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How Bvlgari kept its sparkle in China amid COVID-19

chinadaily.com.cn | Updated: 2021-02-03 07:30

Kolia Neveux, President of Bvlgari Greater China [Photo provided to China Daily]

Editor's note: Despite global uncertainties and the economic downturn caused by the COVID-19 outbreak, China is on track to embrace the dual-circulation development pattern as it enters the 14th Five-Year Plan period (2021-25) in 2021, which also marks the 100th anniversary of the founding of the Communist Party of China.

China Daily website asked senior executives of multinational companies to share their views on the country's economic development and their companies' business strategies in China.

In this episode, China Daily website talks with Kolia Neveux, President of Bvlgari Greater China.

1.How do you see the role of the Chinese market in your global operations? How much does China contribute to your total revenue globally?

The Chinese market has always been a core market for global luxury brands. In 2020, we chose China as the first stop after the global launch in Italy for the Bvlgari Barocko High Jewelry Exhibition. We believe there is a great opportunity to prioritize China as a major market.

The major strategy of entering the Chinese market for luxury brands is to fully understand the local market and create connections between brand DNA and local culture. We are very confident in the long-term growth of the Chinese market.

Speaking of other places, in addition to China, we are also doing very well in the Korean Peninsula and Russia. Thanks to our focus on the Chinese market and the deep understanding of Chinese cultural identity, we have been able to obtain extraordinary growth in China in the past 20 years.

2.How has your company benefited from the country's reform and opening-up policy?

The Chinese government's policies have always encouraged trade relations with foreign-funded enterprises. The market environment has been open, transparent and predictable, which has helped us optimize our investments and form a comprehensive plan to enter the market.

We believe the China International Import Expo is a symbol of China's continued openness. It has brought sustainable success to China in the past 40 years.

This enables Bvlgari to showcase our products and creativity in the world's largest market, which also brings cultural exchanges between the two countries.

As an outstanding representative of Italian culture, Bvlgari will continue to promote cultural exchanges between the East and West.

Bvlgari is committed to meeting Chinese consumers' expectations for luxury goods while conveying their brand values ​​and concepts.

Bvlgari also understands the importance of fulfilling sustainable development and corporate social responsibility obligations. Bvlgari integrates the concepts of sustainable development into its core business strategy, striving to achieve a balance between social, environmental and economic goals. This is the only way a brand can obtain the lasting interest and support of its consumers.

3.How do you view the potential of the Chinese market? What do you see as the most resilient part of the Chinese economy, and how do you plan to align your business with it?

The achievements of the Chinese market in the fight against the pandemic have attracted the attention of the world and have also sent a clear signal the Chinese economy has rapidly recovered from the epidemic to strong growth.

Looking at this year, the high jewelry consumer market has performed very well, exceeding our expectations. As a result of Chinese consumers unable to travel during the pandemic, domestic consumption has grown significantly.

In order to seize this opportunity, this year we held exhibitions in Shanghai and Beijing. Next year, Bvlgari will further increase its investment in the high jewelry segment.

As a brand with 136 years of history, our goal is to not only provide customers with a satisfying shopping experience, but also boldly innovate and deliver new experiences to customers.

Every press conference is critically important to us, not only for updating existing customers, but also for potentially acquiring new customers interested in the brand. It is also the perfect opportunity to showcase the history and culture of the brand.

4.China's economic development is experiencing growth pressures amid global trade uncertainties. What's your investment plan for the country? What kind of new initiatives will you introduce to continue driving the business growth in the country?

In China, we have always attached great importance to strengthening brand localization, as well as linking brand DNA with local culture. Physical retail is still as important as always, and digital has also become indispensable as well.

E-commerce platforms can deliver a genuine shopping experience while providing the same excellent service as physical Bvlgari boutiques, not to mention their complementary roles as regards content and information.

During the pandemic, our online platform has become the No 1 sales channel in our global (online and physical) stores, increasing by more than 100 percent. With the rapid development of online stores, we believe that our leading position is sustainable.

At the beginning of 2020, at the height of the pandemic, Bvlgari opened a WeChat video account. As China's short video ecosystem matures, Bvlgari strives to maintain close contact with local consumers by creating online content and digital experiences.

With an excellent response to the pandemic, China is leading a rebound in luxury sales. In 2021, Bvlgari plans to develop its business in all aspects by not only continuing to improve e-commerce operations, but also continuing to expand its physical store footprint.

5.What's your impression of Chinese consumers, and what's your localized strategy in China?

In the past 15 years, Chinese consumers have formed a complete and mature understanding of luxury consumption. In general, Chinese consumers are younger than Bvlgari's global consumers.

Compared with European consumers, Chinese consumers have contact with luxury goods at a younger age. The transparency and fair trade of the jewelry industrial chain is becoming an important factor affecting the younger generation when considering jewelry brands. In the Chinese market, a brand committed to social responsibility is becoming a requirement for winning the support of Chinese millennials and generation-Z consumers.

Bvlgari released the Divas' Dream gift box with a coming-of-age theme as well as a short film titled Age of Blossom, directed by young Chinese director Mai Zi. By focusing on specific points in someone's life, such as a coming-of-age party, Bvlgari hopes to accompany its consumers through important life experiences.

Chinese consumers are paying more and more attention to not only luxury goods themselves, but also the values ​​ the brands carry. It is worth noting the Chinese e-commerce industry, which is dominated by young consumers, has achieved triple-digit growth in China. This strong trend is particularly valuable for the global luxury goods market that is in urgent need of recovery during the current pandemic.

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