RECOMMENDATIONS

Conclusions

Overall, Gucci is doing very well and is reaching the targeted consumer. Has grown globally not only in numbers but also in fame. The Tom Ford era was too remarkable and even though Frida Giannini brought an interesting image to the brand it was not quite as successful as of her predecessor that didn’t leave the company because of lack of success but because of an internal misunderstanding that lead to a bit of bad blood. For years Gucci was on the edge of being forgotten and Alessandro Michele brought the brand back to life. His style is completely different compared to Ford and Giannini. Michele somehow brought Gucci closer to the masses instead of leaving it untouched in the upperclass. He is transforming Gucci into a modern brand that adapts well to the new mentality that is spreading in the world and is also causing a very good impact with that and with the promises of being a more ecologically responsible brand.

The marketing strategy of the brand is considered one of the most successful ones nowadays and even though the brand is very famous already, it is still growing and becoming more and more influential.

The fact that Gucci is focusing a lot in opening more stores will increase considerably the brand power and revenue. The brand doesn’t lose an opportunity to join promising new markets as we can see what’s going on in China.

A dangerous factor is that just as Ford, Michele also has a strong impact that will be very hard to surpass or even to be equal… Just like Giannini couldn’t do very well after Ford, the next CD after Michele might encounter such difficulties.

Recommendations

1st RECOMMENDATION

The creation of a line with less “artistic” and more commercial pieces. In real life it is extremely difficult to bring together an outfit composed only by Gucci products without ending up wearing all the colours of the rainbow, 350 forests and at least 3 different animals/insects on the prints. Exaggerations aside, it would be interesting to have a balance … Not all Gucci admires are happy with pieces like that. Of course artistic pieces are very important, however something very good would be to focus on the idea of having things that the old Gucci customers would be happy to buy too. I strongly believe that the urge to create something so different was what lead to the creation of the infamous “blackface” sweater and if the brand was focused on having a balance instead of being too up in the clouds this could have been prevented.

2nd RECOMMENDATION

Act faster on the implementation of a new and “ecological” responsible Gucci, biodegradable soles and not using Fur is great but simply not enough. This is extremely serious and the lack of efforts towards this matter of some other brands is ugly. Gucci has the opportunity to lead by example and help create a better fashion world. Of course we love new things and to create them. But we need to wake up and stop pretending that nothing is happening and that we have time to waste while destroying the planet. It would be interesting to implement recycling in the products. It would be cool and good for the environment. Create strong campaigns to bring awareness not only to other brands but also to costumers.

Recommendations

3rd RECOMMENDATION

Investing in opening new stores in South America, especially in countries like Brazil, Argentina and Mexico (there is currently a total of zero stores in Mexico and Argentina). And in Brazil there are only a few stores at the moment. It is a promising market. In Brazil, for example, there are a very small number of Directly operated Gucci Stores and the department stores that sells Gucci but is much more expensive and the upperclass actually prefers flying to other countries to buy Gucci goods. They would buy even more if they had more stores available to them. Also there is the problem of illegal reselling which is when people (particulars or companies) go to other countries to buy certain goods to then sell them in their countries (the product become more expensive them what they bought for but still cheaper than the price the products are being sold in their country of origin and that encourages people to buy the product from these people or illegal companies). Another great point in the investment of opening new stores in South America is not only the company growth but also that the company will create a huge positive impact by creating new jobs in these countries that really needs them.

4th RECOMMENDATION

Invest in finding new talents. Many brands are left almost hopeless when a successful Creative Director leaves and they have to find someone else to fill in the position and the new Director is not half as good as the other. Michele is a great director, but so was Ford. After Ford left Giannini didn’t do the greatest job in the world… It was average and Gucci is not an average brand. Gucci’s “Ecole de L’amour” is a great project to form new artisans, however, it could be expanded into various departments of the fashion world like forming new designers, marketers, managers and etc… It would be incredible if Gucci partners up with Fashion Colleges around the world to develop Fashion courses to produce new talents. Gucci already have some partnerships like the one with CFD in Dubai, but nothing too solid. Just like the Football clubs like to find their own young talent via the junior clubs they create around the world, this project would make a huge impact in the company. It would not only help Gucci to find new talents but it would also help talented students to be placed in the industry without having to first be a “fashion slave” and be explored by other brands like many are.

Recommendations

5th RECOMMENDATION

Decide which market the brand is really interested in. Does it still wants to be exclusive? Does it want to migrate to the masses? Compared to some of the major competitors Gucci’s prices are very low. Assuming that Gucci wants to remain considered as a Luxury brand with premium products I advice that the prices of the products raises at least 10% in the next 5 years.