In a smart move to deal with China’s reducing luxury demand, LVMH-owned Bulgari is now focusing on the upcoming Indian market. The CEO of Bulgari, Jean-Christophe Babin, did a recent interview in which he disclosed that the company is enlarging its presence in India which makes use of the nation’s rapid growth and excellent demographics. With the existence of 13 shops or formal retailers in India, Babin was positive about the country’s journey to becoming one of the luxury markets par excellence internationally.

The direction change is happening due to global luxury firms LVMH Moet Hennessy Louis Vuitton SE and Kering SA facing a decrease in Chinese sales during the first nine months of 2024. The Chinese economic problems that result from an ongoing housing crisis have worn down consumer spending on luxury goods. Consequently, Bulgari is planning to further its e-commerce activities in China over the next two years with the goal to serve the non-metropolitan cities without the need to open new brick-and-mortar stores.

Babin said that China’s recovery could extend for quite some time when he referred to its situation of excessive real estate and production overcapacity as issues that need to be conveniently resolved. The CEO also answered the worries about the possible new tariffs on China suggested by the US President-elect, stating that he sees little influence because the majority of the imported fashion goods come from European countries such as France and Italy.

While the current issues are still around, Babin emphasized that the downturn in the luxury industry is not significant overall. He pointed to this year’s slight weakness, which is mainly due to the fact that last year was too remarkable for consumers, with their savings piling up during the Covid-19 lockdown years. As Bulgari endeavors to master the shifting market dynamics, its strategic switch to India exemplifies the increasing role of emerging markets in the global luxury sector.