BRAVE NEW WORLD
In the midst of our global pandemic, Bvlgari shows true leadership in crisis support, spurring more participation by other luxury brands. JeanChristophe Babin, Group CEO of Bvlgari, talks about saving lives, and how the company is rewiring for the future,
The two previous interviews I’ve had with the highly dynamic and charismatic Group CEO of Bvlgari, Jean-Christophe Babin, were in different settings, and of much different times. I remember this particular one most vividly: we were both seated in the beautiful lounge of the historic Four Seasons Firenze, overlooking its 15th century private garden, verdantly expansive and complete with art sculptures and an Ionic temple—the perfect setting to talk about Bvlgari’s Italian Gardens high jewellery collection. That was 2015, two years after JCB—as industry insiders refer to him— joined the Italian luxury jeweller from TAG Heuer, where he immediately and impressively made the transition with his deep knowledge in the art and métier of fine jewellery, right down to its poetic expressions. It was the perfect interview.
Today, it’s a different story. This interview was conducted almost newsroom-style with journalistic speed and urgency. For the first time, we weren’t talking about a high jewellery collection, watch complications, or the luxury business ... and certainly not in a lavish environment. We were both at home shooting emails across about hand sanitisers and working in isolation, where JCB joins legions of luxury industry leaders supporting the fight against this pandemic, while sustaining employment and global businesses. The world we know is no longer. And so, we talked about managing through the current crisis, the future of luxury in a world that is fast evolving, and someday, just someday, being back in nature.
The decision by Bvlgari to turn around manufacturing facilities to produce hand sanitisers in the fight against Covid-19, as well as your significant donation to the Spallanzani Hospital, are greatly respected, as they are necessary for the times. Thank you for inspiring and leading the luxury industry with such humanitarian actions; do share how you decided so quickly when the pandemic hit Italy.
Bvlgari’s choice to be immediately active in supporting the fight was natural and immediate. Of course, we wanted to aid our friends in China, from the moment the first case was declared in Wuhan. In the following days, the research centre of the Spallanzani Hospital in Rome isolated the virus in less than 48 hours, and instinctive was our decision to aid these wonderful people in their work. In 20 days, we donated a very high-definition 3D microscope which allowed them to speed up the search for a vaccine. An open dialogue with their virology team also informed us that disinfectant gels were needed most in hospitals and unfortunately missing. So, when the virus turned into a pandemic and swept Italy, we asked our historic
partner ICR fragrances for help. We stabilised the formula shortly after, and converted production in favour of sanitisers. We communicated the intent of our donation to first the Italian and then Swiss government, who helped us distribute to the neediest healthcare structures. Since March 26, we have been able to donate 6,000 pieces per day, then 10,000, and 12,000 pieces of gel per day at full capacity. We believe we are doing our part in a fair way, and maybe even suggesting other companies to take the same actions.
We are far from the end of this devastating pandemic. What are your predictions on the wider effects on the luxury landscape—positive and negative?
Nobody expected a pandemic of this magnitude in our time. It caught everyone unexpectedly, especially healthcare facilities around the world and certainly the economy. The negative aspect concerns the loss of human lives. On the other side, luxury will be the protagonist of recovery, by way of creativity, the sharing of beauty, and the ability through its own know-how to be able to look far and beyond any obstacle. Sometimes these days I think of our founder Sotirio Bulgari, on his journey from Greece to Italy through a thousand difficulties, in a period of incredible wars and restrictions, including the fact that the raw materials were obviously missing. His determination, foresight, and his being a visionary allowed him to create what Bvlgari is today: the greatest Italian jeweller in the world, master in the processing of precious stones, in the combination of colour. I think his story should inspire us all.
With that, as the luxury industry evolves together with consumer behaviour, what are your focus points in moving Bvlgari forward into this new era?
Luxury and fashion in general will continue to exist and as I said, they will be protagonists of a rebirth to which I hope we will be able to contribute soon. The customer’s approach will surely change, but it had already started to switch for some time. There will be greater attention to everything that revolves around sustainability, and more transparency for what concerns the product, from raw materials to the processing stages. It will be possible to involve customers more closely, making them participants in the excellence behind the product’s craftmanship and I believe it will be wonderful to show the work of the intelligent hands behind each creation.
Retail-wise, what are your thoughts on the industry talk on the acceleration of luxury brands into e-commerce?
E-commerce is an important topic and above all, these days we have become even more aware of how much social and digital channels are fundamental in everyday life, not only as an element of distraction, but also as a welcome, suggestion, and relationship. In fashion, e-commerce is absolutely easier than in the world of luxury. For example, you buy a dress knowing your size and if it doesn’t fit, you can send it back very easily. It’s a different situation entirely if we talk about jewels with a decidedly higher value, or watches with complicated mechanisms. When we consider jewels with precious stones, the customer’s propensity is to want to see the product, have it explained, and be able to choose it physically. There are at the same time and many projects to be implemented digitally in terms of CRM, omni-channel world.
As the branding and communication of luxury is also evolving—further into brand values, heritage, sustainability, humanity, and with deep sensitivity for the times—what do you have planned for Bvlgari?
Bvlgari has been dealing with these issues for a long time and we are building a lot for the near future. In terms of the client, we must undoubtedly foster authentic and human communication. We ought to keep on leveraging our iconic products, uphold the brand’s DNA through messages increasingly oriented towards sustainability, and be digitally savvy. With our values, we should go on to support via partnerships such as the now 10-year one with Save the Children. The numbers speak beyond all, which has embraced four different areas of intervention; emergency, education, poverty, and youth empowerment. More than 90 million dollars have raised and more than two million children were reached in 34 countries of the world.
Business and branding aside, how do you see the changes in product offering, if at all, moving into the future? How do you think people will view and buy high/fine jewellery, and how will you match their perspectives?
The approach will be different. When this unprecedented crisis started in China last January, we closed 50 percent of our boutiques in accordance with the directives of the Chinese government. Today we are happy to be able to say not only have they all reopened, but also that the results are better than last year. The reason is simple: after a period of incredible restrictions, of deprivation of liberty, the inclination for the whole purchase acquires significantly and becomes a reward, a pampering. We will see what the reaction of Europe and the rest of the world will be, but I am sure that in many cases our customers will behave like in China, and we are looking forward to welcoming them back to our boutiques.
How are you coping with the situation, not just business-wise but also as the CEO of a luxury giant with employees to take care of in terms of employment, morale, productivity, and safety, in such tenuous times?
It is a time when each of us, from me as CEO and then the management in general, need to be very careful to have the right tones and approaches with our teams. It is important to give as much voice as possible, to share projects, to listen. Working together to create the right strategies that we will be able to put in place when we can officially start again. We do not stop in the planning of our launches and events which we obviously have to rethink without creating gatherings.
Lastly, how are you managing personally, given your great responsibilities and greater challenges? How do you keep yourself on top of things—mentally, physically, and spiritually—and still have time for family?
In this forced isolation, I was very lucky because I would have had to reach Rome, when the airports were closed, and I live in Switzerland, where there are not the same restrictions of movement that there are in Italy. This allows me to see my family, be with my children, and take beautiful nature walks whenever I am able to take a break and recharge. I miss Italy and I miss travelling to meet the Bvlgari teams around the world, but I am sure I will do it soon.