Gucci Executive Summary

This expansion demonstrates how the luxury industry is now run by massive corporations whose focus is only on growth, visibility, brand awareness, advertising, and most importantly, PROFITS! With growth and expansion, has come a decrease in quality and rarity. The luxury garments produced are mostly not handmade but are even outsourced to large factories in places such as China and Turkey. Also, to meet quarterly turnover projections, “designers churn(ed) out increasingly trendy collections of clothes, handbags, and shoes.” (Thomas, Pg. 246) With hundreds of new stores around the globe the surplus of designer labeled merchandise is immense hence, the proliferation of outlet malls.

In 1980s, Gucci had lost its appeal and became a tacky brand and was also in deep financial crisis. But Tom Ford raised Gucci from dead and found out the company’s leading status and maintains

Robert Palot brought with him new vision and strategic goal for the company. He had a strong conviction over the development and rebuilding of the Gucci brand in the target market, for this purpose he made up the team of professionals who were devoted to work whole heartedly for the company new vision. Palot has redefined the distribution strategies for the improvement of the product line and growth of the market share along with market penetration. Thus, for invigorating the company's profitability and brand building appetite Palot and his team had the vision of maintaining the financial health of the existing brands, while increasing the customer based by entering new product categories and expanding the distribution network. The results of the new corporate strategy were that company achieved solid

Prada currently requires a significant amount of capital both to re-finance debt that is maturing in the next six to twelve months and to finance its intended growth into the Asian (especially Chinese) markets. Since financial markets are aware of Prada’s pressing need to raise capital, it is important for the board of directors to develop a credible strategy for raising the necessary capital of at least €1 billion. Although the press has been suggesting that Prada will do an initial public offering, the company has tried this several times in the

Department stores are not easy to manage, and take a whole team of individuals to run daily operations smoothly. Dillard’s success at the turn of the century came from balancing finances properly, incorporating a friendly atmosphere, and building its reputation as a welcoming upscale department store. In recent years, however, Dillard’s Inc. has surfaced in headlines for being listed as one of the worst companies in the nation to work for. With stiff competition and acquisition factors, the department store industry is not one to lag behind in and

Gucci was founded in 1921 by Guccio Gucci. In 1938, Gucci expanded and a boutique was opened in Rome. Guccio was responsible for designing many of the company's products. In 1947, Gucci introduced the Bamboo handle handbag, which is still a company mainstay. During the 1950s, Gucci also developed the trademark striped webbing, which was derived from the saddle girth, and the suede moccasin with a metal horsebit. The Gucci group really said it all, Tom Ford, creative director and Domenico de sole, president and CEO, stood side by side facing the camera with eyes of steel. These two men had, in the first six months of 1999, been the centerpiece of one of most higly contested hostile takeover battles ever seen on the Europian

If you thought Snoop Dogg was just a rapper who likes to get high, think again. Snoop recently launched his line of marijuana products and the reaction from the market is extremely positive.

Gucci is a luxury brand made in Florence, Italy in 1921 by Guccio Gucci. These luxury brands consist of fashion and leather goods. The company first started out as a family business. It was Gucci and his two sons who expanded the business and opened it as a company. The first store was opened in Rome and opened in 1938. The second store was opened in Milan and opened in 1951. In the beginning, most of the company’s customers were horseback riders, which is how the company came up with its signature logo. Gucci has become more innovational over the years with their products. Gucci is known for their handbags, women’s and men’s shoes, dress shirts, wallets, belts, fragrances, briefcases and accessories. Today, Gucci operates in about 550 stores and in over more than 30 countries.

2. What are the key issues? This is just a simple list (condensed SWOT). You do not need to analyze in great detail. The key issues are that they are losing market value by remaking their best seller. By attempting to enter the economy brand-pricing

Gucci has a lot of competitors in the luxury market where each one provides unique items but the competency between them is high as there is always the chance of the threat of new entrants. 


























Pestle

As per the Euromonitor Report, India is an emerging market that has pulled in large number of foreign investments from multinationals enterprises in the last few years. The luxury market in India is gaining high-end visibility with each passing year. The global luxury brand acknowledges the potential of the Indian luxury market that indicates this sector as disproportionately higher in compared to size of the current markets today.

The House of Gucci, better known simply as Gucci (Italian pronunciation: [ɡuttʃʃi]), is an Italian fashion and leather goods label, part of the Gucci Group, which is owned by French company Pinault-Printemps-Redoute (PPR). Gucci was founded by Guccio Gucci in Florence in 1921.

LVMH’s brand portfolio is a catalogue of the finest things money can buy. Arnault said, “A Star brand is timeless, modern, fast growing and highly profitable.”[iii] LVMH has positioned its brands strongly in the luxury segment offering more than 50 different brands under their five core competencies. LVMH has been successful through all of their various brands in their portfolio giving them each their independence and creativity. “LVMH is well known for leaving much operational and marketing freedom to the various brands it owns.”[iv] “LVMH has done an excellent job of brand positioning, says Ben Cavender, senior analyst at China Market Research Group. It has succeeded in securing the particularly enviable position of gaining a following among the top percentage of China’s wealthy. As the financial crisis stretches on, LVMH customers in China still have money to spend.[v] “LVMH’s brand imaging, which relies heavily on pushing its European heritage, is so successful that it has benefited other brands by proxy, says Paul French, one of the founders of Access Asia, a group dedicated to tracking regional consumer and marketing trends. “Everyone hangs on the coattails of Louis Vuitton’s brand imaging in China.”[vi]

Kate Spade owns a jewelry group, and had owned Juicy Couture and Lucky Brand; achieved industry-leading growth in 2013; focused on having additional product category licenses, and international expansion

Gucci is in collaboration with “KOSAF” to conduct a scholarship program called “The Gucci Scholarship” (Gucci 2012 l). Gucci is a strong worldwide known brand which is putting importance for education related issues mostly to communicate with a specific country’s public. Gucci wants South Korean people to remember Gucci as an ambassador not only for luxury brands but also a strong collaborator who is willing to support students. Moreover, the intended message has been accepted by the South Korean public.