China will be Gucci‘s booster. To achieve this, parent company Kering has prepared a dedicated approach that includes strengthening local teams under the leadership of former Tiffany executive Laurent Cathala. The Chinese market is particularly important for Gucci. Barclays estimates that the Italian brand gets around 35% of its sales from China, compared to 27% for LVMH‘s fashion and leather goods division and 26% for Hermès. Kering, focusing mainly on leather goods, wants to double Saint Laurent‘s sales to 5 billion euros.
China is a key market for Gucci. It goes without saying that the growth of the brand’s revenues will pass through development in Beijing. To grow the Italian brand in China, Kering first recruited former Tiffany manager Laurent Cathala to manage the Chinese operations. Then, it wants to strengthen the local teams, giving them more autonomy. According to analysts, they will directly manage and control the marketing and advertising activities. An unusual move given that strategies are usually decided in the European offices of large groups, notes Fashion Network. In Gucci’s strategies, outlined this morning on Capital Markets Day 2022, there is also growth in leather goods, through Beloved bags and travel.
And Saint Laurent’s
“Saint Laurent is still underrepresented in Asia, particularly in China,” claim Kering, as reported by MFF. “It has room to grow in the leather goods category. The brand is also counting on the States (and on leather goods) to double its revenue in the medium term, become a second Gucci, and reach a 5 billion euros turnover”. Kering emphasised the importance of ready-to-wear to convey the brand image and footwear as a “second growth engine”.