Gucci, the renowned Italian fashion house owned by French luxury group Kering, faced a disappointing end to 2022 as its turnover only increased by a mere 1%. This lackluster performance has prompted the need for a relaunch in order to revitalize the brand. Gucci plans to reimagine its style and shift its focus to timeless products, while also revamping its stores and elevating the overall brand experience. To support this relaunch, the company has made organizational changes in preparation for the arrival of its new creative director, Sabato de Sarno.
Despite the departure of Gucci’s previous designer, Alessandro Michele, in November, the brand still experienced a decline in sales towards the end of the year. Sales fell by 14% compared to the same period in the previous year, with a staggering 15% drop in its own shop network alone. While factors like high year-on-year comparisons and the impact of Covid on sales in China played a role, Kering executives acknowledged that the brand’s performance did not meet expectations.
To inject new energy and vision into Gucci, Sabato de Sarno, an experienced designer who has worked for esteemed fashion houses including Prada, Dolce & Gabbana, and Valentino, has been chosen as the new creative director. François-Henri Pinault, CEO of Kering, expressed confidence in de Sarno’s abilities and emphasized Gucci’s ability to attract top talent from around the world. The selection process for designers includes evaluating their creative profile and how they interpret the brand’s rich heritage.
However, the relaunch of Gucci does not rest solely on de Sarno’s shoulders. The brand aims to adopt a team approach and ensure consistency throughout the organization. In the past year, Gucci has implemented changes in its product strategy, communication and brand strategy, as well as studio operations. These efforts, coupled with de Sarno’s creative vision, will contribute to the brand’s revitalization.
De Sarno is expected to join Gucci in the second quarter of the year and will unveil his first collection in September 2023. In the meantime, Gucci intends to continue investing in events and campaigns throughout the year. The brand has already made significant investments and is focusing on categories with untapped potential, such as menswear and luggage.
Moreover, Gucci aims to reposition itself in a higher segment of the luxury market and attract a more affluent clientele. The brand is actively working on enhancing its image and will host an exhibition titled Gucci Cosmos in Shanghai, which will showcase its rich history and heritage. Additionally, Gucci plans to introduce the concept of Gucci Salon, which will cater to VIP customers and be implemented either as a permanent feature in select shops or through exclusive events.
To cater to its ultra-rich target audience, Gucci will offer high-end products with prices ranging from 40,000 euros to 3 million euros. The brand intends to strike a balance between its fashion positioning and products that highlight its heritage and history.
Overall, Gucci’s relaunch is poised to transform the brand and position it for success in the luxury fashion market. With the appointment of a new creative director and a strategic focus on timeless products and elevated experiences, Gucci is determined to regain momentum and cement its place as a leading luxury fashion house.
Links:
– The New Rules of the Relaunch
– Gucci’s Relaunch: A Turnaround Strategy
