Old ways still gold for artisan jeweler

By Svetlana Kovalyova and Marie-Louise Gumuchian

MILAN (Reuters) - In the heart of bustling fashion capital Milan, time stands still in Italian jeweler Buccellati's workshop where father and son work side by side carving, engraving and polishing gems.

There are no state-of-the-art machines around, just the workers using traditional handcrafting techniques, some dating from the Renaissance period.

An artisan cuts out gold leaf shapes using a simple handsaw, while another pierces patterns into fine gold sheets by hand. One slip of the saw, and the work must be started again.

"At a time when men are going to the moon, you can still make jewellery with techniques that date back from the Renaissance," 79-year-old designer and company head Gianmaria Buccellati said. "A jewel is not just metal and stone, it is also about all the work that has been put in it."

Many Italian jewelers bet on innovative technologies to beat fierce competition from India, China and Turkey. But Buccellati, which traces its roots back to 1758 when an ancestor set up his atelier, prides itself on traditional techniques to make jewels with gold lace, embellished with detail.

Brooches of fruit or flowers boast precious stones while a cascade of diamonds adorns other pieces. With such detail, a signature 'Tulle' ring can take four to six months to make, while a bracelet or a necklace up to two or three years.

Buccellati jewellery and silverware are considered a must-have in Milanese high society and have been snapped up by models, royal families and the Vatican.

The company tied in second place for most prestigious jewellery brand after Harry Winston in a recent survey by the Luxury Institute in the United States.

"There is culture, research behind each jewel ... People who in a certain way have everything want to get somewhere not everybody is ... in terms of state of mind," said Maria Christina Buccellati, in charge of public relations, declining to name famous clients.

"We don't follow the trends or the markets. This is our production, this is our style."

A sector analyst, who did not want to be named, said at a recent Milan jewellery fair the family-controlled company, which has its own internal school, should refresh its designs and offer something more modern to wow young and sophisticated consumers.

ETERNELLE APPEAL

Still a world leader in design, Italian jewelers have lost ground to India, China and Turkey which have lower labor costs and have worked to improve quality.

The sector, which has 5.4 percent of the global market, has also seen sales fall on recession fears and soaring gold prices. In 2007, Italy saw volumes of jewellery sold abroad fall 2.5 percent, but sales value rose because of the gold price.

Sector analysts say manufacturers of mass-market jewellery get hit hardest as their clients are price-conscious.