|
Bulgari, the venerable luxury jewelry house, has announced a major overhaul of its New York boutique and its business. It hopes to drive revenue and share by concentrating on comparatively affordable accessories – handbags, watches – to complement the truly stunning pieces of fine art gems for which it is known. The move seems necessary, as the company has lost some of its glory-day glam from a generation ago, and is far outpaced by the likes of Chanel, Gucci and Louis Vuitton.
The move to be more accessible is a dangerous one. Tiffany & Company is feeling the financial pressures brought on by making the little blue box more available through malls nationwide. The upper-end –- and most profitable –- of its market has turned away, feeling the cache of the brand has been tarnished.
The same can happen to Bulgari, especially since the very definition of luxury has continued to evolve, and the company’s strategy seems behind the curve. Add to this the mass popularity and availability of brands like Vuitton, and Bulgari’s move seems “more of the same,” the antithesis of luxury brands.
Once one can afford anything – a jet, a six-figure watch, the walled spread on Anguilla – luxury transforms into something shaped by knowledge and access, not acquisitive binge. Do you “know” where the unique, hard-to-find, limited offering can be acquired? The best asparagus on the planet grows where…is available when…can be delivered overnight how? Then there are the absurdly few (and absurdly good) ounces of honey and jam handmade each year by a small convent of Italian nuns and sold through only one place in America. It’s not all that expensive; finding it has little to do with money and more to do with being plugged in to the right culinary group. Or what of the stunning fashion and home designs of Chinese-American wonder Han Feng? Not knowing of her is worse than not owning a piece of her work.
Buying luxury is no longer about money; the currency of knowledge is more powerful. In other words, the driver of luxury markets is not price, ubiquity, inventory availability or distribution, yet that all seems to be part of Bulgari’s move. The house claims it will push more product to mass marketers and mid-level retailers. Will it be a mass or luxury brand when this is all done?
Insiders at Bulgari report that the old fortress at Fifth Avenue and 57th Street was too “dark and secretive”; the new design means to flood the jewels with light and the airiness of an atrium. While we vote for current, compelling design, removing the air of secrecy – and the desire for insider knowledge – is a big mistake. Great design both tells stories and solves problems. Bulgari's new stores should advance the core idea here: Secrets drive demand for luxury goods. Make it harder – not easier – to get Bulgari, and markets with margins in tow will respond. The brand will be protected along the way as well.
Achieving this doesn’t require Bulgari to adopt (or reaffirm) the outdated notion of “exclusivity” or velvet ropes not to be crossed. Just the opposite. Secrets love nothing more than to get out. Word-of-mouth marketing is the most powerful form, as we all know. Enable a conversation, and in so doing find the paradoxical balance that is the new luxury: a secret shared.
 |
