It isn't that Tiffany isn't trying.
The company has launched new silver products priced below $500 under its "Return to Tiffany" and "Infinity" collections, and aggressively marketed its iconic diamond engagement rings in the "Tiffany setting" -- a 130-year-old design, where a diamond is secured by a set of prongs.
And it continues to have considerable pull in the luxury jewelry market with annual sales of more than $4 billion.
Mark Aaron, a spokesman for Tiffany, said the company saw significant opportunity to expand customer awareness of the Tiffany brand and its "very strong product offerings."
But analysts say this isn't enough.
The company's stores need to be redesigned to attract the younger generation and its products have to be hipper and more modern, without losing the Tiffany luxury appeal, they say.
So where are these millennials shopping?
Two jewelry brands making inroads into Tiffany's dominance are Danish jewelry maker Pandora A/S and Cranston, Rhode Island-based Alex and Ani, said Pamela Danziger, an analyst at research firm Unity Marketing.
Both brands, while not luxury names, offer cutting-edge designs and allow customers to customize jewelry, a big draw for the young affluent demographic.
Pandora's rising popularity is evident in the 34 percent jump in sales of its charms and bracelets in the January-March period.