I. History And Development Of Gucci N.

1.1 Introduce Gucci Group

Gucci is one of the Fashion Leaders around the World. Gucci was founded byGuccio Gucci,
was an Italian businessman and fashion designer, the founder of The Fashion House of Gucci.

The House of Gucci, better known simply as Gucci. Gucci pronunciations is an Italian luxury
brand of fashion and leather goods, part of the Gucci Group, which is owned by the French
holding company kerning. Gucci was founded by Guccio Gucci in Florence in 1921.
Gucci generated about €4.2 billion in revenue worldwide in 2008 according to
BusinessWeek and climbed to 41st position in the magazine's annual 2009 "Top Global 100
Brands" chart created by Interbred, it retained that rank in Interbrain’s 2014 index. Gucci is
also the biggest-selling Italian brand Gucci is one of the most sought-after(desirable) labels
in the fashion industry. From Los Angeles to Paris, the Gucci label is lighting up the
runway and becoming the single most respected label in the world. From their incredible
handbag designs to their super sexy floor length gowns, Gucci is offering an elusive mix of
casual styles and runway chic designs for men and women all over the world. Originally
founded in 1921, Gucci has successfully provided consumers with leading, high quality
designer goods, unlike any other designer in the business. Over the years, the label has
obtained insurmountable levels of success with each new collection released. By 2005, Gucci
had established 207 stores around the world.

Gucci logo design:

Today, there are many different brands in the world, but customers still trust and choose
products with Gucci's "GG" logo.

The Gucci logo has gone through many iterations since the fashion house was founded in
1921. The interlocking “G”s of the current logo were designed by Aldo Gucci in 1933 and
have become one of the most recognizable logos in the world.Although the design basis of
the logo has remained relatively unchanged over the years, there are some smaller variations.
For example, the spacing between letters has changed, and sometimes one of the “G” letters
is slightly longer than the other.

There are also some more unique versions of the logo that have additional elements. One
version includes a snake encircling the letters, while another has laurel wreaths. These
variations are usually only used on special edition or limited edition products.
Gucci logo design: Two letters "G" interlocked. The logo of the Gucci fashion brand was
created in 1933 by Aldo Gucci. This is simply the image of the first two letters of his father's
name (also the founder of this brand), Guccio Gucci, intertwined.

Colors in the Gucci logo: The main color is black, with this color Gucci represents the
dominance, excellence and luxury of the famous fashion brand.

1.2. History of GUCCI

Since its founding in 1921, Gucci has transformed from a single shop opened on a side street
in Florence to its position today as a world-renowned symbol of Italian craft, visionary
creativity, and innovative design. Both mirroring and defining the decades that brought it
forth, the House's history has itself influenced fashion and culture in indelible ways
throughout the 20th and 21st centuries.

The House's founder, Guccio Gucci, was born in Florence on March 26, 1881. In his youth,
he moved to London, where he began working as a porter at The Savoy hotel in 1897.
Inspired by his observations of the jet set there, he returned to Florence in 1902 with the
dream that one day luggage would bear his name, and Gucci founded the House of Gucci as a
saddlery shop in Florence in 1906. Guccio's first talent was his craftsmanship in leather
goods. He started out selling leather bags to horsemen in the 1920’s and progressed to luxury
luggage as his clients graduated from equine transportation to horseless carriages. In 1921, he
opened the first Gucci boutique on Via della Vigna Nuova.

In the 1930s. the Gucci brand succeeded by attracting a large number of fashionable upper-
class customers with its collection of handbags, clubs, gloves, shoes and belts for equestrians.
The stirrup and muzzle design quickly became a symbol of the fashion house and of
endlessly creative beauty. This unexpected success prompted the opening of a new store in
1938 on Via Condotti - Rome. Gucci successively opened luxury stores in Milan, New York,
London, Palm Beach and Beverly Hills to establish the flagship brand as a symbol of modern
luxury.

In 1947 the immediately recognizable Gucci icon, the leather bag with bamboo handle, is
created. During the 1950’s the trademark red striped webbing is introduced, taken from its
original form place on a saddle girth. This became an emblem much as the leather moccasin
with leather bit.

Guccio Gucci created many of his classics early during the 1950’s; products such as luggage,
ties, shoes, and the famous handbags sporting the bamboo handle. After his death in 1953, his
family was able to take the enormously successful company to new heights by opening stores
in Paris, Beverly Hills, London, Palm Beach, and Tokyo.
In the 1960s. Gucci created a storm when it was considered an "empire" alongside other high-
end and stylish product lines. Hollywood stars have named Gucci synonymous with "chic",
meaning luxury and elegance. For a long time, this brand symbolized big names and movie
stars such as Jackie Onassis and Elizabeth Taylor. Gucci products are also included in the
collection at the Costume Research Institute of the New York Museum of Art. During this
time, Gucci continued to expand its business activities worldwide with subsequent stores
opening in London, Paris, Palm Beach and Beverly Hills (USA). In the mid-60s, Gucci began
using the famous logo of two letters "G" joined together.

But with the fame and recognition of the brand name came some turmoil. While Gucci goods
were considered a status symbol of the times, management and inner family seemed to
disagree. Brother Maurizio Gucci took an apparently ailing business over from his founding
brother, who in turn sold it to an Arab concern in the 80’s.

In the 1990’s, Tom Ford, Gucci’s newest executive head, has brought Gucci back to the
center of chic, and now commands a varied line of products including leather fashions,
perfumes, colognes, cosmetics, shoes (including the moccasin with the distinctive Gucci
snaffle-bit), the "Flora" foulard created for Grace Kelly by Rodolfo Gucci, suitcases, watches,
jewelry, silk scarves, sports articles, belt clasps, ties, and eyeglasses.

There were seventy-six Gucci stores around the world in 1997. Gucci was "Europe's most
successful company" voted by the European Business Press Federation. because of its success
in business, strategic vision and effective management and operating system in 1998.

In 2000, this brand continued to push its products outside the world by opening more stores
everywhere and GUCCIs presence was present globally.

In 2004 . After De Sole and Ford left their positions, Mark Lee was appointed President and
CEO of Gucci in 2005.

In 2006, according to BusinessWeek, Gucci's revenue reached 7 billion USD globally and
was ranked 46th in this magazine's annual "Top 100 Products" ranking.

Today GUCCI is a famous brand worldwide. Although there are many other high-end brands
established and "fiercely", GUCCI's position and class still endure and grow stronger.

1.3 Achivements

In 2015, Gucci's creative director, Alessandro Michele, received the prestigious International
Fashion Designer of the Year award at the 2015 British Fashion Awards. Each of his
collections is considered an important success, and he is credited with adding strength to the
Italian brand, blowing a whole new life force for the famous and long-standing Italian fashion
house, which has an annual sales of about 3.5 billion euros (2.47 billion Dong) per year.
In 2016, Gucci's creative director, Alessandro Michele, won the international accessory
designer, while the brand's president and CEO, Marco Bizzarri, became the international
business leader at the 2016 Fashion Awards on Monday night at the Royal Albert Hall.
In 2018, the British Fashion Awards 2018 (The Fashion Awards or British Fashion Awards
2018) took place on the evening of December 10 at the famous Royal Albert Hall in London.
The Brand of the Year award was given to Gucci before nominations for Balenciaga,
Burberry, Gucci, Off-White and Prada. Designer Craig Green won the title of British
Designer of the Year Men's Fashion Line with the brand bearing his name.

Customer platform:

On the social networking sites of the world, the monthly number of people following Gucci's
brand is extremely large. Statistics show that the number of brand followers on social media
along with reviews, comments and sharing will make new strategies, new products and small
and large events of Gucci popular globally. The evaluation criteria for products, services,
value and space are all high.

II. Structure Of Gucci Group N.V

2.1 Organizational Structure:

The organizational structure is divided along lines and departments are specialized according
to functions. The company's organizational structure is consistent with the strategy the
company is implementing. Gucci has a fairly simple vertical and horizontal organizational
structure, but has a wide span of control. This is completely consistent with the differentiation
strategy based on innovation and quality. Power is concentrated only in senior managers
when considered in the most important decisions, while decentralized power is assigned to
departments, functions, managers and employees, thereby having can limit the brand's image
being influenced by administrators to the media. Gucci's organizational structure height
divides its organizational structure into 3 basic levels:

Senior administrator:
Marco Bizzarri is the president and CEO of Gucci. After he assumed the role in January
2015, one of his first strategic decisions was to appoint Alessandro Michele as creative
director of the Italian fashion house. Under the leadership of
Bizzarri, Michele's new vision for Gucci was focused on establishing a more modern attitude
for the house - with immediate critical success. In 2018, the house reported an exceptional
[financial] performance across the board, with a first-half revenue increase of 44%. The
company is currently on track to reach the 10 billion euro revenue threshold. Prior to his
appointment with Gucci, Bizzarri served as chief executive officer of Kering's Luxury
Leather & Goods division.

Middle level managers:

Alessandro Michele is the creative director of Gucci, responsible for all Gucci collections,
product categories and the company's global brand image, Alessandro's unique understanding
and appreciation of the historical rules of the house, combined with the
His contemporary sensibilities, have created a compelling new narrative for the brand.
Jean Pierre has been director of the supervisory board since 9 June 2008. His term of office
was extended by the Combined Congress on 29 April 2016 and will expire at the Annual
General Meeting called for ratification. financial statements for the year ended December 31,
2019.
Regional Executive Director: The Regional Executive Director will be responsible for
supervising program directors in the assigned region. Duties will include oversight,
monitoring, evaluation, working closely with funding source(s), interacting with world
offices in countries and regions, and exploring new program opportunities in area. All duties
will be performed based on supervisory training, with minimal supervision. The Regional
Executive Director is directly supervised by the Chief Operating Officer.

Operational level administrator:

Finance: Overall business control of various government processes, costs, policies and
compliance.
Submit timely and monthly reports as well as annual closings.
Lead an accounting team for the smooth functioning of all departments of accounting with
maximum accuracy and adherence to deadlines.
Valuable input into the Forecasting and Budgeting process as well as tracking and analyzing
variances between actual and budget.
Interact with External and Internal Auditors and to implement ethical and best business
practices.
Implement innovative and effective ways to run the finance department and suggest changes
that will increase productivity and cut costs without any impact on the smooth running of the
business.

Production: The Production team will coach and Engage Global Digital teams in the pursuit
to continuously improve product development through understanding and applying agile and
Scrum principles, practices and methodologies.
Human Resources: Consolidate data received from different countries and regions, liaise with
local HR, receive hiring plans and changes in organizational units, process data, prepare
analytics qualitative and provide data.

Marketing: Support Regional Directors and Local Media & PR Directors in managing local
media in the market according to regional and global strategies for PR, Advertising, Events
and Consumer Management.
- Provide reporting and coordinated support to plan and implement media-related strategies
and activities.
- Process invoices and update spending reports.
- Prepare and submit key reports.
- Arranged Support for local celebrities and social media influencers.

Sales: Reporting to the company's Sales Director, Mark Down's Expert will Participate in
commodity discount forecasting and planning activities for the company at a global level and
track key performance indicators (such as product performance, sales, inventory, and
departmental receiving targets).

* Under the departments of Gucci on the world office systems include tasks to support the
stable development of the company as follows:

- Personnel Costs Controller (Gucci)

- Pricing & Operating Marketing Specialist (Gucci)
- Visual Sales Assistant Hq (Hq Visual Merchandising Assistant, Gucci)
- Production Team (Scrum Master, Gucci)
- Digital Full Stack Developer (Gucci)
- Mark-down Sales Specialist (Outlet Mark-down Merchandising Specialist, Gucci)
- Indirect Order Administration Staff, Gucci

Conclusion:

Gucci is run by the hands of Marco Bizzarri who is highly competent in leadership and
control of the company. Besides, the brand's products and all fashion campaigns are created
by creative director Alessandro Michele and the support of other departments helps Gucci
continue to develop.

2.2 Products of Gucci N.V

Gucci, the iconic Italian luxury fashion brand, is synonymous with sophistication, elegance,
and timeless style. Renowned for its impeccable craftsmanship, innovative designs, and
distinctive aesthetic, Gucci offers a wide range of products that cater to the discerning tastes
of fashion enthusiasts around the world.
From exquisite handbags crafted from the finest leather to stylish shoes that effortlessly blend
comfort and glamour, Gucci's collection of accessories is a testament to the brand's
commitment to luxury and quality. The brand's clothing line features a mix of classic
silhouettes and contemporary designs, ranging from tailored suits and elegant dresses to
casual wear that exudes effortless chic.

Gucci's fragrances capture the essence of luxury and refinement, with a range of scents that
evoke a sense of sophistication and allure. The brand's watches and jewelry pieces are
masterpieces of design, combining intricate details with premium materials to create timeless
accessories that elevate any ensemble.

In addition to its fashion and accessories, Gucci also offers a range of home decor items that
reflect the brand's signature style. From luxurious bedding and plush cushions to elegant
decorative objects, Gucci's home collection allows you to infuse your living space with a
touch of Italian glamour.

With a commitment to innovation and creativity, Gucci continues to push the boundaries of
fashion, offering a diverse range of products that embody the brand's rich heritage and
commitment to excellence. Whether you're looking for a statement piece to elevate your
wardrobe or a luxurious accessory to enhance your home, Gucci's products are sure to
impress with their unparalleled quality

III. Business Operations of Gucci N.V.

3.1 Business Situation:

Kering, owner of Gucci, reported very depressing results for the third quarter of 2023. With a
13% reported decline overall and a 9% comparable shortfall, revenues for the group dropped
from $5.4 billion last year to $4.7 billion this year.

Set against a backdrop where sales growth is slowing across the luxury sector, investors
expected a poor showing for the quarter but not as bad as it turned out.

The Wall Street Journal reported that shares on the Paris-listed Kering dropped 5% after the
company’s earnings report. Its stock is now trading just over $400 per share after reaching a
high of $635 at the end of March, making its stock “one of the cheapest in the luxury goods
industry, trading at just 13 times projected earnings.”

With the exception of eyewear, which rose 34%, a micro-category contributing less than 10%
of revenue, all other reporting segments took a dive. Down the most was its Other Houses,
dropping 19% on a reported basis. This segment includes Balenciaga and Alexander
McQueen, which deliver just about one-fifth of revenues.

Bottega Veneta, a small brand with less than 10% of revenues, was off 13%, and Yves Saint
Laurent, which contributes about 20% of revenue, dropped 16%.
Then there’s Kering’s flagship Gucci brand, on which half the company’s revenues depend.
Its sales declined 14% on a reported basis, from $2.7 billion in the same period last year to
$2.3 billion this year. And revenues were down 7% on a comp basis.
Amidst talk of normalization, rationalization, and consolidation during the earnings call,
Kering deputy CEO Jean-Marc Duplaix reflected on Gucci, saying the changes in expression
and attitude reflected in the introduction in September of newly installed creative director
Sabato De Sarno’s first collection will “reestablish Gucci’s edge in sparkle.”

Yet he also admitted it’s a “little bit too early to comment on the results from this collection.”
Billed as “Gucci Ancora”– Italian for “Gucci Again” – the New York Times called it a
“breeze, rather than a wind, of change.” In other words, it didn’t blow anyone out of their
seats.

Rather, Gucci is facing hurricane-force headwinds right now, blowing strongest in North
America (22% of revenues), where comparable sales were down 22% in the third quarter and
the same over the first nine months of the year. And it’s off 5% in Western Europe (26% of
revenues) in the third quarter. Even Asia Pacific, which generates nearly 40% of brand
revenues, dropped 3% in the most recent quarter.

Gucci’s second and third priorities are to enhance product quality – a must – and more
exclusive distribution, which Duplaix hinted may have gotten out of hand. Currently, Kering
operates 534 Gucci boutiques out of the company’s total 1,722 – Asia Pacific leads with 181,
followed by North America at 112 and Western Europe at 103.

Gucci has an uphill climb to restore its brand equity. It plummeted 31% in the last year,
dropping from $38 billion in 2022 to $26.3 billion in 2023, according to the Kantar BrandZ
report

3.2 Business Strategy:

3.2.1. Gucci Marketing Strategy & Marketing Mix (4Ps)
Marketing Strategy of Gucci analyzes the brand with the marketing mix framework
which covers the 4Ps (Product, Price, Place, Promotion). These business strategies, based on
Gucci marketing mix, help the brand succeed in the market. Let's start with the Gucci
Marketing Strategy & Mix to understand its product, pricing, advertising & distribution
strategies:
Gucci Product Strategy: Gucci is one of the top most luxury fashion brands well
known globally. Since its inception in 1921, the brand has established itself as a leading
fashion label. Gucci has a diverse product portfolio in its marketing mix with great length,
width and depth. Gucci product line ranges from handbags, shoes, ready to wear products,
jewelry, watches and other accessories. It has products for men, women and children. It has
great length in each of the product categories. In handbags it has totes, shoulder bags,
backpacks, clutches, crossbody bags etc. Each bag has a different variety of colors to choose
from. Gucci has duffle bags, briefcases, portfolios, totes and backpacks for men.
 In their ready to wear segment they have jackets and coats, denims, leather and fur,
skirts, tops and shirts, pants and shorts, sweaters and cardigans, sweatshirts, T-shirts and suits
for men. Gucci has a range of fancy shoes for women like pumps, sandals, ballerinas,
moccasins and loafers, slides and mules, boots and wedges. For men they offer lace ups,
boots, sneakers, sandals, loafers. Some of the loafers are made from precious skin. Gucci
offers accessories like sunglasses, belts, scarves, luggage bags, wallet, hats, gloves etc. Gucci
also has beauty products ranging from fragrances to nail paints, eye and face makeup.
Gucci Price/Pricing Strategy: Gucci mostly offers premium priced products. The
price of the apparels depends on the quality of fabric and the work done on the apparels.The
pricing strategy in its marketing mix includes all sorts of charges and expenses it incurs.
When the products are exported the rate of the products increases due to several charges
imposed on them. The materials used in making Gucci products are of premium quality
therefore the pricing of the products are also high. Their finished goods have a made in Italy
trademark on them. Their prestigious pricing makes the product act as a status symbol. Even
in other products Gucci follows premium pricing. Despite the pandemic, the pricing of the
products were maintained, as the brand still maintains a supreme quality. Gucci’s customers
are not affected by this because they get high quality products. Gucci tries to offer discounts
from time to time to enhance sales and keep their loyal customers happy.
Gucci Place & Distribution Strategy: Gucci is optimizing its existing network to drive
organic growth and profits. Gucci operates in Europe, United States of America, Asia,
Middle East, Australia. Its major business functions are merchandising, marketing and
communication, store planning. The collateral aspects of Gucci's business are handled by the
support staff functions like Human resources, Finance, Corporate social responsibility, legal
and corporate affairs. From product development to the technical area Gucci’s supply chain is
very efficient and helps in delivering products with cutting edge innovation. It has 500+
directly operated stores, a directly operated online store which works in 25+ markets. Gucci
has a limited number of franchises and selected departments and specialty stores through
which they sell their products. Their stores are placed in expensive up street locations
keeping in mind their clientele. They have visually appealing outlets which give a great,
relaxing experience to the customers. Each Gucci store is uniquely designed and has classic
interiors. The services provided by the employees make the customers feel special and
exclusive. With the growing penetration of ecommerce websites, Gucci has spread its
business via multi-brand online platforms as well.
Gucci Promotion & Advertising Strategy: Gucci makes itself visible through
advertisements, banners, look books, social and print media as a part of its marketing mix.
Their marketing campaigns feature on various social media platforms like Facebook,
Pinterest, YouTube, Instagram, Tumblr. They have hired various bloggers to promote their
content on social media. Gucci also has an app in eight different languages and it is called
Gucci style app. It acts as a magazine consisting of fashion, geo location tips, interactive
videos etc. Alessandro Michele has been driving Gucci’s advertising campaigns effectively.
He understands the importance of connecting the past history of Gucci with the contemporary
outlook of the customers. It leverages the rich heritage of Gucci and its craftsmanship. The ad
campaigns showcase contemporary designs focusing on the classy & young generation.
Gucci’s fashion shows are well accepted and recognized by the fashion experts and by the
targeted audience. Gucci has excellent customer relationship services which acts as a huge
means of word of mouth promotions. Gucci offers its client a repair service and also allows
them to pre order items that are still under production. Hence, the marketing mix of Gucci
luxury fashion brand is completed.

3.2.2. Gucci Strategies of Brand Equity

In customers’ minds, Gucci appears to be seen as the most unique and best out of all
Italian brands. Gucci is the only brand that draws inspiration from the equestrian world,
by promoting Tuscan artisanship and an active strategy of social media. In current times,
subsequent to its vertical increase to the topmost luxury world, the company has been making
efforts to stay associated with its consumers and not be viewed as strictly unreachable
and high class for the average person. By using its down-to-earth attitude, uniqueness, and
quality, Gucci wants to be considered as the high-quality luxury brand that all desire to be a
part of the brand.
Differentiation: In the minds of customers, Gucci differentiates its brand by its
good quality offering, which stays true to equestrian roots and core value of Gucci.
Resonance: The company is able to attain resonance by formulating a strong
community sense, promoted by a want to be a part of social elites. Gucci’s choice of
high pricing points and distribution channels drive the brand exclusivity, as well as its
following. The company has effectively created a community belongingness by introducing
the Gucci museum.
Feelings: Gucci marketers also targeted people's feelings, such as social
approvals, self-respect and excitement are widespread in Gucci brand. Most of the people see
wealth and sexiness to be interrelated, advocating a sense of excitement in being a part of the
high-class Gucci has rapidly increased and maintained its brand equity in a fickle and
competitive industry. The company has attained a strong brand equity by steadily
embedding their major brand values in all categories of products, which include sunglasses
and perfume to ready-to-wear, handbags, jewelry and accessories.

3.2.3. Vision & Mission

The company's mission is to become the leader in the luxury market at world-wide
level. Gucci describe themselves as cool and responsible, and value themselves on their
craftsmanship. These three concepts are linked; taking up responsibility can be cool. For
Gucci, Corporate Social Responsibility is an important part of their global strategy. They
work with a holistic, yet realistic approach. They state that it is their duty to use their position
as a luxury brand to pioneer and promote sustainability.
The Gucci values are deeply embedded within ethics and in fact, the company began
to work on a sustainability strategy in 2004. Quality remains a main priority, but they began
to elaborate upon this. Sustainability for people and the environment became part of the
quality-concept. Gucci states that their sustainability strategy is supported by their
stakeholders.
 In the last decade, Gucci has been a great example of how great the impact a good
strategy analysis can have on the volume of sales. The company’s conduct changed since
Marco Bizzarri became the new CEO in 2014 and Alessandro Michele was appointed as the
new creative director in 2015; since then, Gucci has become extremely modern and more
prone to experiment than its competitors.

Many elements of Gucci’s mission and objectives are presented to stakeholders and
the vast public; such missions and objectives are periodically updated following Gucci’s
Ethic code, written for the first time in 1996. The main vision statement is: to become a
worldwide leader in clothing and accessories industries, in the field of luxury and of sport and
lifestyle.
Another important vision statement is: “Empowering imagination”. These vision
statements reflect different missions and timely objectives, which are:

● Defend and promote creative people. For example, three years ago Gucci hired
a graffiti artist called 'GucciGhost' to collaborate for the autumn/winter
2016/2017 collection; he was known online for his stylised ‘double-G logo’
tag. He was not extremely famous and he didn’t have a lot of experience in
firms, but Gucci decided to experiment and praise his creativity.
● Customizing more products and online services. This was meant to make
shopping more similar to an adventure, rather than to a simple transaction:
Gucci’s online store shows a lot of wonderful pictures (see below) and offers
free returns, find-in-store options, product information and gift wrapping; also,
the website features ready-to-wear collections as curated as they appear on the
runway. Creating an immersive and unique e-commerce experience, in a world
characterized by globalization and online networks, is a brilliant strategy.
● Further working further on the “Artisan corner” project, by adding sections in
every store where customers can see Gucci’s craftsmen in action and learn
about past and present techniques of production. This mission is meant to
show Gucci’s hidden aspects to customers, and especially the high skill and
quality standards for their goods.
● Being more relatable and more friendly with the customer; the mission is not
to sell a product, but to sell a dream, a lifestyle. “Forget how much it costs,
and wear what makes you happy” is the slogan. To pursue this, Gucci is
working hard on its appearance and the imagery associated with the brand,
through Instagram posts, magazines, and the [image: ]official website.
● Strengthening the popular culture relationship. The mission of “selling a
dream” is achieved, for example, by using celebrities, such as Lady Gaga and
Beyoncé as testimonials. They have great visibility and, for most people,
represent “the life of dreams”.
● Paying more attention to young consumers: This is part of the “more inclusive
brand” mission, since, traditionally, luxury brands always target middle-age
people, and Gucci has always projected an aura of exclusivity, while now the
company wants to make “fashion for everyone”, including young people; for
 this reason, Gucci is working on a geek-chic aesthetic, which is very popular
among millennials. Also, the company created the hashtag #TFWGucci
(thanks for watching) on Instagram and Facebook, pairing funny images with
pictures of their products, with humorous captions. In order to understand and
meet the desires of young adults, Gucci created a committee called “Shadow
Comex,” which is made up of people around 30 years old: this young team is
deeply involved in strategic decisions, and the CEO discusses with them the
same topics that he discusses the “traditional”, main executive committee (the
Comex). So, another mission for Gucci today is to obtain the feedback of
millennials and show them that luxury fashion is for them, too. This strategy
seems to be working pretty well since it allowed Gucci to reach many
objectives: for example, in the third quarter of 2017, sales spiked by 49%,
hitting $1.82 billion. Today, young adults aged between 18 and 34 years old
account for more than half of Gucci’s consumers.
● Working on environmental sustainability. Gucci affirms that it's their duty to
use their position as a luxury brand to pioneer and promote sustainability; this
is linked to the focus on young adults because millennials care a lot about
environmental issues. Gucci began to work in this direction in 2004 and in
June 2010, the company introduced 100% recyclable packaging; last year it
started its fight for animal welfare by joining the Fur Free Alliance, along with
other luxury brands. Fur products were worth only about €10m annually in
revenues to Gucci, so the financial impact was limited.
● Corporate Social Responsibility. Gucci focuses a lot on the human aspect of
their business and is fighting for employees’ rights, gender equality in the
workplace and fashion industry, empowerment of local communities and
against the exploitation of child labor. The company created the “Kering
foundation against violence on women” and joined Global Compact in 2008.
● Defend diversity, which means introducing new styles in all categories with no
gender-specific pieces, for example. This is, according to the current CEO, the
key to promoting respect and to create a sustainable business.

The Gucci target group is the affluent middle to upper classes. The consumer is hip,
aged thirty plus, and above all. It is an individual who invests in fashion as either a treat or a
lifestyle. Since fashion never ends, it evolves with the time and it varies depending on the
place. If Gucci keeps in tune with what is in vogue and implements effective management
and strategies, it will profit from all the opportunities that the ever-changing global economy
and fashion industry will provide.