Bottega Veneta’s relaunch and subsequent success can be largely attributed to its emphasis on accessories, particularly its iconic bright green color. Since Creative Director Daniel Lee took over the brand in 2018, Bottega Veneta has quickly risen to become one of the most coveted luxury labels in the industry, thanks in part to its exceptional leather goods, especially its handbags. According to a study by Lectra, accessories, specifically leather goods, make up nearly half of Bottega Veneta’s product range.

Despite the challenges presented by the global pandemic, Bottega Veneta achieved remarkable results in 2020, generating over €1.2 billion in revenue. In the third quarter of 2021, its sales reached €363.4 million, representing a 9.3% increase. Lectra’s study also revealed that leather goods accounted for 74% of Bottega Veneta’s global sales in 2020, compared to only 55% for Gucci. Bottega Veneta’s leather goods category makes up 42% of its product range, while competitors like Balenciaga, Prada, and Gucci have lower percentages.

The brand’s success in leather goods can largely be attributed to its handbags, which have become the focal point of its collection. Several of Bottega Veneta’s handbag models have experienced phenomenal success, with some selling out immediately upon release. The Pouch, for instance, a rounded tote bag crafted from ultra-soft leather, became an instant hit. These highly sought-after designs have propelled Bottega Veneta to the forefront of the luxury market.

Under the innovative direction of Creative Director Daniel Lee, Bottega Veneta has successfully revitalized itself while staying true to its heritage. His designs are contemporary yet recognizable, characterized by simplicity, wearability, and unexpected details. Lee has reimagined Bottega Veneta’s signature intrecciato woven leather pattern, incorporating it into oversized versions of popular bags like the Cassette Bag and Jodie Bag.

Clutch bags have also played a significant role in Bottega Veneta’s resurgence, accounting for 22.3% of its leather goods range. In comparison, Prada only has a 7% share of clutch bags in its collection, while Gucci and Balenciaga have less than 5%. This emphasis on clutch bags has allowed Bottega Veneta to differentiate itself from its competitors and cultivate a new image, leading to increased popularity.

Bottega Veneta’s handbags are positioned in the upper echelons of the luxury market, with prices ranging from €290 to €15,000. In contrast, Gucci’s handbags are priced from €250 to €35,000. Furthermore, Bottega Veneta’s leather goods have a higher average price point of €2,500 compared to Gucci’s €2,100. The label’s entry-level price for handbags, €290, is also slightly higher than that of other top luxury brands.

Aside from handbags, Bottega Veneta has achieved remarkable success in the footwear department. Lee has created original and highly desirable shoe designs, including wool and shearling mules, quilted or knitted sandals, and shoes adorned with innovative plastic spirals reminiscent of 1960s telephone cords. Footwear accounted for 16% of Bottega Veneta’s revenue in 2020, with stiletto-heeled sandals representing 30% of the collection. This is more than double the share held by its competitors. On the other hand, sneakers make up a smaller portion of Bottega Veneta’s assortment compared to other labels. The brand also offers a wide range of boots, representing 18% of its collection, higher than the percentages for Gucci, Prada, and Balenciaga.

One of the key factors contributing to Bottega Veneta’s success is its consistent use of a vibrant bright green color, which has become the brand’s signature hue. This color is easily recognizable and allows customers to express their allegiance without relying on a logo. Approximately 13% of Bottega Veneta’s products are available in this distinctive “Bottega Green” color, the highest proportion among its competitors. According to Retviews, a digital consulting firm, this color has resonated with consumers and played a significant role in Bottega Veneta’s recent success.

Retviews’ study also concluded that Bottega Veneta’s strategy of focusing on leather goods and footwear has been tremendously successful, leading to high revenue shares and the popularity of its products. Moving forward, it will be interesting to see how the brand’s new Creative Director, Matthieu Blazy, continues to build on this momentum. Blazy will need to maintain consistency with the existing strategy while infusing fresh appeal into Bottega Veneta’s offerings, all while preserving the brand’s recipe for success.

Useful links:
1. Bottega Veneta Official Website
2. Retviews (Digital Consulting Firm)