Gucci, the renowned luxury fashion brand, recently bid farewell to its long-standing creative director, Alessandro Michele, after his seven-year tenure. This major change has sparked curiosity within the fashion industry, as everyone speculates about the future direction of Gucci under its new creative director, Sabato De Sarno. In an enlightening article by Dominique Muret, the author explores and compares the recent product and pricing strategies of Gucci and Valentino to gain insights into Gucci’s future strategy.
An in-depth analysis conducted by Retviews, a data analysis solution by digital consulting firm Lectra, reveals that Gucci has achieved remarkable success through its collaborations with other labels. This sets Gucci apart from Valentino, which shows less enthusiasm for such partnerships. Gucci’s collaborations with esteemed brands like The North Face and Adidas have not only created excitement but have also catered to a diverse consumer base by offering a wide range of prices. For instance, the collaboration with The North Face features lower prices to appeal to a broader audience.
Accessories and leather goods play a significant role in Gucci’s product range, constituting 42% of their offerings. On the other hand, Valentino’s accessories and leather goods only make up 23% of their range. Gucci’s extensive jewelry collection and the relaunch of its beauty division, with a strong emphasis on inclusivity, have contributed to the growing share of accessories. Moreover, Gucci’s recent dedication to a store solely focused on luggage exemplifies their commitment to this category.
However, when it comes to leather handbags, Gucci falls slightly behind its competitors. Leather goods account for only 15% of Gucci’s overall range, compared to 24% at Valentino, 31% at Prada, and a market average of 28%. Additionally, Gucci’s leather handbags are priced lower than those of its competitors. For instance, the popular GG Marmont model is priced at $2,120 in Europe and $2,730 in China, while Valentino’s Roman Stud bag sells for $2,438 in Europe and $3,486 in China. This pricing strategy enables Gucci to target a broader consumer base. Nevertheless, the brand is also working on elevating its brand image and venturing into a higher market segment.
In terms of style, Gucci’s collections under the new creative direction of De Sarno are expected to deviate from Michele’s flamboyant and eclectic designs. The analysis indicates that Gucci incorporates 23% fewer neutral colors such as black, grey, beige, and white compared to Valentino. Gucci’s ready-to-wear assortment is renowned for its vibrant colors, graphic prints, and maximalist motifs. Conversely, brands like Prada and Bottega Veneta have embraced a more minimalist and classic approach in their assortments.
To revitalize the brand, Gucci has devised several strategies. These include continuing collaborations, expanding the share of accessories, and creating more minimalist collections. However, Gucci’s 2022 annual results proved to be disappointing, as the brand experienced minimal revenue growth. De Sarno faces the daunting challenge of not only presenting his creative vision but also incorporating Gucci’s heritage to propel the brand forward in the modern fashion landscape. It will be intriguing to witness Gucci’s evolution under its new creative director and determine whether these clues imply a successful strategy in the post-Alessandro Michele era.
Useful links:
1. Gucci Official Website
2. Valentino Official Website
