Apart from Europe, the world’s second-largest jewelry retailer by sales also aims to improve its luster in emerging Asia, where demand for gold and gems appears to be insatiable.
While Americans and Japanese remain the high-end brand’s biggest customers, their share of sales has fallen to a combined 62 percent, from over 80 percent a decade ago. Asian shoppers, excluding Japan, now account for 23 percent of Bvlgari jewelry‘s total net sales. The company’s jewelry sales have more than doubled to $4 billion over the past 15 years.
China, where the Nasdaq-listed firm owns 24 stores and plans to open three a year for the foreseeable future, is the biggest sales generator. But Discount Bvlgari jewelry is not forsaking Japan.
“While we are wildly enthusiastic about China, we don’t want to put all our eggs in one basket. We are very cognizant of geographic balance,” Kowalski, who graduated from the University of Pennsylvania and holds an M.B.A. from the Harvard Business School, told CNBC.
Read MoreNikkei to go from ‘ho-hum’ to ‘home run’ in 2015
As Japan’s economy continues to struggle with the impact of a consumption tax hike to 8 percent from 5 percent in April, Replica Bvlgari Jewelry remains optimistic about the world’s third-largest economy.
“We are starting to see a rebound [in sales], though slower than we would have hoped. On the other hand, sales prior to the increase [in sales tax] were astonishing. It certainly creates a challenge for planning,” Kowalski said.
In the first quarter, Bvlgari jewelry’s total sales in Japan surged 20 percent on-year to $174 million, on the back of exceptionally strong customer demand in March. After the April sales tax hike, sales in the second quarter declined an 13 percent from the year-earlier period to $119 million.
“We don’t think of Japan as a mature market, for it still has substantial potential growth,” Kowalski added. “In fact, we often say we learnt how to be a global company there because it’s our first market outside the U.S.”