Tiffany x Nike collaboration as an excellent example of "blue ocean strategy"
What happens when two completely different brands, both famous in their field, come together?
In addition to the final product resulting from the collaboration itself, we undoubtedly get controversy on social networks: was this a smart move or a complete fiasco? Let's start by commenting on Tiffany & Co. x Nike Air Force 1 Low “1837”. It is a well-known sneaker model that was created this time in a combination of black leather, "Tiffany blue" color, and silver details on the heel.
It is clear that this is an allusion to the boxes in which luxury jewelry is sold. However, that's precisely what bothered people - they expected white skin. Criticisms are mainly focused on the design, which is believed to be "much more creative". Some have even commented that the sneakers look like they were created by AI (but not in a good way).
Moreover, the sneaker model itself seems to be a problem - even though the collaboration was created in honor of the 40th anniversary of the Nike Air Force 1, social media users are unhappy with the choice, believing that the collaboration would have been much more successful with a different model. As they say, they were happy, but now they don't feel that this is it.
Tiffany x Nike is not the only example of the association of brands aiming to increase market share and generate profits but also to attract a new audience. There is also the fantastic collection "Reach for the planets," created in collaboration between the brands Swatch and Omega, as well as the extremely wise inclusion of the Balenciaga brand in the cult game Fortnite.
What is behind these bold moves?
If we go back to the "case" of Tiffany x Nike, the thing is probably clear: during 2020, Tiffany experienced a drop in global sales by as much as 37% caused by store closures, global economic pressures, and changing tastes of its customers. With the new owner of the brand (Tiffany was bought by the LVMH company) came a new strategy - approaching a younger audience with the help of cheaper items. Hence the collaboration with Nike.
In this way, the brand responded to changes in trends and style perception while maintaining "that something" that still entices customers - exclusivity. In an age when everyone can buy everything at any time, some will want at any cost something that no one has, or at least a small number of people have. For this reason, limited edition collections have always been successful despite divided opinions, which, hands down, there always will be.
How does all this fit into the "blue ocean strategy"?
As stated in the book of the same name, authored by W. Chan Kim and Renée Mauborgne, "blue ocean strategy" means creating a new market instead of conquering the existing one, creating new demand and innovative products that make the competition irrelevant. The fact that these products not only offer their customers a special value (both Tiffany and Nike are much more than a brand - they are a lifestyle in a way) but also a lower price (Tiffany & Co. x Nike Air Force 1 are far cheaper than any other Tiffany product) is enough to find the meaning of your purchase.
However, creating something unprecedented can be too ambitious and even challenging - if more of them think the same and do the same, it is difficult to be original, which leads us to the fact that the "blue ocean" can eventually become "red," vicious, and full of competition that wants the same thing as you.
Let's not forget that the danger of risk is also high - what if your target group does not like what you want to offer them? Comments on the collaboration between a premium jewelry brand and a casual sports footwear brand confirm this. But we should probably wait until March 7, when the sneakers will officially go on sale, to judge whether Tiffany has won this game or should wait for the next season.
Text written for the Marketing mreža website by: Milivoj Đorđić, General Manager Adria Region, SmartPoint Adria
Photo: Instagram / Tiffany & Co.