Image from: Tiffany & Co.
Diamonds are a girl’s best friend, right? Wrong. This past January we learned that Tiffany and Co.’s stock declined 10%, marking the steepest drop in more than 3 years, citing a “weakness” in spending from U.S. customers. And it’s not surprising; since the recession luxury brands have taken a hit as consumers spend more frugally.
So, how can Tiffany’s pick up the slack? Earlier this year, Tiffany and Co. launched a mobile campaign to engage users; Tiffany’s created a free mobile app which allows customers to upload a photo with their significant other, apply an Instagram-like filter and then submit the photo to Tiffany’s “True Love in Pictures” photo gallery.
Looking at unique visitors to tiffany.com over the past two years, we can see large spikes around the holidays, with traffic dying back down shortly thereafter.
The “True Love in Pictures” campaign launched last January, and unfortunately hasn’t appeared to have had a big impact on traffic. In fact, traffic to the Tiffany site is down almost 11% in January year-over-year.
While this campaign certainly has a sweet sentiment, in fact it reminds us of Burberry’s personalized thank you tweets they sent out to followers a few weeks ago, it doesn’t appeared to have translated into increased sales for Tiffany’s. There is no doubt that campaigns like these benefit the brand identities of Tiffany and Co. and Burberry, but is that enough to save luxury brands?
Kendra comes to Compete to work in the Online Marketing department as the social media co-op. Kendra is currently a student at Northeastern studying Communications and Interactive Media. Find Kendra on Twitter @KNBissonnette.