Executive Summary
Background
Gucci (Guccio Gucci) by Guccio Gucci opened a leather goods company and small luggage store in his hometown of Florence in 1921. Gucci, along with his three sons Aldo Gucci, Vasco Gucci and Rodolfo Gucci, expanded the company to include stores in Milan and Rome and other stores in Florence. In 1960, a purse with shoulder straps and engraved decorations was introduced. The original Gucci loafers were updated in 1966 with unique decorative ornaments, and the 'Rolls-Royce suitcase was initiated in 1970. Subsequently, watches, jewellery, ties and glasses were added to the company's product line. A particularly iconic style introduced in 1964 is to be used of the double G logo in the decoration of belt buckles and other accessories. The company flourished in the 1970s, but the 1980s were dominated by internal family disputes that brought Gucci to the brink of disaster. Rodolfo's son Maurizio Gucci took over the work of the company after his father's death in 1983. The failed management led to the forced sale of the family business to the investment group to a Bahrain-based company, in 1988. In 1989, Dawn Mello was introduced as editor and ready-to-wear designer to re-establish a reputation. In 1990, Tom Ford was hired to come up with the ready-to-wear collection. In 1997, there were 76 Gucci stores worldwide, and the Gucci Group acquired the ownership of Yves Saint Laurent Rive Gauche, Bottega Veneta, Boucher on, Sergio Rossi, and some with Stella McCartney, Alexander McQueen and Balenciaga.
Today, Gucci is committed as part of the luxury operator Kering Group. As of 2019, Gucci has a total of 487 stores in the world, and its value has significantly increased in recent years, from 147 billion euros in 2009 to 281 billion euros in 2019. There is no doubt that Gucci has achieved remarkable success in the luxury market. (ibisteam, 2018)
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Gucci Customer Demographics
Gucci mainly segments customers by age and gender. Those who are rich or (upper) middle class enjoy the lifestyle represented by Gucci. Gucci is suitable for those who want to be considered fashionable and luxurious. With the advent of the information age, after 2015, the brand will focus on the age of 25 to 35 years, enter the market and expand to the Asian market, rather than the emerging European market. Gucci focuses on fashion with a high taste and wants to show Western Europeans want exclusive alternative products, while North Americans want to have more features, higher quality and more beautiful at the same time.
Due to the continuous emergence of new designs, eye-catching brand images, rich product experiences, eye-catching logos on handbags and accessories, and a wide range of Gucci product categories targeting different customers, Gucci has large number of loyal customers. Unlike other luxury brands, Gucci knows the lifestyle of the younger generation very well. And, Gucci launched social media accounts, such as Facebook, Twitter, Instagram, WeChat, Weibo, etc., to promote and cooperate with online celebrities. As the globalisation of the international market has promoted the emergence of global culture and global consumption has rapidly become homogenized, Gucci tries to meet the needs of all major cultures in its market; these include the cultures of North America, Western Europe and China. There is something in common between North America and Western Europe, but China needs a different way to attract customers. Client analysis The main target groups of Gucci include the affluent, upper-middle-class and middle class in society. Including celebrities and fashionistas. In the past, Gucci was almost just the wealthy class in society, so it has been expanding its target population. The average client age is between 20 and 50 years old, both men and women. Gucci also launched the children's series Gucci in 2010. An important factor for its success is its ability to connect with the Z generation and the millennial generation customer. Thanks to Alessandro Michele’s design and new experiments in marketing
Strategy, Gucci has done a great job on digital channels like Instagram and Facebook. This means that Gucci has developed a core customer category of 25 to 35 years old, accounting for almost 50% of total sales. Gucci can quickly accept the latest trends and use it to expand its brand awareness. Their Instagram account now has 19.4 million followers, their Facebook page has 16.6 million likes, and they are previewed using Snapchat. The brand has been using a variety of digital platforms to convey a unique identity-through fascinating visual effects; now there are more images on their website that reflect Gucci's latest story. They hired a lot of bloggers and Instagram 'stars' to promote their brands and content. Celebrities like Beyoncé wore Gucci at concerts and influential events, and their haute couture were widely used by critics and consumers worldwide Welcome and love. As a fashion trend leader, Gucci is very eager, every fashion lover wants to see his own fashion show. Many magazines and blogs are writing reports about the Gucci fashion show and introduced the new designs that Gucci quickly showed because they know that fashion will never disappear. Their brick-and-mortar stores give people a sense of exclusivity and luxury, and their staff is always the most rigorously trained to provide customers with the best in-store experience to increase customer engagement and contact. Multilingual staff ensure different Customers in countries have a good shopping experience in physical stores, this also provides more jobs and opportunities to society.
The company divides its product range into the following categories:
- Woman: Provide handbags, ready-to-wear, shoes and accessories. $216-$8385
- Men: Provide handbags, ready-to-wear clothing, shoes and accessories. $215-$11650
- Children: including ready-to-wear, shoes, accessories and gifts. $50-$2275
- Beauty: including cosmetics and perfumes for men and women. $57-$850
- Jewellery and watches: including fine jewellery, silver jewellery, fashion jewellery and watches. $215-$3800
- Decoration: provide household items and furniture $105-$46615
(Guccigroup, 2016)
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