The Gucci Bar Review Process book

Brand extension of The Gucci Bar

Li Hsuan Tsai Luxury and Fashion Management (M.A.)

Ciao! Hong Kong !

Table of Contents Background

4

The Gucci Bar-Cocktail

5

The Gucci Bar-Dim Sum

6

Market Report

7

SWOT Analysis

9

Target Market

10

Methodology

11

Research Design& Time Line

12

References

13

Biographical Statement

15

Appendix

16

Background Today, the market of luxury brands

What follows is an outline of Gucci

become more competitive than

bar. The reason that I choose bar rather

before. Consumers have more options

than cafe or restaurant is Gucci was

and expectations in luxury market.

founded in Florence and Italy has very

Products can not meet the consumers’

distinctive drinking culture such as

expectations of luxury brands. Therefore,

Aperitivo. On the other hand, Gucci Bar

luxury brands transforming into more

is a great tool to boost menswear sales

lifestyle brand is an inevitable trend.

because men usually spend less time in

Brand extension become an important

stores than women. The first Gucci bar

role in the process of transformation and

will be launched in Hong Kong. Hong

change consumer experience.

Kong is an international metropolis

As was mentioned in the last

and a premier tourist spot in Asia. Hong

chapter, brand extension is about

Kong has visitors from all over the world

exploring potential needs of consumers

and a large number of China visitors.

and launching new products based on

Therefore, Hong Kong is the best

the consumer’s daily life. For instance,

location for international brands before

Chanel has one French restaurant

landing in China or other Asia markets.

in Tokyo and Gucci launches Gucci

Cocktails and wine usually associate with

restaurant in its store in Shanghai’s

luxury and mystery which corresponds

IAPM shopping centre. Furthermore,

to Gucci’s brand image. This brand

due to the increasing sales driven by

extension could attract more visitors and

E-commerce. Luxury brands should

strengthen the brand image.

increase more incentives to attract consumers to visit their stores and an opportunity to buy their products.

Although the profits generated by bars or cafes will be very limited, the strategy of blending market could give customers unforgettable shopping experience and connect these experiences and memories with the brand image.

4

The Gucci Bar-Aperitivo

-Spritz-

-Amaretto Sour-

-Prosecco-

-Negroni-

-Americano-

-Italian Wine5

The Gucci Bar-Dim Sum

-Dim SumDim Sum is the most repersentative in Hong Kong food culture.

Dim Sum in Chinese is called éťž ĺżƒ , which means snack. In Hong Kong, people have the habit of drink morning tea, which is mainly composed of Chinese dim sum and tea. Dim sum are usually including shrimp dumpling, pork Sui Mai , pan fried turnip cake and many other kinds. In the Gucci Bar, we will use the most unique dim sum to match our cocktail to provide our customers unforgettable drinking experience.

6

Market Report The state of fashion 2017 by Business of Fashion & McKinsey Company • The slowdown of China’s economy is just temporary. In the long term, the middle-class and personal consumption will be steadily growing. However, after years of rapid growth, customers are becoming more discerning about fashion and care more experiences and personal learning.

• Over the last 30 years, 400 million Chinese citizens move to cities. Therefore, the rise of city population will give more opportunities to fashion brands.

• The growing market of millennial in China

Kering Group Financial Report

• In 2015, Gucci opened a new chapter under the new CEO Marco Bizzarri and new Creative Director Alessandro Michele. Eclectic, romantic and contemporary all became new icons of Gucci.

• Creative Director Alessandro Michele use new store concept with new visual tool to drive more traffic and revenue in store.

• Increasing sales density and the gucci.com across region will the drivers for the future sustainable growth in the next few years.

7

InterfaceAsia Drinking Habit Study

• Female respondents in Hong Kong, Taiwan and China seem to drink less frequently than Korea and Japan.

• 40% of respondents in Hong Kong drink outside once a week; however, 55% of respondents in China answer that they drink outside more than once a week.

• Beer, wine and cocktail are top three alcohol beverage in Hong Kong, Taiwan and China.

• Cocktail drinks are more popular among female than male.

• In all countries, taste and preference are the most important factor.

•Hong Kong ranks second in the monthly alcohol expense.(Korea ranks No.1)

8

SWOT Analysis

•Gucci’s brand image and high quality •Attract more customers by offering affordable beverage •Excellent store location •Existing customers of Gucci •Explosive growth of Gucci in recent years •Italian unique drinking culture

•Confuse customers with their brand identity •Lack of experiences in alcohol beverage market •Not familiar with local citizen drinking habit

• Tourists from all around the world (58 million tourists visited Hong Kong in 2017) • The best location for international brand before landing China or other Asia region • Shop-in-shop mode can increase customer’s visiting time and opportunity to purchase more products • Place for adult socialization

•Competitor from local cocktail bars •Food safety problem •Convince stores improve their food , beverage quality and in-store environment

9

Target Market

Demographic

Geographic

•

Gender: both male and female

•

Hong Kong local citizens,

•

Age group: Above 18 years old

•

Tourists from China

•

Income: middle and up class

•

Education level: Bachelor degree

Psychographic •

Love night life and high quality

alcohol beverage •

•

Love to collect all kinds of alcohol

•

Willing to spend money to enjoy life

Fashion lover

• Metropolitan •

Love social life

10

Methodology Before proceeding to examine this project, there are some research question about this question: 1.

How can Gucci Bar make difference with other local cocktail bar?

2.

What kind of cocktail bar is popular right now?

3.

Why do more and more fashion enter food business?

4.

How can Gucci make strong connection with their existing product line?

5.

Is Hong Kong the best location to operate Gucci Bar before landing other Asia region?

In order to test my hypotheses, the approaches will use both primary and secondary

research. The secondary research will focus on analyzing the articles or financial report about Gucci. On the other hand, understanding Hong Kong and Asia’s wine market is also very important part. Furthermore, analyzing other brands’ brand extension can help Gucci set the proper operating or marketing strategies.

The primary research will be divided into two parts: interview & surveys

The interview will randomly pick Hong Kong or Chinese citizens. The purpose of interview is to understand the preference and drinking habits of local people. The survey will provide more quantitive datas to understand people opinions toward this brand extension.

The direction of interviews and surveys about Gucci Cocktail Bar: In interviews & surveys, the respondents will include both Chinese and Hong Kong citizens because Chinese tourists are the major tourist source of Hong Kong. Through these two approaches, we can understand the preference among the public and help Gucci develop suitable products and marketing strategies.

11

Research Design & Timeline

The M.A. final project will be finished in six months. After review in February, I will start to interview and do the surveys. At the same time, the articles and the related researches will be analyzed. During spring break, I will start to analyze the datas from interviews and surveys and try to visualize the datas. In the beginning of spring quarter, the product (including logo) and interior design of Gucci Cocktail bar will be the first priority. In the middle of quarter, I will focus on marketing strategies and campaign designs such as online ads, billboard and printed media. The final draft will be completed in the week 8 and I leave myself one week for final editing. The whole project will be presented and finished in the last week of spring quarter.

February • Graduate review March

• Primary Research &Secondary Research • Analyze Data

April

• Product & Interior design of The Gucci Bar • Visualize the data • 50 pages written

May

• Marketing Strategy • Campaign Design

June

• Final Documentation

12

References Jessica Yeager.(2014).Aperitivo:An Enviable Italian Ritual. (Online) Available at:https:// epicureandculture.com/aperitivo-italian-ritual/ http://m.xzbu.com/2/view-383775.htm Jane Huang.(2015).Gucci 1921 Shanghai.(Online) Available at:http://www.meihua.info/ a/64138 Lady MaX.(2017). Gucci can become the No.1 luxury brand. (Online) Available athttp:// www.beautimode.com/article/content/83523/ Hong Kong Government.http://www.investhk.gov.hk/zh-hk/files/2017/10/2017.09-foodservice-tc.pdf Hong Kong governmenthttp://www.investhk.gov.hk/zh-hk/files/2017/10/2017.09-foodservice-tc.pdf Sue Liu.(2017).Hong Kong bar culture.(Online) Available athttps://www.liuxue86.com/ a/3238782.html Douglas Parkes.(2016).The best cocktails in Hong Kong.(online) Available athttps://www. timeout.com/hong-kong/bars-and-pubs/best-cocktails-in-hong-kong-and-where-to-findthem Suzanne Bearne.(2015)Why Fashion Retailers Are Staging Food Experiences.(Online) Available athttps://www.businessoffashion.com/articles/intelligence/why-fashionretailers-are-staging-food-experiences Debra Meiburg.(2016)How Hong Kong drinkers are turning to premium wines, halfway between simple and super-expensive bottles.(online) available athttp://www.scmp.com/ lifestyle/food-drink/article/2076675/how-hong-kong-drinkers-are-turning-premiumwines-halfwayhttp://www.hkexnews.hk/listedco/listconews/GEM/2017/0111/a9906/ EBARPACIFIC-20161229-13.PDF passport.com.(2017).Hong Kong Bar market.(Online) Available athttp://0-www.portal. euromonitor.com.library.scad.edu/portal/magazine/homemain Hong Kong Travel administrationhttp://www.discoverhongkong.com/tc/about-hktb/news/ visitor-arrival.jsp Harpersbazzer staff.(2018)Gucci has opened a restaurant, museum and shop in florencehttp://www.harpersbazaar.com/uk/fashion/fashion-news/a15059237/gucci-opensrestaurant-museum-shop-florence/ 13

Candice Nemghard.(2018).Gucci’s Massimo Bottura-Helmed Restaurant is opened for business.(Online) Available athttps://www.highsnobiety.com/p/gucci-garden-osteriarestaurant/ Heritage org.(2018). Hong Kong economy.(Online) Available at:https://www.heritage.org/ index/country/hongkong Nikki Sun.(2017).Hong Kong’s tourism industry about to get a revamp, commerce chief says.(online) Available athttp://www.scmp.com/news/hong-kong/economy/article/2114323/ hong-kongs-tourism-industry-about-get-revamp-commerce-chief Hong Kong Government.https://www.gov.hk/en/about/abouthk/factsheets/docs/tourism.pdf The fashion law.com(2017).What is actually driving revamp of Gucci. (Online) Available athttp://www.thefashionlaw.com/home/what-is-driving-force-behind-the-successfulrevamp-of-gucci Hamas Bowles.(2015).Inside the house of Gucci.(online) Available at:https://www. vogue.com/article/gucci-alessandro-michele-creative-director-profilehttp://fortune. com/2018/01/11/gucci-garden-restaurant-florence/ https://www.censtatd.gov.hk/hkstat/sub/sp290_tc.jsp Interface asiahttps://www.interfaceasia.com/i-news-drinking-habits-study-one.html Interface Asia https://www.interfaceasia.com/i-news-drinking-habits-study-two.html Lucy Shaw.(2018). Top 10 food and drink trend in 2018.(Online) Available athttps://www. thedrinksbusiness.com/2018/01/top-10-food-and-drink-trends-for-2018/10/ Jenna Weiner.(2017).Milan's Aperitivo Hour.(online). Available at:https://journalism.nyu. edu/publishing/archives/livewire/travel_food/milan_apertivo/index.html

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Biographical Statement

Li Hsuan in Chinese means the man who insists on his principle and never gives up. With the attitude of insisting on his dream, he chooses to pursue the master degree of Luxury And Fashion Management in SCAD. Interesting, he was studying material engineering in Taiwan. After the training in university, he has the knowledge of fiber and polymer. However, he decided to purchase his dream of fashion and he came to States to fulfill his dream. His multi-backgrounf is just like the taste of cocktail. whcih can bring you an unexpected idea.

15

Appendix

The Gucci Bar logo

The Gucci Bar logo (Mandarin)

The Gucci Bar Neon Sign

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Hello 香港