Gucci‘s (product) strategies to get back on top. From the success of inclusiveness, achieved with a transversal product offer to Covid, which revealed the weaknesses of this strategy. Among which, that of relying too much on non-local customers. Kering president and CEO François-Henri Pinault said Gucci needs to find the right balance to attract old customers and younger generations. How is it doing it?
Retviews, a company specialising in automated benchmarking, has studied Gucci’s product offering. Starting point: the brand promotes inclusiveness with exclusive products. And it wants to attract everyone. Objectives pursued mainly with clothing, which generates 18% of revenue, but represents 30% of its assortment. Furthermore, it is also the tool with which Gucci capitalises on fashion trends. But Gucci doesn’t continually churn out products. It is communication that works. For example: in the Retviews, there were 2,180 Gucci items, compared to over 3,000 by Dior and Saint Laurent, and almost 4,000 by Prada.
The right balance
The strategy of inclusiveness has worked “divinely” for many years, until the pandemic that plagued the brand heavily arrived. Now, Gucci is adjusting its offer to regain ground. Its assortment is more balanced. Today it is made up of 40% trendy items and 60% classic styles, 30% new products and 70% carryover. In addition, it seeks partnerships to penetrate local markets.
The shoes, the bags
According to Retviews, Gucci dedicates 55% of its offer to accessories (compared to 71% of Dior and 65% of Saint Laurent) and 15% to footwear. The brand has the highest share of fashion items compared to its competitors, especially in shoes: 49%, against 44% of Dior, 22% of Prada, 36% of Loewe. In leather goods, Gucci has won by betting on the fashion of micro and mini bags. “By reinterpreting its iconic bags in smaller sizes and balancing classic colours with trendy hues, it has showcased its goal of inclusiveness,” reads Retviews.
Image from gucci.com
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