EXTERNAL ANALYSIS

Pestle Analysis

POLITICAL The main political issue that affects Gucci is laws regarding import and export taxes. It used to be a problem almost exclusive to the market in countries like China and Russia but with BREXIT on the corner it will be something that will definitely affect the UK market for Gucci too. Gucci will have to have a strategy for this event that will definitely reshape Europe somehow.

ECONOMICAL Gucci definitely faced challenges because of economic factors these past years due to some critical situations in some of the most economically important countries around the world. But the brand managed to keep on growing and contributed a lot to the economy growth globally. Gucci had a very strong quarter with a 10.7% Growth (October 2019) according to Kering.com

Pestle Analysis

SOCIAL Like many other luxury brands, Gucci produced a lot of leather and fur products and it can make the brand an easy target of activists. However, the brand has shown that they are willing to be ecologically responsible and change their ways regarding this matter. In 2018 they have stopped producing products that uses fur and together with Kering they have a plan of eliminating all hazardous elements by this year (2020). The company has made a great social impact with the above mentioned decisions and with the many charitable events and campaigns that the company is involved with.

TECHNOLOGICAL Gucci succeeded in understanding well the importance of keeping up with technology in all ways. The company is present in all the major social platforms and their marketing via those platforms is very strong making customers heavily aware of the brands image via the internet, therefore in the whole world.

LEGAL Gucci takes care to abide strictly according to laws. In all factors, in the production and deliverance of their products, in the equal opportunity hiring of their employees also in the working hours and treatment of the employees. Some of the challenges Gucci faces from time to time are the lawsuits the company has to fill against other companies that copies the brands products.

ENVIRONMENTAL This decade is looking very good and promising for Gucci. With the fur products production ending in 2018 and Kering’s promise of ending with hazardous elements in production by this year (2020). The brand is vowing to being more responsible and caring towards the environment as many luxury brands are but Gucci has already taken a few steps and it has already created a good impact. Of course it is still not enough and there is still a lot of question marks concerning the subject “Fashion x Environment” throughout the whole industry/.