To me, the problem doesn't lie with
Gucci but Kering.
Share-prices will sadly affect all because equally sadly business is built 99% on confidence (or lack thereof).
Kering doesn't seem to understand when to do what and what to do when. LVMH seems far more strategically stealthy when it comes to public-facing news. For example, in comparison, LV put out a teaser that they are collaborating with Pat McGrath on a makeup launch 'sometime', and LVMH shares rose. The ink was probably just drying on the contract. Never mind Pat's own eponymous brand wiped millions off its own business lately by repeated lacklustre artistic vision, Pat is a brand in herself because she's a creative. This LV X PMcG
news was a complete non-event, but it got influencers chit-shattering. Same with
Prada last year, they repositioned themselves
with theirs, PRADA took over dept store fronts and made a huge splashes visually.
Contrast, Pat McGrath collaboration in 2014 with Gucci. It was one of the first luxury houses to launch an entire MU line for decades. Hardly anyone can remember the launch. It wasn't announced until the
makeup launched in full, denying the delayed gratification content creators love so much (and allowing for at least 4 vids per CC).
The difference is the mainstream doesn't really care about Pat's brand outside the beauty community like they do LVMH v Kering v Richemont v Prada Group v Hermes; the battle of the luxury brand positioning - which is a football game to most and decides which new aftershave they'll buy at the next stopover. New is always exciting, the promise of something new, even more so. What they know is - makeup worked for Prada, and they only know about 3 MUA names.
When Demna arrived at Bal he was riding high as the enfant terrible of fashion, non-reverential and the anti-fashion upstart. 'Demna' is not a magic brand at this point. There are very few hero products he's created, Bal even had to reissue the City bag and others from NG's reign. Demna is a creative but not a creator.
I am still optimistic Demna will do an equivalence at Gucci the way MM or JPG did at Hermes. Demna's reign will be under the rein. Gucci already have a wealth of icons and hero products for Demna to deconstruct, subvert and reimagine. AM didn't create much new either, he just reissued vintage stuff from the archive and chucked things together like the postmodernist he is.
Demna seems like a person Kering have a good relationship with, that's also important. They also didn't have someone stringing out a negotiating deal 'forever' because they needed someone now. IMO, it's actually a practical choice as well as a controversial one.
I am not a Kering shareholder, I care more about the quality, wearability and beauty of my next pair of bags and shoes that brand positioning. As a consumer, I absolutely blame
Kering for drops in Gucci sales
and everything that has happened since that started hiking prices to stupid levels over all their brands including BV, and more importantly Bal, McQueen and SLP which buy
their leather-goods from
Gucci and has a knock-on effect to what are listed under Gucci's figs in Q. Reports.
We are back to 'we will just have to wait and see'.
www.ft.com
