Posts Tagged ‘China’

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In the history of Cartier’s development, its customer list has been very prominent

Richemont did not disclose Cartier’s sales in 2011. In the Richemont Group’s jewelry business, in addition to Cartier jewelry, there are Van Cleef & Arpels. In the last fiscal year, Van Cleef & Arpels’ profit margin was $ 4.41 billion. Thanks to the strong demand for watch in the USA market, as of December 31, 2011, Richemont watches total sales increased 24% to 2.62 billion euros. According to the average valuation of 13 analysts in Bloomberg, Richemont’s profit reached 2.54 billion euros. Data from the Internet show that as of March, Cartier last fiscal year profit increased by 25%. “About 45 percent of the brand’s sales come from Cartier love bracelet replica, 35 percent from jewelery, and the rest from decorations,” said Bernard Fernas, Cartier’s global president.

Luxury inflection point

In the history of Cartier’s development, its customer list has been very prominent, including the Russian tsar, actress Elizabeth Taylor and others. But now, in order to adapt to the global economic cycle, it is creating a new luxury trend, with a more cautious, more low-key form to the performance of wealth. “Today, the big man’s watch is losing his position,” Bernard Fernas said in an interview at the Geneva Watch Fair. “During the economic crisis, you will show off less and you will choose those who look more low-key, more Ergonomic style. Guilt is a very important psychological factor. “2008 after the outbreak of the US subprime mortgage crisis, Cartier’s approach is to introduce entry-level works, to adopt a more conservative market attitude, this strategy continues today.

At the Geneva Watch Fair in 2012, Cartier exhibited complex timers and watches decorated with jewelery. It re-launched the British tank watch, this style was born in 1919, it has three colors of gold, is the Cartier following the blue balloon watch after the grand launch of the new. Standard blue balloon watch is Cartier’s most popular watch in recent years, its price at least 10,000 euros, those inlaid precious stones, more complex blue balloon watch, the retail price of up to several hundred thousand euros. Compared with the blue balloon watch, the British tank table in the design more introverted low-key, classic lines of the atmosphere, the price is more affinity. In explaining the reasons for the launch of the tank series, Bernard Fernas said, “partly because of economic slowdown, and consumers tend to choose a more simple timer.”

The company is trying to prepare to face the turning point in the economic cycle, it is still outside the jewelry and watch industry expansion. “In the recession, people will return to the classic brand, rather than those popular fashion.” Bernard. Funas said. In the Cartier love ring replica, Cartier is renowned; in the Swiss watchmaker’s ranking, it is second only to Rolex. Cartier sales of watches, about 5% will be returned during the warranty period, the proportion is much lower than the watch industry average 10-15% maintenance rate. Their goal is to reduce the return rate due to quality problems to 3% over the next few years.

Not every luxury brand will be welcomed by Chinese consumers. Only a few brands such as Montblanc, Cartier, Louis Vuitton and Zenia can benefit from both sales and marginal profits. Jane Ya-wen believes that there is a skill to balance their own high-end image and the relationship between the size of the burden of the population, which is critical for the success of luxury brands. In the design emphasis on conspicuous, but only a lightly understated way. Such as the classic surface of the Cartier watch, gently gold mosaic. It locates luxury as a “advanced tool” that can be used for presentation, rather than a privileged privilege. It is also actively involved in women’s education programs, from multiple levels to maximize the impact.

From 1970 to enter Hong Kong, Cartier in the Chinese market has been insisting on two market channels. Cartier watches through the recruitment, assessment of the dealer to operate, the jewelry business is all direct management by the Cartier self-store. “We have recruited dealers for many years, and the current dealers are working closely with us. In addition to money and money, there is an in-depth understanding of the watch field,” she said, Product sales is a dream, is self-realization, self-satisfaction, is by gift to give some special moments to the meaning. “In such a market in the development stage, a brand in the entry, we must strengthen the brand image, with accurate way to spread the message.” She said.

Cartier is clearly full of confidence. But by many factors, the prospects for luxury goods in the Chinese market is still uncertain, Cartier can not turn a blind eye to this. “In the fourth quarter of 2011, we still maintained a very good growth trend, but not as good as before, we are cautiously optimistic about 2012.” A luxury brand manager in China said.

In fact, in the Chinese market, Cartier is not no worries. As we all know, second and third tier cities will be the future of luxury goods in China an important battlefield. From 2008 onwards, many luxury brands began to increase in China, second and third tier cities to shop the intensity, such as Armani, Dunhill Road. In the second and third tier cities in terms of the number of stores, compared with these luxury brands, Cartier is not dominant.