Aaron Alpeter’s Post

You need to be wary of the dangers of meanigless 'stats' and alarmist headlines, in 'reporting'. They can be made to support ANY narrative. The ACTUAL stats show that sales of Gucci items TREBLED, in the Decade between 2009 and 2020. 'Luxury' is gigantic. Scotch Whisky is reported in a similar way, if a 'News source' wants to frighten silly folk. Totally ignoring the double-digit annual growth, over years and casting doubt, by saying nobody's buying expensive stuff any more. The reality is the reverse of this. The 'Special Make' Bentley Division is enjoying Record Sales. Longer-term, it's also why the smart money is moving into Super-Luxury-Scotland and Scotch Whisky Tourism. The ACTUAL truth is, it's BOOMING. Covid (not just China) ravaged most luxury retailing. There was absolutely no point in buying a nice pair of Gucci loafers, if you couldn't wear them anywhere! The WORLD was largely closed for two years? You now need to read between the lines, of even the most respected sources. #Gucci #ScotchWhiskyTruths #SuperLuxuryScotland

We’re excited to launch our new 𝐓𝐞𝐫𝐦 𝐨𝐟 𝐭𝐡𝐞 𝐃𝐚𝐲 series where we break down important terms from various industries, making complex concepts easy to understand. Each day, we’ll dive into a new term and explain its meaning and how it impacts the industry. Today’s term is 𝐏𝐫𝐞𝐦𝐢𝐮𝐦 𝐏𝐫𝐢𝐜𝐢𝐧𝐠. This approach is commonly used in luxury goods and high-end services to create a perception of higher value and exclusivity. Find out how big brands like Gucci and Prada set their prices, check out our detailed research article on premium pricing here: https://lnkd.in/dF7dHbw4 Stay tuned for more insights! #TermOfTheDay #PremiumPricing #PricingStrategy #SciativeSolutions

Gucci Sales Drop Amidst Asian Market Slowdown Paris, France – In a recent update from Kering, the Paris-based conglomerate that owns Gucci, it has been revealed that Gucci sales drop by an alarming 20% in the first quarter. This downturn is primarily attributed to a slowdown in the Asia-Pacific region, casting a shadow over the Italian luxury brand's performance. Asian Slowdown Hits Hard Kering's announcement laid bare the challenges faced by Gucci, highlighting a Gucci sales drop that stands in stark contrast to the resilience shown by its rivals, LVMH and Hermès... https://lnkd.in/gHqAAXQj

COVID-19 Hits Gucci Sales: Kering's Profit Warning #consumerbehavior #COVID19impact #fashionindustry #Guccisales #Kering #luxurygoods #marketconditions #profitwarning #revenuedecline #salesstrategies

Interesting fact about Luxury brands' value drivers One of the interesting things I learned recently in the HBSO Business Strategy course is that luxury brands have 4 types of customers: 1. Patricians: These are rich folks who like showing off, but only to other rich friends. 2. Parvenus: These are also wealthy people, but they want everyone to know it. 3. Posers: They aren’t rich, but they still try to look like they are to impress everyone. 4. Proletarians: This is just a fancy word for regular people who might not buy luxury stuff. Knowing this helps with having a different pricing strategy for each segment. For example, the bags that have Gucci's logo in a big obvious way (e.x. Gucci emboss $2,590) are cheaper than the models that don't even have the logo on it (e.x. Gucci Jackie $14,000)! That's why understanding the different customer segments helps businesses figure out how to offer value to each. #BusinessStrategy #Luxury #Brands #Marketing

With the latest financial forecasts indicating a challenging Q1 for Kering (KER FP), with Gucci sales expected to decline by 20% YoY and overall group sales by 10% YoY, our focus shifts beyond the immediate hurdles. Reflecting on our February 12, 2024, analysis, 'Gucci vs Louis Vuitton,' we underscored Kering/Gucci's strategic pivot and anticipated investment phase throughout 2024, with an optimistic outlook for a gradual recovery starting H2-2024. The key takeaway? Look past Q1's anticipated downturn and towards H2, as Gucci's new designer collections, already making waves since their late February debut, begin to influence the market significantly. Early feedback from Gucci store managers hints at a robust demand for De Sarno's creations, with supply insufficient to meet demand. Moreover, the broader implications for the luxury goods sector, with recent updates from Kering spotlighting not just company-specific challenges but sector-wide pressures, especially from the Asia/China market, prompt a cautious stance on the luxury sector overall. As indicators suggest a slowdown across key markets, including the USA, our analysis leads us to advise a strategic reevaluation of positions in select luxury stocks, aligning with our broader market outlook and investment strategy. For any questions, feel free to reach out. Follow us for the latest insights on European Equities.

BATNA Analysis Most of thinking what the hell is BATNA let me explain to you in simple words. BATNA stands for Best Alternative to a Negotiated Agreement. It’s what a party will do if the current negotiations don’t work and there’s no agreement. Real-Life Application (Hypothetical): I'm taking Gucci as an example. Suppose Gucci has relationships with several high-end leather suppliers. ✅ Gucci's negotiation team understands his BATNA and can use this knowledge to lead negotiations with current suppliers. ✅ You can also leverage competing offers from alternative suppliers to negotiate more favorable terms, such as maintaining current prices or securing additional benefits. ✅ Knowing its BATNA allows Gucci to strategically manage negotiations and secure the raw materials it needs for its luxury products on the best possible terms. ✅ This hypothetical example illustrates the strategic application of his BATNA in business negotiations with a luxury fashion brand such as Gucci. I hope you learn something new today. #NegotiationNation #BusinessBargains #JobJourney #DealMakers

Since spring 2023, I have stated on LinkedIn that it was only a matter of time before the luxury consumer started to show signs of slowing demand. Kering (the French luxury giant that owns Gucci) has just confirmed the above stated prognostication from their sales data. Here's my next prediction: Kering's competitors LVMH and Hermès will come out with similar warnings of sales slowdowns in the forthcoming months. The consumer slowdown is indubitably here...and it is starting to impact even the "well-heeled" segments (Christian Louboutin, anyone) of the income spectrum. Air will start to come out of the above over-priced stocks and their peers such as Moncler, Prada Group, Ralph Lauren, Brunello Cucinelli, Zegna along with other names that serve the luxury and affluent consumer cohorts around the world. Even Ferrari -- the much-loved Italian stallion -- will not be spared in the correction of a minimum 15 to 20% I am anticipating in luxury stocks from their current irrational and unsustainable levels. #neuron #neuroninvestors #neuronpartners #hedgehawk

At a recent industry conference, there was a lot of talk around value add, values and worth. Interestingly, the day prior to commencement, I went shopping at Pacific Fair. I did something I’ve never done - I entered a number of well known high brand stores, just to look at their products. I received incredible attention with a smile and pleasantries from the moment the silk rope buntings were lifted on entry, including being given a glass of champagne in Gucci, until I left. In Christian Laboutin, I was offered the opportunity to try on some amazing sparkling shoes that caught my eye, despite me advising I was not in the market to purchase them. It highlighted for me that giving a customer the full experience of a product and service, without any expectation, leaves a lasting impression. In addition, the brand and products speak for themselves and you certainly won’t find anything on sale, nor would you consider asking for a discount. Circling back to the conference, this experience tied in beautifully with the content of the sessions. The universe works in mysterious ways. Add value, know your worth. (I just had to take a photo of me in those divine shoes!) #propertymanagement #propertymanager #perthrealestate #realestateperth #igtconference2023 #service #addvalue #values #shoes #christianlaboutin

Gucci’s China shock reverberates across the luxury landscape. Kering SA, the parent co of Gucci, experienced a significant decline in its market value following a warning about slumping sales of Gucci products in China. Read More: https://t.ly/xJr4i #LuxuryCruxx #LuxuryConnect