Future Trends in the Luxury Sector: Implications for Cartier

This assignment discusses the future trends in the luxury sector and their implications for Cartier, a French luxury goods conglomerate. It also explores business models and frameworks that are effective for the company's success.

Luxury Marketing
Management

Table of Contents
INTRODUCTION...........................................................................................................................3
PART 1............................................................................................................................................3
PART 2............................................................................................................................................5
CONCLUSION................................................................................................................................6
REFERENCES................................................................................................................................7

INTRODUCTION
Marketing refers to the process of buying,m selling, purchasing and advertising the goods
and services of the company so that the firm can offer products and services to it customers as
per their needs and demands. Marketing management indicates to the administration all of the
action, activities and operations that are conduct against the luxurious products and services of
the company which are occurred and create by the management of the company for running and
operating the business (Arrigo, 2018). This assignment is based on CARTIER international SNC
which is a French luxury goods conglomerate which designs, produce, distribute and sells
jewellery and watches. This firm was founded in 1847 by Lopuis-Francois Cartier and
headquartered in Paris, France. This company operated its business in different nations of the
world. This report will discuss about the future trends in the luxury sector and their implications.
Further will define about business models and frameworks that are effective for the business of
the company for their obliteration and examination.
PART 1
Future trends in the luxury sector-
Future trends indicates to the changes and modification in the existing business and
products or services of the company. When the needs and demands of the customers and target
audiences are changes as per the external environment then the changes are occurred and the
company are also make differentiation in their business. For example, there are various
organisation operating their business in different sectors so when the changes are generated in

the demand of the consumers they make modifications in their existing products and services.
For instant, ASOS is a clothing manufacture or selling organization which also make change in
in its existing designs when changes are occurs in its potential customers due to modification in
fashion.
Another reason of future trend is maximum use of new technology, increasing
availability of Big Data and others. For example, jewellery industry is a luxurious sector in
which there are several change are occurred due to generate change in consumer's taste &
preferences. There are different trends in this sector one of them are defined as below:
How to benefit social media and better connect with customers
Social media is a great tool which help in operating and running the business of the
company in effective manner (Chou and Jin, 2018). Now these days, social media is in trend
because most of the organisation use it as a promotion and advertising tool. In current era, highly
individual use this tool for work purpose and their personal use. So with the help of this tool, the
accessory industry can also use this with various motive. Some of them are mentioned as
follows:
Advertising goods and services- Social media is important so it can be used by accessory
sector so that the firm can aware its target audience and potential customers with the products
and services which are ma manufactured by those firms which deals in this industry (Chu, Kamal
and Kim, 2019). By using different adverting tools of this trend like Facebook, Instagram,
Twitter and others, companies can promote its commodities at global and international extent.
Getting attention of customer- It is another benefit of social media which can be gain by
the companies which are dealing in accessory sector. Because when they use social media as a
promotional tool then they can attract their different consumers with the brand and products
which are manufactured by them as per their target audiences needs. With the help of
promotional components, they can communicate about the price, product and value of the
goods. All effective and appropriate then they can get attention of their potential customers.
Better connect with consumers- Social media play an crucial role in connecting people
and developing relationships by offering a great customer service to them. Now these days
people are working and they not have much time to go market so with the help of social media
they can analyse different market in which they want to purchase product. For example, By
offering a social media listening, the organisation can connect people by offering them this kind

of customer service. With this service, they can share their views regrading products and
services, prices and others. This social media tool can be used by the company also to provide
information to its regular customer to provide information about their new products so they are
update and aware with its new productions.
PART 2
Company overview- This task is based on Cartier which is a French jewellery and watches
manufacturing, selling distributing company. It was established by Lquis- Francois Cartier in
Paris in 1847. this firm operate its business with the help of its two product like jewellery and
watches in more than 200 stores in 125 nations in London, new York and Paris etc.
Products- The products which are manufactured by Cartier are Jewellery products and watches
(Donzé and Fujioka, 2018). This firm has also produced the other products like Panthere, Tutti
Frutti, Cartier Diamonds and others. In other segmentation it also have other products like bags,
leather good, fragrance, eye wear, cufflinks, lighter, key chain, belts, writing instruments etc.
Price- The administration of this respective organisation use competitive pricing, luxury pricing
and high pricing strategy for its product because the quality of it products are also high .
Promotional channels and communication tool- to promote and advertise its products the
management of Cartier use different publication like, Rogue, India today, Famina, Business
today etc. The administration of the firm also use online channels and online marketing for its
products.
PESTLE Analysis: This analysis consider as a tool which is used by marketers of any
organisation to monitor the external factors which can impact on business organisation. This
analysis is used by management of Cartier organisation to know the impact of factors on its
business that are as described:
Political factor – It is all about government intervenes that includes political stability or
instability, trade regulations, foreign trade policy, tax rate etc. which impacts on Cartier
organisation such as:
Positive impact – Decrease in tax rate are advantageous for Cartier organisation as it
has to pay the less amount while running its business which helps to increase the production
level as well as profitability of company (Liu, Perry and Gadzinski, 2019). To run a business it is
important that an organisation should have less expenses and more revenues which can help to
increase the profitability and impacting positively on organisation as well as UK's economy.

Negative impact – Fluctuation in foreign trade policy affect negatively Cartier as it
stimulate the import and export the jewellery more expensive that increases the deficit for
organisation by increasing expenses.
Economical factor - This factor states the significant impact on business organisation in
which that detailed how they are profitable (Lu, Filieri and Rahman, 2019). It involves exchange
rate, interest rate, economic growth, disposable income etc. that can affect on Cartier
organisation such as:
Positive impact – Increase in disposable income helps to increase the income level of
people that attracts customers to purchase jewellery according to their choice which helps to
increase the sale of business organisation.
Negative impact – On the contrary, decrease in disposable income limits the spending of
people which can reduce the sale of business organisation and increases expenses of company.
Social factor – This is social cultural factors that involves population growth, health
consciousness, career attitudes that helps marketers of Cartier organisation to know the
impacts and how it can drive such as:
Positive impact – Increase in population and focus on customer wants helps Cartier
organisation to increase their sale as people will show interest in jewellery and other accessories
that will help to increase the number of customers.
Negative impact – Changes in culture and decrease in population reduced the business
activities which impacts negatively on respective business organisation. Moreover, changes in
culture also affect the business as marketers take much time to understand the new culture.
Technological factor – This factor is related with technological advancement where
organisation accept the new technology in order to deal with changes. It involves new
technology, innovation etc. which can impact on Cartier organisation such as:
Positive impact – By accepting new technology Cartier organisation can provide its
products and services through online system that helps customers to select the jewellery and
purchase it which helps to increase the profitability.
Negative impact – It may be disadvantage for Cartier organisation that to spend the
high investment on new technology and researching the new method (Ryding, Henninger and
Cano, 2018). Moreover, marketing activities also may be expensive which can fall the
production level of organisation.

Legal factor – This significant the legal legislation such as health and safety, consumer
rights, product labelling, product safety etc. which are important for organisation to follow. It
impacts on Cartier organisation such as:
Positive impact – By maintaining product labelling and brand management it attracts
people more and create a strong relationship between customers and organisation which helps to
increase the current sale as well as future sale of organisation (Eom, Seock and Hunt-Hurst,
2019).
Negative impact – In case of not following legal factor such as product safety and brand
management organisation cannot retain customers for long term as lost their trust which can
reduce the selling number of units.
Environmental factor – This factor become important for all organisation as they need
to follow the environment laws in order to run a business. In this factor organisation need to
follow those legislation which are aligned with environmental safety such as carbon, pollution,
increasing scarcity of raw material etc. which impacts on Cartier organisation such as:
Positive impact – Cartier organisation follows environmental protection law that helps
to deal smoothly with difficult issue such as wastage management, waste on land, reduce the
carbon effect and reuse of wastage which increases business activities and impacts positively on
UK's economy by keeping safe environment.
Brand positioning Map
It is a dynamic technique where the business uses perceptual mapping to visually display
the position of the brand in the market. The brand positioning map could consider two more
components but to execute things simple and easy to understand, there can be two variable which
can be used. In Cartier, the management of the company can use this model of brand position
through they can determine the position of the firm in the market. There are some stages of this
framework which are mentioned as follows:
Monitor the current brand position- In this phase, the management of the company can
determine the actual position in the market. In Cartier, the administration of the company, in this
phase, can monitor the current position of the firm on the basis of quality of the products, sells,
income, profit and others. It will help the company in determine the current brand position of the
company in the market or industry in which it deal and operate its business.

Determine the competitors- It is the next phase, in which the administration of the
company can determine its rivals who can create competition for this company in different ways.
For example, there are various organisations which create competition in different manners like
in term of price by using different pricing strategies, in term of product by manufacturing
different kind or quality products etc.
Conduct competitor research- In this step, the management of the company can conduct
competitor research to identify its rivals and competitors who are also running and operating
their business in accessory industry and generating competition for Cartier (Fernie and Sparks,
2018). By conducting this kind of research, the administration can monitor its rivals who
generate competition by manufacturing similar products and services according to this respective
organisation.
Identify the brand uniqueness- It is next phase and very crucial for the company because
in it, the administration of the company can do analysis regarding the uniqueness of its products
and services which are manufactured and produced by the firm (Jain, 2018). In Cartier, the
company offered high quality products as per their needs and demands which make unique to
this company from other. Fro example, in its watch product, it use different kind of technology
which help in making unique this product from its rivals.
Create positioning statement- It is the last step, in which the company can create
positioning statement for analysing the position of the brand in the market. In it, the management
of the company consider its crucial things like uniqueness, quality product in its positioning
statement so that the firm can effectively analyse the position of the brand in accessory indusrty.
CONCLUSION
As per the above information, it can be summarised that marketing is an important
activity of selling, buying, promoting and delivering the goods and services of a company as per
the needs and demands of the target audiences of the firm. Social media is an important tool
which in trend and beneficial for the company for the promotion of the products and attracting
consumers of the firm. With the help of it the company can aware its consumers with the goods
and services of the firm. Pestle analysis is cicatricial to analyse the impact of external factor on
the business of the organisations. Brand positioning map is effective form monitoring the
information about the position of the company in a specific sector and industry.

REFERENCES
Books & Journals
Arrigo, E., 2018. Social media marketing in luxury brands: A systematic literature review and
implications for management research. Management Research Review. 41(6). pp.657-
679.
Chou, W. H. and Jin, B., 2018, June. Micro-Blog Marketing of Luxury Consumption: The Role
of Micro-Blog Contents and Envy in Purchase Intention: An Abstract. In Academy of
Marketing Science World Marketing Congress (pp. 189-190). Springer, Cham.
Chu, S. C., Kamal, S. and Kim, Y., 2019. Re-examining of consumers’ responses toward social
media advertising and purchase intention toward luxury products from 2013 to 2018: A
retrospective commentary. Journal of Global Fashion Marketing. 10(1). pp.81-92.
Donzé, P. Y. and Fujioka, R., 2018. Global Luxury. Springer.
Eom, H. J., Seock, Y. K. and Hunt-Hurst, P., 2019. Purchase Intention toward Luxury Brands
among Young Adult Consumers from Social Comparison Perspective. Journal of
Marketing Management and Consumer Behavior. 2(4).
Fernie, J. and Sparks, L. eds., 2018. Logistics and retail management: emerging issues and new
challenges in the retail supply chain. Kogan page publishers.
Jain, V., 2018. Luxury: not for consumption but developing extended digital self. Journal of
Human Values. 24(1). pp.25-38.
Liu, S., Perry, P. and Gadzinski, G., 2019. The implications of digital marketing on WeChat for
luxury fashion brands in China. Journal of Brand Management. 26(4). pp.395-409.
Lu, X., Filieri, R. and Rahman, M., 2019, July. HARNESSING THE INFLUENCE OF SOCIAL
MEDIA IN ONLINE LUXURY BRAND COMMUNICATION. In 2019 Global
Fashion Management Conference at Paris (pp. 105-128).
Ryding, D., Henninger, C.E. and Cano, M.B. eds., 2018. Vintage Luxury Fashion: Exploring the
Rise of the Secondhand Clothing Trade. Springer.
Online
Brand Positioning Map. 2018. [Online]. Available Through:
<https://blog.hubspot.com/sales/brand-positioning-strategy>.