High-end brands are finding innovative ways to stretch their high-end dollar. Forcing its employees to wash their shoes of gold dust has become a custom at the Bulgari workshop in Rome, with gold prices reaching new highs, $965 a troy ounce. But collecting minute amounts of precious metals isn't the only way Bulgari is profiting in these tough economics times. The company is strategically mixing gold and other metals with cheaper substances such as ceramics and steel, effecting the production costs in small increments. The different combinations also allow for a greater margin of revenue. Bulgari, making most of its revenue from its more inexpensive products, such as fragrances and mid-priced watches, has decided to maintain a more diverse product line heading into 2011, a decision spear-headed by Francesco Trapani, the company's CEO. Trapani claims "Bulgari will benefit from a product assortment significantly larger than in 2009."
High-end retailers are definitely desperate to separate themselves from their pricey competitors, an increasingly difficult task in these days of international economic recovery. A brilliant move on the part of creative director, Paolo Bulgari, the use of mix material jewelry such as ceramics should change the landscape of couture and mid-range accessories. Making a more accessible product should bolster Bulgari's product line and make it a fiercer competitor in the marketplace.
-Colin
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