The Business of Fashion
Agenda-setting intelligence, analysis and advice for the global fashion community.
Agenda-setting intelligence, analysis and advice for the global fashion community.
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In the late 2010s, Gucci pulled off a successful turnaround by aligning creative director Alessandro Michele’s unique, baroque aesthetic and Jacopo Venturini’s expert merchandising under the leadership of chief executive Marco Bizzarri, according to Luca Solca, Bernstein luxury analyst and BoF contributor. They injected the brand’s heritage and tradition with streetwear codes and coolness — bringing more casual products like sneakers into the luxury fold, and sparking the era of “new luxury,” said Solca.
Lately, the brand has started to see momentum slow, falling behind rivals on organic growth. In search of a boost, Gucci has reorganised, introducing two newly created roles to support creative director Alessandro Michele.
“The onus is on Gucci to continue to drive newness so that consumers can turn their heads and say, ‘Wow, this is something I don’t have. I want to buy it,’” said Solca.
Hermes saw Chinese buyers snap up its luxury products as the Kelly bag maker showed its resilience amid a broader slowdown in demand for the sector.
The group’s flagship Prada brand grew more slowly but remained resilient in the face of a sector-wide slowdown, with retail sales up 7 percent.
The guidance was issued as the French group released first-quarter sales that confirmed forecasts for a slowdown. Weak demand in China and poor performance at flagship Gucci are weighing on the group.
Consumers face less, not more, choice if handbag brands can't scale up to compete with LVMH, argues Andrea Felsted.