Financial Analysis of Tiffany & Co.

Tiffany & Co. has been enjoying the reputation of the leading high-quality gemstone jewelry seller since 1837. The company makes a significant effort to be recognized as the world's most respected designer as well as manufacturer, service provider, and a merchandiser of the finest jewelry. Other than its commitment in selecting diamonds that meet Tiffany's need, its professionally trained staff, classic ways of displaying products kept for long, store location in the "high street," signature "Tiffany Blue Box" packaging etc. prove the company's overall mission.

Tiffany's market is globally expending. The sales in each region including America, Asia-Pacific, Japan and Europe are rising, with the noteworthy increase of 36% in sales in Asia-Pacific, and the company expects a continuing expand of sales as more stores in China and other countries will be opened. Tiffany & Co. seeks to appeal to upper-class consumers who are willing to pay premium for quality luxury jewelry. As a symbol of romance, Tiffany & Co. primarily targets customers who celebrate a milestone such as engagement, wedding and anniversary. In fact, sales in engagement jewelry and wedding is its main revenue source which shows to be 30% of the total on average world-wide in the company's annual report. Generally, the aimed consumers in all jewelry categories are female, and they have achieved very successful marketing as seen in media and advertisement.

The marketing strategy is directly related to one of the company's key growth strategy: "to enhance customer awareness through marketing and public relations programs." The company has spent over 6% of net sales which is about 200 million dollars on advertisement on newspapers, magazines, digital media etc. and the rate is at increase. To make up the expense to maintain the strength of the brand, the company seeks to "increase its control over product supply and achieve improved profit margins through direct diamond sourcing and internal jewelry manufacturing." Tiffany domestically produces jewelry and silver goods and places other facilities to cut and polish diamonds outside the U.S. as a manufacturer of its own. Those internally made products make up 60% of the total merchandise sold. The company plans to increase the percentage of jewelry that is internally made yet is not willing to remove outsourcing manufacturing for its competitive