Bulgari Invests in Highly Strategic U.S. Market

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Chief executive officer Jean-Christophe Babin believes the American market offers untapped potential.

“invested heavily” in the past four or five years in the U.S., as the Rome-based company “started much smaller” than its direct competitors in jewelry. The belief in the market will be sustained by investing in “competitive resources, on relevant products, communication and events. It’s not only about funding, it’s also important to be consistent and always to reach for excellence,” he underscored.

has 23 stores in North America, of which 19 are in the U.S, including its e-commerce, and four in Canada, including its online platform.Openings are expected at Hudson Yards in Manhattan next year and in Las Vegas at the Wynn, but exact opening dates are not confirmed. Babin said the company has been slashing wholesale accounts in the U.S. that distributed watches and jewelry. “In most cases jewelry will exit or is exiting by the end of next year from these wholesale accounts and we’ll be left in the U.S. with only five to six business partners carrying watches and jewelry,” he said.

Watch dealers used to carry jewelry, but this will also change, as Babin believes “jewelry needs its own specific environment and we want watch retailers to obsessively focus on our watches. We have demonstrated over the past years that we are not only a jeweler but also a very competitive and interesting watch maker,” citing the Octo or Serpenti watches as examples, blending Italian design and Swiss engineering.

“Both are very consistent with the ultra-luxury boutique concept of Bulgari hotels, counting 60 to 90 rooms, mostly suites. In Los Angeles, the project will essentially consist of private villas, while in Miami we are restructuring an Art Deco building.” Bulgari is applying the selective distribution strategy to its fragrance division as well, which was, Babin believes, “way over-distributed.” The goal is to “raise Bulgari as the most desirable luxury brand in the U.S., which seems ambitious but it’s important. We want the experience be superlative, regardless of the category and we want the level of quality and visibility to be consistent with jewelry. It’s an extreme sacrifice, but we have to do it.

 

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