Gucci, one of fashion’s most iconic luxury brands, is making waves in the industry due to its recent strategy shift. As Kering, the brand’s parent company, weighs its options for the future of the label, the effects of the changes have already begun to ripple through the sector. From the factory floors in Italy to the shelves of the world’s fanciest boutiques, “Work-in-Progress” Gucci is creating seismic shifts in the business of fashion.
1. Gucci Under Scrutiny by Kering
Fashion giants Kering have recently turned their attention to Italian luxury powerhouse Gucci. In a move that sent shockwaves through the industry, the brand – traditionally seen as an independent entity – is now constrained with the rules and regulations imposed by its parent company. This has built a sense of tension between the two as Kering and Gucci each battle for complete creative control over the label.
The decision to unite has already been met with mixed feelings amongst both established industry personnel and the general public. On one hand, the brand has already seen a renewed sense of rejuvenation under the influence of Kering. Gucci has already released numerous new collections and have stayed at the forefront of the industry. However, those who previously appreciated Gucci’s autocracy claim that this newfound creativity has come at the cost of the traditional emotion and essence of the brand.
- Benefits of the Union
- A renewed sense of creativity and rejuvenation
- Access to the financial resources of Kering
- The brand remains firmly on the industry forefront
- Drawbacks of the Union
- Certain creative expression and emotion of the brand lost
- Constraints posed by Kering’s regulations
- Sense of tension between the label and the parent company
2. Weighing the Impact of WIP for Gucci
Gucci has consistently been a symbol of luxury, but with the rise of WIP in recent years, the company has had to switch up the way they interact with the global market. Gucci’s WIP initiatives raise many questions - both positive and negative – about their sustainability, costs, and use cases.
When considering the impact WIP has on Gucci, there are three main areas to examine. First, Gucci’s sustainability practices come into question. Since production is often moved overseas, the company needs to ensure minimal environmental impact and needs to monitor the use of potentially harmful chemicals. Secondly, production costs are an important factor. Gucci’s WIP model has led to increased production costs, which means that more expensive items will have to be sold. Lastly, the use cases are important to consider; there is potential for WIP to provide access to unique item designs, new customization options, and faster turnaround time.
3. Unpacking the Business of Gucci and Kering
Fashion giants Gucci and Kering are cornerstones in the world of fashion. The two companies have been in operation for decades and have been synonymous with Italian luxury, iconic design, and innovative fabrics.
Founded in the early 1900s, Gucci has become a global power in fashion. The iconic brand is known for its classic designs, unparalleled attention to quality, and impeccable craftsmanship. From stylish winter coats to timeless handbags, Gucci has it all.
On the other hand, Kering is a multinational giant which has been around for over a century. It began life as a family-run retailer and has since grown to own a myriad of fashion labels, including Alexander McQueen, Balenciaga, Saint Laurent, and Bottega Veneta. Its brands are renowned for their cutting edge style and stylish offerings. The company is also credited with leading the charge in sustainability initiatives, investing in environmental initiatives, and putting social responsibility at the forefront.
At their core, both companies are a leader in the fashion industry and represent decades of Italian excellence. From classic Gucci designs to Kering’s avant-garde innovations, these iconic brands are a testament to the power of fashion.
- Gucci is a global power in fashion, known for its classic designs and impeccable craftsmanship.
- Kering is a multinational giant with a wide range of luxury labels including, Alexander McQueen, Balenciaga, Saint Laurent, and Bottega Veneta.
- The two companies are leaders in the fashion industry, and represent decades of Italian excellence.
4. The Future of the Luxury Brand
It’s no surprise that the luxury market continues to grow at an impressive rate. In the near future, luxury brands will have opportunities to further expand their reach into the global market, as more consumers become aware of brand-name labels. Additionally, the use of innovative technologies will give the luxury market an opportunity to continue to captivate potential customers worldwide.
The luxury brand market also has the potential to focus more heavily on customisation of products, services, and experiences. As high-end customers seek even more luxurious experiences, making an individual and personalised statement with a customised item will be an attractive alternative to off-the-shelf items. Luxury brands of the future will have to focus on implementing strategies that will provide an enhanced level of customer service experiences that are tailored to their needs.
- Unique and luxurious experiences
- Expanding into the global market
- Customisation of products and services
- Maximising customer service experiences
As the Gucci transformation continues, the success of the House of Kering will be sure to follow. Only time will tell what the future holds for both of these industry forces – and the fashion world is watching intently.