Photo: Bulgari

Bulgari CEO Sees China Luxury Market Recovering in Next 2 Years

By Dee'zeir Paul

Bulgari Adapts Amid China’s Luxury Market Slowdown

At the annual China International Import Expo in Shanghai, Jean-Christophe Babin, CEO of Bulgari, shared insights on the luxury market’s performance in China. Like many luxury brands, Bulgari, owned by LVMH, is feeling the impact of China’s post-COVID economic challenges. Babin noted that Bulgari’s brick-and-mortar stores have experienced a noticeable downturn in the region, while online channels, which can reach a broader customer base including smaller cities, have performed better. This shift highlights a change in consumer behavior, with more Chinese customers shopping online as economic factors make them increasingly selective in their spending.

Photo: Bulgari

The slowdown is affecting the entire luxury sector, from Swiss watchmakers to high-end fashion brands, all of whom are trying to regain momentum with Chinese consumers. Once a booming market, China’s luxury segment has not fully recovered, with LVMH’s sales in the region dropping 16% in the third quarter, slightly higher than its 14% decline in the previous quarter. Similarly, Kering SA has forecasted a significant dip in annual profits, noting a 25% drop in comparable sales for Gucci in China.

Babin remains optimistic about Bulgari’s resilience in challenging markets. He pointed out that the brand’s focus on women’s watches, a relatively stable segment, and its vertically integrated production—where Bulgari manufactures most components like cases, dials, and movements in-house—allows for greater flexibility in adjusting output to meet demand. This adaptability may help Bulgari ride out the current dip in demand and maintain a steady position in the market.

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