in the region has grown for luxury goods?
BF If the speed with which this development took place could have been a source of surprise, its scale was to be expected given the great economic power of the region.
AS Do you fi nd that the demand mix for your jewellery and watches varies around the world – for example, is the growth in Asia being driven by sales of your
“initiation” pieces rather than your most expensive ranges?
BF On the contrary, we fi nd a very similar structuring of our activity in all regions.
AS Is it true that when times are hard, the wealthy prefer to buy things that appear less ostentatious?
BF When times are hard, customers tend to turn to legitimate brands with authenticity and there is less showing off. For instance in the watch sector, bigger pieces are losing ground to more discreet timepieces.
AS Although you have always been clear that Cartier does not, and will not, create specifi c products for different regions,
The shift of economic power to Asia is undoubtedly one of the big geopolitical questions of this decade
GLOBAL WEALTH DISTRIBUTION AND LOCATIONS FAVOURED BY THE SUPER-RICH
entire world. Latin America and the Middle East are markets that we will continue to develop, either by opening new boutiques or by increasing the size of existing stores. We can still gain market share.
AS Your presence in India seems low-key compared with China. Why is that when India’s economy and the spending power of its HNWI population are also growing?
BF Indeed, we only have one boutique in India (New Delhi), due to high import taxes on luxury goods. Watches, for example, cost 50% more in India than in other markets.
So our Indian clients buy when travelling abroad. This is very unfortunate, because we see a very high potential in this country. But Cartier still has strong links with India as our maison had extremely close relationships with the Maharajas and the image of our brand is still very strong there.
AS Will the rising economic power of Asia mean that the likes of Shanghai or Hong Kong will inevitably replace established centres such as London and New York as the world’s most important cities?
BF The shift of economic power from Europe and North America to Asia is undoubtedly one of the big geopolitical questions of this decade. However, if the rise of new economic powerhouses is unquestionable, the decline of historic global centres of power remains to be seen.
Why should the rise of a new power imply automatically the decline of another? With an increasingly interconnected global economy this is more than questionable.
AS Investments of passion such as art are increasingly being seen as attractive alternatives to the volatility of traditional investments. Do you think this has contributed to the surge in demand for Cartier jewellery and watches?
BF One can say that what is rare and beautiful definitely has more potential to offer an alternative to the volatility of financial products. In the case of a limited watch edition signed by a renowned maison, or a unique jewellery creation, one does not take a lot of risk to believe that this item will prove to be an excellent investment. The rarity of a product enhances its value.
AS What would be your own investment of passion?
BF Art and vintage cars.
How and why is the A
distribution of global wealth changing?
South-East Asia, China and Japan now collectively boast more HNWIs worth $100m-plus than North America, a lead that is forecast to widen. On an individual country basis, the United States will continue to lead the table of centa-millionaires for
some years to come, though China is closing the gap.
Which cities do the wealthy consider the most important?
Established Western cities such as London and New York still top the tables, but with their emerging-economy counterparts such as Shanghai and Beijing jostling for position. Personal safety, economic openness and social stability are all key attributes that HNWIs are looking for
in a global city.
How are luxury brands targeting emerging
economies?
The Asia-Pacific region is proving to be an especially fertile market for luxury brands such as Cartier, which has recorded
a huge increase in sales there over the past five years. China is a particular target for luxury brands, though they are also
growing in Latin America and the Middle East.
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