Abstract
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.
