Core Customers

Cartier’s target market is for both men and women who earn a high income and are high powered in their own respective industry. They are considered to be the high net wealth individuals worldwide and the royal families who prefer exclusive and rare pieces and usually price insensitive. The majority of Cartier’s psychographics is for consumers who want to portray their high status.

NON-CORE CUSTOMERS

The non-core customers of Cartier are the younger generation who are eager to have the status symbols or rare products to express themselves. But they are not regular or loyal customers of Cartier.

PESTEL ANALYSIS

Political

-Currently, Cartier is present in different countries, each having own political tensions. Growing tensions and instabilities in the global political environment can affect the Gold industry growth and limit the growth opportunities available to Cartier. -With Brexit, the legal, operating and financial costs have been affected. -In some countries, strict regulations on the import and export of jewelry goods have resulted in the increasing tariff made on the products.

-The exchange rate fluctuation can also influence the profitability and international trade, the high fluctuation on local currency can be a cause of serious concern for Cartier. -Impact of COVID-19, lockdown impact revenue greatly in every country.

Economical

Social

-The desire of exquisite customer experience. -Demographic changes driving innovative strategy. (An aging society, the high consumption power of the generation-Z caused by the low birth rate society and difference of the culture background.)

Technological

-Growth of digital channel, for example, collaborate with third party retailers, and Wechat commuication.

Environmental

-Steps were taken to address sustainability (Safeguard the environment: Environmental performance, like manage the waste in a responsible manner and reduce the consumption of water and energy and the use of toxic materials in the operations.) -Comply with applicable laws and regulations, especially regarding diamond purchasing, uphold the Universal Declaration of Human Rights and ensure compliance with its principles, tolerate neither child labor nor forced labor and maintain the highest standards in matters of health and safety.

Legal

CURRENT STATUS

Brand Value- $15.1B CEO- Stanislas de Quercize Creative Director of Cartier- Jacqueline Karachi Director of watchmaking for Cartier- Marie-Laure Cérède Sales- $6.2B Headquarters- Paris

Cartier has been selling jewelry to European royalty for more than a century. There are nearly 300 Cartier boutiques worldwide that showcase the brand's high-end jewelry and watches. The brand is extremely profitable for parent Richemont, and profits rebounded 16% in 2019 after a 20% fall in 2017, due to the luxury industry slump. In 2020, the Cartier brand was valued at approximately 15 billion US dollars.

KAPFERER’S BRAND IDENTITY PRISM

Physique Panther, wedding ring, red color, exotic, craftsmanship

Relationship Trust, loyalty, exclusivity, distinctiveness

Reflection Sophisticated, elegant with high status and high-income women and men Personality Heritage, bold, tender, sensual, classic, quality, opulent, allure, unique

Culture Savoir-Faire, ethical, excellence, respect to heritage, authenticity

Self-Image Opulent, ambitious, sophisticated, elite, elegant, confident

Picture of Sender

Externalization

Picture of Receiver Internalization

AAKER’S BRAND IDENTITY MATRIX

EXTERNAL

Value proposition -Powerful aesthetics and icons that feel loyal to their origins yet have a timeless appeal, which enables a creative territory that is shaped around a unique style. -From jewelry and fine jewelry to watchmaking and perfumes: Symbolize the fusion of exceptional savoir-faire and timelessness.

EXTERNAL/ INTERNAl

Expression -Except for the quality, craftsmanship, Cartier’s expression on ambition and opulence really showcases the products in their communication. This is clearly to be seen in their advertisements and products, all of which showcase the clear recognition of the Cartier.

EXTERNAL

Mission & Vision -Cartier strives to exceed the limits of excellence, to create objects of the highest quality, and to invent new approaches to beauty. Relationships -Long-lasting relationship based on trust, loyalty, distinctiveness, and exclusive experience.

Culture -Savoir-Faire, ethical, excellence, respect to heritage, authenticity.

Brand core -Creativity, quality, craftsmanship, and excellence. -Cartier is a synonym of openmindedness and curiosity, sees beauty in everything.

Position -High-end made jewelry and watches brand with sophisticated products in the luxury segment. -Cartier's position in the luxury market is focused on Gen X and the affluent young generation, because of their association with the price points and sophistication meaning.

Personality -Heritage, bold, tender, sensual, classic, quality, opulent, allure, unique.

Competences -Merging aesthetic, craftsmanship, innovation, and uniqueness to ensure the best service to customers and satisfy the needs of customers.

MARKET OVERVIEW

The global jewellery market has increased at a significant CAGR during the years 2010-2017 and projections are made that the market would rise in the next four years. 2018-2022 tremendously. The jewellery market is expected to increase due to growth in female workforce and population, increase in GDP per-capita, increase middle class population of regions across the world.

The global jewelry market size was USD 330.0 billion in 2019 and is projected to reach USD 266.53 billion by 2027, exhibiting a CAGR of 3.7% during the forecast period. Nowadays, there is a rising trend in the consumption of jewelry as more people are inclined towards luxurious products. The growing popularity of the use of the product among high-income earners as a symbol of high status is helping to accelerate the consumption rate. However, shortage of labor force amid COVID-19 hinders market growth. Furthermore, the pandemic leading to a decrease in the import and export rate of raw material from one country to another results in the rising cost and lack of material.

USD 278.5 USD 330.0

USD 230.0

The global jewelry market size

Driving factors: -The growing global economy owing to high disposable income and spending power of the population are propelling the demand for the increasing consumption of luxury goods such as ornaments. -Increasing adoption of digital channels to favor growth.

Restraining factors: Strict regulations on import and export of jewelry goods to hamper market growth, the increasing number of countries around the world maintaining strict regulations on the import and export of ornament goods has resulted in the increasing tariff made on the products.

281€

217€ 330~370€

240~260€

Personal luxury goods market evolution

CARTIER CUSTOMER JOURNEY MAPPING

CARTIER CUSTOMER JOURNEY MAPPING

Awareness /Interest

Increase awareness, engagement and interest especially to the potential customers ➨ Creating marketing campaigns and content both offline and online, PR

Optimize interface on digital channels, collaborate with publications and dedicated to marketing and communication to engage more potential customers New website visitors and increased footfalls ➨ Creating marketing campaigns and content both offline and online

Visual display in boutique, operate more social media account like Line to reach more customers also offer information in it

Consideration Decision/Purchase Consolidated customer relationship to loyalty and advocacy

Increase customers’ satisfaction through services and right merchandising strategy ➨ Customer service and online ambassador available (working hours), online appointment for the boutique shopping Increase online sales, and make the purchasing process easier in the meanwhile still maintain the Cartier’s luxurious image ➨ Lots of payment options available, efficient checkout, offers personalization on certain products, personalized guide for the items Increase instore sales and satisfying all customers’ need ➨ Lots of payment options available, offers personalization on certain products Increase in-store sales ➨ Free gift wrapping, free return and exchange, offer paid gift card and box, after-sales services (repair, care, adjust, extend warranty…) Re-purchase, customer loyalty, positive reaction and recommend to other, return to the store for more browse ➨ Cross-sell and up-sell strategy, offer Cartier art magazine and Rouge magazine only distribute to their customer base

Optimize customer experience (offer immediate virtual personal advisors, or real-person advisors in work hours when customers navigate the items via digital channels) More video content, videostreaming and personal video shopping, shoppable social media content, optimize website navigation More video content in store, provide customize items for jewelry(such as engagement ring and wedding ring) Immediate and helpful reply (Cartier should offer 24 hrs chatbot) Loyalty programs: offer VIP customers small gifts for birthdays, information about limited collections and exclusive access to special items when they spend a certain amount, VIP exclusive events, customize email or newsletters in regular Turn customers into loyal advocates and organic ambassadors for the brand, turn negative experience into positive experience, gain more customers ➨ Residential concept of latest boutique, include private reception room, a bar area, a kitchen, a dressing boudoir and a bathroom. The last two were designed for celebrities getting ready for awards shows and VIPs who want to get changed between meetings. The space has already hosted book launches, photography exhibitions and private events.

Create a closer community-connect to customer on a more personal level (because Cartier's targeting customers are more valued about the exclusive service and rarity items offering)