The New Gucci Has Won The Favor Of The Millennials.

According to the world clothing shoes and hats net, it has a long history.

In terms of cards, youth is always an abstract concept.

Faced with the changing millennials, how to cater to the tastes of young consumers has become one of the biggest headache for luxury brands.

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The responsibility of falling sales is often blamed on the "millennial generation".

However, with any exception, the younger generation is substantially boosting Gucci's performance.

This will ensure that

After several years of growth, the luxury manufacturing giant will also complain about the changing "millennial" consumer groups, like other luxury brands.

Local financial data released in late October 24th confirmed this unprecedented reversal.

In the third quarter, Gucci increased by 49% compared with the same store sales.

After several years of decline, Gucci in the first quarter of 2016 was only 3% higher than the same store sales.

Of course, the global luxury industry downturn is an indisputable fact.

But Gucci has its own problems.

On 25 local time, the stock price of Kai Yun group, the parent company of Gucci, listed in Paris, climbed 9%, mainly due to the response of investors to the latest Gucci earnings data.

Last year, Gucci accounted for nearly 2/3 of the total profit of Kai Yun group.

In view of the fact that the share price is nearly double that of a year ago, the price earnings ratio of the cloud is higher than that of LV owner LVMH, the first time in memory.

So how long can performance growth exceed expectations? Skeptics believe that the brand once regarded as an eternal luxury symbol has become a fickle fashion brand.

Supporters believe that Kai Yun has found a way to connect with modern luxury consumers, so that the brand can get rid of other luxury brands that are in trouble, such as Bottega Veneta.

The success of Gucci is due to its creative director Alessandro Michele.

Michele is Gucci veteran, and 2002 joined the brand. He served as assistant to creative director and head of accessories department.

After the design and production of men's clothing in autumn and winter in 2015 within 5 days of Michele, Gucci CEO Marco Bizzarri promoted Michele to the creative director.

Since 2015, as the creative director, Michele has introduced the feminine design elements such as lace, silk, bandage and embroidery into the whole line of products.

In addition, in terms of color, style and cycle, the famous designer adopted eclecticism.

The above design change is greatly welcomed by the market, changing the declining trend of Gucci sales in the past.

Analysts pointed out that the new design style of Gucci is targeted at the young generation, especially the "millennial generation".

The boundaries of the past are gradually hidden in this generation. They do not care about the so-called definition and rules.

In addition, Gucci has been upgrading the store decoration, advertising, supply chain and logistics, and increasing the number of e-commerce and digital marketing.

In the context of Gucci's sluggish performance and the global sluggish luxury market, these reforms revolve around a simple core: finding consumers.

The new Gucci has won the favour of the Millennials.

In the first three quarters, about 55% of Gucci's sales came from consumers under 35.

According to a new report by Bain consulting, an international management consulting firm, this proportion is much higher than the average of luxury brands: the "millennial generation" and their successors, the so-called "Z generation", account for about 32% of the total consumption of luxury goods this year.

Many of them will come from China: data from Bain show that Chinese citizens now account for a high 32 share of the luxury spending of every dollar in the world.

Claudia DArpizio, the author of Bain's report, points out that the "millennial generation" luxury consumers pay more attention to value perception and self expression than their elders.

Michele seems to have been able to reflect this spirit of brand image.

Gucci, who hears the order, has done a good job: the brand is very active in the digital media accompanying the millennial generation.

In the "digital IQ index" released by market research firm L2 last year, Gucci ranked first in place of Burberry, which has long held a throne.

Resonating with future consumers is what many brands desire to do.

However, a stumbling block has emerged: just as large consumer groups have found, consumers who value value are more changeable.

Gucci has been paying close attention to the frequency of this brand's patronage.

At the investor conference call held last week, Jean-Marc Duplaix, chief financial officer of Kai Yun group, pointed out that the brand's "millennial generation" customer retention rate has been increasing, and is now close to the customer retention rate of other age groups.

Although this luxury magnate is very popular, such a change is still unexpected.

When the fashion ring is weakening, Kai Yun group needs customer loyalty.

Kai Yun group aims to make this brand fashionable. The rewards of young pformation are obvious, but risks remain.

The fashion industry is full of variables all the time, traditions and rules will be overthrown at any time, and consumers are the real leaders.

Like Gucci's new face, Kai Yun group is probably the most suitable for young people and adventurous people.

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