In a time of accelerating global change, Gucci continues to keep pace and consistently
manage its dual identity as both a modern and heritage brand. It has
repositioned to own the category of "jetset chic," a more exclusive space
within the luxury market.
Corporate citizenship and digital innovation are
equally important to Gucci. Recent examples in action include Gucci's partnering
with UNESCO on the brand's 50th
anniversary in Japan, attaining new occupational health and safety
certifications, and launching its new, multilingual museum website Gucci Museo.
To strengthen its focus, the brand cut its number
of entry-level products by 25 percent and increased sales of its no-logo
products by 60 percent. Ambitious retail development in China, the shift of the
luxury market from leather goods to ready-to-wear (which accounts for just 11
percent of Gucci's sales) and the recent launch of Gucci Beauty, Gucci's first cosmetics
line, are also impacting sales.
The counterfeit culture, a challenge common to
many of the most iconic luxury brands, still poses problems for Gucci and it continues
to face off in court with Guess over trademark infringement issues.
Clearly, Gucci is shifting gears and driving change
from within to adapt to rapid changes. The question is whether Gucci can
continually reinterpret the cool-jet-set image while keeping pace
with changing taste.