Comparison between Tiffany VS Bvlgari

Résumé du document

It is an astonishing fact that the jewelry sector is the largest in the luxury goods industry with a global retail sales amounting to $150 billion. The biggest contributor is the US. The US market represents a total of $ 43 billion in this industry. Some of the major players in the luxury industry catering to the jewelry sector are: Tiffany, Cartier which is under the parent company Richemont and Bvlgari. Both Cartier and Bvlgari brands started with producing Jewelry, and thereafter diversified their products.

Tiffany did not pay extreme attention to diversification and therefore put its major concentration on Jewelry and introduced its products with a clustering effect. Bvlgari introduced its products in a more constant and organized manner, and plans to expand by involving itself with the non-Jewelry sectors. Both brands (Tiffany and Bvlgari) have strong control over their distribution channels. Tiffany constitutes only a tiny portion of wholesales and tries to expand its direct marketing means.

Bvlgari aims at large scale markets and therefore, uses franchisees and intends to open shops in tourist places. Both brands have occupied almost the same position in the world market. Tiffany puts more efforts on the US and Japanese markets and its image and reputation is stronger and solid there. Bvlgari targets the European market, and is more geographically diversified. Recommendations have been received for further expansion and diversification by these two brands. A brief description of these recommendations have been highlighted as under:

Maintain a fair market share in the US and Japan. However the relocation risks pertaining to operation risks such as store location needs to be accounted for.

International presence to be retained and created especially in the retail sector of emerging markets.

Keep up and develop the opportunity and revenue generated through direct markets.

Maintain the current product lines. In this regard, more research has to be undertaken to truly understand its affluent consumers and to quantify their perceptions of the Tiffany's brand and products.

Extraits

[...] 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. [...]

[...] Investor Relations Tiffany & Co. TIFFANY vs. BVLGARI 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 control 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. [...]

[...] On the supply side the company now controls around 50% of production. LVMH: Its jewelry and watch division includes TAG Heuer, Ebel, Chaumet, Zenith, Fred and Omas. De Beers LV, a joint venture with LVMH, the luxury goods company. Under a 10-year plan, approved by De Beers and LVMH, De Beers LV would strive to emerge as the leader in the top-end fine jewelry and diamonds. DeBeers and LVMH: 1st retail store in New York, June,2005. [...]

[...] 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. [...]

[...] 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. [...]