Cartier, which bills itself as "jeweler of kings for the king of jewelers", seems to match that elite statement with ambitious plans in China.
After launching 16 stores in 12 cities in the country, the brand says its network will expand rapidly to 25 by the end of the year.
"This is still not enough. We need to have at least 40 to 45 outlets in 15 to 20 cities within the next five years," says Bernard Fornas, Cartier's president and CEO.
"We are at an initial stage, and the market is still immature. Within five years, the market will be a phenomenon to us. We will continue to invest more," the CEO notes during his recent visit to Beijing.
Compared to the first decade after Cartier came to China in 1992, the market is much healthier and the environment is much more positive, Fornas says. There was an acceleration in China's luxury sector starting in 2000 and growth at Cartier has ridden along with the trend.
"There are so many big cities with over 10 million inhabitants in China. In Chongqing for example, we have only one boutique at the moment and the market capacity allows us to have at least three," the CEO explains.
Main cities, such as Beijing, Shanghai and Guangzhou, are still Cartier's focus, but Fornas says numerous smaller cities like Shenyang and Harbin are also attractive.
"Secondary cities here have lots of potential. Most of them are bigger than Paris, and local people's purchasing power is strong," he continues.
China now tops Cartier's global expansion priorities. The company predicts it will be the No. 1 country for many luxury brands, including Cartier, within next five to seven years. China business accounts for a small percentage for Cartier now, but the CEO says it will reach double-digit percentages in five years with the existing rapid expansion.
"We are already one of the leading luxury brands in China in terms of revenue," Fornas claims, declining to reveal exact figures.
The CEO has visited every boutique in China. "For big projects, I usually go to visit before it is launched, making sure everything is right. I also want to see smaller outlets in person. I can always learn something from every trip."
Among the challenges for the company is China's geographic size. "The big distance from province to province is a challenge for us in terms of logistics and security," Fornas says, noting that the company is improving its organization and infrastructure in preparation for its expansion drive over the next five years.
After accommodating many entry-level customers who favor jewelry priced from 5,000 to 10,000 yuan, Cartier is now seeing more "high rollers" in China.
"In the past two to three years, we see an increasing number of young female executives come into our boutiques alone and spend 500,000 yuan on a piece of high-cost jewelry for themselves," Fornas says, adding that this is a trend that's also seen in mature markets such as Europe and the United States.
Modern women's independence and power are growing, and seeing the phenomenon, Cartier started the Cartier Women's Initiative Awards last year. It is an annual international recognition of innovative business projects led by women.
Aimed at start-up phase initiatives, the awards are given each year to five entrepreneurs on different continents.
The prize includes a $20,000 grant and coaching from management consultancy McKinsey & Co and graduate business school INSEAD for a full year.
This year, a Shanghai girl, Hou Lerui is among the candidates, selected for her initiative of setting up umbrella vending machines in Shanghai's underground stations and capitalizing on their potential as mobile advertising spaces.
"When Cartier's name is mentioned, most people think of the red box and the gift. A gift is an offering and the sign of a commitment," Fornas says. Through the campaign, the brand aims to pass along creativity, entrepreneurship, generosity and audacity.
"The success is not out of the blue," he says. "You have to take risks. Unless you take risks, you go nowhere."
Such a principle also applies to Cartier. It was a risk when it entered China in 1992. But later it proved that those who arrive early can take a leading position in the market.
