Kering Eyewear’s Post

What Gucci needs now is excitement. Gucci's Spring 2020 show made a bold statement about the role of fashion as a form of power and control. Read More: https://shorturl.at/lpACR #LuxuryCruxx #LuxuryConnect

There is much chatter around Alessandro Michele's debut collection for Valentino, which is understandable. There are two opposing groups: one saying Valentino is now Gucci 2.0 and the other arguing Michele is paying tribute to Mr.Valentino through his Roman-inspired designs. It is too soon to judge what the financial outcome would be, and the market will definitely answer! But, the #fashion system always needs a maximal, extravagant brand, no matter who supplies the demand; one day, it's Gucci, and the next, it's Valentino. My only question is, "Is Valentino going to work smarter and release more commercial lookbooks/photographs/adverts that customers can relate to"? Michele's styling is unique, though showcasing his designs with a more commercial approach might seem a good idea.

Burberry and Gucci, which both show this week, have a lot to prove. Both labels have underperformed their peers for years and are betting on “brand elevation” strategies and designer resets to boost results. So far, they have provided case studies in how hard shifting consumer perception and pushing a brand upmarket can be, especially in a tough market where luxury demand has slowed. At Burberry, it’s unclear whether the brand can command the price points that Daniel Lee’s looks require or whether the designer can adapt his vision to the label’s current reality. What’s more, while the brand has found some fresh, more elevated ways to tap into the “Britishness” of its DNA, much of what it has released recently has been too niche and complicated a take on what makes Britain desirable for most Burberry shoppers. Will the upcoming show click? Meanwhile at Gucci, Sabato De Sarno’s palette-cleansing debut in September (an approach that was “mirrored” in his first men’s outing in January) helped put the brand back on the radar, but there wasn’t enough newness to generate the kind of heat the label needs to kick things back into gear. De Sarno’s collections have been precise, sexy and youthful, but have thus far failed to tell a story about what the new Gucci stands for. The designer needs to show he can do more than create desirable clothes. After the Alessandro Michele boom (and subsequent stagnation), what Gucci needs is a more stable but equally desirable brand story. Read the full story, plus what else to watch for this week. rb.gy/ytcjte ✍️ Robert Williams, Vikram Alexei Kansara #Burberry #Gucci #FashionWeek

Does Prada know their sunglasses feel cheap? An emblem of luxury, yet their sunglasses are ordinary. This paradox isn't unique to fashion. It's a tale as old as time, even reaching forensics & restoration. Imagine the allure of brand names. In a world captivated by the sheen of labels, the essence of true quality is often overlooked. In a landscape where big brands often dictate the terms, a question arises: what truly defines value? Is it the weight of the name engraved on the product, or the depth of quality that lies within? Where does your allegiance lie? With the allure of names or the pursuit of true value? #TrueValue P.S.: Sold my Nissan Murano (in 2019) and got a cheque. Need a top-up for Prada.

Does Pricing Play a Role In Guccis Comeback Strategy? As we patiently await Gucci's potential comeback, I decided to take a closer look at their pricing strategy. Starting with their international distribution, I noticed some interesting trends. While luxury brands like Louis Vuitton, Dior and Burberry have raised prices by around 15-30%, Gucci appears to be charting a different course. Gucci's handbag prices in the US have dropped on average by 31% compared to last year, alongside a 16% reduction in product variety, signalling a repositioning exercise. On a collection level, styles like Bamboo, Jackie, and Diana saw significant price adjustments and decreased styles. On the flip side, collections like Horsebit and Ophidia saw increased attention, with Ophidia experiencing a notable 16% price hike. These deliberate price changes and shifts in local positioning suggest that Gucci is actively working to revive its market presence with a localised approach. I wonder, how big of a role does pricing play in their comeback strategy?

https://lnkd.in/eUt3n7p6 Thanks to Madeline Berg and Business Insider for highlighting my 2017 contrarian view on Kering's Gucci's popularity in this insightful article. ..."We still believe the Gucci brand's current growth rate, which is 10 times higher than that of the industry, represents a risk going forward," Morningstar's Sokolova wrote in a 2017 note. "We prefer to take a prudent stance and acknowledge market saturation risk, given the very distinct aesthetics of the current collections (which can produce both tremendous demand uptick and fatigue)."... My current view is that most luxury brands go through fashion cycles and their popularity tends to fluctuate. Inherent business characteristics of Gucci brand, such as wide brand recognition, history of pricing power, strong control over distribution (>90% + outlet closures) - which should reduce risk of negative discounting spiral; as well as Kering's group's access to talent and financial resources skews chances for recovery upward. #gucci #kering #luxury #investments #stockinvestments #equityresearch #morningstar #businessinsider #contrariancalls

Gucci, are you okay? Do you wanna talk? ICYMI, Gucci sales drop 18% in the first quarter sinking the shares of Kering by a crazy 9% due to the star label. Many are saying this fall was inevitable. The reason? There were no PR fiascos, no controversial campaigns, no sudden uptick in prices – it all boiled down to INCONSISTENT brand messaging. A historically loud brand, known for its maximalist appeal and out-of-the-world quirky showcases (thanks to our saviour Alessandro Michele) suddenly pivoted towards the “quiet luxury” trend. This sudden shift came under its new creative chief, Sabato De Sarno who BAPTISED the brand of its former glory due to what critics are saying “a lack of creative direction.” And for what? To fall in with Kering’s strategy to open up the brand to newer consumer sets. From being a cult-favourite of Harry Styles, Billie Elish, etc to Lindsey Solomon (a fashion publicist) saying "I think of what a fashion editor is wearing — it's not Gucci,” – such is the brand’s FALL FROM GRACE. While we have Gucci in our prayers that it cleans up its act and comes back stronger, there’s a larger lesson at hand. No matter how huge your brand is – if the perception of it dips, if strategy transitions are sudden – your loyal customers WILL leave you. @ALL BRANDS, consider this the 36873th sign from the universe to make your brand messaging air-tight. What do you think Gucci can do to fix this? #KeringCrash #GucciSalesDip #GucciBranding #FashionMarketing

Core Competence and Competitive Advantage of GUCCI One real-life brand that has successfully established its competitive advantage in the industry is GUCCI. The VRIN framework assesses the sustainability of Gucci's resources based on its Value, Rarity, Inimitability, and Non-substitutability. Value: Gucci's resources, like its brand reputation and design expertise, contribute significantly to its competitive advantage by offering unique and desirable products in the luxury fashion market. Rarity: If Gucci possesses rare resources or capabilities that are not commonly found in the industry, it enhances their competitive position. For example, exclusive partnerships or unique craftsmanship techniques could contribute to rarity. Inimitability: If competitors find it difficult to replicate or imitate Gucci's resources, it strengthens their competitive advantage. Proprietary technology, skilled workforce, or intricate design processes may be elements that are challenging to duplicate. Non-substitutability: Resources that lack substitutes can provide a sustained competitive advantage. If Gucci's capabilities or brand image cannot be easily replaced by alternatives, it reinforces their position in the market. Relating this to core competence, Gucci's core competence lies in its ability to consistently deliver high-quality, innovative, and luxurious fashion products. The VRIN framework helps Gucci identify which specific aspects of its core competence contribute most to its sustained competitive advantage by assessing their value, rarity, inimitability, and non-substitutability. #AminaNejimon #gucci #MBA2022-24 #MBAFebruary2024 #IStrategicManagement #EKTA Dr. Sudeep B. Chandramana MACFAST (Mar Athanasios College for Advanced Studies Tiruvalla)

Alessandro Michele has transformed Valentino into Gucci!... Sounds shocking? Let’s break it down. When a fashion house hires a creative director, are they just looking for a caretaker? Not really. They want a visionary, someone who can inject their own style and perspective. Alessandro Michele has got that sass, that flair for mixing and matching in ways we haven’t seen in ages. He does it brilliantly. So, why the surprise? This isn’t just Gucci all over again, what we’re seeing now is Valentino through his unique lens – a fresh era for the brand. Ever thought about why brands take these bold steps? It’s about evolution, not just preservation. Michele brings his own/fresh/hi-lo vision to Valentino, blending tradition with innovation. It’s exciting, it’s daring, and it’s exactly what fashion needs. Which other Creative Directors have the same sassiness? Share your thoughts in the comments. #fashionnews #fashionworld #gucci #valentino #luxuryfashion #thoughtsofateam #branding #brandpositioning

Why BALENCIAGA is stamping Gucci feet? Since one year ago when Sabato de Sarno launched his first collection at the Kering group major brand we can mainly remember one thing: the song “Ancora” from the iconic Italian singer Mina. That Mina song and Gucci became one thing. Then recently the French maison, part of the same luxury group, launched a project with the same artist: a new song, a 3 and half hour playlist as well as merch such as sunglasses. Why Balenciaga is invading so abruptly Gucci territory? Why the two brands have to compete on the same field, especially as Balenciaga is a French maison that has nothing to do with Mina? Where is Kering and its brand coordinators of the portfolio? #fashion