The Hindu Business Line : ‘We would like more opportunity in India’

After wooing maharajas of yore and the high net worth individuals of today, Cartier has launched it first boutique in India. The long-standing association with India for Cartier was born in 1911 when Jacques Cartier, a family member, travelled to India to present his Rue de la Paix creations to Indian royalty. Enamoured by the creations, Indian princes made frequent visits for mounting their precious gemstones in platinum settings according to Parisian fashion. Thus was born the Cartier legend in India.

For those seeking the quintessence of Cartier, the company has not disappointed its loyal customers. The company’s standalone boutique in DLF’s Emporio Mall is a part of the 51:49 joint venture with Navratna Bharat Retail to undertake single brand retail trading business.

The boutique is designed by Bruno Moinard, the architect-designer responsible for all Cartier boutiques globally. In an interview with BrandLine, Patrick Normand, Managing Director (Asia-Pacific), Cartier, speaks about the ethos of the brand and its future in India.

Cartier has high brand recall in India. How will you be utilising this to the brand’s advantage?

French company Richemont FZE owns brands such as Cartier, Van Cleef and Arpels, Piaget, Vacheron Constantin, Jaeger-LeCoultre, IWC, Panerai and Montblanc. The group has a strong focus on jewellery and watches. India has been seducing us since the beginning of the century. We had a strong relationship with the Maharajas in India. In our opinion, after Europe, Asia Pacific is the fastest growing region for us to develop.

India-inspired creations have been very successful at the global level. Has Cartier been inspired by the Indian ethos?

Cartier has influenced the Maharajas and has also been influenced by India, which has a rich heritage in jewellery and designs. It is clearly a blend of East and West. It has clear mystery in the jewellery as well. Cartier creates for the global audience and many of the India-inspired creations such as the Inde Mysterieuse collection evokes the creative heritage of India through its sources of inspiration, motifs and craftsmanship. There is some blend of Indian inspirations, such as the paisley. It is a very iconic symbol of India. The Indian-ness is very global.

So who is a typical Cartier customer in present day India?

A luxury customer can be from various backgrounds. However, they are those who can cherish and enjoy luxury. You can get a Cartier product for as less as Rs 10,000. Cartier is very famous for the strong personality of its creation. Therefore, if we create a product that is inspired by, say, a flower, it will not be a daisy but an orchid. Similarly, an animal-inspired creation will be a panther and not a cat. The creations are extremely strong and combine elements of the male and the female.

But compared to many global markets, the luxury market in India is still to take concrete shape. Do you see it as a hindrance?

India has a strong penchant for luxury products and the market is leapfrogging in its growth. India currently stands only at about 0.1 per cent to 0.4 per cent in the global luxury market. However, the high net worth individuals are taking the market to a growth path. Indian art has progressed strongly in the global market. For Cartier, the core of luxury lies in precision, aesthetics, colour and material. With proper exposure and availability the market will grow.

Do Government regulations on luxury products bother you? If yes, what are your key expectations from the Indian Gvernment?

The main issue is regarding import duties. It is not very exciting to expand in India as the high duty structure means that luxury companies have to subsidise their products at some point or the other. Among the many ticklish issues that the luxury goods makers are facing in India is high import duties, specifically the countervailing duty. When you put all the duties and taxes, it comes to over 70 per cent for the company. We would much rather strengthen our presence in markets such as West Asia and China.

And what about Foreign Direct Investment (FDI)?

We would like to have more opportunity in India. We have deeper interests to invest more in the country as the luxury market here is growing rapidly backed by a large number of high net worth individuals. What is needed is the right level of service and ambience. We have a strong European approach to expansion. We would like to go step by step in India.

Besides watch and jewellery, will there be a diversification?

Any Cartier product will have to have timelessness. We, however, will never be seen in apparel. Jewellery and watches will remain our core focus currently.

So are luxury clients as price-sensitive?

People are price-sensitive everywhere in the world. Our job is to make sure whatever we create is in line with the perceived value. It has to have deliverables in terms of quality, craftsmanship and value.

Has luxury been affected by slowdown?

I can’t comment on that.

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High duty on luxury products a stumbling block: Cartier
Armani, Cartier allowed single brand retailing

More Stories on : Interview | Retailing | Gems & Jewellery

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