For Tiffany, the dilemma it faces is not “selling in China,” but the sale of Chinese tourists. Bogrolo said at the third-quarter earnings conference that the decline in Chinese tourist spending is expected to be offset by the increase in domestic sales. But from its latest earnings forecast, the situation is probably not so optimistic.
Tiffany now expects full-year earnings for FY 2018 to be at the lower end of the range of $4.65 to $4.80 per share. Earlier, the brand executives said that about two-thirds of Chinese consumers would choose to spend abroad.
Tiffany’s strong double-digit growth in the domestic market is still unable to offset the decline in foreign consumption, which means that Tiffany, who is trying to innovate the brand image and attract millennials, has another challenge – the shift in consumption patterns. A report released by HSBC at the end of last year showed that in terms of luxury goods, the gap between Chinese consumers and overseas spending is shrinking, and the five-five balanced nodes are already “looking forward”.