Hot or Not: The Strategic use of Collaborations by LVMH towards relaunching Tiffany & Co.

Known as the leading authority in the luxury industry, LVMH has recently been under scrutiny about the acquisitions and brand collaborations within its portfolio. However, while some have managed to create a buzz among younger audiences, others have proved ineffective. This leads us to question if these strategies are now becoming stagnant and leading further towards brand image dilution, especially the mixed review amongst the consumers involving LVMH’s latest acquisition of Tiffany & Co.

Audrey Hepburn starring in Breakfast at Tiffany’s. Photo: Getty Images, Paramount Pictures.

In January 2021, LVMH secured Tiffany & Co for $15.8 billion. This merge is considered to be one of the largest acquisitions within the luxury industry. The deal was primarily motivated towards expanding the subsidiary brand in the jewellery sector present within the LVMH portfolio. Moreover, it seemed to be the optimal investment by the conglomerate, given Tiffany’s brand reputation among fellow competitors. Additionally, the shared philosophy of vertical integration appeals to this strong emotion engrained in LVMH and also serves as a strategic advantage, given the jewellery brand’s deep-rooted presence in America along with the flourishing trajectory in the Chinese market. 

But it was not smooth sailing as the pandemic had caused an enormous impact on customer spending within the luxury industry, leading to the controversy of LVMH wanting to walk out on the deal. This led to a legal battle, with multiple lawsuits being filed by both brands causing a great deal of buzz in the media.

Tiffany & Co. shop Midtown, New York. Photo: John Lamparski.

To stabilise this situation, Tiffany’s took a page from the conglomerate’s strategic tools of using collaborations for marketing. They joined forces with celebrities like Anya Taylor Joy (from Netflix’s the Queen Gambit) and Rosé (a member of the K-POP Group BLACKPINK) as a tactic to target the younger generations by joining forces with the brand ambassadors. But, with the ambition of staying on the current trends and creating an extended buzz on social media platforms, the jewellery house started cross-brand collaborations leading to the two most recent partnerships with Fendi and Nike.

Tiffany Lock Campaign Featuring ROSÉ. Courtesy: Tiffany & Co.

The Fendi X Tiffany collection first debuted in the New York Fashion Week- Spring 2022 as a homage to Fendi’s iconic baguette bag’s 25th anniversary. The bag is thought to be one of the key components of Fendi’s DNA. The idea behind this collaboration was to combine both brands' artisan craftsmanship towards an avant-garde creation. The bag was made in solid silver, weighing almost 2.5kgs, and featured an exquisite floral pattern. It also used the historic silversmithing technique of ‘chasing’ incorporating Tiffany’s precious metal legacy. Furthermore, the flower engravings consisted of lilies and roses as a tribute towards Italy and the USA, the home countries of both brands.

FENDI X Tiffany & Co. Press release LVMH. Courtesy: LVMH.

The creation was followed by a limited-edition capsule collection released for the audience. It consists of Pico and Mini size baguette bags made in the iconic tiffany blue colour with the signature silver hardware available in leather and silk variants. Audiences received this collaboration with open arms as the collection was sold out within minutes. As a result of this positive outcome, recently, this collection was extended further by introducing charms for the Pico size bag made in sterling silver with an enamel finish.

FENDI X Tiffany & Co. Courtesy: FENDI.

This success has caused the brand to explore new unchartered territories leading to the next collaboration with Nike. The rationale behind this was using the influence of Nike as a legendary sneaker brand and trying to replicate its success with previous brands under LVMH. The sneakers, known as the “Nike Air Force 1 Low Tiffany & Co. 1837”, debuted on social media in February 2023 as a special effort towards celebrating the 40th anniversary of the Air Force silhouette. The sneakers feature an all-black suede leather body with a laser-engraved sterling silver piece attached to the heel featuring both the brands and the quintessential Tiffany blue swoosh. Furthermore, they come in a custom blue box with three lace options.

Tiffany & Co. X Nike Website Campaign. Courtesy: Tiffany & Co.

But this collaboration was not well received by the sneaker enthusiast known as the “sneakerheads”, who are emotionally attached and consider sneakers a great investment source. They believed the collaboration did not add much value as Nike had already collaborated with Diamond supply and released a similar sneaker in 2005. Moreover, they were also disappointed in the sneaker's design layout. To combat this reaction, ahead of its official release in the market, tiffany decided to launch a customised sterling silver shoe box available on request as a tribute to the craftsmanship and heritage of both brands. They also decided to introduce an accessories line complementing the collaboration. It consists of a sneaker brush, cream shoehorn, whistle necklace and custom nameplate for the laces.

Tiffany & Co. X Nike Social Media Campaign. Courtesy: Tiffany & Co.

These two collaborations have led us to question whether Tiffany is now losing its identity post the acquisition. It would be interesting to see how Tiffany’s tries to evolve itself with the LVMH emotions while staying true to its DNA and managing to impact the current and future generations. Only time will tell…

Khushboo Kedia

The Luxury Edit Co-Editor, MADE IN BED