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Marketing Strategy And Bussines Model Of Gucci


You have likely heard of Gucci if you are reading this post because of the business strategies in use. Although the company is recognised for its distinctive “G” loops on bags, Instagram’s preferred logo wasn’t created overnight. It has been a century since the renowned Italian luxury label first appeared. It is currently the biggest fashion brand owned by luxury group Kering, generating €9.6 billion in annual revenue in 2019 because of a swift recovery following the epidemic.

Slightly elevated designers and luxury houses excel at foreseeing what consumers will wear in the future. However, they appear to follow rather than lead trends when it comes to creating their future business strategy. Because the transition from conventional brick-and-mortar stores to internet stores has been rather sluggish in the business.

Fashion businesses have long relied on their physical boutiques to cater to their wealthy and renowned clients, like Gucci, Prada, and Louis Vuitton. In addition, the majority of luxury firms thought that reduced and midrange-priced goods were more suited for e-commerce. The fashion firms didn’t begin to alter their tactics until a McKinsey study revealed that 80% of luxury sales are “electronically impacted.” Gucci understood it had to do more after it saw the percentage of its consumers were seeking internet influence before, during, or after buying luxurious goods.

At the beginning of the establishment

Guccio Gucci, a leatherworker, established the Italian fashion house Gucci in Florence in 1921. Guccio was known for his fine equestrian riding gear up to that point. While working at the Savoy Hotel in London, he was influenced by the rich upper-class clients and began creating lifestyle items. Gucci designs are still heavily influenced by Guccio’s equestrian upbringing and Italian craftsmanship today, but they are now more often referred to be diverse, modern, and romantic. The company is known for serving some of the world’s first influencers, including Jackie O., Grace Kelly and Audrey Hepburn.

Upgrading Its Heritage

2015 saw Gucci enter a new market after two difficult decades highlighted by family disputes and rotating storyboard artists. The business soon changed its strategy once Marco Bizzarri was named CEO and Alessandro Michele joined him as Creative Director.

First and foremost, the new management concentrated on changing the corporate culture by developing an atmosphere that empowers staff, fosters creativity, and builds on equal opportunity. Second, Bizzarri and Michele had a daring vision for the business: Gucci was to become the first heritage premium brand to act in a “digital native” manner, making innovation the company’s prime importance and its online presence equal in importance to its physical places of sale.

A Fresh Story For A Fresh Consumer Base

As a result, Gucci began concentrating on a new consumer group that was not previously an element of their intended market: young teens. They not only updated their clothing and accessories, but they also changed the storyline of their story to engage emotionally with millennials through various media. The brand has changed from utilising conventional runway displays and models to employing Instagram and role models.

Gucci is concentrating on its platforms to communicate its narrative, according to the approach of its parent business Kering Group. The brand was able to develop an omnichannel strategy that encourages repeat business by fusing their online and in-store experiences.

Speculating On The Direction Of Style And Design

Gucci found it difficult to abandon its traditional business strategy and embrace the digital revolution. In the fashion business, the company’s remarkable metamorphosis is frequently exploited as the big narrative. Millennials already account for nearly 50% of Gucci’s revenues, demonstrating the effectiveness of their transition. To encourage millennials to buy into the business model, the company is attempting to build an even closer connection with them.

As a result, the fashion brand is actively integrating artificial intelligence into several aspects of its operations. More crucially, they use it to take advantage of data supplied by their tech-savvy audience while forecasting sales at their retail locations. Gucci can forecast consumer behaviour by deeply knowing the future of fashion.

Strategies That Are Followed By Gucci

After being appointed creative director, Alessandro Michele was tasked with completely reimagining the brand’s look. He intended to draw attention to the classic style and the company’s distinctive antique emblems. In addition, he introduced archetypes illustrating race, age, gender, and inclination to successful Gucci advertising strategies.

He also considered the following factors that were crucial to the identity of the brand:

  • Gucci emblems designed in the greatest vintage look distinguish the current touch.
  • the reemergence of the distinctive G-locking logo.
  • The firm gained popularity because of the icon incorporation.

By 2019, these three factors had increased this premium brand’s recognition. Consequently, achieving a growth rate of 23% and a brand worth of $159,49 million. As you can see, this extremely prominent company spent several years concentrating on adopting marketing techniques to preserve its status as a prominent fashion business. Due to this, we cannot overlook the fact that two of the most crucial methods are still in use today while studying Gucci promotions:

Internet: A Magic Wand

According to specialists in high fashion, social networking sites use is also a factor in the tremendous achievement of the Gucci brand. Of course, how they utilise this means of communication than whether they use it at all—is the problem.

This firm has been able to stay in touch with its consumer and draw in younger ones thanks to this online marketing scheme. By doing this, they have also successfully collaborated with well-known figures like Harry Styles, a fashion influencer since 2020.

Similar to this, to get more out of social networking sites, this company has been linked with the Shadow Millennium Committee since 2017, a group of individuals under the age of 35 who are responsible for giving it valuable reception.

Comparative Research For Gucci’s Business Strategy

In the premium and luxury sector, generating buzz, being highly visible, and gaining a reputation are essential for forging a unique impression in customers’ minds. Gucci has a strong connection to several campaigns, and its collaborations have aided the fashion house in differentiating itself from rivals. Some of the companies competing with Gucci include Hermes, Louis Vuitton, Chanel, Prada, and others.

Increase the brand’s worth

Detailing the reality that this company’s worth increased in just four years but ever since Michele started as creative director—simply by establishing the brand’s identity visible—is crucial. Therefore, this can be one of the tactics which are most effective in designer fashion.

Sustainability: A prime concern

This article’s introduction covered this advertising tactic.

After all, many luxury firms today use it in their business plans. Gucci’s goal in using this feature is to support diversity and maintain the practice of old practices.

Another goal is to maintain the work atmosphere so that the team can deliver excellent care.

Who Is Gucci’s Intended Market?

One of the marketing strategies that must be included in the business strategy of a luxury company is customer segmentation, and Gucci is well aware of this. Because of this, Gucci’s target market is comprised primarily of affluent, high-status individuals. This is because not all consumers can purchase an item of high fashion clothing. Consumers of Gucci range in age from 15 to 40 and tend to like trendy apparel and shoes. 

Consumers of Gucci often belong to the upper middle class or affluent socioeconomic classes. Mainly they target Businessmen or celebrities who make up the bulk of Gucci’s clientele.


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