1.What is the name of the Gucci CEO newly appointed in 2015?
CEO of Gucci (2015): Marco Bizzarri was appointed CEO of Gucci in January 2015. Under
his leadership, Gucci experienced significant growth, especially with the creative direction of
Alessandro Michele
2. What are the three regions that led the growth of the global luxury industry in the
mid-2010s?
3. What is the name of the parent company that owns Gucci through mergers and
acquisitions?
4. Explain what haute couture and made-to-order are, respectively.
5. What is the total revenue of the LVMH group in 2013 in Korean Won, at the current
exchange rate (1 Euro =
1,500 KRW)?
6. What challenges did Louis Vuitton face while pursuing a global expansion strategy?
7. What strengths does the Burberry brand possess?
8. What are the differentiating points of Chanel compared to other luxury companies/brands?
9. What are the characteristics and strengths of the Yves Saint Laurent brand?
Beside the strengths and Characteristics also this brand generated €557 million in revenue
and continued to add company-operated boutiques to its existing 115 locations, and lately
they invested in establishing its online presence by adding over 30 more countries to its
e-commerce platform. The brand also continued to utilize social media to build a loyal brand.
YSL was one of the most popular brands on “X” (Twitter) , with more than 1.7 million
followers on the social media platform. The brand continued to enhance its modern fashion
nature by collaborating with various artists, this evidence theirs business model in that
decade.
10. Briefly explain what fast fashion is.
11. Where was Gucci founded?
12. What type of business did Gucci start as?
13. Why did Gucci experience difficulties in the early 2010s?
Gucci had problems with a financial crisis in 2008 and in that decade primarily due to the rise
of fast-fashion competitors like Zara and H&M, which rapidly replicated luxury designs at
lower prices, intensified market pressure. And that makes Gucci see declining sales for three
consecutive quarters by late 2013, impacting its brand credibility and market share.
14. Explain Gucci's digital strategy in the early to mid-2010s.
kerings was the name of the person in charge of the main strategy, its about a boost in the
luxury brand in a digital way in 2012, they create digital interfaces to enhance the loyalty of
the costumbres, also en 2013 they improve the e-commerce, facilitating online shopping
experience
brand’s website. In 2013, Kering entered a joint venture with
online retailer Yoox Net-A-Porter Group (Yoox) to distribute its brands and boost their
e-commerce presence. In 2013, Gucci was ranked 38th out of the best global brands (Zara
was ranked 36th; H&M was ranked 21st; and Louis Vuitton was ranked 17th). This ranking
not only incorporated brand value and equity but was also based on brands’ digital and
social media influence. By 2014, Gucci had dropped to 41st, while Zara and H&M had
maintained their positions, and Louis Vuitton was ranked 19th. With brands like YSL
continuing to expand their digital platforms and marketing strategies.
15. In 2015, should Gucci have hired a new creative director from outside or appointed
Alessandro Michele, an
internal designer? What is the reasoning behind that judgment?
In 2015, appointing Alessandro Michele, an internal candidate, was a strategic choice for
Gucci. Michele, having been with the brand since 2002, brought a fresh perspective while
maintaining a deep understanding of Gucci's heritage. An external candidate might have
offered a new direction, but Michele's innovative approach and existing knowledge allowed
for a quicker, more cohesive turnaround. His unique vision, combining eclectic and
contemporary elements, successfully redefined Gucci’s identity, appealing to younger
demographics and revitalizing the brand’s market position.
16. As a consultant to the newly appointed CEO, Marco Bizzari, what would you
recommend Bizzari do to turn
around the company’s declining performance?
Mainly, Strengthen Digital Presence, this means Invest in a comprehensive digital strategy,
focusing on social media, influencer partnerships, and enhanced e-commerce capabilities,
making Gucci more accessible to younger consumers.
Create unique and immersive store experiences, combining traditional retail with digital
integration, to differentiate Gucci from fast-fashion alternatives and enhance customer
loyalty.
