Tiffany's Price Hike Lesson: Can't Be Everything to Be Something, Says IESE Professor

Professor Ricard Gil of IESE Business School stressed the need for clear brand positioning and differentiation in increasingly competitive markets during a recent session in Creand's Cicle Talks series.

Drawing on the example of Tiffany & Co., Gil outlined how strategic choices can protect a luxury brand's identity. The US jeweller saw surging profits in the late 1990s and early 2000s after introducing affordable silver bracelets that appealed to a wide audience. While the product boosted sales and thrilled investors, it risked undermining the company's traditional association with high-end luxury, including iconic engagement rings.

To address this, Tiffany made a bold move by significantly increasing bracelet prices. The decision curbed mass demand and reinforced its exclusive positioning.

"No pots ser res si vols ser-ho tot," Gil told attendees—"You can't be something if you want to be everything." He argued that crafting effective strategies demands tough trade-offs to build unique, hard-to-replicate brands, particularly in saturated sectors.

Gil also emphasised business honesty in defining a brand's stance. "Una de les claus de definir una estratègia és realment ser molt honest," he said—one key to strategy is being truly honest. Companies, he explained, should evaluate whether they deliver distinct value and if customers would notice their absence.

Such introspection, according to Gil, fosters sustainable competitive advantages and long-term worth. His talk highlighted how consistent decisions enable brands to stand out from competitors.