Cartier targets China hotels in Asian expansion

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Luxury jeweller Cartier is focussing more on travellers in China and Chinese consumers as part of its Asian business strategy. Cartier is opening three additional hotel boutiques in the next year to compliment the single franchise boutique currently in Beijing's Palace Hotel, Cartier president and chief executive Richard Lepeau told The Asian Wall Street Journal in an interview.

Under Chinese law, Cartier is required to franchise its stores and its local partners plan to open a second larger boutique in Beijing and two in Shanghai. Over the next three years, Richemont Group subsidiary, Cartier plans to open a further six outlets in China, said Lepeau.

Japan remains Cartier's largest Asian market by far, followed by Hong Kong second and South Korea. But China, said Lepeau, as the world's most populous nation "will become a major player" in the luxury goods business. Cartier said it recently became the only luxury house to open an office in China.

Because of high import duty, prices in China are almost a third higher than the already expensive markets of Hong Kong. However duties on luxury products are expected to drop when China joins the World Trade Organization, expected later this year.

Lepeau commented: "There is a lot of money flowing in China. The Chinese could become very fond of luxury goods. When they buy Cartier they are buying a piece of French tradition. China is a very old civilisation and people appreciate that sort of thing."