Laura Burdese, the incoming CEO of Bulgari, emphasizes a strategic shift away from continuous product launches, stating that Bulgari does not feel the pressure to constantly introduce new items. This approach aligns with the luxury brand's focus on timelessness, tradition, and the intrinsic value of its pieces, a strategy that she believes makes the industry more resilient, especially during uncertain economic times. This philosophy was highlighted during the expansion of Bulgari's Manifattura, its jewelry manufacturing site in Valenza, Italy.
The Manifattura Bulgari in Valenza, originally opened in 2017, has undergone a significant expansion, growing from 19,000 square meters to 33,000 square meters. This makes it one of the largest single-brand jewelry manufacturing sites globally, though slightly smaller than Pandora's facility in Thailand. The expansion, planned since 2022 due to surging demand, is expected to double Bulgari's production capacity by 2029. The facility currently employs 1,100 people, up from 650 in 2017, with a target of 1,600 employees by 2029, which would quadruple its production capability from 2017 levels.
To address a skills gap in the jewelry industry and support its growth, Bulgari has dedicated part of the expanded facility to a 'scuola' (school) in partnership with TADS (Tarì Design School). This school will train 80 aspiring jewelers annually in core skills like goldsmithing and gem setting, complementing the existing Bulgari Academy. This investment underscores Bulgari's commitment to its "Made in Italy" heritage and supporting the renowned goldsmithing traditions of Valenza, even as parent company LVMH acknowledges an "uncertain environment" for the luxury sector.
Despite global economic uncertainties and potential tariff risks from the US, Bulgari has shown strong financial performance. Morgan Stanley estimates Bulgari's total sales grew from $2 billion in 2020 to $3.47 billion in 2024, with approximately 80% of its turnover coming from jewelry. The company's high jewelry sales, including pieces like the Aeterna 140-carat diamond necklace priced at $40 million, have seen record-breaking revenues. The Valenza facility will primarily focus on more commercial lines like Serpenti and B.zero1, while high jewelry will continue to be crafted at its dedicated atelier in Rome, with future expansion plans for that site as well.
Burdese emphasizes that the investment in the Valenza Manifattura is a long-term strategy, stating that while the full manufacturing capability might not be immediately needed, the expansion is a step-by-step process over the next three to five years. She believes that in an uncertain world, luxury items, with their intrinsic value and timelessness, offer resilience and are precisely what consumers seek. She also noted that Bulgari's creative directors are empowered to balance connection with the brand's heritage and the freedom to inject new creativity, as demonstrated by the unexpected success of 11 high-end jewelry bags created for an event in Taormina, which sold out even before the event concluded.
