A Study of GUCCI, the Changes in its Strategies During the Pandemic and the Consumers' Perception Towards the Brand's Products
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ISSN 2321 3361 © 2021 IJESC
Research Article Volume 11 Issue No.10
A Study of GUCCI, the Changes in its Strategies During the Pandemic
and the Consumers` Perception Towards the Brand`s Products
Ahmad Farid Jamali1, Kamolova Odinakhon Saydakram Qizi2, Muxtorova Nasiba Shuxratovna3
University of Westminster, Tashkent Uzbekistan
I. INTRODUCTION that time the company already had branches in Rome and
Florence and opened one more in Milan. In 1953, Gucci
The early 2020 has marked a significant change in our daily life, expanded to the USA by opening their store at The Savoy Plaza
work and preferences. This was largely due to the result of Hotel in New York, where the founder of the Gucci house once
social implications that emerged from the global spread of worked as a porter. Lots of celebrities had a considerable impact
COVID-19 pandemic. In order to reduce the spread of pandemic on development and familiarity of the company. Bamboo-handle
and save lives, governments started restricting the operation of Gucci bags carried by Elizabeth Taylor or Jacline Kennedi at
business, shutting down shopping centers and stores. As a result, well-known events, increased company success. In the following
the fashion industry with $2.5 trillion in global revenues found years, Gucci opened stores in England, Japan and China. In
itself extremely vulnerable to the negative impacts of the 1970, the first Gucci perfume called Gucci No 1. was created
coronavirus pandemic. The pandemic has significantly and launched. In 1980, the first ready-to-wear collection of
decreased the demand for clothing and other luxury goods as a Gucci clothing was demonstrated at Florentina fashion shows
result in the collapse of the event industry (Ozdil, 2020). As and was concentrated on Flora patterns. Company gained many
many other fashion brands, the Italian fashion house, Gucci was praises from the fashion critics and the show was welcomed
also impacted by the pandemic. The company reported a 12% with excessive triumph. In the 1990s, young designer Tom Ford
sales drop in the third-quarter because its main customers from came into company with his ideas on clothing, but later on, in
Asia who could not buy its products physically from its stores 1994 he became a Creative Director of Gucci by changing the
during the pandemic (Dalton, 2020). In such a circumstance, style of clothes and taking the company to the new level. In
fashion brands like Gucci needed alternative options for selling 1995, Gucci under the Creative director of Ford, showed the Fall
their products in order to survive and keep selling. One of best 1995 collection which was a revolutionary successful collection,
alternatives during the pandemic for Gucci was online selling by persuading Madonna, Jennifer Lopez and Gwyneth Paltrow
indeed. Coronavirus accelerated the shift to digitalization and in to wear pieces from this collection on the red carpet. In the late
2020 sales of e-commerce are expected to grow by 90s, Kering company purchased parts of Gucci shares and
24%(Euromonitor International, 2020). In short, during the became the major stockholder of it. In 2004, Ford and CEO
pandemic businesses that are flexible and adapt quickly have Dominico left the company and it was taken by new designers.
greater success and presence. One of the most important factors Fiardi Giannini has become responsible for handbags, John Ray
which help businesses to grow is indeed innovation (Internet has become in charge of menswear while Alessandra Facchinetti
Retailing, 2020). for womens’ wear. In 2014, Giannini resigned from the position
of Creative Director, by leaving Alessandro Michel in this post.
General Information At this time, the new CEO of Gucci Marco Bizarri also took the
History office. At present time, Bizarri and Michele are working
Being born into a family of an Italian leather craftsman Guccio together on new strategies, visions and products of Gucci.
Gucci did not want to take after his father and travelled to other
European countries where he worked as a waiter. In London, he Brands used by GUCCI
was a porter at the Savoy hotel and discovered the style and Being an Italian fashion brand Gucci, itself is a part of the
spirit of the hotel’s guests. After Guccio came back to his French luxury group Kering. Besides Gucci, the company owns
hometown in 1902, he started to work in an elite luggage other famous leather goods houses like Saint Laurent, Bottega
company, Franzi. Afterwards, in 1921 he opened his own Veneta, Balenciaga, Alexander McQueen and Brioni, all of them
company in Florence mainly focusing on travel items made of are renowned for their exceptional craftsmanship and distinctive
leather and slightly moved to craft equestrian equipment. creativity and character across the world. Saint Laurent is one of
Expansion of Gucci stores was highly noted in the 50s, as by the most outstanding fashion houses of the 20th century which
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was founded in 1961. Bottega Veneta House also has been ● Respect and conservation of the environment and biodiversity
famous for its luxury leather goods since its establishment in the ● Stakeholder Respect
year 1966. As an iconic brand, Balenciaga house occupies an ● Engagement of supplier (Gucci.com, 2020)
unbeatable position since its creation in 1917. The next brand
house owned by Kering is the Alexander McQueen House which Sustainability Principles include the supplier and all of its sub-
was established in 1992 guided by an unparalleled vision and a suppliers, even on behalf of Gucci, suppliers of products and
respect for craftsmanship. The last iconic brand house which is supplies used in the manufacture or execution of operations. The
owned by Kering is Brioni which was founded in 1945, it is Company must follow the laws, contractual agreements and
known as one the iconic Italian brands that best epitomizes high- additional agreements regarding human rights, workers' rights,
end masculine delicacy today (Kering.com, 2020). environmental security, respect for animal welfare and the
Principles of Sustainability, as well as in keeping with the
GUCCI vision statement International Conventions and Declarations (Sustainability
Gucci is reinventing a wholly modern approach to fashion. The Principles, 2019).
company has redefined luxury for the 21th century under the
new vision of its creative director, Alessandro Michele. Gucci Competitive Advantages
has been reinforcing its position as one of the world`s most The main competitive advantages of Gucci are top quality and
desirable fashion houses. Being eclectic, contemporary and exclusive products, global brand recognition and customer
romantic—Gucci products represent the pinnacle of Italian loyalty. Gucci has an advantage of distinction, where the ability
craftsmanship and are unsurpassed for their quality and attention of consumers to pay is greater, resulting in higher prices
in detail (Bhasin, 2018). compared to other brands. This benefit of having uniqueness
occurs in its powerful luxury brand which keeps its position on
GUCCI mission statement the top markets for a long time. Gucci's products bear higher
In short, Gucci`s mission is to become the leader in the luxury prices due to a higher perceived uniqueness of the commodity to
market at a worldwide level. The company has optimistic and produce a greater willingness to pay. Gucci is effective in
big plans for the future. As mentioned in Gucci`s mission implementing its differentiation advantage because it knows its
statement, it is not enough for Gucci to be among the best and core customer, recognizes what these consumers appreciate
the most influential names in the fashion, but the company wants most, enhances the core features of the product and adds or
to be the leader and the most influential brand among others in eliminates features over time according to evolving tastes and
the fashion industry (Bhasin, 2018). interests.
Company Values and principles The services add value to the client and therefore neutralize risks
One of the main values of Gucci is Corporate Social by building a brand connection in the long run. The management
Responsibility and it is considered as the core of the brand’s and production of Gucci are distinctive, offering high quality
identity. The brand has introduced a mechanism to incorporate and novel items. In the promotion and growth of the company,
global, financial, legal, human rights and customer problems its manufacturing and distribution processes are central. Finally,
into business operations which lead management practices and Gucci already has a push strategy for the customer by involving
organizational actions adhere to the concept of "Sustainable the target customer that helps to achieve and sustain this
Value" (Gucci.com, 2020). Gucci system is aimed at increasing strategic advantage.
and building the responsiveness in culture and consciousness in
term of employees, shareholders, consumers, vendors, In addition, Gucci produces a range of luxury clothing and
subcontractors, financial and economic partners, host accessories through its partner brands (Bottega Veneta, Saint
governments, organizations, labor organizations, trade unions-by Laurent, Alexander McQueen, Balenciaga, Brioni, Christopher
implementing a strategy of social and environmental Kane, McQ, Stella McCartney, Tomas Maier, Boucheron, Dodo,
responsibility that values the following aspects: Girard-Perregaux, Pomellato, Qeelin Ulysse Nardin and Sport &
Lifestyle brands Puma, Volcom and Cobra) which are spread in
● Ethics of industry more than 120 countries that proves strong position in terms of
● The Respect of Human Rights competitive advantages (Bhasin, 2018).
● Respect for the interests of workers and equal opportunities
●Respect for and preservation of the health and safety of Location
employees According to the Kering website, Gucci directly owns 487 stores
●Respect for and enhancement of professional competence located worldwide (Table 1.). In addition, Gucci as a brand
●Valuation of diversity (culture, gender, disability) indirectly operates a number of department stores and shops
● Cooperation and fostering ofunity from East Asia to West America using the franchise system.
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Table 1.(Source: Kering.com) Gucci is a luxury brand of fashion house with the headquarter currently operating not only in developed countries but in a large located in Florence, Italy. Gucci is the most well-known luxury number of emerging countries mostly in Asia, especially India fashion brand in the United States with a total of 48 stores and a and China show tremendous growth in consumption half of U.S. customers showed a willingness to own Gucci (Statista.com, 2020). goods (Statista.com, 2020). This European brand’s stores are Partners intelligence, big database, entertainment, smart business and The chance to show your product or service to a brand-new many others (Gregorian, 2019). This partnership has created audience is one of the greatest benefits of co-branding several opportunities for Gucci to go into Chinese market by campaigns. Partnership with other companies can be tied with enlarging its frame of influence as well as differentiating two main objectives: increasing sales or providing charity. Gucci business offers for customers (Celeste, 2019). However, in also has several partners in the spheres of design, retail, charity October 2020 audience was the most surprised by hearing news and supply. One of the important charity partners of Gucci is – on partnership of Gucci with The RealReal – a resale site from UNICEF children organization, which works in more than 190 SanFrancisco (The RealReal Partners with Gucci for its Biggest- countries worldwide and contributes for protection of rights, Name Resale Venture to Date | The Fashion Law, 2020). One of lives as well as provision of financial assistance from early years the sustainability goals of Gucci included expanding its sales’ until adulthood (UNICEF, 2020). Since 2005, Gucci has horizon by promoting its products through an online resale donated more than US $20 million to the work of UNICEF, website and The RealReal is the first one. CEO of Gucci, Marco focusing on the 'Schools for Africa' initiative that enables access Bizarre states that inclusion and increasing of the resale market to quality education for the most vulnerable children, including into company development strategy is a very interesting girls, orphans and those living in extreme poverty. So far, more approach as it helps for the circulation of products in every area than 7.5 million children living in sub-Saharan Africa and China of business (Zargani, 2020). have been positively influenced by this collaboration (Gucci.com, 2020). In 2019, Gucci announced its strategic Competitors cooperation with Chinese Tencent, which is a technological Being one of the best leaders of having a strong competition in company, specialized in IT services (Tencent - Pandata, 2019). the world of fashion and following companies may be The main aim of this partnership is to elaborate projects that will contemplated as the main competitors of the house: Christian combine fashion and new technologies in the fields of artificial Dior, Prada and Armani. IJESC, October 2021 28963 http:// ijesc.org/
Table.2. Gucci's top competitors (Source: Student’s analysis)
GUCCI Company’s product range and services are created and over time, as consumer values and appreciation
Over the nine decades, Gucci Company produced a huge range for the good grows, that product rises to iconic levels and thus
of products and nowadays in official websites of Gucci, there are an iconic good is born. An iconic defined as a timeless product
over 3000 goods. It is claimed that the company produces goods that lives forever, no matter what the vogue trends. Gucci
to allow connections between consumers and their daily Company has over the decades produced a lot of beautiful and
lifestyle. Company’s majority of products are iconic items and it unique products that have gone on to obtain iconic levels and
means long-time power and appreciation for Gucci goods. An become logos of the company (Table 3.)
iconic item is not established, rather unique and excellent goods
Table 3. Product categories offered by Gucci (Source: Gucci.com)
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Gucci’s every icon product has a rich and storied history. unique offerings with extensive knowledge on the storied past
Company revives its icon items to remind consumers of that and craftsmanship that goes into every icon of the brand, so that
storied history and at the same time give them a chance to be a the celebration of the company's icon products can last even
part of brand heritage. Moreover, Gucci Company created the after the customer has left the magazine. In addition, in the
Icon Club, which is a project that welcomes every buyer owning beginning of 2011 Gucci brand and FIAT brand in the clothing
an Icon, for example the Men’s Horse Bit Loafer, the Jackie and industry represented a joint edition product, the FIAT 500
the new Bamboo. The aim of the project was to reinforce the Gucci. This automobile was accessible in two colors, white and
brand's heritage and give to consumers the pride bounded with black (Figure 1.).
owning a Gucci Icon. The project suggests to customers a set of
Figure 1. (Source: Autocar.co.uk)
On the other hand, the fashion industry has been affected by the produce medical masks, according to statistics (22 March.
COVID-19 outbreak on each stage from retailer to supply chain 2020), the brand produced approximately 1.1 million face masks
to vendor. We have seen the majority of stores close, in order to and 55,000 couple of medical overalls (Figure 2.). Moreover,
minimize the risk of coronavirus infection, governments closed Gucci Company donated 2 million Euros in the fight against the
down manufacturing industries, magazines and department COVID 19. Company gave half of the money for Italian Civil
stores. Good has ceased and demand has decreased. But Gucci Protection Department and the other half for COVID19
found the way to survive this situation. Company began to Solidarity Response Fund in aid of the WHO.
Figure 2. (Source: The business of fashion)
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II. MARKETING STRATEGIES several years to be high quality and very reliable, as a result, the
company has been known for high customer loyalty. Company
Segmentation is able to increase its rating and respect among customers while
Geographical segmentation selling goods and services at a high price.
The largest share of Gucci customers is from developed
countries. As a result, they possess high standards and Targeting
purchasing power. However, the brand's geographic Gucci Company targets people aged between 25 to 50. Among
segmentation is not accordingly structured as it used to ignore this demographic group it also specifically targets celebrities,
second world countries and developing markets (Casey, 2020). businessmen and sportsmen. From 2021 Gucci plans to increase
manufacturing products for 40% for the child sector, as rich
Demographic segmentation people prefer high quality products for their children.
Demographically, the brand is segmented using gender and age
asbreakdown points. The Company produces goods for both Brand positioning
genders, children and teenagers respectively. Gucci products are Brand positioning shows a different and unique side of the
for the category of male and female who love to make an company that, different from its competitors and its position in
impression on other people. the market. Gucci Company presents a unique market with
different brands, the market is exclusive luxury. Unique
Psychological Segmentation techniques of making Gucci products are the usage of high-
Gucci company strongly pays attention to standards of lifestyle. quality materials based on its tradition. USP (Unique selling
From the beginning the company has focused mainly on famous point) of the Company is using its logo “double G” in all
individuals who can influence the high-end market. Gucci products. Second USP of the brand is using a big amount of
Company has been announced as a “hottest luxury brand” flower prints and light colors. Moreover, ESP (emotional selling
(McKinsey&Company, 2020). points) is describing the product with feelings and emotions to
the customers as an alternative of logic (MTD, 2001). Below
Behavioral segmentation there is Gucci brand positioning map, indicating the company’s
Behavioral segmentation means brand and customer loyalty current positioning in the fashion industry. (Figure 3.)
(Kotler P. et al, 2008). Gucci as a brand has recognized over
Figure 3. Positioning of Gucci
Marketing Mix Price: As Gucci uses the best quality materials, the price is
always high. People want to pay much for good quality and
Product: Women’s wear, bags, men’s wear, accessories and
fashionable brands, so Gucci never has discounts or sales to
kids' clothes can be found in Gucci stores. The changes of
keep an image of a premium luxury brand.
products can be observed every year, so it produces mostly up-
to-date fashion products.
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Promotion: Gucci pays less attention to advertising, because the Place
image of the company and the concept of its products are unique Brand has nearly 487 shops all over the world. The main
with limited edition collection lines. However, the company revenue generator region for Gucci if Asia-Pacific (38%),
focuses on individual approach strategy. Knowing more about Western Europe (28%) and North America (20%). In 2020, 53%
customers perception and preferences the company can apply of sales originated from online customers due to the effect of the
better commercial strategy. pandemic.
SWOT analysis
Source: Students’ analysis
Concepts and theories which explain changes in Gucci one of its worst times since the beginning of the coronavirus
strategies during the pandemic: Fashion world has been facing pandemic. With worldwide lockdowns and limitations for
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travels, fashion brands started experiencing huge losses due to mask from Gucci at the 2020 Grammys. Though not designed to immense decrease in their in-store sales. Their strategies that COVID-19's features, the black Gucci mask was a key element were used before the pandemic have not been working anymore in the award ceremony and visitors wondered if they could and did not generate in the new reality. Therefore, well-known obtain the same design. People have been searching the internet fashion brands like Gucci had to change their strategies in order after that event to buy their own Gucci face mask(Editorialist, to survive and keep selling their products in considerable 2020). quantities during such a difficult era. It was at this point that fashion brands realized the significance and importance of Financial aspects of Gucci online stores for selling their products during coronavirus From the beginning of Covid-19 and lockdowns, many brands pandemic. Sophisticated brands like Gucci understand what were concerned that customers would not be able to visit their people wish to wear in the future really well. Though, the stores. As the other brands Gucci also suffered from the fashion industry has been comparatively very slow in its coronavirus crisis which severely impacted its sales, particularly transition from traditional physical stores to online stores. For by the drop in demand from Chinese customers. Like-for-like many years, Gucci and other famous brands such as Louis revenues were down 23.2 percent in the period of pandemic Vuitton and Prada have been depending on their physical shops through Gucci label, which drives much of its earnings to render service to their wealthy and well-known customers. compared with a less pronounced 13.8 percent drop-off at But once such big brands as Gucci understood that most of their Kering's Saint Laurent brand (ET Retail, 2020). Apparently, the clienteles are seeking online inspirations while purchasing a distortion in the Chinese market, where Covid-19 first hit, product and after shopping, they knew they had to get up and go obviously hurt Gucci’s financial status because the brand for it (Business Models Inc., nd). With the spread of the generates 37% of its profits from Asia, and a large number of pandemic across the globe and shoppers locked in their homes customers are in China. Gucci had reported strong market in all and banned from traveling, Gucci established a virtual brand industries before the outbreak started, as a result of personalized experience to keep its relationship with its pandemic the brand faced a tough contrast with the previous customers. The fashion house inaugurated its artificial luxury year when comparable sales had risen by a remarkable 20 store at its Gucci 9 center in Florence, Italy. It enabled Gucci percent. Moreover, the division was also damaged by the staff to emit from a replica showroom and show the items and shutdown of its Italian manufacturing facilities where the first products to customers through camera as per their requests. outbreak in Europe was impacted by pandemic. According to the Gucci also has launched “Gucci Live” by which its staff can latest data, positive reports are coming from Chinese shoppers communicate with its customers across the globe by laptop and who have been back in their local Gucci stores since they smartphone (Gucci Goes Virtual, 2020) For luxury shopping the officially reopened after the lockdown which helped Gucci to key part is personal service. Therefore, it is logical that Gucci return strong revenue growth in China. However due to would change its practices to continue meeting its customers` pandemic, higher demand may not last long, especially if luxury needs and demands even at a time where its stores are closed. items buyers' purchases become affected by the slowing down Personalized video consultation stimulates Gucci sales among its economy. Another factor which has influenced the financial customers specifically in the countries where Gucci does not aspect of Gucci is the ongoing closure of stores in the U.S. and have physical shops. “Gucci Live” was tested in Europe before Europe, and the absence of Chinese visitors until reopened, being used to the rest of the continent and beyond that in the would mean that sales remain low elsewhere. Despite the Middle East and Africa. Many argue that e-commerce in spite of drawbacks, nowadays Gucci is still one of the leader brands of providing facilities to buyers lacks human-interaction that clients Kering’s powerhouse, accounting in 2019 for 61% of company could experience while shopping physically from stores. income and 83% of operating profit (Bloomberg, 2020). However, by using technology to keep in touch with its customers during the Covid19 pandemic, Gucci introduced a Gucci stores Operational Management new strategy for loyalty building with its customers which will Gucci is the leading company in the operating system and last long even after the coronavirus pandemic disappears (Gucci delivering services. It is not a secret that, today, Gucci Brand Goes Virtual, 2020). Secondly, the global scale and uncertainty and FARFETCH company are partners, and recently they surrounding the coronavirus lead Gucci to switch from luxury created a new way of delivery operation, which is called “Gucci clothes and footwear to medical masks and hospitals gowns, in 90 Minutes” . New delivery service delivers orders to from makeup kits to pharmacies and antiseptic gels. The customers’ doors in record time one and a half hours. Nowadays intention to sew protective equipment instead of the spring this service is available in 10 cities across the world. As soon as collection is also expressed by European brands and Italian the pandemic started, all organizations and industries reviewed designers. This strategy has been beneficial for the company as their operation system, as well as Gucci. Company set the rules Gucci face mask has been heavily sought after by beauty to stores’ operational system to minimize the risk of infection, aficionados, since Billie Eillish unveiled her custom black face they are; IJESC, October 2021 28968 http:// ijesc.org/
Distance, respect and protect – at Gucci, the health and well- similar quality. The luxury market since 2010 was driven by a being of customers, employees and communities are its high bullish market and brisk economic growth rates in China, India priorities. All Gucci stores that are reopened will be performing and developed countries. However, the slowdown in 2020 may and following a new operational system, by these strict safety redefine the preferences of consumers for luxury products protocols the brand wants to help fight the spread of the Boston Consulting Group reports that prospects of prolonged COVID19. economic slowdown in Europe, the US and Japan may Personal protective equipment – buyers are required to wear significantly reduce the consumers spending on luxury goods face masks to enter a shop and follow any local governmental and alter their preferences to cheaper alternatives. Another mandates. Company does not require customers to wear gloves challenge for Gucci brand is inability to quickly integrate into while they are shopping, but they encourage clients to use the the digital world. Cosmetics and footwear have smoothly provided hand sanitizer and antiseptics upon entering Gucci become part of e-retail; however, fashion brands still stores. It should be mentioned that Gucci employees will be significantly depend on physical sales. For instance, only 10% of wearing face masks and gloves while operating. watches and 5% of fashion glasses are sold via digital platforms Store sanitation – stores are often cleaned during the day with and internet stores. Therefore, it is crucial for Gucci to special focus on high-touch surfaces. Fitting rooms are cleaned incorporate digital platforms and technologies into its tools to after every use. Gucci employees keep social distance with boost sales and improve distribution. In addition, digital customers at least six feet (two arm’s length). marketing should play an important role in promoting sales and Current issues and future challenges brand visibility. These tools have not been utilized effectively. Global major brands, including Gucci, are facing uncertain times While more than 80% of luxury brands use Facebook and with the unpredictable economic prospects across the globe. One Instagram as marketing channels, only one third believe that of the challenges that Gucci is facing now decreasing growth of these channels are very effective. Finally, Gucci and other the luxury market. Boston Consulting Group forecasts that brands have to consider sustainability is one of the essential revenues will drop by 25-35% this year due to global lockdown. challenges to tackle in the upcoming years. Consumers have Moreover, the market size decrease will be stronger compared to started to exhibit pro-environmental values and they demand the 2009 global financial crisis, and the sales are projected to their brands to offer eco-friendly products. As a result, decrease by 450-650 bln USD relative to 2019. The income consumers are becoming increasingly sceptical about the brands decreases, consumer sentiments deterioration and store closures they purchase products from. In this sense, considering that will exert negative effects throughout this year. North America Gucci in the past sold products made from animal fur and skin which is the major fashion market for brands such as Gucci is such as crocodile leather bags, now has to adapt to the changing expected to decline by up to 85%. While domestic market sales environment. Indeed, corporate social responsibility and increased significantly in North America and China during transparency are now among core corporate values and needed COVID19 pandemic in the first half of 2020, overall the sales to be treated seriously. dropped by 4%. One of the explanations is the collapse of the tourism industry which is one of the key drivers of sales for the Survey of consumers perception of Gucci products in Gucci brand. For example, 20-30% of the sales are generated by Uzbekistan tourists shopping outside of their home countries. Apart from the The survey was designed to conduct market research of Gucci disruptions of the fashion industry by global pandemic, fashion customers in Uzbekistan and can be found in the following link. luxury brands such as Gucci are facing a problem of consumers The survey covered 88 respondents of which 72% female switching their preferences from premium brands with ultra-high respondents and 28% male respondents. The average age of the price tags to less costly products offered by other brands with surveyed individuals is 31 year and ranges from 16 to 56. IJESC, October 2021 28969 http:// ijesc.org/
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The income brackets of the respondents have the following purchase of premium products such as Gucci, LV or DG, the distribution: 44% below 1000$, 22% between 1000-2000$, 20% survey shows that 31% has never bought premium products, between 2000-5000$, and 14% above 5000$. Regarding the while 47% has bought and 23% received as a gift. The survey also shows that 3.4% are not familiar with Gucci brand, 18% have shown interest in this brand and 26.1% plan to brand, 26.1% equally have bought and have heard about Gucci purchase Gucci products. Regarding places where respondents see Gucci products, the respondents report mixed answers such as poster ads, responses suggest that they see Gucci products for sale on the magazines, TV, Internet, abroad or on other people. Internet – 31% and 10.2% in stores, the remaining 58.8% IJESC, October 2021 28971 http:// ijesc.org/
The survey has also inquired whether respondents have any Gucci products. While 19% do not own any Gucci products, 24% have
perfume, 18% - handbags, 13% - apparel and others.
On the other hand, it seems that respondents have low social interest in the Gucci brand as 84.1% of them are not followers of any
Gucci pages on Facebook, Instagram or Twitter.
IJESC, October 2021 28972 http:// ijesc.org/Regarding the justified prices that Gucci assigns to its products 42% believes that prices are somewhat or very unreasonable. And
25% of the respondents believe that the prices are more and very reasonable.
Overall, 20.45% are very likely to purchase Gucci products in future and 37.5% are more likely to cash out for Gucci products,
however, nearly 24% are not likely to purchase Gucci.
Turning to respondents in the highest income bracket (above 5000$) – 75% are likely to purchase Gucci. At the same time, among
those who earn below 1000$ only 48.7% are likely to buy Gucci products. Therefore, it seems that income is positively correlated
with plans to purchase luxury products in future.
IJESC, October 2021 28973 http:// ijesc.org/The respondents were also asked to rank on 1 (completely disagree) to 5 (completely agree) various dimensions of Gucci brand such
as modern, unusual, rich, elite and strong. The highest score was recorded for rich (3.1) and lowest for strong (2.84).
The survey also inquired regarding the important aspect that importance of print ads. Research carried out by USPS in 2017
respondents consider when buying luxury goods, including shows that print-ads are more likely to be received by higher
Gucci. The data shows that three most important dimensions are income households which is the target market group for Gucci.
quality – 31%, sale – 20% and price – 12%. Another study by Voorveld (2011) shows that e-ads are less
effective than print-ads, as those who view them online are
Recommendations engaged in multitasking and, therefore, do not shift their
Global instability, volatility of markets and existing challenges attention to advertisement. Absolutely, individuals in top income
can also mean opportunities for the luxury brands such as Gucci. brackets are more likely to read print journals and magazines.
For example, the ongoing trade war between the West and However, Gucci can use internet platforms to increase brand
China, on the other hand, means that the luxury market in China awareness and show their corporate social responsibility such as
may be under threat of being affected as a result of these demonstrating their loyalty to environmentalism. Gucci should
tensions. Indeed, Guccy being a premium brand heavily depends continue to view EU and US markets as their priority as the
on both Chinese market and Chinese tourists coming to the USA number of millionaires there significantly outnumber those in
and EU. At the same time, the advantage of goods produced in China. A vast majority of emerging millionaires are younger age
China is slowly decreasing as wages and economic standards and, thus, may have specific preferences and values with respect
rise in this country. Therefore, Gucci can use the “made in Italy” to premium brands. Experts suggest that premium brands could
label to show that there are premium and significant quality increase collaboration with other premium brands from different
standards behind these products. This would again drive new markets to drive new customers. In addition, emerging
customers that were early discouraged by the ‘made in China’ millionaires value sustainability. Therefore, Gucci needs to
label. Therefore, Gucci could use such segmentation. Market come up with improved business models that make
analysts largely believe that again the world is moving from sustainability values a core principle of these models. In this
economies of scale to economies of scope which could also vein, there is a need to revisit the causality between profits and
apply to premium brands such as Gucci. While, in the past quality. Many premium brands in quest for increase in profits
decade too many luxury brands have emerged that have have lowered their standards and quality. Yet, customers are
significantly devalued the meaning of ‘luxury’ term. However, again demanding a return to classics where quality and
again the trends suggest that consumers would like to return individual approach was the driving force behind profits.
back to the roots. Moreover, many consumers have lost
themselves in defining what a luxury product is. Therefore, the III. CONCLUSION
goal of Gucci as one of the pioneers of this market segment is to
communicate to its consumers with the clear message what is From this Gucci brand report had presented brand concepts and
‘luxury’ - status, design, genuineness and quality. While theories, changes in financial and operational aspects during the
numerous companies are shifting their advertising campaigns to pandemic. Company is staying strong during the pandemic time
the digital world, luxury brands should again re-assess the and showed its strength by creating well managed projects, as an
IJESC, October 2021 28974 http:// ijesc.org/example company spent a two-million-euro donation in help of ctimes.indiatimes.com/news/apparel-fashion/luxury/gucci-sales-
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