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Fashion Revolution with Gucci

Research · February 2018

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fashion revolution with gucci

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TABLE OF CONTENT
1. ABSTRACT
2. FOUNDER OF GUCCI
3. INTRODUCTION
4. HISTORY
5. GUCCI LOGO
6. SIGNATURE LOOK OF GUCCI LOGO
7. GUCCI’S CREATIVE DIRECTOR
8. PRODUCT LINE/CARAGORIES
9. GUCCI’S SIGNATURE STYLE
10. GUCCI STORES
11. SOCIAL ACTIVITIES (GLOBALLY)
12. MANAGEMENT ENVIRONMENT
13. BRAND EQUITY OG GUCCI
14. COMMITMENT
15. DEVELOPING & MANAGING PRODUCT
16. MARKETING MIX
17. SWOT ANALYSIS
18. SEGMENTING & TARGETING MARKET
19. INTEGRATED MARKETING COMMUNICATION
20. CUSTOMER REALATIONSHIP MANAGEMENT
21. REVENUE OF GUCCI GROUP
22. MISSION AND VISSON
23. CONCLUSION
24. REFERENCES
2
 ABSTRACT
Gucci is the name of a “hottest” luxury fashion brand. Under the new vision of
creative director Alessandro Michele, the House has redefined as one of the
world’s most desirable fashion houses. This paper is about how Gucci
communicate their brands to the audience with high level fashion revolution.
This paper consists of analyses of the brand identity, signature style, fashion
statement, verity of product line, marketing policy, management and other
strategies. On this journey I noticed that Gucci performing for Global and social
welfare. In other side GUCCI is very much coveted. And it’s really controversial.
Their target customers are elite class and celebrities. Only particular people can
effort this level of products. This luxury fashion brand should resolve this and
create a new fashion statement which will be non-controversial. After all Gucci
is reflected back in themselves, the stereotypical consumer will feel influential,
innovative and progressive- much like the brand itself.

3
FOUNDER OF GUCCI
Guccio Gucci was an Italian businessman and fashion designer, the
founder of The Fashion House of Gucci.

Guccio Gucci

Born : 26 March 1881

Florence, Italy
Died : 2 January 1953 (aged 71)
Milan, Italy
Citizenship : Italian/British
Occupation : Professor, Doctor, Businessman and
Known for Founder of Gucci

4
Type : Subsidiary
Industry : Fashion
Founded : 1921; 96 years ago
Founder : Guccio Gucci
Headquarters : Florence, Italy
Key people : Marco Bizzarri (CEO)
Alessandro Michele (Creative Director)
Revenue : US$ 4.3 billion (2016)
Website : www.gucci.com
5
INTRODUCTION
The House of Gucci, better known simply as Gucci. Gucci pronunciations is an
Italian luxury brand of fashion and leather goods, part of the Gucci Group, which
is owned by the French holding company kerning. Gucci was founded by Guccio
Gucci in Florence in 1921. Gucci generated about €4.2 billion in revenue
worldwide in 2008 according to BusinessWeek and climbed to 41st position in
the magazine's annual 2009 "Top Global 100 Brands" chart created by Interbred,
it retained that rank in Interbrain’s 2014 index. Gucci is also the biggest-selling
Italian brand

Gucci is one of the most sought-after(desirable) labels in the fashion industry.

From Los Angeles to Paris, the Gucci label is lighting up the runway and
becoming the single most respected label in the world. From their incredible
handbag designs to their super sexy floor length gowns, Gucci is offering an
elusive mix of casual styles and runway chic designs for men and women all over
the world.

Originally founded in 1921, Gucci has successfully provided consumers with

leading, high quality designer goods, unlike any other designer in the business.
Over the years, the label has obtained insurmountable levels of success with each
new collection released. By 2005, Gucci had established 207 stores around the
world.

Gucci operates about 278 directly operated stores worldwide as of September

2009, and it wholesales its products through franchisees and upscale department
stores. In the year 2013, the brand was valued at US$12.1 billion, with sales of

6
US$4.7 billion. In the Forbes World's Most Valuable Brands list, Gucci is ranked
the 38th most valuable brand, with a brand value of $12.4 billion as of May 2015.

Within the last decade, Gucci has expanded the label significantly. Gucci is just
one division of the Gucci Group, which is a parent company to world renowned
labels such as Yves Saint Laurent, Stella McCartney Balenciaga.

7
HISTORY
Guccio Gucci founded the House of Gucci as a saddlery shop in Florence in 1906.
Guccio's first talent was his craftsmanship in leather goods. He started out selling
leather bags to horsemen in the 1920’s and progressed to luxury luggage as his
clients graduated from equine transportation to horseless carriages. In 1938
Guccio Gucci opened their first retail shop on the Via Candiotti in Rome (History
and Background of Gucci, 2018).

In 1947 the immediately recognizable Gucci icon, the leather bag with bamboo
handle, is created. During the 1950’s the trademark red striped webbing is
introduced, taken from its original form place on a saddle girth. This became an
emblem much as the leather moccasin with leather bit.

Guccio Gucci created many of his classics early during the 1950’s; products such
as luggage, ties, shoes, and the famous handbags sporting the bamboo handle.
After his death in 1953, his family was able to take the enormously successful
company to new heights by opening stores in Paris, Beverly Hills, London, Palm
Beach, and Tokyo. The 1960’s brought increased fame to the Gucci Empire. Such
Hollywood stars as Grace Kelly, Peter Sellers and Audrey Hepburn made the
name Gucci synonymous with “chic”. Jackie Kennedy helped by being
photographed with the Gucci shoulder bag, which subsequently became known
as the “Jackie O”. The company adopts the “GG” logo (History and Background
of Gucci, 2018).

8
But with the fame and recognition of the brand name came some turmoil. While
Gucci goods were considered a status symbol of the times, management and inner
family seemed to disagree. Brother Maurizio Gucci took an apparently ailing
business over from his founding brother, who in turn sold it to an Arab concern
in the 80’s.

In the 1990’s, Tom Ford, Gucci’s newest executive head, has brought Gucci back
to the center of chic, and now commands a varied line of products including
leather fashions, perfumes, colognes, cosmetics, shoes (including the moccasin
with the distinctive Gucci snaffle-bit), the "Flora" foulard created for Grace Kelly
by Rodolfo Gucci, suitcases, watches, jewelry, silk scarves, sports articles, belt
clasps, ties, and eyeglasses.

There were seventy-six Gucci stores around the world in 1997, along with
numerous licensing agreements. Ford was instrumental in the process of decision-
making with De Sole when the Gucci Group acquired Yves Saint Laurent Rive
Gauche, Bottega Veneta, Boucheron, Sergio Rossi, and, in part-ownership with
Stella McCartney, Alexander McQueen and Balenciaga. By 2001 Ford and De
Sole shared the responsibility for major business decisions, while Ford
concurrently directed design at Yves Saint Laurent as well as at Gucci.

The French conglomerate Pinault-Printemps-Redoute, however, gained

ownership of 60 percent of the Gucci Group’s stock in 2003. Women’s Wear
Daily then announced the departure of both Domenico De Sole and Tom Ford
from the Gucci Group when their contracts expired in April 2004. The last spring
collection under the direction of Ford and De Sole was a critical and commercial
success. Amid widespread speculation in the fashion press about Ford’s heir, the
company announced in March 2004 that he would be replaced by a team of
younger designers promoted from the ranks of the company’s staff.
9
In 2005, Frida Giannini was appointed as the creative director for women’s ready-
to-wear and accessories, previously joining Gucci in 2002. In 2006, she also
became the creative director for men's ready-to-wear and the entire Gucci label.

As announced in December 12, 2014, Creative Director Frida Giannini and CEO
Patrizio di Marco were to step down from Gucci. Marco Bizzarri was appointed
CEO of the brand.

10
GUCCI LOGO
Gucci logo is perhaps the most recognizable in terms of luxury brands. Gucci is
a designer fashion label, that produces fashion items, mostly including high end
leather goods and clothing.

Aldo Gucci, one of Guccio’s three sons, joined The House of Gucci in 1933 and
he was the one who designed the actual logo that we can see today. The Gucci
logo is artistically designed, and has been timeless and classic since the design
took shape. Now It is the most memorable and recognizable fashion logo ever
created (Dvornechuck, 2018).

The logo symbolizes grandeur and authenticity and is seen worldwide.

The shape of the logo could easily apply onto any application. The curve, contrast
and spaces between the letter spacing really bring out the information of the
brand. The famous double G logo of Gucci employs the two interlocking, bold
“Gs” of the father’s – Guccio Gucci’s – initials in a very artistic and smart way.
The Gucci logo has become synonymous of luxury and sophistication.

11
SIGNATURE LOOK OF GUCCI LOGO

12
GUCCI’S CREATIVE DIRECTOR
After just about every single designer going was linked to the top job at Gucci,
the house has finally announced the designer who will succeed Frida Giannini.
The lucky man? Alessandro Michele, formerly the head of accessories.

After the sudden exit of the brand's former creative director Frida Giannini,
Michele took the reins in January 2015 only five days before the legendary Italian
label's Milan men's show. Alessandro forcing the in-house team to totally
redesign her offering – right down to its casting, set and accessories. That
collection, created in only 120 hours, single-handedly kick-started the fashion
scene's current craze for all things Gender Fluid. Not only that, but his collections
since have made Gucci one of the most relevant, coveted and bankable brands out
there (Bowles, 2015).

Michele's androgynous, intellectual romanticism replaced the glitz and glamour

of Giannini's tenure. He took his bow during the finale to roaring applause,
immediately storming to the top of the favorite list for future designer.

After a considered and thorough selection process, Alessandro Michele has been
chosen to assume the role as Gucci Creative Director, based upon the
contemporary vision he has articulated for the brand that he will now bring to
life," Marco Bizzarri, the company's president and CEO, told WWD. "Alessandro
and I are fully aligned on this new contemporary vision needed by the brand and
we will be continuously inspired by that new identity in our respective roles and
duties."

13
ALESSANDRO MICHELE
Alessandro Michele is an Italian fashion designer and business executive. He was
appointed creative director of Gucci in January 2015, and is responsible for all of
Gucci’s collections and global brand image.

Name: Alessandro Michele

Born: November 25, 1972
Birthplace: Rome, Italy
Education: Studied at the Accademia di Costume e di Moda in Rome.
Age: 44 years’ old
Fashion career: Fendi, Tom ford, Gucci.
Awards and honors:
#2015 International Fashion Designer of the Year award at the British Fashion
Awards
#2016 International Fashion Designer of The Year Award at the British Fashion
Awards

14
PRODUCT LINE/CARAGORIES
MEN’S
Clothing
Shoes
Ties
Bags & Briefcase
Wallets
Underwear
Swimwear
Cufflinks
Shirt
Belt

WOMEN’S
Handbags
Shoes
Clothing
Wallets
Underwear
Swimwear
Accessories
Belt

KID’S
Kids wear
Shoes & Accessories

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SUNGLASSES
Men’s Sunglasses
Women’s Sunglasses

JEWELRY
Men’s Jewelry
Women’s Jewelry

WRIST WATCHES
Men’s Watches
Women’s Watches

HOUSE
Home Décor & Accessories

16
Product Categories of Gucci

17
Gucci’s Trendy Women’s Wear

18
WOMEN’S WEAR

19
WOMEN’S HAND & CROSS BAG

20
WOMEN’S SHOES

21
JEWELLERY & ACCESSORIES

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JEWLLERY

23
WOMEN’S WRIST WATCHES

24
WOMEN’S SUNGLASSES

25
MEN’S WEAR

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WALLETS

27
MEN’S SHOES

28
BELTS & HAND CUFF

29
WRIST WATCHES

30
SCARF & MUFFLER

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SUNGLASSES

32
OFFICE & TRAVEL BAGS

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GUCCI’S SIGNATURE STYLE

Gucci’s signature style can be described in two words - unbelievably sexy. Their
designs show a true transformation from youthful pretty to grown-up sexy. Their
sultry designs are perfect for an elegant dinner and maybe even some dancing.
Most of their designs are simple with a touch of detailing (like a slit in the skirt
or a cross stitching design in the front of a sweater) to make them truly unique.
Most designs feature their "G" logo which has become synonymous with high
class style (ThinkFashion, 2018).

Like a number of other labels on the market (Prada and Armani to name a few),
much of Gucci’s success is a result of celebrity support. Gucci designs have been
worn on runways and red carpets all over the world. Gucci’s publicity can be
attributed to international celebrities like Jennifer Lopez and Halle Berry who
have chosen Gucci designs on more than one occasion.

34
SISTER CONCERN/GROUP BRANDS

Group Brands OF Gucci:

1. Bottega Veneta

2. Yves Saint Laurent

3. Balenciaga

4. Alexander McQueen

5. Boucheron

6. Sergio Rossi

7. Stella McCartney

35
SISTER CONCERN/GROUP BRANDS
(Logo of Brand’s)

36
Gucci Stores
Gucci now has 505 stores all over the world. It has also using franchise method
for new shops and opening department stores. It’s today possible to find Gucci
from East Asia to West America.

In United State of America

165 Gucci Stores

In Western Europe
114 Gucci Stores

In Asia
53 Gucci Stores

In Others Countries
173 Gucci Stores

37
38
39
40
SOCIAL ACTIVITIES (GLOBALLY)
Gucci has a partnership with UNICEF since 2005. Gucci stores worldwide
donate a percentage of the sales for special collections made specifically for
UNICEF to go toward the United Nations Children's Fund. The annual Gucci
Campaign to Benefit UNICEF supports education, healthcare, protection and
clean water programs for orphans and children affected by HIV/AIDS in sub-
Saharan Africa. For the campaign in 2009, Michael Roberts promoted a
children's book, "Snowman in Africa" with proceeds going to UNICEF. In five
years, Gucci donated over $7 million to UNICEF. Gucci is the largest corporate
donor to UNICEF's "Schools for Africa" that was established in 2004 by UNICEF,
the Nelson Mandela Foundation, and the Hamburg Society. Its goal is to
increase access to basic schooling for all, with a special emphasis on children
orphaned by HIV/AIDS and children living in extreme poverty.

Chime for Change

"Chime for Change" Launched in February 2013. This campaign works to
further the global campaign for girls' and women's empowerment. Gucci has
funded over 210 projects in 81 countries through via this initiative.
In 2013, it was announced that Beyoncé Knowles would work with Salma
Hayek and Frida Giannini on the campaign that aims to spread female
empowerment. The campaign, which aired on February 28, was set to new
music by Knowles. A concert for the cause took place on June 1, 2013 in
London and included other acts like Ellie Goulding, Laura Pausini, Florence and
the Machine, Iggy Azalea and Rita Ora. The concert raised over $130,000.

41
42
MANAGEMENT ENVIRONMENT

The management environment of GUCCI has a great-level of business network

and practice of the operation mechanism work. The concluded management
environment dwells all of the utilization and servers that are victimized to
discharge time-to-time work requests representing your business. Management
environment can be external and internal.

The internal environment designation can be referred to the factors and conditions
within the organization that it has an influence on its operations. The external
environment designation includes factors outside the organization that has an
influence. Upon the success of the organization goods and services.

Internal Environment
Acquisitions:
Partnerships
Management:
Horizontal Corporate Structure

External Analysis

Political analysis
-Changes in law and principles.
-Governmental situations containing civil disquiet, administrative substitutions.
-Their capableness to diffuse the development and the rise of their brand in the
market, which is dependent on the economy and the political conditions of the
country

43
Economic analysis
-Financial crisis can lead to a massive loss of clients for the Gucci brand
-The prices of Gucci Products are very expensive when compared to the products
offered by its competitors; and this has helped the organization a lot in terms of
differentiating itself from other fashion shops.
-World Wide Shipping, convenient for the clients to order goods online.
-Investing to the promotion.

Socio-cultural analysis
-Move from traditional classic image to aggressively glamorous edge and launch
of ready-to-wear collection with young spirit targeting the new age fashion client
who consumes, shops, buys, disposes and buys it again.
-Values: Integrity, excellence, fairness, sense of purpose,
-Beliefs: Build common understandings, work as a team, individuals must know
the details of applicable laws and regulations, no one should operate with
unethical or illegal business practices.

Demographical analysis
-The affordable luxury market all over the global is facing the trouble of losing
sales on its leading customer group - middle class

Legal analysis:
-Worldwide procedure barriers comprised an adjustment, expenditure controls,
promotion and advertising restrictions and scarcity of infrastructure.
-Pressure from the WWF Organization to ban the usage of the fur.
-In June 2013, the owing French company of Gucci, officially changes its name
from PPR to Kerning.

44
Technological analysis:
-The sophisticated technology of internet and the mass media which uses the
extraordinary and special effects to make the promotion and advertising more
flashy and attractive.
-Gucci being in one team with the Windows Phone developing a luxury designed
phone by - Gucci.
-In Co-operation with Apple by designing extravagant cases for their production,
this makes the brand even more popular.

45
Brand Equity of Gucci
Gucci is the most famous brand across the globe, and has customers that offers
an edge over its rival firms in the industry of handbags. The company thinks its
customers see Gucci products as of unique, traditional, and good quality.

Current Brand Equity

Firms, such as Gucci and similar businesses made significant efforts to establish
their brand equity because of its vital business line. Here, the idea is
distinctiveness and uniqueness as these firms work in a niche market.
Additionally, Gucci drives higher prices and the amount of outlets. Gucci’s brand
equity set up is of an exclusive and luxurious brand only some people can afford
Gucci products.

1. High Quality
Current brand equity of Gucci is relied on their unique, tradition, and high-
quality design. However, Gucci has included a new dimension by their current
strategy of social media. The quality of a brand is recognized being an Italian
brand, the uppermost possible within its industry. With a matchless sense of
style and design made in Italy has been dictating the industry for several years.

2. Uniqueness
Gucci is a renowned brand across the world for its unique blend of fashion
authority and luxury heritage and impeccable craftsmanship of Italy. Gucci
uniqueness is in its Italian style, and has identical with desirability, sophistication
and elegance.

46
Gucci Strategies of Brand Equity
In customers’ mind, Gucci appears to be seen as the most unique and best out
of all Italian brands. Gucci is the only brand that draws inspiration from the
equestrian world, by promoting Tuscan artisanship and an active strategy of
social media. In current times, subsequent to its vertical increase to the topmost
luxury world, the company has been making efforts to stay associated with its
consumers and not be viewed as strictly unreachable and high class for the
average persons. By using its down-to-earth attitude, uniqueness, and quality,
Gucci wants to be considered as the high-quality luxury brand that all desire to
be a part of the brand.

1. Differentiation
In the minds of customers, Gucci differentiates its brand by its good quality
offering, which stay true to equestrian roots and core value of Gucci.

2. Resonance
The company is able to attain resonance by formulating a strong community
sense, promoted by a want to be a part of social elites. Gucci’s choose high
pricing points and distribution channels drive the brand exclusivity, as well as its
following. The company has effectively created a community belongingness by
introducing the Gucci museum.

3. Feelings
Gucci marketers also targeted people feelings, such as social approvals, self-
respect and excitement are widespread in brand of Gucci. Most of the people
see wealth and sexiness to be interrelated, advocating sense of excitement in
being a part of the high-class
Gucci has rapidly increased and maintained its brand equity in a fickle and
competitive industry. The company has attained a strong brand equity by
steadily embedding their major brand values in all categories of products, which
include sunglasses and perfume to ready-to-wear, handbags, jewelry and
accessories.

47
Commitment
Values and strategy
Corporate Social Responsibility is one of Gucci’s core values and is at the base of
the brand’s identity. We recognize that the philosophy of “Sustainable Value” is
at the heart of our management policies and our corporate conduct, which
means that we have implemented a process to integrate social, environmental,
ethical, human rights and consumer concerns into our business operations.
Our business model is designed to provide our customers with the highest
quality products, which are made in Italy in a responsible manner (Mirza, 2017).
Together we are committed to raising awareness and creating a culture of
responsiveness within the Gucci system - employees, shareholders, customers,
suppliers, subcontractors, commercial and financial partners, local
communities, institutions, trade associations, trade unions – by promoting a
Social and Environmental Responsibility Policy that values the following aspects:

1. Business ethics
2. Respect for workers’ rights and equal opportunities
3. Respect for and protection of workers’ health and safety
4. Respect for and enhancement of professional skills
5. Valuing diversity (culture, gender, disability)
6. Cooperation and solidarity promotion.
7. Respect for and protection of the environment and biodiversity
8. Respect for stakeholders
9. Supplier involvement

48
Developing and Managing Products

Every season Gucci introduces new products to the market. Now they have their
first children's spring 2011 collection and Cruise 2011 collection. Their new
products increase their revenues and profits. They decided to advertise their
children's collection by featuring Jenifer Lopez kids. They also advertise their
new products by telling the customers what is going to be in style next. They
also introduce new products as limited edition, which attracts customers to buy
them because they are exclusive and won’t be on sale for a long time ( Week1-
History and Mission Satement).

49
Marketing Mix (GUCCI)
Place

GUCCI has provided the dresses in different styles and designs for the clients in
different markets but these dresses are mostly found in the higher markets,
where the upper middle, middle and rich class can find them. The dresses of the
new styles are provided at different times after some time and the new styles
are prepared in the new season, as the fashion trends are also changed from
time to time.

Price

The dresses of this fashion brand are provided at the price depending of the
quality of fabric and the work over the dresses. In the pricing strategy, the
fashion house includes all types of the expenses, along with the tax charges,
which are implied. When these dresses and the complete collection are
exported then various other charges are also included, which can help in
increase the rate of the dresses. The fashion brand tries its best to look at the
pocket of the buyer at the time of fixing the rates of the dresses.

Promotion

The company adopts the effective advertisement policy for the promotions of
the products. The advertisements in the electronic and prints media along with
different advertising campaigns can help to increase the publicity of different
dress collections. The fashion lovers check the quality of the dresses and they
can visit the outlets to buy the dresses of their choice.

50
Marketing Mix (GUCCI)

51
GUCCI SWOT Analysis
S: STRENGTH
W: WEAKNESS
O: OPPURTUNITIES
T: THREATS

52
GUCCI Strength

• The fashion brand is very popular among its clients and it also enjoys its brand
equity.

• The brand has maintained its strong and quick distribution channel, which can
help to provide its products at their outlets in short time.

• The company has provided its products to its clients through different
suppliers and retailers, who are working in different countries.

• The brand has maintained its strong product portfolio, in which apparels,
clothes, watches, and other products are easily available to its clients.

• The brand has maintained its own outlets in different countries so that smooth
supply of their products can be ensured in that country.

• GUCCI has performed with various leading agencies like UNICEF for the
provision of its products.

• The company has also make the association with the automobile companies
like Ford, General Motors and FIAT and it has increased the value of its products.

• GUCCI is the leading and well-known fashion brand, which has also shown its
strong brand presence in the global markets.

53
GUCCI Weaknesses

• The fashion brand extends the business activities and they have to invest huge
amount over their activities.

• The company has the week financial position, which can hinder the brand to
carry on its business activities and also make the margin narrow in its earnings.

• The wide range of diversified products can create risks for the dilution of the
brand.

• The investment of huge amount in this business can protect it and also
maintains the image of the brand.

GUCCI Opportunities

• GUCCI should give attention in the emerging and most dominating luxury
market and also introduces its products in China and India.

• The competitive advantage in the different business segments can be healthy

competition between the brand and they can get advantage to make it strong.

• GUCCI should start their business in the high potential growth market in Asia
and also introduce their latest and unique designed dresses and other
accessories.

54
GUCCI Threats
• GUCCI has to face problem in the market, as various other competitors are
present in the international market with latest designing techniques and styles
of the dresses.

• The customers can get the substitutes of their products from the market, so it
can affect their business.

• The changes in the rules and regulation in the taxation policy, the rates of the
products are varied and it leaves negative impact on the minds of the clients.

55
Segmenting and Targeting Markets

Gucci does not have a specific target market. It aims at the people that are
willing to buy their products. Gucci has a successful market segmentation
because it follows four basic criteria’s. They have enough customers to buy their
products, it is identifiable and measurable, their market segmentation member
is accessible to marketing efforts and their market segment responds to
particular marketing efforts in a way that distinguishes it from other segments.
Now they have added a new target market with their new children's collection.
This will bring more sells to the company and increase their revenues
(TheManager.org).

56
Integrated Marketing Communications
Gucci’s promotional strategy is to continuously come up with different
campaigns and enter in partnerships with different kinds of organizations all
over the world. Each campaign the launch has a unique style according to the
season that it is being launch in. Gucci’s competitive advantage is that the brand
name is already known as one of the most luxury designer company known. This
broadens their publicity. Their website also provides costumers easy access to
their products and lets them know what’s in style according to them (Danao,
2017).

57
Customer Relationship Management
The way Gucci deals with CRM is that it provides best service to the customers
that they know are going to spend money without looking at price tags. For
example, some celebrities are able to close stores to be able to shop. They tend
to show celebrities what's new on the next collection. They provide them with
gifts and a VIP service. For people that they "think" won’t spend money at all
them don’t provide a high-quality service. On their website, they let their
customers know what in stores is and what they are planning for future
campaigns. Gucci is most likely to store date from frequent customers and
celebrities ( Week1-History and Mission Satement).

58
REVENUE OF GUCCI GROUP
The revenue of Gucci Group it can be said that the organization continues to
make profit and the moment is worth over 4 billion Euros in terms of its
revenue. In terms of its goals the organization hopes to be the best within the
fashion industry in the way and manner in which it conducts its business
activities. On the other hand, in terms of its structure, the organization goes a
long way to determine the strategy development of the business.
The organization structure of Gucci Group consists of functional structure
where jobs are grouped according to their specialism such as finance,
production and marketing etc. The structure may inhibit development of
different activities as strategic business units and restructuring may be
necessary before a new strategy approach can be adopted. Its systems are
made up of procedures within an organization either formal or informal such
as budgetary systems, financial control procedures, reward systems,
management information systems, operating procedures etc. These have
significant impact on strategy development and implementation. In terms of its
style, the organization tries to instill its culture such as its values, beliefs and
norms shared into its members.
Source: (Adapted from PPR Annual Report 2007)

59
Vision & Mission
The company`s mission is to become the leader in luxury market at world-wide
level.
Gucci describe themselves as cool and responsible, and value themselves on
their craftsmanship. These three concepts are linked; taking up responsibility
can swell be cool. For Gucci, Corporate Social Responsibility is an important
part of their global strategy. They work with a holistic, yet realistic approach.
They state that it is their duty to use their position as a luxury brand to pioneer
and promote sustainability.
The Gucci values are deeply embedded within ethics and in fact, the company
began to work on a sustainability strategy in 2004. Quality remains a main
priority, but they began to elaborate upon this. Sustainability for people and
the environment became part of the quality-concept. Gucci state that their
sustainability strategy is supported by their stakeholders.
June 2010, saw the introduction of Gucci`s 100% recyclable packaging. Shortly
after this, the company launched a collection of environmentally-friendly
glasses which utilized biodegradable plastic and recycled metal; with a new
collection of these to be launched in 2013. Biodegradable plastic is also to be

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used in a shoe collection which the company describe as a combination of style
quality and new material.
The Gucci target group is the affluent middle to upper classes. The consumer is
hip, aged thirty plus, and above all. It is an individual who invests in fashion as
either a treat or a lifestyle.

CONCLUSION

As a conclusion, Gucci is adapting to fashion trends while keeping sophistication

in mind. designer companies like Gucci work hard to establish high brand equity,
as it is essential for luxury business. Gucci is currently revamping its business
structure because the brand fell significantly in the rankings this year, slipping
14% in brand value, according to Interbred. Reasons are mainly economic and
socio-cultural, a decreasing demand in the Chinese market, difficult
macroeconomic conditions in Europe and a shift in the consumer tastes and
buying processes. Nowadays, according to Brand, consumers have a harder time
aligning luxury purchases with their views about consuming responsibly. But
Gucci still remains the 3rd best luxury brand. The company will pioneer products
that have the ability to change the textile and accessories market and change
the Cradle to Grave fashion industry of today. Gucci will become renowned for
their innovative take on the fashion product whilst remaining, as always; cool
and responsible, and expert craftsmen.

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 REFERENCES
Bibliography
Week1-History and Mission Satement. (n.d.).

Bowles, H. (2015). Inside the House of Gucci: Meet The New Creative Director. Vogue.

Danao, M. (2017). How Gucci’s Digital Strategy Helped Maintain Its Global Presence. Refferal Candy
Blog.

Dvornechuck, A. (2018). 7 Top Logos with Meaning Explained.

History and Background of Gucci. (2018, February).

Mirza, S. (2017). The Power of Fashion and CSR. FRONTROWEDIT.

TheManager.org. (n.d.).

ThinkFashion. (2018). Designers Profile.

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