Customer Relationship Management Report MLB_CHIEH-YI, LIN
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CONTENTS 3 What Does Luxury Mean To Me? 6 Survey Results 8 Brand Archetype 9 Brand Introduction 10 Brand History 12 Core Customers 13 Non-Core Customers 14 Pestel Analysis 17 Current Status 18 Kapferer's Brand Identity Prism 19 Aaker's Brand Identity Matrix 20 Market Overview 22 Cartier Customer Journey Mapping 24 Conclusion 28 References
WHAT DOES LUXURY MEAN TO ME?
For me, luxury needs to satisfy 2 elements - physical and emotional part. Physical part: The long-lasting value: the top quality of materials and craftsmanship (quality and craftsmanship are the basic foundation of luxury, not only for the substance value but also to solid the internal value.)
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The internal value, for me "Is about Emotional part".
Luxury is a product or service that leaves a long feeling of fulfillment and pride to the owner, and this feeling is related to exclusivity, uniqueness, and scarcity. It’s about creating pleasure for the 5 senses, is about added value and emotional satisfaction, because what lasting forever is the feeling, whatever the products or services are, is the feeling that you can feel fulfillment when you see, touch or even just recall. That's the meaning of luxury for me. Luxury is Individual, like the way you represent your attitude and lifestyle, just for yourself, if you believe it is a luxury, it is a luxury. that's why there are so many products with a brand value much higher than the quality pricing.
But as the outbreak of the pandemic, the American Psychological Association is reporting on the long-term effects that the pandemic will have on social anxiety, that's also true for me. As now our freedom is restricted, consumers needed the luxury to help them with anxiety reduction, sensory appeal, motivation, and therapeutic value. Nowadays, an alignment of luxury and wellbeing is a pandemic-driven form of “comfort consumerism” that sees customers indulging in purchases in the pursuit of consolation. However, what’s more important behinds, is to help people feel happy and positive.
For me, the real luxury offered customers to them as a special time to take care of themselves and nurture their souls.
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SURVEY RESULTS Key Figures The data from 29 respondents of Google form.
Nationality More than half of respondents are from Taiwan. Most respondents fit in the 20~30 years old range and 93.1 % people are single. 82.8% of respondents are familiar with Cartier, but only 24.1% had purchased from Cartier before. There were 79.3% of respondents dreaming of owning products from Cartier.
Ages Of those who had purchased Cartier before, 50% purchased new, 25% were gifted and 25% purchased secondhand. 82.8% prefer to shop in-store/ boutique and 10.3% preferred shopping through the brand’s website and only 3.4% through third-party retailers. 3.4% preferred shopping through social media.
Income (USD/Annual) Also, 65% of respondents’ income are 0~25000 USD annual, 24% of respondents' income are 25000~50000 USD, only 3.4% of respondents’ income are 500000 USD above.
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OPEN ANSWER The results from the survey showed most respondent’s association of luxury with expensive, lifestyle, excellence and exclusivity. It is important to note that the majority of responders were in their early 20s and their income was a student which explains their focus on price, lifestyle exclusivity and excellence in relation to luxury as a concept and also as the main barrier to purchasing Cartier. Cartier was mostly associated with heritage and the panther. Also, Wedding ring and Wallis Simpson are the iconic elements of Cartier that respondents noticed. Additionally, not all responders dreamt of owning Cartier but those who did mostly noted their jewelry and watches. Also watches and jewelry are the most wanted items for all respondents. Unfortunately, there were a high number of responses that haven't purchased items from Cartier because of the price point but with a high desire of owning Cartier items in the future.
From left to right with pink being the most popular response and green being the least.
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THE RULER Cartier has dominated the marketplace for high-end jewelry and timepieces for well over a century, becoming synonymous with ambition and opulence. The Ruler seeks to prevent chaos by taking control and works to get /keep power. The Ruler is drawn to things that are substantial, timeless, and high quality. This archetype sees itself as a role model for others to emulate. The association of Cartier with heritage, preciousness, ambition, and panther relates to these ideals.
BRAND ARCHETYPE
Cartier represents The Ruler's focus on exclusivity and excellence in terms of reinforces customers' emotions of feeling power and authority. The best of the best. 9
BRAND INTRODUCTION "King of Jewellers, Jeweller of Kings"
Today Cartier is a symbol of elegance, beauty, and grace. Their jewellery is beloved by one and all and is by far one of the most sought-after luxury jewellery brands in the world. Cartier was founded in 1847 in Paris by the jeweller Louis-François Cartier, who in 1899 handed over to his three sons. They would establish the company internationally, not least by making the Cartier name a favourite among the crowned heads of Europe. Named "King of
Jewellers, Jeweller of Kings", the brand was quick to turn its attention to watches. Many have become modern-day icons, such as the Santos (1904), one of the first wristwatches, and the Tank (1919). They were followed by other noteworthy creations, including the Pasha, the Santos 100, the Ballon Bleu and the Calibre. The Cartier family retained ownership of the firm until 1964. It is now part of the Richemont Group.
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BRAND HISTORY Louis-François Cartier (18191904) took over the jewelry workshop of the mastercraftsman Adolphe Picard at 29, Rue Montorgueil in Paris.
Cartier received its first royal warrant as official purveyor to King Edward VII of England.
Launch of the Santos de Cartier wristwatch, inspired by the 1904 model.
1904
1911
1847
1899 Cartier opened its doors at 13, Rue de la Paix. Louis Cartier (18751942), eldest son of Alfred (1841-1925), had been in business with his father for one year.
Jeanne Toussaint was made head of Cartier Fine Jewelry.
1933
1904 Louis Cartier created a watch with a leather strap, specifically designed to be worn on the wrist, for his friend the Brazilian aviator Alberto SantosDumont.
Creation of the Love bracelet.
1969
1949 1919 Launch of the Tank watch.
The Duke and Duchess of Windsor purchased a platinum panther brooch on a 152.35-carat Kashmir cabochon sapphire in Paris. Cartier would buy the brooch for its own collection in 1987.
1996 Tank Française wristwatch.
A jubilee year. Cartier celebrated its 150th anniversary with exceptional Fine Jewelry creations including a necklace in the form of a serpent, paved with diamonds and set with two pearcut emeralds of 205 and 206 carats.
Launch of the Panthère de Cartier collection.
Creation of the Ballon Bleu de Cartier watch.
2007
2003
1997
In 2012, Cartier was owned, through Richemont , by the South African Rupert family , and Elle Pagels, a 24-yearold granddaughter of Pierre Cartier.
2001
2005
Cartier displayed the ceremonial necklace made for the Maharajah of Patiala at the 21st Biennale des Antiquaires in Paris.21st Biennale des Antiquaires in Paris.
Creation of the Caresse d’Orchidées par Cartier Fine Jewellery collection.
N E T- A - P O RT E R a n d MR PORTER announce permanent launch of Cartier fine watches.
2018
2012
2012 The ID2 concept watch was unveiled at the Manufacture in La Chauxde-Fonds. This innovative, avant-garde watch was the brainchild of a development team led by Carole Forestier Kasapi. Release of the "Odyssée de Cartier" film.
2013 Presentation of the Rotonde de Cartier Double Mystery Tourbillon, the Calibre de Cartier Chronograph line, and the Ballon Bleu de Cartier Tourbillon Double Jumping Second Time Zone.
2021 Louis Vuitton, Cartier, Prada push blockchain to ensure authenticity.
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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.
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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.
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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.
Economical -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.
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.
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Environmental
Legal
-Steps
-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.
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.)
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. 17
KAPFERER’S BRAND IDENTITY PRISM
Physique Panther, wedding ring, red color, exotic, craftsmanship
Personality Heritage, bold, tender, sensual, classic, quality, opulent, allure, unique
Relationship Trust, loyalty, exclusivity, distinctiveness
Culture Savoir-Faire, ethical, excellence, respect to heritage, authenticity
Reflection Sophisticated, elegant with high status and high-income women and men
Self-Image Opulent, ambitious, sophisticated, elite, elegant, confident
Internalization
Externalization
Picture of Sender
Picture of Receiver
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EXTERNAL
EXTERNAL/ INTERNAl
EXTERNAL
AAKER’S BRAND IDENTITY MATRIX 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.
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.
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.
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.
Brand core -Creativity, quality, craftsmanship, and excellence. -Cartier is a synonym of openmindedness and curiosity, sees beauty in everything.
Personality -Heritage, bold, tender, sensual, classic, quality, opulent, allure, unique.
Culture -Savoir-Faire, ethical, excellence, respect to heritage, authenticity.
Competences -Merging aesthetic, craftsmanship, innovation, and uniqueness to ensure the best service to customers and satisfy the needs of customers.
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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 330.0 USD 278.5 USD 230.0
The global jewelry market size
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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.
330~370€ 281€
217€
240~260€
Personal luxury goods market evolution
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CARTIER CUSTOMER JOURNEY MAPPING
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CARTIER CUSTOMER JOURNEY MAPPING
Awareness /Interest
Business Goal ➨ Activities
Increase awareness, engagement and interest especially to the potential customers ➨ Creating marketing campaigns and content both offline and online, PR
Consideration
New website visitors and increased footfalls ➨ Creating marketing campaigns and content both offline and online
Consolidated customer relationship to loyalty and advocacy
Decision/Purchase
Increase customers’ satisfaction through services and right merchandising strategy ➨ Customer service and
Increase instore sales and satisfying all customers’ need ➨ Lots of payment
after-sales services
Re-purchase, customer loyalty, positive reaction and recommend to other, return to the store for more browse ➨ Cross-sell and up-sell
Turn customers into loyal advocates and organic ambassadors for the brand, turn negative experience into positive experience, gain more customers ➨ Residential concept of
(repair, care, adjust,
strategy, offer Cartier art
latest boutique, include
extend warranty…)
magazine and Rouge
private reception room, a bar
magazine only distribute
area, a kitchen, a dressing
to their customer base
boudoir and a bathroom. The
online ambassador
Increase online sales, and make the purchasing process easier in the meanwhile still maintain the Cartier’s luxurious image ➨ Lots of payment
available (working
options available,
hours), online
efficient checkout,
appointment for the
offers personalization
boutique shopping
on certain products,
last two were designed for
personalized guide
celebrities getting ready for
for the items
awards shows and VIPs who
options available, offers personalization on certain products
Increase in-store sales ➨ Free gift wrapping, free return and exchange, offer paid gift card and box,
want to get changed between meetings. The space has already hosted book launches, photography exhibitions and private events.
Opportunity
Optimize interface on digital channels, collaborate with publications and dedicated to marketing and communication to engage more potential customers
Visual display in boutique, operate more social media account like Line to reach more customers also offer information in it
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
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)
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CONCLUSION Observations, Insights, and Strategy recommendations Although Cartier’s target market is for both men and women who earn a high income, want to portray their high status, and usually price insensitive. However, we cannot ignore the power of non-core customers, which means the younger generation, many reports indicate that the main luxury purchasing power is now gradually becoming younger, in 2020, millennials and Generation Z accounted for 40% of the luxury market, and they will share over 58% by 2025, especially in Asia countries. The non-core customers, who are eager to have the status symbols or rare products to express themselves are absolutely suitable for Cartier, which famous for its uniqueness and exclusivity. Another report said that Cartier has a younger clientele in China than in any other part of the world. Millennials represent roughly 65% of its customers, while Gen Z consumers account for 25%. These digitally savvy, ever-evolving consumers value
ingenuity and new experiences. Therefore, to welcome this new generation of clients, fine jewellery houses are revamping their stores to be more experience-led, while also better suiting millennials' casual, and more democratic tastes. As UK managing director of Tiffany & co-Barratt West said "luxury is moving into a less formal, more energetic direction." At Cartier's latest London boutique, an entire floor is dedicated to a residential concept, to meet the "lifestyle" trend, which also I think's the reason why Cartier has extended the brand to become more lifestyle brand since they already have a home, stationery collection.
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CONCLUSION Observations, Insights, and Strategy recommendations What's more, Cartier has been at the forefront of the online fine jewelry market, having launched highly successful partnerships with Net-a-Porter - a Panther watch was said to be sold within 3 minutes of its launch on Net-a-Porter, and Cartier become one of the biggest success stories on Tmall Luxury Pavilion-became one of the first luxury brands to reach the RMB100 million transaction milestone in the world’s largest shopping event. Others are including the appetite to create personalized pieces of Cartier, Cartier Care, which is a digital platform that provides more sweet services to enhance its client experience and that seeks to create greater affinity towards the brand. These are all the responses to the new trends in a jewelry shopping experience that have been dictated by a younger,
more modern audience. However, based on my Cartier survey results, the majority of respondents are desiring to own Cartier items, and the main reason for those who don't have Cartier's products is because of the high price point and its mature style. which means that even Cartier has done lots of great jobs to engage the younger generation, it still has some gaps to let customers move the consideration phase to the decision/ purchase phase. Such as, I think Cartier can develop a collection for a younger style with entry price point, to pitch to a younger crowd, or launch limited editions of revived items from its heritage legacy to attract the affluent younger clients who desire to own rare products.
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CONCLUSION Observations, Insights, and Strategy recommendations Also, today, Cartier said demand has been growing at a faster rate than new shopping boutiques being built. For consumers who live in cities that don’t yet have a retail store, digital channels have become their first point of contact with the brand or even their first gateway to luxury. So, optimize the digital experience is critical for the business. For the in-store recommendations, Cartier can provide more digital content in their stores, such as craftsmanship and heritage videos, and open some pop-up store, which have more activities and display that can engage and communicate with a younger generation, to enhance the customer experience and let their customers know more
about their legacy. What's more, the loyalty program is always a good idea for consolidate loyalty. For the online recommendation, Cartier can create an AR filter to let customers can visualize products on themselves and a 360-degree product model to make up for the experience online, such as being unable to try on online. Offer immediate virtual personal advisors, or real-person advisors during work hours when customers navigate the items via the official website and provide the personalized service in every collaboration 3 party retailers. Besides, to consolidate loyalty, Cartier also can offer video streaming and personal video shopping for special customers.
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CONCLUSION Trend predictions for the future The rise of Covid-19 in 2020 and the increasing younger purchasing power impacted customer behavior, mindset, and the way the luxury sector provides its services. As I mentioned above, luxury is moving into a less formal, more energetic direction, also let many brands become the "lifestyle" brands. In the future, we can observe lots of brands implement brand extension and line extension to meet the lifestyle trend, just like Tiffany and Co's blue box cafe and Gucci garden, Celine offers a special range of coveted lifestyle products and so on. Also, the aim of seamless experience of digital technology is
the majority of the brands now developing. In the future, the more detailed try-on technics through augmented reality, or even the holographic projection, the more efficient payment methods and deep dive into a brands world through virtual reality & gaming world. What's more, personalized services are on trend, not only because many brands utilize big data to adjust the brand strategy, but also personalization can give a pampered feeling for customers, to further strengthen the experience and loyalty.
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REFERENCES Fortune Business Insights, (2020), Jewelry Market Size to Reach USD 266.53 Billion Forecast till 2027; Increasing Adoption of Technology in Manufacturing Process to Stimulate Growth, Says Fortune Business Insights™, available: http://www.globenewswire.com/en/newsrelease/2020/10/22/2112976/0/en/Jewelry-Market-Size-to-Reach-USD266-53-Billion-Forecast-till-2027-Increasing-Adoption-of-Technology-inManufacturing-Process-to-Stimulate-Growth-Says-Fortune-BusinessInsights.html Grand view research, (2019), Jewelry Market Size, Share & Trends Analysis Report By Product (Necklace, Earrings, Ring, Bracelet), By Material Type (Gold, Platinum, Diamond), By Region, And Segment Forecasts, 2019 2025, available: https://www.grandviewresearch.com/industry-analysis/ jewelry-market Christine Chou, (2021), How Cartier Kept Its Sparkle in China Amid Covid-19, available: https://www.grandviewresearch.com/industry-analysis/ jewelry-market
MDS, (2019), Cartier speeds on digitalization: launches Cartier Care platform, available: https://www.themds.com/companies/cartier-speedson-digitalization-launches-cartier-care-platform.html Businesswire, (2018), JGlobal Jewellery Market: Size, Trends & Forecasts 2018-2022 - Market is Dominated by Pandora, Tiffany & Co., Richemont (Cartier) and Swarovski - ResearchAndMarkets.com, available: https:// www.businesswire.com/news/home/20180227006215/en/GlobalJewellery-Market-Size-Trends-Forecasts-2018-2022---Market-isDominated-by-Pandora-Tiffany-Co.-Richemont-Cartier-and-Swarovski--ResearchAndMarkets.com MILENA LAZAZZERA, (2019), Fine jewellery stores are getting a modern makeover, available: https://www.voguebusiness.com/consumers/ jewellery-houses-luxury-retail-cartier-tiffany-bulgari Cartier official website, (2021), available: https://www.cartier.com/en-be/ leather-goods/women-s-leather-goods/bags-for-her
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Customer Relationship Management Report MLB_CHIEH-YI, LIN 29
