Brand extension, the art of leveraging a brand's image and expertise in one domain and extending it to an entire range of products, has become the norm in the luxury industry. It is a perfectly valid way to grow a luxury brand's business. After all, were it not for brand extension, Hermes would still be making nothing but saddles. This said, it doesn't come without risk. Get it right and a brand enhances it's image, client base and bottom line. Get it wrong however and a brand is seen as cynically cashing in on the naïveté of its customers, especially where a product has only a tangential connection (if any at all) to its core product. A shot of Roberto Cavalli vodka anyone?
During my recent trip to Milan as a guest of Bulgari, I was treated to a presentation of the brand's Spring/Summer 2010 collection of handbags, travel bags and sunglasses. In the process, I received an impromptu lesson in brand extension done well. The risks of a poor brand extension strategy for Bulgari is probably greater than for a brand with less heritage and history. Conscious of the pitfalls, the brand has invested heavily in production facilities where they can tightly control every aspect from design to production. In 2005, it acquired a factory in Tuscany (a region of Italy traditionally known for its fine craftsmanship of leather goods) where it employs approximately seventy artisans and where most of their leather accessories are produced.
As one would expect, each accessory is made individually by hand and requires anywhere from six hours for the "Chandra" handbag, a roomy shoulder bag available in a variety of colors and materials, to twenty-five hours or more for a heavily embellished evening clutch. The crystal and black pearl embroidered "Aida" evening pochette (pictured above) from the Winter 2010 collection for instance which features silk embroidered with black onyx and crystal pearls plated with onyx pigment requires approximately 25 hours of labour just to complete the beautifully rich embroidery alone.
Similarly, the production process for the "Leoni" handbag (pictured below) in what the brand refers to as "waved and pearled patent leather" is time-consuming and complex requiring the mastery of a team of exceptionally skilled craftsmen. Once the tannery has produced the plain patent leather, each piece is worked manually with specially designed bladed instruments to create the “cut” effect. The leather is then manually washed, dried and re-worked to create the delicate wrinkled final effect. It takes approximately 20 full days to produce just one bag. While the visual effect is unique, touch is what is required to truly appreciate the intricacy of this technique.
The pieces I had the privilege of examining up close displayed the kind of exceptional craftsmanship and attention to detail commensurate with the "Bulgari" brand image both in terms of quality and in terms of creativity and innovation. The bags are clearly designed to outlive trends, they fit comfortably on your shoulder or in your hand and have clasps that click securely in place and stay put once fastened. Most importantly, they look and feel luxurious without being ostentatious - a particular concern for many consumers of luxury given the times. One would expect nothing less from the 125 year-old Roman fine jewelry brand. In other words, an example of brand extension done well. For more information or to view the entire range of Bulgari leather goods and accessories, please visit Bulgari's official website.
Sincerely,
The Luxe Chronicles
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