Jewelry sector is the largest in the luxury goods industry with global retail sales amounting to $150 billion.
US.representing the biggest market of $ 43 billion.
Within the luxury industry, the following jewelers are the major players:
Tiffany, Cartier, under parent company Richemont, Bvlgari (can be pronounced Bulgari).
Both brands started with producing Jewelry, and the products are diversified. Tiffany puts its major focus on Jewelry and introduced its products concentratively. Bvlgari introduced its products in a more constant way, and plans to expand to non-Jewelry sectors.
Both brands have strong control of their distribution channels. Tiffany has only tiny of wholesales and tries to expand direct marketing. Bvlgari uses franchisees and intends to open shops in tourist places.
Both brands present on almost the same world market. Tiffany puts more efforts on the US and Japanese mkts and its image is stronger there. Bvlgari focus more on the European mkt, and more geographically diversified.
Recommendations:
Maintain market share in the US and Japan, however relocate operation risks in terms of store location
International presence, especially retail identity in emerging market.
Keep develop the opportunity and revenue generated by direct market.
Maintain the current product lines, however more research has to be done to truly understand its affluent consumers and to quantify their perceptions of the Tiffany brand and products.
[...] The New York store will be in the vicinity of Tiffany's, Cartier and Van Cleef & Arpels. Risk Factors The wholesale and retail market for high-quality rough and cut diamonds will provide continuity of supply and pricing; Tiffany's diamond sourcing achieves its financial and strategic objectives; Tiffany is able to pass on higher costs of raw materials to consumers through price increases; Tiffany is capable to compete with new competitors coming to luxury jewelry market with advantages in either brand marketing or production or both. [...]
[...] Investor Relations Tiffany & Co. TIFFANY vs. BVLGARI (2005) The structure Overview of Jewelry Industry Background of Tiffany History, Brand Identity Tiffany's Product Lines & Brand Extension Tiffany's Strategy in Distribution & Manufacturing Comparison between Tiffany VS Bvlgari &Recommendation Jewelry Industry Jewelry sector is the largest in the luxury goods industry with global retail sales amounting to $150 billion US.representing the biggest market of $ 43 billion. Within the luxury industry, the following jewelers are the major players: History 1837 - Charles Lewis Tiffany and John Young establish Tiffany & Young - Selling stationery and costume jewelry - The Tiffany blue box is introduced 1845 - Selling real jewelry and published its first mail-order catalog - Charles Tiffany fully controls the company, renamed “Tiffany & Late 1940s - Introduced silverware, timepieces, perfumes, and other luxury items 1955 - Tiffany was sold to Hoving Corporation which expanded Tiffany & Co. [...]
[...] Novel and Movie “Breakfast at Tiffany's” drive Tiffany brand more popular. Brand Identity Value : Timeless design, prestige, high quality and craftsmanship, emotional pleasure of owning Brand Equity : The Blue Box is symbol for quality and elegance. It confers status on both the person who gives it and the person who receives it Tiffany's Horizontal Extension Brand Extension strategy Focusing expand product line which still related to their core business, jewelry.(Pearl, Sterling silver) Utilizing its high standard materials in growing to other products such as tableware, accessories, watch. [...]
[...] Compare Sales among Brands Year 2004 Sales 2004 (million USD) Tiffany's Brand Extension Bvlgari highly emphasizes on diversify the brand, even step into Hotel & Resort business. Cartier, under Richemont, perform well in diversify especially in Jewelry and Watches. Tiffany is the least diversify compared with its main competitor. It performs well only in Jewelry but still need a lot of effort in growing into other businesses. Tiffany's Incentive in Affordable Market Capitalize on Tiffany's strong brand name Growing trend of middle-income living luxury Increase demand for mid-price level product Increase demand in designer/brand jewelry Comparison of Material U.S. [...]
[...] Why not licensee but supplier? The features of jewelry luxury, reliance on precious metal and stone, less importance of fashionable items compared to other luxury sectors, less urgency for local know-how, capital abundance through stock market. Diamond Sourcing De Beers and LVMH The key market for De Beers is rough diamonds. A market that was valued at $ 8.1 billion in 2002. In the same year the DTC generated turnover of $ 5.15 billion; a market share of 63%. [...]
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