Tiffany & co - sustainability report by Stephane Boghossian

Tiffany & Co. X Sustainability By Stephane Boghossian

“Food. Water. Diamonds. You know, the essentials”

INSIDE Tiffany & Co

Tiffany today • • • • • •

PRODUCT

Offline: Flagship store Pop-up stores Online: E-commerce website

PLACE

Jewelry collections: NEW Paper flower Engagement Rings High Jewelry: The Art of Wild Watches Fragrance Home & Accessories

PROMOTION

JEWELRY: Campaign with Elle Fanning HOME: Life of a party

Online: Social Media, email marketing Offline: Print: Press

• • • • • • •

Strong Brand Awareness in the US and Europe Strong savoir-faire and craftsmanship Strong clientele réseau On-going clear sustainability plan On-Trend with on-going campaigns Very strong identity on visual merchandising Targeting the millennial

• • • • • • •

S W O TP • • • • • • • • •

Sustainability as trend Booming of Asian markets Venue of new generations Booming of the vintage jewelry market Innovation in 3D printed Lab grown diamonds Boom of experiential services Boom of coloured gems and gemstones Brand’s heritage at a core of branding

E S

Distribution Strategy Online e-commerce Traditional engagement rings Lack of customisation options Highly competitive market Poor creative collections Low awareness of the HOME collection

Mining and distribution of Diamond restricted to DeBeers Global warming Rarity of Diamonds

Blood Diamond becomes a concern

T E L

Lack of Innovation on materials

High price of Gold Unstable economical situation due to political problems Investments in other luxury fields (hospitality)

Jewelry 1.0 The jewelry supply chain can be quite complex, it can be explained by multiple different ways and can be interested also in different ways

Understand the Jewelry Supply Chain Nature

Mining raw materials Miners

Rough to Gems

Planning & Preparing Rough traders

Jewelry Collection

Design Designers

Finalising

Cutting Diamond Cutter

Campaign

Marketing Creative Agencies

Grading Diamond Trader

Manufacturing Craftsmanships

Client sale

Return in Investment Wholesalers, Retailers

http://www.simplexdiam.com/for-buyers-how-to-reach-us

After-sales Consumers

To be green or not to be?

There are many ways to be sustainable 1. Meaningful brands = brands that matters to people – by collaboration or marketing strategies (Nike, Patagonia) 2. Slow Movement (Mass-customisation) = customise products for a specific demand (Cartier) 3. Shared Economy (Flont, Vente Privée) a. Closed economy cycle = They know what to do with whatever you have --> buy services instead of product 4. Cradle to Cradle = Reuse and repurpose = A product to another life product (Nespresso, Freitag) 5. Mining the cities = Using what is readily available instead of taking resources from nature - up cycling (Eva Zingoni)

https://hbr.org/2016/02/luxury-brands-can-no-longer-ignore-sustainability https://www.buro247.my/watches-and-jewellery/buro-loves/sustainable-luxury-jewellery.html

Understanding competitors

Understand the competitors “Sustainable” messaging Selin Kent recycled metals & conflict free diamonds

Vrai & Oro direct-to-consumer recycled 14 kt

Manufacturing & Premium

Tiffany & Co. Supply chain Sarah’s Bag

Sharon Khazzam

Arabelle Brusan

Chopard Sourcing and supply chain

Prime, Craft & luxury

SeeME

Toby Pomeroy Matters Print Honest By Made Uk Well made

Eva Zingoni

MHT

Bario Neal

Forever Mark & Ara Diamonds full traceability

Monique Pean

Full Sustainable Synthetics

Cartier Responsible Jewelry Council

Case #1: CHOPARD Program structure: « The Journey to Sustainable Luxury » • Consulting with Eco-Age with the creation of « The Green Carpet Challenge »: • Alliance for Responsible Mining (ARM) and utilises Fair-mined gold from South America, diamonds strictly sourced under the Kimberley Process, and coloured gemstones mined in partnership with Gem-fields.

https://www.chopard.com/uk/diary/journey-sustainable-luxury/

Case #2: CARTIER

• Joins the Responsible Jewelry Council • Regulated and controlled sourcing of gems and metals • Working and environmental standards • Committed to the Kimberly Process • Ensure fair trade of the diamond sourcing • In 2009, Cartier also joined the Sustainable Luxury Working Group, comprised of socially responsible companies with a commitment to promoting sustainable practices in business operations.

https://eluxemagazine.com/jewellery/cartier-sustainable-luxury/ https://www.greenbiz.com/blog/2009/11/09/cartier-taps-green-mining-firm-responsiblysourced-gold http://jacquescartierchamplain.ca/our-corporation/sustainable-developpement-new/?lang=en

Case #3: LVMH Introduction of the project Life 2020 1. Aim for a high level of environmental performance; â&#x2013;Ş Since 2010, the Perfumes & Cosmetics Houses and Sephora have been using CEDRE, a platform to sort, recycle and recover waste. 2. Foster a collective commitment; 3. Control environmental risks; 4. Design high-quality products by integrating environmental innovation and creativity; 5. Pursue commitments beyond the company.

https://www.lvmh.com/group/lvmh-commitments/environment/cedre-recycling-platform/ https://www.lvmh.com/group/lvmh-commitments/environment/

Understanding clients and the world around them

• Freedom of speech

Boomers

• Women’s right • Boom of the Art nouveau and Art Deco movement

• Technology advancements: 3D printing

Gen X

• Synthetic stones appeared (Swarovski is born) • Internet of things • Global Warming

• Appearance of the gay community • Creation of lab grown diamonds

Gen Y Millennial

• Online Shopping • Customisation is crucial • The world of start ups, social media • No logo brands

Understand the Millennial (Y)

Extreme min

Majority

Extreme max

Sustainable thinking

Shares his/her life on instagram

Influencers

Healthy life / meditation / Yoga

Balance between work life and personal life

Be ahead of themselves

Family and friends first

Family and friends are important

Be always on the newest trend

Backpackers

Travel frequently

Showcase themselves

Learn more by doing

Self education

Workholic

Freedom of speech

Shops regurly online

Shopholic

Zen life

Busy working life with some time for themselves

Always busy life – lives in NY, Paris, Milan, Shanghai

Couple’s life and stable

Stable couple life with no commitment

Always on dates – not a stable life

Wants to be young

Lives as of everyday

Wants to be old

Lives in a house with a garden, a dog

Lives in new areas (Le Marais, Brooklyn)

Lives in a penthouse in central city

work from home

Work in start ups / entrepreneurs

Work in office in district areas

Takes commute everyday to go to big cities

Takes commute everyday to work BUT uses Uber for long travels or with friends

Own a car, motorcycle, ubers

Understand the Generation YZ We travel a lotâ&#x20AC;¨ We live freely We want to discover things We are constantly connected to the world We are educated We have a job or we are owners in a company We are young and wild We love family We love unique and individual products We love emotions & storytelling We are citizens of the world We backpack We like good quality products We are CEOs during the year and backpackers during most summers.

This is our generationâ&#x20AC;ŚYZ

What new generations would like to believe?

Social Buffs • Social Media • Curated life (sharing on social media) • Everyone is their own influencers

Tech Navy • Latest trends to follow • Gadgets shopping • Mobile phones

Community •Family and Friends first •Create new networks

Multi tasking

Transparency

• Self education • Go beyond their limitation • Explore with travels

• Collaborations • Back to their roots • Storytelling • No logo brands

Ambitious & dreamers

Emotionally Charged

• Entrepreneurs • Expressive: DIY • Doing what they love • Creative with customisation • Try to do it is better than failing

• On the spot behaviour and actions • Spontaneous shopping: Online shopping • Flexibility: order online and pick up at store

Experience to satisfy their dreams

• Intangible products • 5 senses • Try on before bying

Fast & Moving • Short attention spam: 8 sec • Access to information

Care for others •Sustainable •Social conscious •Human centered •Waste management

No commitment • Not religious • Subscription box • Free will • Freedom to vote • Gay wedding

Understanding trends

Understanding the trends to better design the future • You Define You – be yourself - ex: plus sized models, emerging gay community • Be Real - tired of the falseness, the same old, the fakeness – ex: Socalitybarbie • The New Standard - Design with a difference is the new standard – ex: SeeMe • Playing Nice - We are becoming more socially conscious – ex: Crack & Cider, Good hotel, Empathy Museum • The Fear Factor - Fear is an important part of life, individualism, our limitations • Virtual Presence - The intangible becomes more tangible – ex: online and offline barrier • New Feelings - Technology has changed us. It has redefined the world and rewired our brains – ex: MiN, Department Store for the Mind, The Institute of New Feeling • Escape Routes - Escapism is the next new luxury – ex: Tomek Michalski, Cinnamon Projects • Sparks of Serendipity - In our tech-dependent times, we are losing the tendency to explore – ex: Metadrift, Let It Fly, Lucky Trip • Considering Value - Value is reconsidered – ex: Marlies Kolodziey, Page Thirty Three • The New Experience - What's next for the experience economy? – ex: Van Alen Institute, Icelandair, Blink • In Touch - 2018 is the year of touch and tactility – ex: Flint House, Studioi • The Empathy Evolution - 2018 will also make way for compassionate, human-centred design – ex: Matter-Mind Studio, Museum for Healing • Repair The World - A/W 17/18 Design Matters noted that design will increasingly serve the greater good – ex: Designer Maxime Benvenuto • Alone Time - rise of the solo sojourner – ex: Quiet Revolution, Sacred Introvert • Nostalgia is Now – back to old days fonts – ex: Shell and MasterCard logo • Techtopia - Techtopia is a place of reprieve / marks the emotional capacity of the virtual world. – ex: Camp Calm • Brain Drain - With Microsoft research showing dwindling attention spans thanks to digital overload – less products for a wider range of consumers - customisation • Poetic Intelligence - the year computers get creative – rise of AI – ex: Categories include DigiLit for short stories, PoetiX for sonnets and AlgoRythms for dance music DJ sets. • Remember, Remember - emerging forms – ex: Palimpsest in VR experience

Understanding the jewelry trends to better design the future • Sustainability as a core drive to every luxury brand • Concierge Jewelry / Customisation • 3D Printing as a prime technology • The boom of the Men’s jewelry with the hit of the same sex marriages • Mobile Shopping: faster purchases • Subscription Services wins over products • Storytelling as a prime marketing storytelling • Transparency through marketing • Entry of the Lab Grown diamonds • Virtual stock

Understanding sustainability

Tiffany & Co’s current strategy •Image: Conflict Diamonds Trace, control and distribute all our rough diamonds Diamonds are a source of positive economic and social development

•Craftsmanship: Supply Chain and its vertical integration Climate Change: Reduce greenhouse gas emission to net-zero by 2050 Creating Protecting Areas, Protecting wildlife, Reversing deforestation

•Quality: Educating Customers CSR communications

•Innovation: Adapting to Demographical (trends) changes as an opportunity

Gender Equality: Diversity with Same sex marriage, Women Empowerment

https://hbr.org/2017/03/tiﬀanys-ceo-on-creating-a-sustainable-supply-chain

https://www.tiﬀany.com/csr/aboutreport/Sustainability_Report_2015.pdf

Tiffany as the reference of Ethical Jewelry Brand Environment • 4C Redefined* • Improve relationships with other Jewelry businesses • Preserve Nature: plant seeds

• Source Carefully* • Improve Jewelry collections Economical

Service • For the other 90% of the world* • Diversify consumers • Focus on future sales • Improve After-sale services*

• Be part of the world* • Share the cause with key leaders Social

CSR Strategy https://hr.blr.com/whitepapers/HR-Administration/Workplace-Ethics/Whichcorporate-social-responsibility-CSR-strategy

Environmental = Innovate and use resources to greener the world

4C redefined Above the ground (lab-grown)

Lab-grown stones

Below the ground (natural)

Natural Diamonds and gemstones

Cut tells the savoir-faire

Carat tells the price Price creates standards

Create partenariat with famous gem cutters, create our own gem cut

Clarity tells quality Quality tells the origin Origin tells a story > product journey >Full Traceability >Use Quality Stones ex: Colombian miners in Muzo

Central Stone 93% of the stones are either stocked, on hold or unusedâ&#x20AC;Ś We can use it all ! â&#x20AC;&#x201D;> Reuse stones stock

Color tells the environment Local revolts* ex: Collaboration with local green projects, with deBeers

Global Jewelry Protection Summit

Chapter 1: Global Summit

Chapter 2: Global Contract

Control Innovation Create the trend of the future Innovate and create Control the stone market, though the price

Protect mother nature Vertically Integrated Supply Chain Control emission of gaz Unity in Distribution Fight the important causes

Rapaport for all Gemstones Like DeBeers for Diamonds, Tiffany & Co. for Gemstones

Create the standards

Control the trends

4C for Gemstones

Colours, Size, Kind

Create the price list

Create new trends Birthstones rings, Engagement rings Control the distribution

Sites

Eliminate middle man

Supplier

Africa South America Asia

Bangkok Antwerp New York

Direct Distribution to jewelry brands

Economical = Make profits out of innovation + Save money using innovation

Sourced Carefully

Legal Use fair-minded gold ex: Fair minedÂ Standard for Gold and Associated Precious Metals

Prime local crafts & savoir-faire ex: Local Materials

Mining our cities Ecologique & smart* ex: Organic packaging that connects with the story of the jewelry

True Gold ex: Use 100% 18kt recyclable gold

Invest in Research & Development Mass customisation

Innovative materials

3D printing Online customisation

Blue Gold Lab Grown diamonds Synthetic pearls

Invest on start up potentials

Technology as a power

Service = Create a service out of the creation of new products

for the other 90% of the world Improve the causes

Create local crafts contract

Fair trade wages ex: Finance schooling system for children of craftsman

Create craft relationship with the company • Local & Global, small scaled workshops & artisans • Discover local savoir-faire • Preserve culture

others: full-time employment, healthcare, education, business mentorship, training

Create a friendly environment

Full Transparency Share everything publicly and use it as an assets ex: Transparency Certificates*

• Charitable business ex: War Veterans, Women’s empowerment

Community Involvement + Full trace of the workflow Holistic Development Model

Fight Transparency & the Blood Diamond

It’s more than a certificate, it is a life saved

It’s more than a certificate, it is an origin

YOU ARE A DIAMOND IN A ROUGH

FOCUS: Save live buy financing the school of a kid ex. TOMS, RED by Apple

FOCUS: Traceability of the stone a client is purchasing Storytelling from Rough to Gems

FOCUS: Supply chain of the gems Storytelling from Rough to Gems

Cradle to Cradle = Reuse and repurpose a product Give a product to another life product

Improve After-sale services Jewelry is emotions, though is clients Broken Give a New life Build an Archive

Long term Investment

Old Out-of-fashion

Vintage

Gain old client’s trust

Missing stones

Get Better value Price of Gold

BRAND Design New Collection Gain new clients

CLIENT

Current

Trendy

Improve old clients

New Collection

Promote new collections

Increase immaterial value

“The Afterlife of Branded Jewelry” by Stephane Boghossian

https://issuu.com/stephaneboghossian/docs/final_stephaneb.compressed

Strategy

Acquire & Learn Design Aware Aware

”Hunting for treasures”: design new collections inspired by old collections

”Pour memoire” : Showcase Tiffany and their creations over the years - Teach clients

It’s time to take grandma’s jewels out of the vault - Marketing Strategy

Experience Action

collection from old clients and value them

Live sessions - showcase the real savoir faire of Tiffany

The after-sale service itself - propose an Online/Offline plan

Get inspired by other cases Case #1 The Grima Effect It’s not unusual to see famous designers long passed away revive. Future generations usually take over the empire then as soon as they can’t hold the company anymore, they sell it to a big corporation that will define the future of the empire and probably the trans- formation to a

Aquire

mass luxury company. Fortunately, It is not over yet for this flourished family business, as the daughter’s revival of the brand has just began.