One of the most revered names in jewelry, Cartier Monde (French for "World") is also the world's largest luxury jeweler, operating nearly 200 retail stores in over 125 countries. The famed watch and jewelry House of Cartier, one of the most recognized brands in the industry, was founded in 1847, when Louis-Francois Cartier opened a small jewelry store in Paris. In the early 1900s, Cartier expanded from its Paris base into London and New York, and eventually Russia and the United States. The centerpiece of Vendome Luxury Group PLC--the subsidiary of Compagnie Financière de Richemont AG, --Cartier accounts for the greatest share of the Vendome group's annual sales, which reached US $2.38 billion in 1997, when Vendome's last reported yearly results as a public company.
The company designs, manufactures and sells a wide range of jewelry, timepieces, leather goods and accessories. The team is now led by the President and CEO Bernard Fornas. Today, the brand is the official jeweler of the Royal courts of England, Spain, Portugal, Russia, Siam, Greece, Serbia, Belgium, Romania, Egypt, Albania, Monaco and France's House of Orleans andthe preferred brand for royalty, celebrities, and social elite worldwide. The Cartier UK head office is in Bond Street, London.
Cartier is led by Allain Dominique Perrin, chief architect of the company's development for nearly 20 years. Another noted personality in the Cartier establishment is Micheline Kanoui, the company's lead designer and wife to Joseph Kanoui, chairman of the Vendome group.
Since 1984, the Fondation Cartier pour l'art contemporain has been instrumental in redefining corporate sponsorship in France. Right from the outset, the foundation has argued that contemporary art is a crucial voice in addressing the concerns of the modern world and worked to bring that art to the largest possible public.
Reflecting the fundamental values of Cartier, the 'Cartier Women's Initiative Awards' aims to support meaningful business projects that combine innovation and audacity. Launched in 2006, in partnership with the Women's Forum, the INSEAD business school and McKinsey, the Cartier Women's Initiative Awards are an international business-plan competition for female entrepreneurs who lead creative, financially sustainable and socially responsible companies. Laureates will receive one year of personalized coaching, US$ 20,000 in funding and enhanced media visibility ensured by Cartier.
Cartier also associates itself with one of the most glamorous and prestigious polo events in the British Social season; 24 July 2011 marked its 27th year as sponsor of International Day, Cartier celebrated its 150-year anniversary in 1997.
[...] Breach of partnership and alliances across digital media will hamper brand positioning. ➢ Supplier and vendor breach of contract will hamper inventories and disrupt value chain on short-term basis. ➢ Non compliance to compliance with U.S. laws such as the Foreign Corrupt Practices Act will enhance governance and indirect expenses. ➢ Changing consumer preference and perception: Luxury goods market has low customer retention rates attributed to changing customer preference and perception about brands. Cartier Risk Map (2012) Disclaimer: The risk map is prepared on our assumptions and is not taken from any public announcement or article. [...]
[...] In Middle East, Cartier was the second largest advertising spender after Rolex in the luxury watch marketspace. Further, Cartier was the sixth leading marketer and advertiser in United States with annual spending of US$16 million (2010- 2011). The company has been aggressively focusing on online and social media centric video promotional platforms in United States and other matured luxury marketspaces in past 12 months. The core marketing and promotional strategic initiatives stood as follows: ➢ Product: The Company has niche vertically diversified product portfolio encompassing luxury jewellery and watches (GlobalData, 2012). [...]
[...] Future Research Scope The future research scope involves the following: ➢ Changing consumer purchasing behavior across emerging luxury goods market worldwide and its impact on Asia focused businesses such as Cartier ➢ Broader comparative study on top twenty luxury jewellery and watch manufacturer in United States and worldwide. ➢ Impact of counterfeit luxury watches and jewellery brands on global manufacturer such as Cartier on short and medium term basis. References ➢ Richemont Annual Reports ( & 2009) http://www.richemont.com/investor-relations/reports/archive.html ➢ Richemont CSR Report (2011) http://www.richemont.com/corporate-social- responsibility/csr-report-2011.html ➢ N. Craig Smith, “Corporate Social Responsibility: Whether or How?” California Management Review, 45/4 (Summer 2003): 52-76. [...]
[...] It is further expected to increase in the next few years. (Datamonitor, 2012). Peer Benchmarking & Future Outlook LVMH, Burberry, Ralph Polo and Gucci Group are the closest publicly listed competitors for Richemont worldwide. Although David Yurman, Roberto Coin etc are the core competitors for Cartier they are neglected due to narrow scope of research (Verdict Research, 2012). The average operating margin across the top 10 luxury players in 2010/11 rose by 3.8 percentage points from the previous year, as all top 10 luxury companies generated stronger operating performance. [...]
[...] ➢ Intellectual property rights is critical for luxury brand manufacturers: Counterfeit product portfolio offered at less than half the pricing in open market especially in emerging markets such as India, China, Indonesia will hamper profitability. ➢ Finally, natural disaster such as Tsunami, Hurricanes etc and energy shortage at production facilities will hamper business continuity and revenue growth. ➢ Volatility in the capital markets and interest rates will enhance pension expenses and impact net margins. In 2011, the pension obligation for Richemont stood at €69 million (2010: €59 million). ➢ The parent corporation is publicly listed on Swiss Stock Exchange. [...]
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