TIF - Tiffany's U.S. Sales Strategy Looks Lackluster
Iconic worldwide jewelry brand Tiffany & Co. (NYSE: TIF) has long cultivated the mystique of exclusivity, which appealed to previous generations of U.S. consumers. But those shoppers are aging out of their jewelry accumulation years, and Tiffany now finds itself trying to appeal to a very different group of affluent customers.
The new generation of potential purchasers of Tiffany products in America are tagged HENRYs -- High Earners Not Rich Yet -- and they have different sensibilities than their forebears. HENRYs are individuals who currently have significant discretionary income and a strong chance of being wealthy in the future.
Retailers gain the most market share in the transitional phase, when a future rich person is adapting to a rapid increase in disposable income. That means a deep untapped market for Tiffany and companies like it, because there are more HENRYs in the world than ultra-wealthy.