Tiffany inks new agreement with Elsa Peretti

New York--Tiffany & Co. has extended the life of its sales and marketing partnership with Elsa Peretti for 20 years, Securities and Exchange Commission filings show.

The deal pays the 72-year-old Italian jewelry designer $47.3 million plus annual royalties for continuing use of her trademarked jewelry and other products, and requires that Tiffany reduce prices on Peretti products by 20 percent so as to achieve overall average gross margins of no more than 50 percent, with Peretti’s personal opinion on pricing to be given “due consideration,” the SEC filing states.

Tiffany must display the licensed Peretti products in its stores and devote a portion of its advertising budget to the line. The new agreement also prods Tiffany to stock more of Peretti’s non-jewelry licensed products, such as tableware. The inventory value of non-jewelry licensed products averaged about $4 million over the previous five years, according to the filing.

In addition, Peretti has the right to terminate the new agreement should any “change of control” occur at Tiffany & Co., which includes a sale, transfer or other disposition of the company’s assets.

The new agreement was finalized on Dec. 27 and extends a partnership that has been in place since 1974. Tiffany remains the sole licensee for the intellectual property rights necessary to sell Peretti’s trademarked jewelry and other products. 

Back in May, it appeared the long-standing relationship might come to an end, however, as SEC filings showed that the two parties were unable to agree on a price for Tiffany to buy Peretti’s intellectual property rights.

http://www.nationaljeweler.com/

Global branding consulting firm Interbrand released its “Best Global Brands 2012” list with Coca-Cola coming in at the top followed by Apple and IBM.  Rounding out fourth spot was Google, which for the first time exceeded Microsoft’s brand value, which came in at fifth place.  

Apple had the biggest brand value increase in 2012, at 129 percent year on year, followed by Amazon at 46 percent and Samsung at 40 percent.  New entrants to the list included Facebook, which just became a publicly traded company this year, at number 69, as well as Prada, Kia, Ralph Lauren, MasterCard and Pampers. 

While technology brands dominated the list, many “fast-moving consumer goods” brands have grown their value consistently by expanding into emerging markets.  Automotive and financial service brands are still feeling the effects of the weak economy. 

Many jewelry and jewelry-related brands made the list as well.  Louis Vuitton, for example was eighteenth overall, while eBay was 36, Gucci at 38, Cartier at 68, Tiffany & Co. at 70, and Avon at 71.  

Interbrand noted that despite the slow global economic recovery, luxury brands increased their brand value from 2011, and have proved resistant to slowdowns in the market.  Success in luxury, it added, is dependent “not only upon a portfolio of superior products and superb quality of service, but also a strong cohesive brand, a formidable digital presence, and reputation that is timeless, elevated, and refined.”

www.diamonds.net

Best Brands in Luxury Jewelry; Graff, Asprey and Mikimoto Take Top Honors in Luxury Institute Survey, but Tiffany Proves Most Popular

Ultra-wealthy U.S. shoppers with at least $200,000 per year in household income and minimum net worth of $5 million rank U.K.-based Graff Diamonds highest among 22 luxury jewelers in the 2012 Luxury Brand Status Index (LBSI) survey by the independent and objective New York-based Luxury Institute. LBSI scores comprise respondents’ evaluations of each brand’s products, customer service experience and reputation.

With the top overall LBSI score of 7.98 out of 10, Graff ranks first on brand reputation and product quality considerations, scoring highest in evaluations of materials and craftsmanship.

Graff is also the brand that pentamillionaires are most likely to deem worthy of charging premium prices, followed by fellow U.K. jeweler, Asprey, and Japanese pearl specialist, Mikimoto. Asprey (7.82) and Mikimoto (7.77) also rank second and third, respectively, in overall LBSI scores.

Top luxury jewelers serve an exclusive clientele. Just 1% of pentamillionaires have purchased one of Graff’s diamonds in the past 12 months, 3% have shopped Asprey and 4% have purchased from Mikimoto. Tiffany & Co. is the most popular luxury jeweler: 13% of ultra-wealthy shoppers made a blue box purchase in the past year; 75% plan to buy Tiffany goods in the coming year.

“Quality in craftsmanship and materials are primary considerations for any luxury goods brand, but especially so in jewelry,” says Luxury Institute CEO Milton Pedraza. “The top-ranked jewelers also pay attention to delivering an outstanding customer experience to create true brand value and a competitive advantage.”

Survey participants reported average income of $682,000 and average net worth of $14.6 million.

http://luxuryinstitute.com/blog/?p=1991

Tiffany's Christmas Season Designs Feature Diamonds, Colorful Gems

Tiffany & Co. provided a preview of its Christmas 2012 gift line, featuring handcrafted jewelry, diamonds and colorful gemstones. This year, the Rubedo™ metal, a unique innovation debuting in Tiffany 1837™ jewelry designs in honor of Tiffany’s 175th anniversary, adds rose luminescence highlights to the Return to Tiffany™ heart tag on a sterling silver bracelet.

Another item, a diamond contour ring, features a rare 3.04-carat, fancy intense Tiffany Yellow Diamond, mounted in a setting of white diamonds in platinum and 18-karat gold.


Earrings from Tiffany's Victoria collection enhance Christmas season fashion with four marquise diamonds forming an almost ice crystal design.

To celebrate Tiffany's famed designer Jean Schlumberger, the retailer handcrafted his famous Bird on a Rock brooch setting with an 86.60-carat green tourmaline, diamonds in platinum and 18-karat gold.

The new Tiffany Enchant collection features ornate patterns of traditional 19th-century garden gates. Tiffany designers captured the elegance of the swirling motifs in a scroll band ring of diamonds in platinum and 18-karat rose gold.

This year, the Tiffany Keys Collection, inspired by keys from the Tiffany Archives that were designed to open country manors and salons, diaries and jewel boxes, added the Open Knot Key in 18-karat rose gold, Knot Key in 18-karat yellow gold, and Open Knot Key in diamonds and 18-karat white gold.

The Tiffany Gallery watch captures the vitality of art deco in New York City during the 1920s. This collection includes a stainless steel timepiece with stylized numerals, a black lacquer dial and Swiss-made movement.

Other items include the Sabrina frame clutch in bronze, silver and gold metallic leather; Tiffany Locks sunglasses in acetate with silver metal and the Tiffany Snowflake tree ornament.

-www.diamonds.net

Jeweler Chow Tai Fook’s Hong Kong IPO Could Be This Year’s Biggest

If jeweler Chow Tai Fook’s $2.8 billion IPO is successful, it will be the largest initial public offering in Hong Kong this year, Bloomberg reports.

Chow Tai Fook manufactures and sells gold and diamond jewelry and is one of Asia’s biggest retail brands, with revenue exceeding that of Tiffany & Co. The Group is projecting net income of some $811 million for the year ending March 31, 2012.

According to Bloomberg, the jeweler plans to set the price for the 1.05 billion shares up for sale on December 9 and begin trading on December 15.

-Israeli Diamond Industry