UCD_BC_the interview_20-23.qxd 25/8/08 16:43 Page 22
THE INTERVIEW
‘If it were solely up to me we would have opened in Dublin a long time ago’
stores, the experience the customer has when they come in. In Tiffany brand. “But in the past several years, with a platform now
essence it is at the core of everything we do.” of 15 stores in Europe, it has become a very profitable business,
Of course everything about the brand must shout luxury, and we’re accelerating our pace of growth there.” Indeed, Tiffany
including the all-important choice of store location; the Beverly has just opened its first store in Brussels, has plans for two more
Hills store is located on Rodeo Drive, the London one on Bond in Germany and is opening a flagship store in Madrid this year –
Street. It is no accident that Tiffany only made its move on Dublin and of course there’s the Dublin branch.
when a prestigous retail unit became available on Grafton Street.
The new 120 square metre store opens this autumn and will be on Riding the slowdown
the refurbished ground floor of Brown Thomas. Given the current economic outlook, our conversation inevitably
“It’s a terrific market,” Quinn enthuses. “If it were solely up to turns to the fate of luxury brands in a slowdown. In Japan’s reces-
me we would have opened in Dublin a long time ago, but smarter sion in the Nineties, the premium brands are famously the ones
people prevailed and now the time is right. We know already that that fared best in a depressed market.
many Irish customers shop in our London and New York stores, “We’re not immune to macro-economic conditions, and we
and we expect to do exceptionally well there.” certainly have to respond to them,” says Quinn. “In the US our
He agrees that location is certainly, in part, what paces Tiffany’s business has slowed down in the first quarter, but outside the US –
store expansion. “At any one time we will have two or three times in Europe and Asia in particular – our business has grown excep-
the number of stores planned under consideration, until the right tionally fast, well beyond the trends. So we do benefit from our
location becomes available. We won’t open in anything less than business model of multi-channel distribution, with business all
an A1 location, so when this one finally became available on over the world. If one particular market is suffering more, we can
Grafton Street, there was really no other place for us. compensate for that by the strength we have in other areas.”
“It all goes back to the brand. Where you locate yourself, the Another factor that offers Tiffany a little more buoyancy in
neighbours adjacent — it all communicates something about difficult economic times, says Quinn, is the fact that weddings and
what you believe your brand to be, and more importantly your engagements are the centre of its product offering. “I wouldn’t say
customers’ perception of it.” it’s a recession-proof market but it’s a little more resilient. Our
Going global has created its own challenges, Quinn admits. product is purchased to celebrate the most important moments of
“The brand management becomes far more interesting and life, the birth of a child, a birthday, an anniversary, a wedding –
complex as we expand, because now we need not only to under- those occasions continue to happen even in tough economic times.
stand our brand, but to understand our customers all over the People continue to fall in love. Budgets may be modified but the
world and how they respond to that brand.” occasions don’t go away.”
China is one market where Tiffany is aiming to capture the Not that Quinn has any illusions about the challenges for
hearts of the burgeoning upper and middle classes. It opened its retailers. “That said, if people are suffering economically they have
first store there back in 2002 and is about to open an eighth store to find a way to take care of the most essential things in their lives,
in Qingdao. The jeweller already operates two stores each in and while we like to think we’re important, we’re not essential.”
Beijing and Shanghai, and one each in Tianjin, Shenyang and And the future for Tiffany? “Well, we have to stay very close to
Chengdu. And this is just the beginning. trends all the time, and we’re constantly looking for new opportuni-
“It is only in the past year that we have been given the ability to ties for growth and new ways of being smarter and more
have a wholly foreign-owned entity there, which gives us a lot productive,” says Quinn. “We’re currently planning a major renova-
more flexibility about where we open stores. This means we’ve tion of our flagship Tokyo store, and we’ll use the opportunity to
accelerated our pace and expect to open another four or five stores refresh our presence there through promotion. We’re also looking at
in China each year over the next five years.” our whole store design process and new store formats. We have to
continue to be responsive to changing customer needs and tastes.
A European tradition “And we’ll continue to look for opportunities to grow within
Europe too remains a key market. When we meet, the first quar- mature markets like the US and Japan, and to expand in our early
ter figures have recently been released, showing that global sales development markets like China and even Europe. We still see
are up by 12pc, European sales by 38pc. “Yes, Europe has been a Europe as an early development market, because we have far
terrific market for us,” says Quinn. “We opened our first store in fewer stores there than our global competitors.”
Europe 20 years ago in London, but for the first five to 10 years we So overall the long-term strategy is world domination, I suggest.
were really finding our way. “Yes,” laughs Quinn. “I guess you could say that.”
“There is no more competitive marketplace for jewellery than
Europe because the traditional jewellers came from Europe, from Jim Quinn is a director and former chairman of the North
France, Italy, Germany and the UK. By opening in London we American Advisory Board of UCD Michael Smurfit Graduate
went into the lion’s den.” Business School. For more information on the board, please see
Quinn says it took quite a while for Tiffany to establish its own www.smurfitschool.ie.
presence in Europe, to build awareness and appreciation of the Ann O’Dea
22 UCD BUSINESS CONNECTIONS
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