents were unable to purchase jewels online.
Successes: The jeweler’s revenue grew from $5 million in
2010 to over $500 million in 2016, and it is now valued at $1.2 billion. By
2017, Rafaelian, who owns 80% of the company, became America’s only jewelry
billionaire, according to
Forbes, and is number 18 on the magazine’s list of
“America’s Richest Self-Made Women.” By the end of last year, Alex and Ani
reached the $50 million mark in charitable giving, according to a company spokesperson.
DAVID YURMAN
Profile: The privately held American company is known
worldwide for its fashion-forward luxury jewels. Husband and wife David and
Sybil Yurman, both designers and artists, founded the brand in 1980, and it has
grown to no fewer than 32 retail locations throughout the United States,
Canada, France and China. It also sells at authorized fine jewelry retailers
worldwide. All creative decisions are made by the Yurmans, and the business
itself is tightly controlled. It fiercely protects its brand and copyrighted
designs through litigation — and it usually wins.
Brand awareness: The Cable bracelet — a twisted helix
adorned with finial gemstones — was David Yurman’s first celebrated design,
introduced in 1983. It remains one of the brand’s best-known jewelry designs.
Meanwhile, the company’s groundbreaking advertising and marketing campaigns —
including a longtime collaboration with supermodel Kate Moss — are an integral
part of its brand presence.
Digital footprint: Both its marketing programs and the
protective nature of the company’s business have translated well to digital
media. L2 cites David Yurman’s strong omni-channel features and a dynamic
social media program. The company works hard to protect its products against
online merchants that sell discounted brand-name jewelry.
Successes: In March, the designer appointed chief commercial
officer Carol Pennelli as company president, crediting her with transforming
the brand “from a wholesale company to a dynamic global omni-channel organization”
in her 15 years working there.
THE RUNNERS-UP
The next five jewelry brands on the L2 list are Pandora (6),
Bulgari (7), Van Cleef & Arpels (12), Piaget (18) and Chopard (21). They
are all among the biggest names in the industry, and all are manufacturers,
wholesalers and retailers. But each has its own specialty, and its own
strengths and weaknesses.
Pandora
Known for its charms, this Danish jeweler, which has
manufacturing operations in Thailand, boasts approximately 7,800 points of sale
in 100 countries on six continents, including more than 2,400 concept stores.
It has seen spectacular success since its founding in 1982, though it has also
experienced periods of drastic downturn. Currently, it is in a period of
stability, showing 15% year-on-year growth (in local currency) for 2017, and
revenue is projected to increase another 7% to 10% this year. However, L2 says
its e-commerce site is separate from its brand site, resulting in a fragmented
user experience.
Bulgari
Like many luxury firms owned by large conglomerates, this
Italian high jewelry house has been focusing on its iconic lines: Serpenti,
B.Zero1, Diva and Octo. The results have been “excellent,” according to parent
company LVMH’s 2017 annual report, which showed the group’s jewelry and watch
division increasing 12% year on year. L2 gave Bulgari high marks overall for
its digital platforms, particularly its social media. The brand is also growing
on the brick-and-mortar front, having reopened its New York flagship store in
2017. CEO Jean-Christophe Babin told
Forbes last year that he considered retail
integral to the consumer experience.
Van Cleef & Arpels
This luxury brand has similarities to Cartier. Both are
based in Paris, are internationally revered for French jewelry design and
craftsmanship, and are part of the Richemont Group. Like Cartier, Van Cleef is
trying to bring its jewels and watches to a larger, younger audience — and like
Cartier, it held an exhibition in 2017 for its latest high-jewelry collection,
L’Arche de Noé racontée. Van Cleef commissioned visual artist Robert Wilson to
create a jewelry-themed multimedia art installation based on the story of
Noah’s Ark. However, L2 says it needs to increase investment in digital media.
Piaget
Initially founded as a watchmaker for other companies,
Piaget began producing watches under the family name in the mid-20th century,
entering the jewelry sector in the 1950s. Jewelry watches are a strong part of
its business, so in addition to its Swiss watch manufacturing facilities, it
has a separate workshop nearby for its timepiece-related jewelry crafts. Today,
the Richemont-owned company has brand ambassadors in actors Jessica Chastain
and Ryan Reynolds, who feature its products on red carpets and at other events.
L2 says Piaget does a good job using video on YouTube and Instagram Stories.
Chopard
The independent Swiss company began life in 1860 as a maker
of men’s and women’s watches. The Scheufele family has owned the brand since
1963. L2 says it does a good job of appealing to younger consumers, with an
active presence on Instagram and a partnership with singer Rihanna. Paid search
investments generate strong visibility as well, L2 adds. Chopard has had a partnership
with the Cannes Film Festival since 2007, and that has given it unprecedented
international exposure for its high jewels and watches. It has also been a
pioneer in sustainable jewels, using Cannes to showcase its Green Carpet
high-jewelry collection.
Article from the Rapaport Magazine - April 2018. To subscribe click here.