It is an astonishing fact that the jewelry sector is the largest in the luxury goods industry with a global retail sales amounting to $150 billion. The biggest contributor is the US. The US market represents a total of $ 43 billion in this industry. Some of the major players in the luxury industry catering to the jewelry sector are: Tiffany, Cartier which is under the parent company Richemont and Bvlgari. Both Cartier and Bvlgari brands started with producing Jewelry, and thereafter diversified their products.
Tiffany did not pay extreme attention to diversification and therefore put its major concentration on Jewelry and introduced its products with a clustering effect. Bvlgari introduced its products in a more constant and organized manner, and plans to expand by involving itself with the non-Jewelry sectors. Both brands (Tiffany and Bvlgari) have strong control over their distribution channels. Tiffany constitutes only a tiny portion of wholesales and tries to expand its direct marketing means.
Bvlgari aims at large scale markets and therefore, uses franchisees and intends to open shops in tourist places. Both brands have occupied almost the same position in the world market. Tiffany puts more efforts on the US and Japanese markets and its image and reputation is stronger and solid there. Bvlgari targets the European market, and is more geographically diversified. Recommendations have been received for further expansion and diversification by these two brands. A brief description of these recommendations have been highlighted as under:
Maintain a fair market share in the US and Japan. However the relocation risks pertaining to operation risks such as store location needs to be accounted for.
International presence to be retained and created especially in the retail sector of emerging markets.
Keep up and develop the opportunity and revenue generated through direct markets.
Maintain the current product lines. In this regard, more research has to be undertaken to truly understand its affluent consumers and to quantify their perceptions of the Tiffany's brand and products.
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