Gucci’s Sales and Merchandising Analysis Research Paper

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Sales Analysis

Although Kering owns several luxury brands like Alexander McQueen, Balenciaga, Bottega Veneta, and Yves Saint Laurent, the most impressive sales results in 2015 were demonstrated by Gucci, whose revenue in the fourth quarter rose 13.4 percent (“Kering: 2015 Results” 4). Considering that Gucci accounts for over 60 percent of Kering’s profit (Brinded par. 3), such an increase is important to the holding company. Also, Gucci is involved in more collaborative projects (“Kering: 2015 Results” 19). For example, at the beginning of 2015, Kering entered into a partnership with Safilo, a prominent Italian company that creates and distributes sunglasses and other types of eyewear as well as sports equipment, for the design, production, and supply of Gucci Eyewear products.

Kering stated that Gucci’s growth after several years of decrease is due to “directly operated stores in mature and emerging markets” (“Kering: 2015 Results” 4). Other reasons for the success listed in the same statement include new creative vision and new business strategy. The changes are associated with the appointment of Alessandro Michele as the new Creative Director of Gucci at the beginning of 2015. In this position, Michele is in charge of all collections and the brand image of Gucci. The Honorary Chairman of Kering François Pinault said, “Gucci’s creative momentum and ambitious strategy, launched last year, are delivering tangible results: sales growth is accelerating in the second quarter on top of tough comps” (Thompson par. 11).

Since the recent success in terms of sales and revenue of Gucci is the result of its new creative strategy, which is still being implemented by Michele, it can be assumed that the brand will continue to grow in the next year. Pinault stated, “I am confident that the work of our creative teams and the commitment of all our associates will enable us to extend our growth trajectory in 2016 and beyond” (Brinded par. 12). Gucci’s growing popularity ensures the fulfillment of this forecast.

Merchandise Strategy

Like all luxury brands, Gucci markets its products with the emphasis on superior quality and maintaining certain status and image. Gucci’s target audience is young people with high income in both developed and developing markets. Another similarity with many other luxury stores is that Gucci distributes products through directly operated stores.

At the company, special attention is paid to training the employees so that the service provided is outstanding and to the location of stores, which should be high-profile districts. All these efforts are made to gain the loyalty of the audience, which, for luxury brands, tends to be rather selective and demanding. It is also important that the image of Gucci is supported by famous customers as well as celebrities who advertise Gucci, including this year’s new “faces” of the brand: Tom Hiddleston and Vanessa Redgrave.

Another component of Gucci’s recent success is the company’s technological achievements. Gucci employs many benefits of e-commerce, including the omni channel shopping that improves the customer experience by offering multi-media coverage and access to merchandise.

Merchandising Calendar

Marketing of luxury fashion products is chronologically bound to fashion weeks. A fashion week is a series of events and activities within approximately one week where fashion products are presented to the public and the media. The most prominent fashion weeks are conducted twice a year in the four “fashion capitals” of the world: New York, London, Milan, and Paris. Menswear and womenswear fashion weeks are traditionally held separately, although it is not always the case. At a fashion week, the clothes and accessories are presented that will be marketed the next season, approximately six months later. However, the suggestions to change this pattern are heard more and more often today. With the growing accessibility of fashion products and the increasing portion of online purchasing in the industry, within the next decade fashion weeks may shift to the “see now, buy now” model.

The Gucci 2016 Fall Winter ready-to-wear collection was presented at the New York fashion week in February 2016 (Mower par. 1). The collection was warmly received by critics, who also noted that, despite having been in the position of the Creative Director for only a year by that time, Michele became one of the most copied fashion designers. Other important dates in the Gucci calendar are menswear and womenswear spring summer 2017 shows held in September 2016. The clothes and accessories presented at these shows will be marketed starting next spring.

Merchandising Analysis Table

ProductStyle No.Fabrics UsedNo. of colorsNo. of SizesPrice RangeQuality Level & Origin
Men (“Men’s Fall Winter 2016 Runway”)
Gothic blanket tapestry coat
Gothic blanket tapestry coat
435245 Z489C 3872Cotton, polyester, silk, horn141,700 GBPHigh
Italy
Vintage wool loose pant
Vintage wool loose pant
421806 Z529B 5725Wool36440 GBPHigh
Italy
Washed cotton t-shirt
Washed cotton t-shirt
442670 X3E31 9000Cotton71230 GBPHigh
Italy
Fringe leather loafer with studs
Fringe leather loafer with studs
437330 ARP00 1000Leather, metal18955 GBPHigh
Italy
Varnished bird ring with crystal
Varnished bird ring with crystal
440996 J1635 8518Metal, gold, varnish, Swarovski crystal15260 GBPHigh
Italy
Heritage floral check print jacket
Heritage floral check print jacket
437039 Z574C 6107Wool, mohair171,630 GBPHigh
Italy
Floral check print flare pant
Floral check print flare pant
437031 Z574C 6107Wool, mohair17815 GBPHigh, Italy
Rib wool turtleneck
Rib wool turtleneck
430064 X1305 6509Wool14365 GBPHigh, Italy
Wide brim hat
Wide brim hat
439031 KDG00 9800Felt, grosgrain34210 GBPHigh, Italy
Leather sandal with feline heads
Leather sandal with feline heads
437322 A9L00 1000Leather, metal16370 GBPHigh, Italy
Floral tapestry duffle with Web
Floral tapestry duffle with Web
437544 K3O2T 8437Cotton, linen, ivory, leather, metal212,150 GBPHigh, Italy
Women (“Women’s Fall Winter 2016 Runway”)
Embroidered tulle gown with feathers
Embroidered tulle gown with feathers
441953 ZHK70 6469Nylon, mink, crystal, glass, feathers1611,090 GBPHigh, Italy
Embroidered wool knit top
Embroidered wool knit top
445780 X5F90 1960Wool, elastane, mink, crystal, glass132,210 GBPHigh, Italy
GucciGhost skirt
GucciGhost skirt
430556 ZHX73 9186Silk341,850 GBPHigh, Italy
Zebra leather pump
Zebra leather pump
447598 C9D10 9085Leather115585 GBPHigh, Italy
Flower ring with glass pearls
Flower ring with glass pearls
445370 J1D86 8062Metal, gold, resin, glass13335 GBPHigh, Italy
Leather two-button jacket
Leather two-button jacket
442175 XG264 5529Leather, faille, satin142,440 GBPHigh, Italy
Leather straight leg pant
Leather straight leg pant
442177 XN336 5567Leather, crêpe de chine141,470 GBPHigh, Italy
Intarsia mink fur coat
Intarsia mink fur coat
422612 XP332 9400Mink fur, silk1424,590 GBPHigh, Italy
40 denier tights
40 denier tights
442779 3G354 3600Polyamide, elastane3440 GBPHigh, Italy
442779 3G354 3600
442779 3G354 3600
443339 BKO00 1000Leather28660 GBPHigh, Italy
Dionysus leather top handle bag
Dionysus leather top handle bag
448075 CWLMT 9090Leather, bamboo, cotton, linen211,840 GBPHigh, Italy

Works Cited

Brinded, Lianna.Business Insider. 2016. Web.

Kering: 2015 Results 2016. Web.

Men’s Fall Winter 2016 Runway 2016. Web.

Mower, Sarah. Vogue. 2016. Web.

Thompson, Adam. Financial Times. 2016. Web.

Women’s Fall Winter 2016 Runway 2016. Web.

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