Editor’s Note
This interview examines LVMH’s landmark 2011 acquisition of Bulgari, exploring the challenges of post-merger integration and the strategic approach behind one of luxury’s most significant cross-border deals.
In 2011, French luxury giant LVMH Group completed a controlling acquisition of the Italian luxury brand Bulgari for 4.2 billion euros. This marked its first foray into an Italian brand. The subsequent post-acquisition management faced multiple instances of distrust from the Bulgari family, but ultimately, the transition was smooth. This interview offers a glimpse into how LVMH approaches foreign investment in Italy successfully.
Nothing seems to slow down the French luxury giant LVMH Group. Despite a challenging market environment, the world’s leading luxury group reported revenue of 20.3 billion euros in the first quarter of 2025. Within its portfolio, the historic Roman jeweler Bulgari inaugurated an expansion of its gold and jewelry manufacturing plant in Valenza, Piedmont, Italy. The facility is now the largest jewelry factory in the world.
On this occasion, Fashion Network interviewed Toni Belloni, Chairman of LVMH Group Italy and a senior executive of the group since 2001.
In March 2011, LVMH Group fully acquired the Italian luxury brand Bulgari through a share swap, valuing the company at 4.2 billion euros (including 3.7 billion in equity and 500 million in debt). The former group president, Trapani, a great-grandson of Bulgari founder Sotirio Bulgari, joined LVMH’s Watches & Jewelry division as CEO.
Prior to the acquisition, the over-130-year-old Bulgari was facing a severe crisis, with profits plummeting by 67%. Following the acquisition, which addressed a gap in LVMH’s watch and jewelry portfolio, the division’s revenue growth rate reached 107%. “Since our acquisition of Bulgari, its revenue has more than doubled, and its operating profit has quintupled,” LVMH noted in its 2020 financial report. Group Chairman Bernard Arnault summarized Bulgari’s success formula as significant investment in marketing, boutique design, and communication. Today, Bulgari is thriving, with 53 boutiques across 32 cities in China. In the Q1 2025 report, the Watches & Jewelry division achieved steady year-on-year growth with revenue of 2.48 billion euros.
Toni Belloni further emphasized that among the six Italian brands under LVMH, both Loro Piana and Fendi have seen significant development. Last year, Bulgari celebrated its 140th anniversary with the “Eternal Wonder” campaign and launched the new Aeterna high jewelry collection in Rome, achieving record revenue. Across Italy, LVMH now operates 279 boutiques in major cities and has 66 production sites distributed across industrial districts, all renowned for their people-centric management and exceptional quality.
For Toni Belloni, he is a crucial bridge between the French luxury giant LVMH and Italy’s centuries-old artistic culture and craftsmanship, using modern business management to create a synergistic effect greater than the sum of its parts.
Despite the luxury industry facing unprecedented challenges—from declining global demand and the potential disintegration of global trade to possible economic ‘black swan’ events—he remains optimistic and is “very confident” about the medium-to-long-term prospects of the Italian national system.
Deeply immersed in Italy’s profound artistic culture, Toni Belloni himself expressed immense appreciation for craftsmanship.
Finally, he highlighted LVMH’s continuous retail development in Italy. From last week to this week, three new stores opened on Via Montenapoleone in Milan: one each for Bulgari, Louis Vuitton, and Tiffany. In the coming months, two more boutiques for Dior and Fendi will open on the same street. Additionally, after years of investment, three iconic Italian hotels will be renovated: the Timeo in Taormina, the Splendido in Portofino, and the Cipriani in Venice—each a gem of Italian lifestyle.
This exemplifies how LVMH, as a French foreign enterprise, has deeply embedded itself in Italy through investment as its foundation, walking on two legs: supply chain and retail channels.