Tiffany and Co, a Lesson in Being Adaptable
Charles Lewis Tiffany and John B. Young founded Tiffany and Co. in 1837. It was headquartered in New York City, but the original Tiffany’s (as it’s known colloquially) was marketed as a store for stationary and other goods. It was originally called “Tiffany, Young and Ellis,” but the emphasis on paper didn’t last long.
By 1853, the company had pivoted to jewelry. The goal of Tiffany’s during those early years was to mark products for sale in such a way that they could not be haggled over. All payments were to be made in cash, which was another tradition Tiffany’s broke with. Other stores allowed payments in credit. The unconventional business model made Tiffany’s goods unique.
The company releases a mail order catalog that is called “The Blue Book,” which was published first in 1845, but the catalog is still sent out today. It contains a host of items sold by Tiffany’s, including silverware and collectibles. At one point, the company also provided the Union Army with swords, flags and surgical instruments during the Civil War.
Tiffany had gained a reputation for selling high-class goods, so the recession of the 90s threatened to be very painful for the company. They began a campaign that emphasized the affordable goods on offer, advertising diamond engagement rings at $850. They even sent brochures, hoping to corner the newlywed crowds, which detailed how to buy a diamond properly.
Today, the Tiffany name still carries that air of style thanks to a line of luxury goods marketed and sold at high-end retail locations.
About the Author: Samuel Phineas Upham is an investor at a family office/ hedgefund, where he focuses on special situation illiquid investing. Before this position, Phin Upham was working at Morgan Stanley in the Media and Telecom group. You may contact Phin on his Samuel Phineas Upham website or LinkedIn.