Gucci make most of their money from 'everyman' and not the elites of this world. They have stores in almost every city and resort, multiples in capital cities, plus concessions in dept stores. Gucci is available from almost every 'luxury' website, pre-loved emporium and independent outlet. NAP, Matches,
The Real Real, YOOX to Gucci outlets, if people just want a Gucci 'thing' that have so many choices.
Gucci's profits come as much for making (including tanning) for other brands than from consumer sales, so these consumer sale policies are not the lead on Gucci's growth. It's more about brand perception and market-share IMO. However, I think they are trying to be everything to too many demographics.
Full retail, they have way too much competition at the top-end.
A LARGE Bamboo Top Handle was £1.6K 2011.
Most bags were around the £1-1.5K (Price adjust for your local currency) until 2015. AM became CD late 2015, but lets say 2016, so the was around 7 years ago same time as the CEO changed too.
Now most bags (besides little cross-bodies) cost around £2-2.5K.
Feb 2022 the all-black MED BTH cost £2900.
May '22 The MED BTH costs £3,430
I feel Gucci is pushing prices for normal leather bags to £3K.
Whose wages have gone up 100% in the last 7 years? Who earns 20% more the last 6 months?
The last 20 years' growth has come from expansion East, the 10 years before that the new rich Russians and a more Western-style aspirational ME, there is little geographical market growth available of 'strategy' size left to conquer, so Gucci have to go younger. Gucci want more Gen Z to buy their clothing (Adidas X Gucci, HA HA HA, Disney etc).
Gen Z are fashion forward (although I think it is just a fashion) and say they want to rent/share clothes, buy pre-loved Y2K/'90s, shop on Depop etc and brag on
little their clothes cost them.Whilst Y2K collectibles continue to climb in value (LV mostly) Gucci hasn't produced many memorable 'specials' apart from the REAL/FAKE/Trouble Andrew collection and have relied on standard commercial collabs.
Separately, as
@880 has posted about previously, the Chinese market is over 'revenge spending'. IMO, Chinese consumers are more interested in investment with high-value goods which is why they 'overspend' at H and Chanel, and fitting-in. When emulating 'old money' and status (international elite circles) Gucci's new policies do not offer classic investment opportunities or old-money aesthetics.
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