An analysis of the Cartier group (2006)
- The Group Cartier: a sign rooted in history
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
- 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