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    Gucci Sales Fell 1.9% Year-On-Year, Not Just Because Of The External Environment.

    2014/12/9 17:35:00 23

    SalesExternal Environment

    French luxury giant Kai Yun group's third quarter earnings report showed that sales of group's pillar brand Gucci fell 1.9% compared with the same period last year, and the decline has lasted for 5 quarters.

    But in the same place

    Luxury goods

    The LV and Hermes in winter have continued to grow over the past year.

    Tamara Mellon, founder of Jimmy Choo, a high-heeled shoe brand, believes that Gucci's product design has lost its individuality after the departure of creative director Tom Ford.

      

     

    In 2008, Gucci began to advance the high-end strategy.

    At the time, Gucci and LV also introduced relatively inexpensive entry-level handbags, which accounted for 30% of the total sales.

    Later, Gucci cut down many cheap products and hidden the Gucci classic double G logo in the handbag.

    In recent 5 years, the average price of Gucci products has increased by 41%.

    Although there are no signs of improvement,

    Set up shop

    At the speed of Gucci, LV has won 200 stores in the past five years, while LV has increased by 30.

    Analysts criticized Gucci for opening more stores and overexposure, which would dilute its brand value.

    Dimak, President of Gucci, also believes that the biggest mistake of Gucci is to disregard the brand of Saint Laurent and Bottega Veneta, which are younger than Gucci, belong to the group of Kai Yun group. Its third quarter sales increased by 28% and 10% compared with the same period - they are competing with Gucci for high-end customers.

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