At first, one might think it to be an unassuming coincidence — the convergence of the high-jewellery and luxury leather industries. However, Mary Katrantzou’s appointment as Bulgari’s inaugural creative director marks both a strategic and creative shift in Bulgari’s positioning within the luxury market. Aside from allowing Bulgari to capitalise on the synergies between these two different product categories within the luxury goods sector, it also cements LVMH’s dominance as luxury’s key player alongside the unveiling of a longstanding strategy to capture the leather market. LUXUO examines how the companies behind jewellery and watches’ biggest brands have adopted this and why a new appointment and a diverse portfolio is one step in a bigger plan in the race for revenues.
The appointment
News broke at the end of last week of Mary Katrantzou’s appointment as Bulgari’s inaugural creative director of leather goods and accessories, a first in the 140-year history of the Roman Jeweller. Mary Katrantzou and Bulgari have a natural affinity, as their ideologies and inspirations are similar. Bulgari CEO Jean-Christophe Babin states, “Mary shares with Bulgari not only the Greek origins but the search for excellence in the choice of materials, the way in which they are transformed with a particular emphasis on craftsmanship and a passionate love for colours.” This is a bold move for Bulgari and marks yet another high-jewellery brand putting an emphasis on its leather goods offerings.
Luxury Leather High Jewellery
Cartier and MontBlanc both displayed a variety of leather products that complemented their watch and jewellery ranges. In 2019, Cartier unveiled the popular “Guirlande de Cartier” bag. The red octagonal bag was shaped to mimic the look of a jewellery box and was soon photographed with a bevy of influencers, the likes of Poppy Delevingne, Bryanboy and Susie Bubble each clutching onto the geometric accessory. Montblanc’s “Soft collection” on the other hand, honed in on amplifying the versatility of men’s wardrobes with travelling backpacks, duffle and messenger bags alongside utilitarian totebags. Montblanc’s “Extreme 3.0 Leather Collection” was a new luggage line that once again catered to an on-the-go lifestyle approach comprising of backpacks, wallets, phone cases and luggage bags diversifying from its namesake pen.
Why then is the jewellery market expanding into leather goods? Simple answer: jewellery brands don’t need to expand, as the projected net value of the luxury leather products industry is around USD 271.83billion. This compares to the projected revenue for the global jewellery market of USD 310.90billion. In spite of this, the size of the leather and apparel products market has increased in recent times. This was reflected on the runways for the 2024 collections. Luxury fashion houses, from Louis Vuitton and Gucci to Burberry and Chanel, have placed an emphasis on leather and bags in both women’s and men’s showcases. It could be an attempt by luxury brands to increase their customer base if there is a downturn in the economy that would affect sales of luxury products. This is a good indication to other luxury namesakes that did not start as a leather brand, of the potential revenue available.
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The Battle Between Richemont & LVMH
Part of why Mary’s appointment is so monumental is because the inaugural role is also part of a bigger plan in the “game” of mergers and acquisitions. It is no secret that Richemont — the parent company that owns Cartier and MontBlanc — has a checkered history with competitor and fellow luxury conglomerate LVMH. Johann Rupert, the chairman of Richemont Group, put an end to acquisition rumours in May 2023. He stated that the company wasn’t for sale, after Richemont Group had rejected the idea of being acquired by LVMH. Richemont purchased a controlling interest in Gianvito Rossi, the famous Italian shoemaking house, in July 2023. As Richemont later stated, “Gianvito Rossi’s footwear embodies the finest expression of made-in-Italy craftsmanship, leveraging the longstanding tradition of luxury shoemaking in the artisanal heart of the San Mauro district…”, highlighting that conglomerates like Richemont already had an eye for conquering the world of leather goods and accessories.
The underlying competition between the Switzerland-based luxury goods holding company (Richemont) and the French multinational holding and conglomerate (LVMH) doesn’t end there. Richemont expanded its fashion and leather portfolio in 2021 by acquiring the renowned Belgian luxury leather goods maison, Delvaux which then enabled Delvaux to leverage the Group’s global presence and digital capabilities, while increasing its “omnichannel opportunities” and customer engagement. LVMH, not to be outdone by its rivals, acquired Grupo Verdeveleno 2023. Grupo Verdeveleno has been a Spanish firm for over 100 years, and is known for its expertise at tanning and finishing exotic skins. LVMH recognized that Grupo Verdeveleno would be able to invest further in quality, attention to the supply chain, traceability, and sustainability. It also enabled a large group of individuals who were artisans and craftsmen in the luxury leather industries worldwide.
Going back to Bulgari, the jewellery brand joined the LVMH umbrella in 2011, which is helmed by Forbes’ richest person in the world for the second year running, Bernard Arnault. Arnault is a magnate of commerce and understands how crucial the fashion and leather goods sector is particularly viable in LVMH, which saw sales for 2023 go beyond analyst forecasts and showcased a 13 percent increase in organic growth from 2022. New investments and diversifying portfolios are ultimately about the “long game” as seen with luxury group Kering that highlighted how short-term financial setbacks don’t spell disaster for long-term goals. Therefore, Katrantzou’s appointment at Bulgari further fortifies LVMH’s griphold on the fashion and leather goods sector.
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Continue the Legacy
The Bulgari appointment sees Katrantzou overlooking the creative direction of the maison’s leather goods and accessories range including the one-of-a-kind high jewellery collection of bags and clutches. However, 2024 was not Katrantzou’s first time partnering with Bulgari, having previously worked with the brand in 2019 as part of her Spring/Summer 2020 couture show. Katrantzou would later expand her collaborations with the maison through the “Serpenti” and “Omnia” collections. Arguably known for her audacious sense of colour and craft, Katrantzou successfully reimagined Bulgari’s best-selling Serpenti Forever bag collection drawing inspiration from the House’s archive to inform the narrative of the bag’s collection. This is the first step in the new “leather legacy” of the Maison and only time will tell if Katrantzou can apply the same success seen in her earlier Bulgari showcase to her next leather range.
Regardless of future success, LVMH’s Bulgari has already claimed the first stake on the commercial importance of leather goods in jewellery and watch Maisons by formally appointing a well-known designer. You can expect other Houses, including those under LVMH, to follow suit.
Mary Katrantzou’s debut collection as creative director of Bulgari’s leather goods and accessories will be available in Bulgari boutiques across the globe in August 2024.
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