Gucci Expects Growth To Be Two Times Faster Than The Overall Market.

French luxury giant Kai Yun group recently said its luxury brand Gucci has enjoyed strong sales growth since March of this year. It is expected that the growth rate in the medium term will exceed two times the average level of the luxury market. Bain consulting expects that the luxury market will grow by 2% to 3% this year.

Gucci's CEO Marco Bizzarri said in a media interview in London: "including handbags, sales of branded full price products grew very strongly in March, and this growth trend was heated in April and May, mainly driven by Dionysus design, which is worth 2250 US dollars.

On Friday, Gucci predicted a long-term turnover target of 6 billion euros, but Marco Bizzarri did not disclose the exact date of its goal.

According to the data released by the brand, since January this year, the total handbag turnover has increased by 7%, the ready-made clothing turnover has soared by 66%, and the footwear turnover has increased by 46%.

Last year, Gucci turnover was 3 billion 900 million euros, up 11.5% from 2014, mainly because Gucci began to benefit from the reorganization plan of CEO Marco Bizzarri and creative director Alessandro Michele.

Marco Bizzarri was a handbag.

The head of Bottega Veneta began to take over Gucci in early 2015, followed by the implementation of the design reform, and promoted the designer Alessandro Michele as the creative director, ending the decline in brand sales for two consecutive years.

Gucci, guided by creative director Alessandro Michele, fully implemented design personalization to attract a large number of Chinese young consumers. The brand once again returned to the camp of Kai Yun group's growth engine brand.

The picture shows Gucci taking the place of MontBlanc's flagship store.

In January 2015, Alessandro Michele made a sensation by giving male models a gimmick to wear bow tie short sleeved shirts to attract more diversified consumer concerns. The new men's clothing category will also include various styles such as college style and street breeze to meet diversified market demands.

Gucci's brand new image has been proven to be in line with the millennial aesthetic. According to the brand speech data, the turnover of new products in the spring age group under the age of 34 is 50% higher than that of the same period last year.

Since March, with the increasing number of goods designed by creative director Alessandro Michele to shelves, brand turnover has increased rapidly.

So far, Alessandro Michele has proved its strength and won the acclaim from the industry. 18 months ago, CEO Marco Bizzarri, who took over the company, said: "we are very optimistic and confident. Let's go to the store to see. We are the only luxury brand store with customers."

Marco Bizzarri's optimism

There is a sharp contrast to the negative situation of consumption. At present, the turnover of global luxury brands continues to slow down, mainly due to the pressure on China's economic slowdown and terrorist attacks on the tourist consumer market.

According to Bain Capital forecast, this year's overall luxury industry growth is the second lowest rate since 2009.

Gucci for the first time in three years has achieved two consecutive quarters of year-on-year growth, compared with the first quarter results of the LVMH group's leather fashion business zero growth and the Burberry group's 5% decline. Gucci's performance has been warmer.

In addition, Gucci hopes to attract new consumers, especially the new generation who likes to be fresh and social media. The brand also expands its product line to entry-level leather goods, jewelry and scarves.

Recently, the brand online turnover has increased three times, accounting for about 3% of the total turnover.

Marco Bizzarri stressed: "we are striving to gain market share. In order to achieve this goal, we must be purposeful and differentiated."

Since the third quarter of last year, Gucci has been cleaning up the inventory of former creative director Frida Giannini. Marco Bizzarri revealed that the complete series of Alessandro Michele is expected to arrive in stores in early 2017. Earlier, he said it would take 4 years to refurbish 522 stores.

However, for the recovery of Gucci and its parent company's Open Cloud group, fashion analysts say that since the departure of designer Hedi Slimane from the luxury brand Saint Laurent of Kai Yun group, it has reduced the expected recovery of Kai Yun group.

At present, Saint Laurent is in the period of designer alternation, the brand prospect is uncertain, and the performance in the first quarter of Gucci2016 is still not expected. Under such circumstances, the pressure of Alessandro Michele will be greater in Gucci, which means that he needs to convert more powder into actual sales and profit growth, after all.

The performance will affect the recovery of the entire group.