March 7, 2013

The success of Bottega Veneta, explained

Bottega Veneta

Following the release of the exceptional 2012 sales and profit figures, Bottega Veneta CEO Marco Bizzari explains, in an interview, their meaning for the company from Vicenza, Italy having conquered the world of luxury.

The sales in excess of 1 billion dollars, little under 1 billion euro, and the corresponding profits, are all the more remarkable considering the size of the Italian house relative to those of its competitors, but also to the members of the exclusivist perfomers’ club it adds to the ranks of, Marco Bizzari agrees.

They are, mainly, Gucci, Prada, Hermès and, in the US, Coach and Michael Kors.

He also wishes to emphasise the fact that in order to reach this position, Bottega Veneta has been accumulating, over the previous years, a growth rate superior to that of its competitors. More so, this positive trend was encouraged relatively homogenously across the board, taking into account the size and presence history on each of its markets – Europe, up 37%, the United States, 27%, Japan, 8% and China, 52%.

Essential to Bottega Veneta’s strategy, reveals Bizzari, is its fidelity to the company’s core values and traditional customers. The house took, in 2012, a step towards the upstream integration of its production cycle, with an emphasis on artisanship, the very heart of Bottega Veneta, continuing to bring a contribution of 85% to the business, through the leather goods segment. On the other hand, in Europe, Bottega Veneta plays strongly on the increase of domestic sales and the fidelisation of customers, including through the opening if its world largest store planned for this fall, in Milan.

Bottega Veneta was set up in 1966 and is famous and appreciated for its excellent quality products as well as low key branding strategy. Today, it is PPR’s most profitable brand, while from the point of view of sales it is second only to Gucci.

Bottega Veneta

 

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Photo source: Bottega Veneta