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 centerpiece of Vendome Luxury Group PLC--the London-based luxury goods subsidiary of Compagnie Financiere de Richemont AG,--Cartier accounts for the lion's share of the Vendome group's annual sales, which reached US $2.38 billion in 1997, when Vendome last reported yearly results as a public company. CEO Bernard Fornas is currently at the helm of affairs at the company, which designs, manufactures and sells a wide range of jewelry, timepieces, leather goods and accessories.
The famed watch and jewelry House of Cartier, which has gradually evolved over time as 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; not long after, the luxury jeweler came calling in other foreign markets, particularly Russia and the United States. The brand went on to become 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. Today it is a preferred brand for royalty, celebrities, and social elite worldwide. Cartier America has an established corporate headquarters at 645 Fifth Avenue, 5th Floor, New York, NY 10022, U.S.A.
Cartier history is marked early on by the introduction of watches still considered classic today?the Santos (1904), the Bagnoir (1912), the Tank (1919), and the Pasha (1932). A pioneer in European luxury watch making, Cartier is credited with the very first wristwatch. The well known watch termed 'Tank' was designed in tribute to American tank commanders who helped France in World War I. Over time, Cartier brought out designs for women and men alike.
Proud of its technical excellence, the brand upholds its reputation as a master watchmaker throughout the world. Whether mechanical or quartz, the components of each watch are produced with meticulous care, they are assembled in Cartier's Swiss workshops and subjected to very rigorous testing Certain high jewelry watches are fabulous one-of-a-kind masterpieces that require up to a year's work for manufacture. For all jewelry work it maintains and encourages others to maintain the standards set by the Royal Jewelry Council (RJC).
Cartier USA Inc in New York, NY, a private company categorized under Jewelry Stores, employs a staff numbering between 250 and 499. Despite the repressive economic climate during much of the 1990s, including an extended U.S. and European recession in the early part of the decade and the collapse of much of the Asian market in the latter half of the decade, Cartier recorded steady growth. The luxury brand celebrated its 150-year anniversary in 1997.
[...] ➢ Lack of optimal cost centric integration of IT infrastructure will hamper business continuity on medium term basis. In 2011, the parent corporation Richemont aggressively deployed ERP system across Cartier's United States, Switzerland, France and Spain operations. Lower synergies and IT infrastructure failure will hamper business continuity. ➢ Higher foreign exchange currency fluctuation will hamper EBIT margins. ➢ In 2011, Cartier's growth strategy was focused on organic expansion of its jewellery and watch segments in United States and international landscapes. [...]
[...] This compares to a decline over the 2006–11 period (Verdict Research, 2011). In 2011 a strong recovery in the luxury goods market has continued, with retail expenditure on branded luxury goods in dollar terms forecast to expand by year-on- year to 387.2 billion. Cartier (parent corporation Richemont) operates in highly fragmented marketspace worldwide with ten largest providers controlling of market share in 2010-2011. There has been aggressive shift towards expenditure on luxury goods in Asia with Cartier aggressively expanding into emerging markets such as India organically in next 18-24 months. [...]
[...] Industry Overview Luxury watches and jewellery are the core addressable segments for Cartier in United States and international markets. Its parent corporation is second leading luxury goods distributor worldwide, with market share of in 2010-2011. Although, Richemont has strong market positioning across luxury writing instruments with its flagship brand “Mont Blanc” controlling dominant share. Source: Verdict Research (May 2011) Europe will remain the largest market, its global market share will slip to Similarly, the share of the Americas, currently the third largest global market for luxury goods, will decline by 1.8 percentage points between 2011 and 2015. [...]
[...] 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. [...]
[...] Craig Smith, “Corporate Social Responsibility: Whether or How?” California Management Review, 45/4 (Summer 2003): 52-76. [...]
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