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Retail Scope
 Luxury brands must determine the appropriate platform to reach their target audience according to the study “Generational Differences in Luxury Consumers’ Use of and Engagement with Media Platforms,” released by the Shullman Research Center. The report found:- Eighty-two percent of millennials liked mobile ads and 81 percent were attracted to ads in movie theaters. Only 60 percent expressed a preference for magazine ads.
- In contrast, magazines ranked as the top way to reach affluent Generation X consumers, followed by ad placements in shopping malls and on television.
- Newspaper and television were the top influencers for baby boomer engagement, followed by magazines.
In another study, “Through the Looking Glass: What’s Currently on the Luxury and Affluent Consumers’ Minds as They Look Towards 2014,” the center ranked the top luxury brands among households with incomes of more than $250,000. Tiffany & Co. topped the list of luxury jewelry and watch brands. Rolex and Cartier were also cited.
The use of digital media to boost online and offline sales has produced a positive impact for the specialty retail sector, including some jewelers, according to a recent report by L2, titled “Digital IQ Index: Specialty Retail 2013.” L2, a New York-based think tank focused on digital innovation, noted that companies have not yet tapped into the full potential of ecommerce and cross-channel influence. L2 measured the digital IQ of 71 specialty retailers, ranking them on website content, digital marketing strategy, mobile compatibility and social media presence. - Coach and Tiffany & Co. ranked as “gifted,” showing a strong level of innovation and experimentation, while Swatch, Swarovski and Kay Jewelers were cited as “average.”
- In terms of social media significance, Pinterest and Instagram have joined Facebook and YouTube as popular platforms. Facebook continued to be the leading source of social media upstream traffic to retailers, especially for jewelers. Cartier had a 24 percent increase in views of YouTube and Tiffany & Co. made the study’s top ten for its presence on Instagram.
- While email frequency varied dramatically by product category, the report showed the jewelry category as the weakest performer with email frequency of only 0.57 weekly emails, accounting for 4 percent of website traffic, compared with 2.49 weekly emails from beauty and skincare brands that drove website traffic up 14 percent on average.
- Live chat is also on the rise, with 28 percent of retailers, including Kay Jewelers, having implemented this function recently.
- PayPal checkout has been implemented by 46 percent of retailers, up threefold since 2012.
Tiffany & Co. continued its commitment to sustainability, responsible mining and best business practices, according to the retailer’s annual corporate social responsibility report for 2012. The company traced all of its rough diamonds that were purchased in 2012 either directly to a known mine or to a supplier that sources from multiple known mines, all of which reside in Kimberley Process (KP)-compliant countries. It also traced 98 percent of precious metals procured by Tiffany & Co.-owned and operated manufacturing facilities directly to a known mine or recycler, according to the firm.
David Yurman Inc. debuted its fall 2013 campaign, titled “Beauty in Contrast,” featuring Kate Upton, Dree Hemingway, Anais Mali and Catrinel Marlon. The campaign celebrates the season with a range of diverse coexisting elements. According to the company, the ads capture a kaleidoscope of distinct characters. The women are styled in a combination of legendary designs and new selections through the worldwide campaign in both print and online outlets.
Diamond brand Hearts On Fire launched its new social media platform, “Perfect Moments,” a storytelling community where people can share their positive experiences and pinpoint their locations on a map. The site — shareperfectmoments.com — features a global map, highlights of some special moments in history and user-generated special events. Integrated with Facebook, Twitter, Instagram and Pinterest, the website offers users the ability to search by keyword or location and get ideas for events such as marriage proposals. The company also announced that it signed actress Morena Baccarin for a new ad campaign slated to launch in September and continue through 2014. Baccarin, who stars in the television series “Homeland,” will showcase designer Ilaria Lanzoni’s diamond jewelry collections in print advertisements in fashion and lifestyle magazines as well as on Hearts On Fire’s digital and social platforms. Hearts On Fire noted that it plans to open its second U.S. retail store at the King of Prussia Mall outside of Philadelphia, Pennsylvania.
Diamond brand TACORI unveiled the latest installment of its “Iconic Passion” advertising campaign with two new images, “The Serving Tray” and “The Lock,” scheduled to run in September in fashion and lifestyle magazines. “Reveal your Passion” is the theme of “The Serving Tray’’ advertisement that incorporates vivid hues of red, blue and black from TACORI’s new “City Lights Collection’’ and provides a first look at TACORI’s “After Dark’’ design additions. The Lock advertisement, representing “Locked in Love,” was inspired by romantic love locks — lovers attach locks to bridges and then toss the key into the water below. The diamond rings showcase the brand’s petite crescent and ribbon collections.
Richland Resources Ltd., the parent company of TanzaniteOne Mining Limited, launched its retail website for selling tanzanite and jewelry directly to consumers at www.tanzaniteoneonline.com. Initial offerings include loose stones and jewelry for up to about $18,000, with exceptional pieces available upon request. TanzaniteOneOnline is a newly formed subsidiary of Richland Resources Ltd. and the ecommerce channel marks the first time the mining company has offered these gemstones directly to consumers outside of Africa. All of TanzaniteOneOnline’s pieces include the Tanzanite Foundation’s Mark of Rarity and a TanzaniteOne certificate of authenticity and origin.
Retail Groups Applaud Swipe Fee Ruling The U.S. District Court for the District of Columbia ruled that the implementation of debit card swipe fee reform, established by the Federal Reserve, was inconsistent with the intent of the law, also known as the Durbin Amendment. The court determined that the Federal Reserve Board of Governors clearly disregarded Congress’s statutory intent by inflating all debit card transaction fees by billions of dollars and failing to provide merchants with multiple unaffiliated networks for each debit card transaction. The ruling was applauded by the National Retail Federation (NRF), the Food Marketing Institute, the National Association of Convenience Stores, Oil Miller Co. and Boscov’s Department Store LCC, which had filed the initial complaint with the court. Article from the Rapaport Magazine - September 2013. To subscribe click here.
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