expansion

In Uncertain Economic Times Cartier Focuses On Eastern Market Expansion

Filed under: Jewelry, Timepieces / Watches

The the most stalwart of luxury companies have taken a big hit from our current economic realities. While not suffering proportionally more than anyone else, Cartier is seeking new ways to grow and thrive in extremely unpredictable times. According to Cartier CEO and President Bernard Fornas, the new strategy is the expansion of boutique stores in areas showing promise or high growth in recent trends. While Cartier's statement that "we are the number one luxury brand in China, the Middle East, and Russia," may be speculative opinion only, it is true that Cartier has always been a symbol for a "luxury brand," whose performance can almost be market determinative.

Due to the fact that less people globally can afford Cartier products, or that less people are willing to incur the expense, the new strategy (among all luxury brands really) is to focus on core markets that include a large volume of "high-net-worth individuals." The concept is simple; do exactly what you are currently doing, but put your efforts into areas with a proven (and ongoing) hunger for luxury goods.

China will see more than 30 new Cartier boutiques open over the next year, while plans further include stores in Macau, Dubai (that I am sure is getting to the point of over-saturation), Qatar, Bahrain, Khobar, and Jeddah. It has typically been true that luxury brands are of the first to identify new wealthy areas and position themselves there. Like prospectors, luxury brands like Cartier would rather enter new and growing markets than cultivate presence in existing locations all over the Western world. Some luxury makers such as Bvlgari take slightly different approaches, as they have reportedly been planning to reduce the average cost of their luxury items and watches to better conform with current spending trends. Cartier's approach seems to be that what has worked for them for 160 years through many types of world economic problems will again help them persist through these times until luxury consumer spending is back on the rise.

Via Business 24-7.

Ariel Adams publishes the watch review site aBlogtoRead.com.

Tags: 2009, boutique, cartier, expansion, timepiece, watch