Gucci, renowned for its luxurious and exclusive handbags, experienced a disappointing outcome at a recent auction hosted by Christie’s. This development suggests a waning demand for high-end purses in the market. Specifically, two Gucci Bamboo bags failed to meet the low pre-sale estimate, while a third bag barely reached the minimum expected price. These preliminary findings were revealed following the auction.
Among the purses available for sale at the event, which also featured Hermes bags, the most expensive one was a black leather Bamboo with a yellow gold handle and a diamond-encrusted closure. It was initially anticipated to fetch between €150,000 and €200,000. However, it ultimately sold for €138,600, inclusive of buyer’s fees.
Gucci collaborated with Christie’s to sell these three bags, with the proceeds intended to benefit Save Venice, a charity dedicated to preserving the artistic heritage of the iconic Italian city. Christie’s, owned by Artemis, the investment company of the billionaire Pinault family, also holds a controlling stake in Gucci’s parent company, Kering SA. Conversely, three lower-priced Gucci bags that were not part of the charity auction managed to exceed expectations.
These results indicate that certain affluent consumers are scaling back their luxury purchases after a period of high demand during and after the pandemic. Two years ago, Christie’s achieved a record-breaking price for a handbag at auction with the sale of a rare Himalaya Kelly for HK$4 million ($512,000). Additionally, Gucci has been trailing behind its primary competitors in the luxury industry in recent years, prompting Kering executives to implement a reset strategy for the brand. This initiative commenced with the appointment of a new designer, Sabato de Sarno, who unveiled his debut collection for Gucci in September in Milan.
According to Luca Solca, an analyst from Bernstein, the Gucci auction arranged by Christie’s aimed to demonstrate to consumers that the brand’s value endures and is not solely reliant on current fashion trends. Auctions have proven to be an effective method in bolstering a brand’s image and creating a perception of lasting worth.
Related Links:
1. Christie’s
2. Kering SA
