Gucci To Cooperate With Procter & Gamble To Cope With Market Competition And Depressed Industry Boom.

< p > a few days ago, some media quoted sources as saying that Gucci is secretly developing the first cosmetics series and is scheduled to go public in 2014. The product is represented by P & G P&G (hereinafter referred to as Procter & Gamble), and the two sides signed the contract in 2006.

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< p > it is reported that P & G has developed several perfume such as Gucci Premi re and Gucci Guilty for Gucci, but cosmetics are the first time.

However, P & G declined to comment on the matter.

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< p > reporters have contacted with Gucci Gucci (China) Trading Co., Ltd., but the company claims that the relevant information has not been received internally, and can be informed after contacting the headquarters.

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< p > Zhou Ting, President of the luxury goods expert and the Institute of wealth and quality research, has suggested that the introduction of the cosmetics series should be related to the decline in the sales of Gucci leather goods.

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< p > Gucci as one of the most important brands of Kering/PPR (PP.PA), the comparable income growth of 4% in the first quarter was lower than the 6% expected by analysts, the lowest quarterly growth rate since 2009.

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< p > Li Jianan, a researcher in the chemical industry of CIC, said that from the current growth rate of performance, leather sales have gradually become weak, and it is difficult for Gucci performance to play a greater role.

From the perspective of the industry operation situation, global cosmetics are in a relatively high speed development stage, especially in the Chinese market, cosmetics are developing at a rate of over 2 digits.

Gucci launched a series of cosmetics to meet the needs of the wider masses, help increase customer resources and enhance profitability.

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< p > however, beauty products are also a part of Procter & Gamble's share of erosion in recent years, and Gucci cooperation needs to be traced back to earlier time.

It is understood that before 2006, Gucci has signed a cooperation agreement with German cosmetics company Wella, and 2003 Wella was acquired by Procter & Gamble.

In 2011, Procter & Gamble and Gucci renewed the agency agreement, which included cosmetics and skin care products in addition to previous fragrances.

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< p > according to media reports, from 2006 to 2011, Gucci's perfume business almost increased by two times, with annual sales of 500 million ~6 billion, but perfume products remained single.

While P & G and Gucci are under pressure from both parties, the introduction of cosmetics series may be a strategy to deal with investors quickly.

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< p > Li Jianan said that cooperation between Gucci and Procter and gamble is not only a combination of weal and woe, but also a strong alliance.

On the one hand, Gucci can rapidly develop its cosmetics business on the basis of Procter & Gamble's advantage in daily chemical products. On the other hand, Procter & Gamble can get more high-quality visitors through cooperation with Gucci, and open up new channels to increase the company's revenue.

In addition, cooperation between Gucci and Procter & Gamble can also effectively cope with the current fierce market competition and sluggish industry boom.

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