Jean-Christophe Babin is ready to double on jewelry

«Bulgari not only wants to surpass Tiffany, but also to beat Cartier». As is his character, Jean-Christophe Babin, ceo of the Lvmh’s roman maison, does not mince his words. «The turnover of the big jewelry brands can easily double», he added, telling his vision of the world of jewelry in an exclusive interview with MFF on the sidelines of the mega event in Venice in which the maison presented Mediterranea, the new haute jewelry and haute watchmaking collection. A colossal event illuminated by world-renowned celebrities to highlight unique pieces with exceptional stones that evoke water, from a Ceylon sapphire of almost 70 carats to an emerald of over 200 carats. Jewelry remains the core business of the maison, which has gravitated to the ranks of Bernard Arnault’s group since 2011. «As in Formula 1, it is always nice to have a teammate. With Anthony Ledru, ceo of Tiffany, it is like being two drivers of the same team. Once on the track, however, each of us wants to win. Tiffany is ahead of us so far, but the race is long». Although Lvmh does not disclose the disaggregated figures of its brands, it should be obvious that during its leadership it has already achieved such a goal. «It should be enough to say that in a year such as 2022, with its difficulties, our sales in 50,000-60,000 euros luxury jewelry have risen sharply. An upgrade that also drags in other categories, such as watches, leather goods, perfumes, and hôtellerie, where we see great potential», the ceo emphasized.

What kind of moment is jewelry, Bulgari’s core business, going through?

It is doing very well. For several years now, we have been investing not only in creativity, but also in the purchase of extraordinary gems. The big investments that have been made in research and gem acquisitions strengthen the creative department that the events enhance. In Venice, we also present watches on the same theme, complex men’s watches that can reach up to 1 million euros. This last segment is all high-end, the ultimate excellence of Bulgari.

Can you define the growth potential?

Jewelry has the highest growth potential going forward: this is why all fashion brands are jumping on the jewelry train, because they have realized its potential. In fact, 25% of jewelry sold worldwide is estimated to be global branded, while 75% remains more local. It is the only luxury category where the most famous brands represent a minority of the total market. There is therefore a double growth factor.

Bulgari and Tiffany are Lvmh’s two jewelry engines. What is your relationship? Is there competition?

As in Formula 1, it is always nice to have teammate. With Anthony Ledru, ceo of Tiffany, on one hand we share a lot to better understand the market in terms of sourcing, traceability, and supply. There is a whole active collaborative part upstream, but downstream we are obviously competitors. They are our teammates, but once on the track, it is clear that we want to win. I think this is very inspiring and it has helped Bulgari to be more ambitious as well, as it not only wants to overtake Tiffany, which we know is bigger than Bulgari, but Cartier too. This is our approach, the race is still long.

You have just come back from China. How did you find it?

China is recovering very quickly from Covid-19. The opening of Macau and Hong Kong (major tourist destinations for the Chinese, ed.) show consumer appetite. In june, we will open our largest store in this country, encompassing the worlds of watches and jewelry, and a bar.

What about chinese tourists in the West? They are currently at 30% compared to pre-Covid-19. What is your understanding of that?

Chinese tourists are low compared to 2019 levels. However, regardless of the Chinese presence, there is a lot of tourism today, and we take advantage of the fact that Bulgari is a cult destination for tourists. When you travel to New York you go to Tiffany’s, when you go to Rome you go to Bulgari. However, there is a huge problem of visa capacity of European embassies, compared to a demand that is obviously much higher than 2019.

Speaking of tourism, how far along is your expansion into hotels and what part does that represent of the business?

We are opening in Rome in june. As a result, the chain is expanding with several projects underway both in construction, as in Miami and the Maldives, and in permission in Los Angeles and three other sites that I cannot announce yet. The minister of foreign affairs often says that we are «the Italian embassy of beauty», while they take care of the political and economic side (smiles, ed.). There is no other luxury reality that has entered the hospitality industry the way we did, as we are present in all continents.

Last year the fashion world went crazy for the metaverse. Now everything seems to be a bit of a standstill. What is your opinion?

For Bulgari it is still important. We still think that starting with blockchain, the digital world is totally compatible with the luxury world. They should not be mixed but combined. We started with reading blockchain data through a qr code engraved on the pieces or linked in other ways. This year we are also repurposing it here in Venice on the most important pieces. In terms of authenticity, traceability, provenance of stones, future maintenance, this also serves to resell a piece of jewelry.

What is Bulgari’s challenge today?

To grow more than its competitors, and to become the most desired brand and experience in the world.

Could you double your turnover then?

It is a difficult path that has no single recipe, as the turnover will grow in relation to how good we are at cultivating our desirability. There are no limits because the market is visceral, as it grows with the demographics and the enrichment of people, and there is so much unoccupied space by global brands that are increasingly recognized as a guarantee of international trust. The revenue growth limit is hard to set, as it is a market that can easily double. (all rights reserved)