GUCCI BRAND REPORT
Matteo Delle Cave - EFMM4008
C O NTENTS EXECUTIVE SUMMARY ...................................................................5 1. THE MARKETING SECTOR........................................................6 3.THE BRAND WITHIN THE SECTOR 1.History...........................................................................................14 2.Usp.................................................................................................18 3.Customer profile and Target (segmentation and demographic)...................................................................................20 4.Key Competitors (Matrix)...........................................................22 5.Product - categories, Signature key pieces and prices.............24 6.Place - multichannel retailing (on-line and phisycal stores)..32 7. SWOT analysys ..........................................................................36 4.Marketing Campaign proposal ..........................................................38 5. Conclusions
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EXECUTIVE SUMMARY This brand report about GUCCI has been written with the purpose of having an overview of one of the most know luxury houses of all time. It is to have a better understanding of how the house operates and participates within the fashion market and how contributes to its growth. During this report we will go through products, PESTEL SWOT and MATRIX analysis in
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order to understand who are Gucci’s competitors and how it overcomes them, we will also view its demographic and how the luxury house best engage with it to retain existing customers and approaches to new ones. Eventually will gain some knowledge of how this brand has been leading the fashion panorama for 100 years.
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2.MARKET SECTOR
Rest of the World 5% Japan 7%
Asia-Pacific 44%
MARKET ANALYSYS
North America 22%
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Western Europe 22%
Gucci is one of the most known luxury brands in the world. The house operates all over the world having Asia as their most flourished market with 44% of the income coming from it, followed by Europe, America and Japan. Kering said, “Gucci brand, which accounts for more than half of group revenues and 76% of operating profit, sales leapt 86% year-on-year, picking up pace from the previous quarter.”
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Gucci has always kept an eye on China’s market and cultural movements that were shaping the cultural landscape of the country, using them to enrich the relationship between the brand and the Asian market. Gucci has recently announced Xiao Zhan as the brand ambassador,
this announcement received more than 1 million likes in under three hours. This had a significant impact across the Asian market and allowed the brand to reposition itself within the China and Asian market after the huge loss of market share due to the pandemic.
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P S E
• Covid-19 travel restrictions: has affected Gucci the past 2 years dropping the curve of revenue massively. But with the ease of the restriction the brand is planning huge events and brick-and-mortar openings to raise the brand awareness that has lost during the pandemic.
• Increase of gen-z and gen-x demographic • Gender fluidity • Resell market arising
• Sustainable Fashion • People welfare • Gucci in-learning
E T L
• The pandemic had negative effects all around the globe with a huge part of the demographic loosing jobs or closing down their businesses. This has significantly impact the spending power of the consumers who are now not willing to invest huge amount of money in luxury goods.
• Augmented Reality • Metaverse • Gucci Vault • Gucci podcast (Spotify)
• Forever 21 Lawsuit • Guess Lawsuit
3. THE BRAND WITHIN THE SECTOR
T h e h o u s e o f G u c c i wa s f o u n d e d i n 1921 b y G u c c i o G u c c i , a h u m b l e I ta l i a n c r a f t s man. T h e b u s i n e s s o r i g i n a l ly s ta rt e d a s a fa m i ly b u s i n e s s i n F l o r e n c e o n V i a D e l l e V i g n a N u o va . I t m a i n ly s o l d l e at h e r
goods
and
t r av e l
gear
as
THE BRAND
During
well
as
shoes
and
The
customers.
sandro
handbags.
t h e y e a r s , a s t h e b u s i n e s s s ta rt e d
t h e l u x u ry h o u s e d u e t o a s h o rt s u p p ly o f l e at h e r b e c a u s e o f s a n c t i o n s a g a i n s t
I ta -
wa s f o r c e d t o e x p e r i m e n t a n d
as
boutique.
an
t o fa c e i s s u e s
s ay t h at i n o n ly
brand:
fights
the
brand
a n d r i va l ry r a i s e d w i t h i n t h e fa m i ly u n -
the
top
pulling
A
together
the
Maurizio (Rodolfo’s out
few
brought
and
took
the
house.
bankruptcy
weeks
Fall/Winter 2015
of
inside the
l u x u ry
e n t i r e ly
5
new
d ay s b e f o r e t h e
fa s h i o n s h o w .
6
mens-
We
can
years he has turned out
most
making
it
desirable
reach
brands.
son) pushed his
over
l at e r ,
years
few
the
business.
1 9 8 9, M a u r i z i o
in to
the
c o m pa n y
investors bought half of the brand. first big changes come with
so
The
Tom Ford as 1 9 94 .
c r e at i v e d i r e c t o r o f t h e b r a n d i n
restored the image of the house and
introduced
the
hyper
s e x u a l i s at i o n
of
t h e fa s h i o n s c e n e w i t h s o m e o f t h e s i g n at u r e
looks
of
the
’9 0 s . T h i s
wa s
a
n e w c o n c e p t t h at t h e w o r l d o f fa s h i o n never
seen
before,
therefore
all
at
Gucci.
2 0 00 s , F r i d a G i a n n i
became
spotlights
were
pointing
l at -
In
wa r , l e at h e r a n d o t h e r m at e r i a l s b e c a m e
t h e c r e at i v e d i r e c t o r o f t h e b r a n d .
m o r e a b u n d a n t , c o n s e q u e n t ly ,
c o m p l e t e ly
Aldo Guc-
t h e e a r ly
She
ci came up with the first pigskin bag which
and brought to life the
Ford’s concepts “F l o r a P att e r n ”
t h e n b e c a m e a b r a n d s ta p l e a n d b y t h e b e -
and
house
’50,
redesigning
in
a
er, with the ending of the second world
ginning of the
of
of
w e a r c o l l e c t i o n i n o n ly
the
Years
wa s a p p o i n t e d a s t h e n e w
W i t h G u c c i pa s s i n g away l at e r , t h e fa m i ly s ta rt e d
had
iconic logo.
as
New York
Gucci
t h e f i r s t i n t e r n at i o n a l
c o tt o n
GG
such
Michele
director
a n d s i l k w h i c h t h e n l e d t o t h e c r e at i o n of the double
textiles
2015 Ales-
g a m e c h a n g e o n ly w h e n i n
q u i c k ly t o o k o v e r t o t h e r o l e
He w e r e e x t r e m e ly c h a l l e n g i n g f o r
new
to
Michele
fa m i ly
implement
continue
c r e at i v e
til
Gucci
business
i t s m a r k e t o v e r s e a s , h av i n g
1 9 3 8 G u c c i h a s e x pa n d e d t o a s e c o n d l o c a t i o n o n V i a D e i C o n d o tt i , i n R o m e . H e r e is where Guccio employed his three sons Aldo, Vasco and Rodolfo giving them a c l e a r m i s s i o n : e x pa n d t h e b r a n d p r e s e n c e , w h i c h l at e r i n y e a r s a r r i v e d i n M i l a n .
ly , s o
the
g r o w e x p o n e n t i a l ly t h e h o u s e e x pa n d e d
to pick up and word spread worldwide in
T h e ’ 30 s
As
which
then branched out to equestrian equipment
s t r i p e d e ta i l b e c a m e p o p u l a r a m o n g t h e i r
the green-red-green
other
abandoned
significant
s tat e m e n t
s t y l e s w h i c h l at e r p r o v e d t o b e s u c c e s s f u l .
“Quality is remebered long after price is forgotten’ Aldo Gucci 14
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USP
ITALIAN CRAFTMANSHIP The “Made in Italy” label is a vital facet of the Gucci brand that defines who we are and what we represent. Customers see that label as a guarantee of quality and Italian craftsmanship. It is a unique part of the legacy.
GREEN-RED-GREEN
The colors were chosen to represent beauty and class, and they appeared on a huge selection of vintage Gucci products.
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THE LOGO
The official Gucci logo hasn’t changed much since the 1930s, when one of Gucci’s sons recreated his father’s mark. Aldo Gucci designed the interlaced double G logo, representing his father’s initials.
„Gucci is one of the most known Italian brands and besides the fact that is one of the richest luxury brands in the fashion world. Its history is what really makes the difference on this matter. Design, Craftsmanship, Heritage and its ability to respond quickly to the urgent demand of itS consumer, are just a few of the qualities that make the brand a
one of a kind”
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TARGET The luxury brand takes a huge share of the demographic due to its unique and remarkable style. Has always managed to maintain that edgy approach to high fashion, renowned for their progressive embrace of gender fluidity and androgyny, bold granny-chic floral
and catwalk outfits. Gucci audience is most likely to be from 18 to 44 years old with the majority of the demographic share held by 18-24 range (GEN Z) followed by the millennial (25-34) and lastly by GEN X (35-44)
SCAN ME
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NAME: JOO EJOIN AGE: 27 PROFESSION : MODEL
Joo Ejoin is all about fashion and design. He loves art exhibitions and hanging out with his mates in Shoreditch areas. As he works in Fashion, mainly for emerging brands, he still believes that most of the luxury brands are really doing great at keep-up with times and actually leading the fashion market. Hence his love for Gucci and its designs and its initiatives. He recently went to the Gucci pop-up store in Seoul where the Hacker collection is displayed to create some contents for his instagram page @JooE join (He has 700k Followers!) 21
COMPETITORS
The graphich shows how Gucci is placed within the market compared to its competitors. In my opinion the main competitors are Louis Vuitton and Balenciaga. These brand have both incredible creative directors and are leading the fashion market at the moment using their strong heritage as main focus of their grow.
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Other 8% Watches and Jewellery 5% Ready-to-wear 14% Leather Goods 55%
PRODUCT
Shoes 18%
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The graphic shows the share of each market in perecentage. Considering the fact that leather goods are the main entry point to Luxury brands we will take in consideration the most desirable piece (of art) for the consumers to establish the average price point for Gucci, the HANDBAG. This market takes more than 55% of the whole income for the brand identifying its average price point to a peak of £1,300 (1,900$). 25
LEATHER GOODS
Soho cross-body £975
Marmont bag £1,660
Leather foldabled loafers £595
Jackie 1961 shoulder bag £1,590
Ace sneakers £560
Dionysus £2,180
SHOES
Horsebit mid-heel Pumps £650
WATCHES AND JEWELLERY Interlocking G £840
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G-timeless 29mm £980
Bamboo silver £650
18CT white gold diamond set ring £1,390
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READY-TO-WEAR silk floral-print maxi dress £1,950
double GG loho Sunglasses £255 28
Embellished Wool and Silkblend Crepe Skirt £870
Single-breasted cotton-blend velvet suit jacket £2,000
Oversize washed T-shirt with Gucci logo £350
OTHER
Flora silk scarf £180
GG belt £355
Gucci Flora 30ml £54 29
BRAND COLLABORATION
GUCCI X DAPPER DAN
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The history of Dapper Dan’s relationship with Gucci has not been one of the easiest as he went from using the Gucci logo in his own designs throughout the ‘80s and ‘90s to having Gucci knock off one of his designs on the runway in 2017. It’s a story that could’ve ended with lawsuits and a
lot of gossiping, but instead, it took an unexpected turn: Gucci and Dapper Dan began collaborating together. Full of big woven chains, all-over GG logos and vintage silhouettes, the collection represents the Harlem vision of Dapper Dan embracing inclusivity and diversity. The collaboration
WHO IS DAPPER DAN?
An American fashion designer from Harlem who made his way through Fashion creating styles for hip hop artists and athletes of the early 80’s such as Mike Tyson, Bobby Brown and Salt-N-Pepa . The iconic knock-off LV logo on a Dapper Dan Jacket worn by the Olympic gold medalist Diane Dixon (1989) which then has been copied by Gucci in one of its catwalks (2017)
had Gucci stepping up its game in the streetwear scenario but had also a strong social impact. When Dapper Dan first started collaborating with luxury designers he was kind of rejected by the middleclass black people as he was embraced by the white community. It took several years for him to be featured in an Ebony magazine.
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PLACE GUCCI operates world wide with 483 stores. Altough is a Western luxury brand most of its stores are located in emerging countries (212) followed by Europe (105) America (99) and Japan (67) Japan 67
Emerging Countries 212
America 99
Western Europe 105
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*Emerging Countries: Russia, Eastern Europe, Saudi Arabia, China, Mexico and Brasil. 33
ON-LINE PRESENCE Gucci has achieved and invest a lot when it comes to Technology. The house, in fact, has expanded its On-line presence massively during the years approaching to mostly all the social media platform. On instagram with 46,5M followers then the podcast on Spotify in which each episode features the voices who are collaborating with Alessandro Michele and an insight into the eclectic narrative and vision of the house. As VR and augmented reality are becoming a proper statement -
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-in terms of Techonlogy, Gucci has developed new features in their app which allows visitors to TRY-ON sneakers (and purchase them) and and beauty product of the luxury brand. WIN-WIN!! Their website has also changed in terms of graphics and sections. They have recentely added a MX section in which genderless collections are featured which makes it way more engaging for thei consumers making the brand reach 9 MILLION visits as of February 2021.
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• BRAND AWARNESS : they are easily recognisable trough their logo and prints • ADVERTISEMENT : effective adv targeted to the right audience • STRONG CREATIVE DIRECTOR • MADE IN ITALY production and craftmanship • MX section in their website • Embrace the new generation and its needs.
S
• FINANCIAL ISSUES due to the low distribution to eastern countries affected by Covid-19 • Costumers claim tha the quality of their product is decreasing
• • •
Review their quality program strategy Boosting sales to eastern market Invest more in promoting their sustainability commitment
• Competition constantly behind their back on all the aspects of the business 36
TRENGHTS
W O
EAKNESSES
PPORTUNITIES
T
H R EATS 37
4.MARKETING CAMPAIGN PROPOSAL
GUCCI PRESENTS:
FORGET ABOUT REALITY IN COLLABORATION WITH
GENIES
We are pleased to invite you to the Gucci Pop-up Event :
FORGET ABOUT REALITY in collaboration with GENIES
Friday 26th January 2121 at 6PM Gwanggyo Galleria - 124 Gwanggyojungang-ro, Ha-dong, Yeongtong-gu, Suwon, Gyeonggi-do. South Korea
“Forget about reality” is a phygital project born with the aim of reconsidering the real life as we perceive it, It is an alterate reality experience in which you will not be you anymore. Wear your VR glasses, pick your iOutfit and explore the Gucci’s futurist vision of Seoul. From the new range of sustainable fabrics to the re-invention of the Gucci’s most iconic pieces. Following the event change your avatar and get ready for the after party where you will enjoying Gucci’s food and drinks and play at our Gucci digital playground.
JOIN
NOW
GWANGGYO GALLERIA (Place & Product) Gwanggyon Galleria (built-in 2020) is an intersection between nature and urban feeling, is a place where culture, nature and retail meets. You will experience both fashion and technology in a stimulating environment and in a new exciting way, This is where you will be projected into the Augmented Reality vision of Seoul city of the future. Get ready to discover new places, interact with influencers and celebrities and explore the new range of our new digital collection.
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MARKETING STRATEGY (Promotion) Billboards will be the main focus of this marketing program. They will be installed all over Seoul targeting mainly the youth centres of the city : Hongik University and Sinsa-dong area where there is a high percentage of Gen-Z and Gen-X. The campaign will start 3 weeks prior the event. The use of QR codes will be the main point of this marketing strategy since it is the most effective digital tool to gain
and retain consumers data and eventually target those who join the digital queue for the event, with futures marketing events and promotions of the brand. The use of the digital queue will be in place after the launch of the main event, allowing everyone to get the Gucci’s experience. Billboards and Social media adv will stay on for 10 days after the end of the event in order to create a higher engagement overall.
GUCCI FORGET ABOUT REALITY
X GUC
CIX
FO RG ET AB RE OUT AL IT Y 44
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THE AVATARS
X
Genies is the leading avatar technology company of the future, already used by most celebrities and now in collaboration with GUCCI for an exciting and new way to experience the meta-verse. Create your own avatar, dress it up with your fav Gucci items and get to experience the luxury house in a brand new experience.
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EVENT MOOD BOARD
CONCLUSIONS This brand report about Gucci has allowed me to get to know the brand from every single aspect of it. Overall I can say that the brand has a strong and deep heritage and that has always been a pioneer of the fashion landscape. Leader in trends and cultural movements, the house always finds the best way to engage and speak to its consumers which is the key of its success. I also found very interesting and captivating how Gucci has evolved during the years and how has always succeed in its creations regardeless what was
happening around, they always sticked to their mission and vision of fashion and followed that successful path. What intrigued me the most was how Gucci is approaching to the meta-verse and expanding its TECH department developing new systems in order to enrich the consumers engage with the VR and Augmented reality. However, what i found challenging was serching through their financial datas in order to deliver reports and statistics useful to guide the reader through my report.
BIBLIOGRAPHY
PHOTOGRAPHY https://www.terencelett.com/product/gucci-sterling-silver-boule-bracelet-withstriped-clasp-yba602707001/ https://ltsale.2021onlines.com/content?c=gucci%20stripe&id=5 https://www.purseblog.com/gucci/gucci-aria/
https://www.statista.com/statistics/267476/global-revenue-of-the-kering-group-bybrand/ https://www.statista.com/statistics/267731/global-revenue-share-of-gucci-byproduct-category/ https://www.statista.com/statistics/442796/number-of-gucci-stores-worldwide-byregion/ https://www.lectra.com/en/library/guccis-strategy-what-does-it-take-to-be-1hottest-brand https://hapticmedia.com/blog/what-can-luxury-brands-learn-from-guccis-digitalstrategy/ https://www.gucci.com/uk/en_gb/ https://www.whowhatwear.co.uk/iconic-gucci-items/slide3 https://www.theguardian.com/society/2021/jan/14/i-came-up-a-black-staircase-howdapper-dan-went-from-fashion-industry-pariah-to-gucci-god https://toughnickel.com/industries/Marketing-Insight-Brand-Audit-of-Gucci https://medium.com/fashion-beauty-models-style-trends/gucci-the-pinnacle-ofitalian-craftsmanship-20fb6ee12985
https://www.lofficielusa.com/fashion/guccio-gucci-designer-biography https://bagaholic101.com/gucci-heritage-icons-and-beyond-gucci-print-ads-andadvertising-campaigns/1922-gucci-ad-showing-guccis-adress-at-via-della-vignanuova-7-vintage-gucci-advertising-campaigns-archive/ https://www.farfetch.com/uk/shopping/men/gucci-gucci-worldwide-cargoshorts-item-15115547.aspx https://www.endclothing.com/gb/gucci-dublin-gucci-worldwide-flag-slip-on602849-gzo10-1075.html https://uk.fashionnetwork.com/news/Gucci-invests-over-10-million-in-diversity,1081120.html https://www.popsugar.co.uk/gdpr?utm_medium=redirect&utm_campaign=US:GB&utm_source=www.google.com&gdpr https://designandfashionmagazine.com/2020/12/19/real-gucci-handbags-or-fake/ https://www.vogue.com/article/gucci-alessandro-michele-creative-director-profile https://www.xrtoday.com/virtual-reality/seoul-pledges-33-1m-to-metaverse-project/ https://www.lacucinaitaliana.com/trends/news/emilia-burger-by-gucci-osteria-da-massimo-bottura-leads-the-new-glamorous-art-project?refresh_ce= https://www.voguebusiness.com/technology/dimension-studio-how-fashion-is-being-brought-to-the-metaverse https://venturebeat.com/2021/10/20/roblox-unveils-electronic-music-festival-in-the-metaverse/