Cartier operates in an oligopolistic market. Thus, there are several suppliers available for the buyers. Moreover, this market targets clients by offering very specific products within a certain image that most of the other CSP cannot afford. Alain Dominique Perrin turned Cartier into a luxury retail company. As a result of this move, companies began to turn to specialized networks of dealers.
This was highly criticized at that time, but competitors quickly stepped in to breach the gap. Subsequently, Boucheron, and Van Cleef began to make perfumes, lighters, and watches of varying styles and at present, Alain Perrin D is considered the pioneer, not because of democratization, but of larger landmarks. In respect to perfumes, Cartier has largely been overtaken by Chanel and Dior. LVMH was founded by Bernard Arnault in 1986, when Cartier had joined the group Vendome, now known as Richemont. Cartier is the world leader in the segment of jewelry and Swiss watches, and the company has very large outlets and factories.
Cartier is divided into several sectors:
- Watch making
- The jewelry
- The fine jewelry
- Leather
- Glasses
- Pens
- Perfumes
- Scarves
- Accessories (lighters, gifts)
As for jewelry, we can see that the evolution was quite positive in the last three years. The turnover of Cartier jewelry rose by 17.3% in three years.
Richemont group was ranked as second in the world after LVMH
and Cartier was number one in the world of watch making and jewelry
2005 was a successful year for this group because:
- Sales of jewelry increased to 7%
- Sales of watches: had a11% increase
- Sales of instruments linked to the office had a 9% increase
- Sales of ready-to-wear had an exceptional increase of 28%
- Other sectors kept the numbers stable.
In 2002 the turnover of the company reached 1,967 million in all activities and in all zones.
Cartier, however, faces competition in its market, and in different types of activities:
- All brands owned by LVMH: TAG Heuer, Zenith, Chaumet, Dior, Louis Vuitton and Fred
- Swatch group brands: Blancpain, Breguet, Longines, Omega,Hamilton
- The group's brands Bulgari: Bulgari, Genta, Daniel Roth
There has been a strong growth in most of the developed economies since the end of the Second World War and this has enabled a considerable increase in the income and living standards.
Thus, consumers are more likely to spend a part of their budgets on items within the luxury to acquire the desired recognition.
The luxury market is a difficult market to manage and for this reason Cartier has analyzed different aspects to react to the market and the competition. Thus, some factors are difficult to change while others are easily interchangeable; in fact, we can easily realize that the efforts of Cartier on communication as of today remain too low.
Tags: Cartier, Second World War, Bulgari: Bulgari, Genta, Daniel Roth, luxury, TAG Heuer, Zenith, Chaumet, Dior, Richemont group, Boucheron, and Van Cleef, luxury retail company, Cartier jewelry
[...] The heritage and identity of each House spoke with fervor. The designers and craftsmen of the group are challenged to continue the tradition with innovation and a constant reinvention. However, the company faces many factors that could ultimately harm it. Signs are multiplying, some belonging to the world of luxury itself and other affiliating themselves gradually to the same world, but with techniques and products that differ slightly. Increasingly, consumers benefit from the so-called luxury products at very competitive prices and products from disrupting existing brands for many years. [...]
[...] LVMH was created by Bernard Arnault in 1986, when Cartier Vendome had joined the group, now Richemont. In jewelry, Cartier is world number on the Swiss watch; the brand has very large homes and factories. Cartier, however, faces competition in its market, and this on different types of activities: - All brands owned by LVMH: TAG Heuer, Zenith, Chaumet, Dior, Louis Vuitton and Fred - Swatch Group brands: Blancpain, Breguet, Longines, Omega, Hamilton . - The Group's brands Bulgari: Bulgari, Genta, Daniel Roth . [...]
[...] Repurchased by Cartier from private or at public sale, each of these parts belonged to prominent public and private entities, and has its own history. The Cartier Collection participates as a witness in different eras, to the most contemporary, through to revive the memory of a house, the history of jewelery creation. The luxury brands communicate differently from traditional retailers, in fact, the majority of their budget is concentrated in the print media (magazines turned to the same type of customer) as well as in television and other events (fairs, galas . ) .Communication, albeit is lesser, but still expensive. [...]
[...] This then allowed the creation of Cartier Monde in 1979. Robert Hocq accidentally disappeared in 1979. In the 70s, the main achievement of Cartier, in addition to the quality of materials he used was the originality of the models he created and the innovative spirit that animated helped it to have succeeded in adapting the evolution of its customers. Thus, the term "Must" embodied both a product line, heir to a prestigious past and a picture of the tradition of Cartier and an international trade policy adapted to the new customers of the jeweler. [...]
[...] Conclusion Over the years Cartier has persisted over time while preserving its image and its history. However, current economic factors are increasingly hard to manage for businesses and it is partly for this reason that retailers need to adopt new marketing strategies to preserve their place in their market and their financial health. But would it not be risky to spend on unaffordable luxury, having previously proven image to affordable luxury? Consumers acquired are loyal to the brand and they could not be disturbed and led to the loss of identity. [...]
APA Style reference
For your bibliographyOnline reading
with our online readerContent validated
by our reading committee
