In our previous blog, we wrote a detailed SWOT Analysis of an amazing brand, Victoria’s Secret. In this article, we are going to see a detailed SWOT analysis of Cartier – A french luxury goods conglomerate.
Cartier is recognized as one of the most prestigious jewellery manufacturers in the world. They have been operating since 1847, which is more than a century and they have a deep understanding of all types of jewellery. The company always believe in “never imitate, always innovate”.
Another reason why Cartier became the world’s prestigious luxury jewellery brand is due to its marketing strategies which were quite effective. Due to this pandemic situation whole world has become online because of which every business must know how to digitally present themselves. If you want to know more about digital marketing and how to use it for your brand – check out IIDE’s Free MasterClass on Digital Marketing 101 by the CEO and founder of IIDE, Karan Shah.
In this blog, we will cover the strengths, weaknesses, opportunities, and threats surrounding Cartier. But before we begin let’s dive into the history of the company and know about its products, services, and financial success.
Cartier is a French luxury goods conglomerate. It was founded by Louis-Francois Cartier in Paris in 1854. It is a brand that designs, manufactures, distributes, and sells jewellery and watches. It was controlled by his own family till 1964. Cartier has more than 200 stores in 125 countries and three historic mansions in London, New York, and Paris.
Cartier has a history of serving the royal people like King Edward VII of Great Britain. Even the most popular Forbes lists Cartier as the most valuable brand, showing that Cartier moved from 59th place in 2018 to 56th place in 2020. In 1874 his son Alfred Cartier took over the company but it was Alfred’s sons who gave this company a name worldwide.
|No. of Employees||7,500+|
|Market Cap||$12.1 Billion (Approx.)|
|Annual Revenue||$6.1 Billion (2016)|
|Net Income/ Profit||N/A|
Products by Cartier
Cartier has been in this industry for more than a century and deals in
- Leather Goods
Competitors of Cartier
Cartier has its competitors all over the world some of them are listed below
- Chisholm Hunter
- Saat ve Saat
- Signet Jewelers
Now that we understand the company’s key business, let’s look after the SWOT Analysis of Cartier.
SWOT Analysis of Cartier
Talking about the Cartier business, let’s understand how this corporation can cater to different individuals using SWOT analysis. SWOT Analysis of Cartier helps us to understand companies through the lens of internal and external factors. Internal factors refer to strengths and weaknesses, which can be controlled by the corporation.
To better understand the SWOT Analysis of Cartier, refer to the infographic below:
Now first let’s begin with the strengths of the company from the SWOT Analysis of Cartier
Strengths of Cartier
As one of the leading companies in its industry, Cartier has numerous strengths that enable it to thrive in the marketplace. These strengths not only help it to protect the market share in existing markets but also help in penetrating new markets.
- Legacy: Cartier was established in the year 1847, which started to sell mystery clocks and fashionable wristwatches, now became one of the largest luxury jewellery and watch brands of all time with maintaining the legacy of 175 years.
- Global Appearance: Cartier is a French-based international company that was established in 1847. It has 200+ stores across France, London, New York, and Paris regions and has more than 7,500 employees. It has a revenue of 6.1 Billion USD. Cartier has a strong brand name, awareness and global presence which makes it one of the biggest strengths of the company.
- Strong Brand Image: Cartier has a good presence and a wide variety of products. The company is also successful in keeping the product differentiation and superior quality products.
- Maintain Status Quo: To maintain its status in the market it does not encourage celebrity endorsement for building its brand image and also never put its products on sale and discount. The products are standardized and fixed priced which are non-negotiable across the globe to keep things the way they are presented.
- Wide Variety of Products: It deals in a wide range of products like for men and women, it deals in watches, perfumes, jewellery, lifestyle accessories, leather goods, tableware, wallpaper. It also focuses on new product lines and also introduces the existing product to a new segment, Cartier earns good revenue by selling its products in France, China and the Asian market.
Weaknesses of Cartier
Weaknesses are the areas where Cartier can improve upon. Strategy is about making choices and weaknesses are the areas where a company can improve using SWOT analysis and build on its competitive advantage and strategic positioning.
- Counterfeited Products: Nowadays has made it easier for design pirates to make fake products due to which fake products look more accurate and quicker than ever as detailed shots of the products are posted within a few minutes of launching them, so sometimes it is hard to trust them, due to which other brands also suffer somewhere.
- Aged Designs: Although the brand makes designs that are signature and enjoy global recognition, Cartier has been sticking to the manufacturing of old designs which gives its competitors an edge over it.
- Extremely Expensive: Cartier is a brand that is way more expensive than its competitors. However, people with disposable income are always willing to pay for it but somehow it is losing its potential customers.
- Unable to Capture the Interest of Youngsters: An old name in the luxury business is a lack of appeal for millennials who are more attracted towards luxury brands that follow trends and modern styles.
- Competitors Stealing Trade Secrets: Cartier has filed a lawsuit against its luxury jewellery competitor i.e. Tiffany & Co. for the brand stealing trade secrets of Cartier and now Cartier will soon take Tiffany & Co. to the court.
Opportunities for Cartier
- Investing in Digitalisation & E-commerce: Cartier has been investing in its online store for the past few years and e-commerce platforms have also been successfully established for the new customer base. According to Forbes, Cartier, Tiffany and Bulgari are digital geniuses for luxury watch and jewellery brands from which Cartier stood at the top position in terms of significant improvements maker to its digital platforms.
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- Brand Equity: Brand equity is a value premium that a company generates through its product with a recognizable name when compared to others. Cartier has a wide variety of products in which it deals especially in luxury jewellery and watches. The watches are going slow from 2016 and they only contribute three per cent of the brand’s 6.1 billion revenue. Cartier is working hard on brand equity to widen its range of products.
- Global Expansion: Cartier have 200+ stores but still, in a few countries, there is not much awareness about this brand, so by providing brand awareness to the products they can target their customers more globally. Cartier is facing certain turndowns in some categories, wider economic, shifting of consumer preference, and fluctuating demand.
- Strengthening Product Line: The brand has already a well-established name and is globally recognized for its innovations. Cartier has to be very particular about its marketing strategy, it can introduce its product to a new segment and should also focus on new product lines.
- Attract Tourists Through Capitalizing in Asia: Tourists from other countries often invest in goods of Cartier which the brand can take advantage of to capitalize more on nations like India and Europe where tourists are the main attraction.
Threats to Cartier
- Substitution of the Product: Easy substitution of the products is possible as various options are available to the customers such as Harry Winston, Tiffany & Co., Tous, Pandora Jewelry, etc.
- PETA: The backlash from People for the Ethical Treatment of Animals (PETA) over the use of animal skin for the products as most of the products such as belts, leather belt watches, wallets, etc are manufactured using leather and many products are such made that its deficit is from the animals and are dependent on that on a large scale.
- Online Competitors: There are some competitors which are taking over the market using online channels such as BlueStone and CaratLane. People are more pronto easement in buying if trust is built up properly.
- Fake Products: Several brands are replicas of well-known designer labels. People are hesitant to spend a lot of money on luxury jewellery and watches, so they go for cheaper replicas.
This ends our detailed SWOT Analysis of Cartier. Let us conclude our learning below.
Cartier is one of the oldest and most well-reputed brands, which has more than 175 years of experience in its industry which is almost over a decade. It has always been innovating new things and always has brought up new marketing strategies to overcome and minimize the risk it is facing.
Its motto is to be unique and never imitate only innovate. And even in this pandemic situation, it’s focusing on increasing the number of customers online by effectively using digital marketing strategies which are quite effective as customers are getting attracted by it.
Due to this pandemic situation, the whole world has gone digital so it’s necessary for every business just like Cartier to learn digital marketing strategies to show their existence in their industry. If you are interested in learning and upskilling, check out IIDE’s 3 Month Advanced Online Digital Marketing Course to know more.
We hope this blog on the SWOT Analysis of Cartier has given you a good insight into the company’s strengths, weaknesses, opportunities and threats.
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