The Financial Times illustrates the luxury derby between Gucci, going ahead full sail, and Louis Vuitton, “to expand the business considerably”

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Bizzarri and Michele are gearing up to climb on top of luxury. On the other hand, Louis Vuitton stronghold lies on sound grounds, and may still expand their business to a considerable extent. Such is the challenging duel to become the top luxury brand, which is also a competition between two French giants: LVMH versus Kering, that is, the Pinault family versus the Arnault dynasty. The Financial Times is going to investigate into the contest to find out the best qualities of each opponent and, as well, the mutual weak spots on which the other player may rely to win the match. Let us begin with Gucci: their creative and financial management carried out a very good work that led to amazing business figures (sales went up by 49% in 2018 first quarter). On top of that, they have been able to fully entice young buyers (Millennials and Z Generation belong to Gucci at this point and will guarantee the business expansion of the brand until 2030). A combination of factors, a new look for new business models directed at emerging customers, is going to ensure Gucci a long-lasting economic prosperity, however bound to turn to normal standards one day. The other player is Louis Vuitton, whose gigantic turnover has been increasing (+16% in the first quarter), not to mention their sound aura of exclusivity. One of LV’s shortcomings might be the one to open a window to the group’s expansion: in fact, compared to the other luxury brands, LV supply is less diversified. Over 90% of their revenues come from leather goods, therefore footwear, clothing and other product lines are still new fields that the fashion brand may well explore. As reported by the Financial Times, Louis Vuitton top managers are philosophical about the issue: “We are not interested in sales volumes; we are most keen on the prestige of the brand”. Yet the competition is underway: we will see who is going to be the winner.

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