Can the LVMH Deal Help Tiffany Regain its Luster?

Case Code: BSTR642 Case Length: 13 Pages Period: 2020 Pub Date: 2022 Teaching Note: Available

Price: Rs.300 Organization : Tiffany and Co Industry : Technology & Communications Countries : United States Themes: M&A, Brand Loyalty, Consumer Behavior

Abstract Case Intro 1 Case Intro 2 Excerpts

Abstract

US-based Tiffany and Co (Tiffany), founded in 1837, manufactured and marketed fine jewelry, watches, and accessories. The brand was synonymous with luxury, fine craftsmanship, and innovative design. But over a period of time, Tiffany lost its luster. Millennials turned to other brands and Tiffany struggled to grow. It saw a decrease in the emotional connect customers had with it and a decline in the overall positive perception of the Tiffany brand in the modern world. The decline was not only on the emotional front but also in demand and in sales.

In November 2019, Tiffany and French holding multinational corporation and conglomerate specializing in luxury goods, LVMH Moët Hennessy Louis Vuitton (LVMH), announced a merger deal.

In October 2020, however, LVMH announced that it would not go ahead with the merger due to the French government’s intervention. LVMH’s announcement triggered a bitter public battle between the two luxury brands. Eventually, the deal did go through, albeit at a price lower than what had been agreed upon earlier.

Issues

The case is structured to achieve the following teaching objectives:

• To understand the external factors that can affect the performance of an organization
• To understand the reasons that drive acquisitions

Contents

Introduction
About tiffany and co.
LVMH Moët Hennessy Louis Vuitton Se
Problems of Tiffany
The LVMH Deal
After the Deal
Looking Ahead
Exhibits

Keywords

Tiffany; LVMH; Merger; Acquisitions; Strategy; Consumer Behavior; Online Shopping

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