Tasting The Sweetness Of Direct Battalion Stores, Gucci Should Further Control The Proportion Of Wholesale Income.

Gucci plans to control revenue gained by wholesale through 10%, so that direct sales revenue will rise from 86% of total revenue to more than 90%.

Gucci plans to control revenue gained by wholesale through 10%, so that direct sales revenue will rise from 86% of total revenue to more than 90%.

Gucci has tasted the sweetness of direct sales mode in the past two years.

According to the financial performance data of Gucci company's first half year in 2018, Gucci's revenue rose 44% to 4 billion 400 million US dollars, and its gross profit reached 38% of its record high.

The revenue of Gucci outlets increased by 46% compared with last year, and sales of electricity suppliers surged by 88%.

With the hope of the new business model, Gucci is trying hard to achieve the goal of increasing the proportion of direct sales.

So far, Gucci has redesigned 120 original stores, opened a new flagship store in Soho District of New York in May, and terminated a quarter of its wholesale sales cooperation.

At the same time, Gucci also plans to further expand its electricity supplier sales channels, to increase the proportion of electricity supplier income from 4% to 10%.

In order to make its direct stores more attractive to customers, Gucci began to work hard on the retail experience.

In an exclusive interview with BoF executive director Marco Bizzarri in May this year, Bizzarri said, "the younger generation is not interested in retail experience because their previous retail experience is not interesting." Gucci

The new flagship store in Soho District of New York is the product of Gucci attracting customers with "new experience".

In the nearly 1000 square meter shop, the black guard who made sense of distance vanished and replaced the "connection man" who specializes in the history and story of Gucci. There are no special shops selling jewelry and jewellery in the shop.

and

Harmonious coexistence on brick walls.

Jean-Fran Palus OIS Palus, general manager of Kai Yun group, said that Kai Yun group has become more cautious about choosing Wholesale partners. When they allocate products and resources, they will first consider their own channels rather than wholesalers.

On the investor day of June this year, Bizzarri introduced creative director Alessandro Michele and sales manager Jacopo Venturini to take charge of Gucci's shops and e-commerce sales. The purpose is to show customers the products of Gucci across the board without letting the decisions of wholesale purchasers make Gucci products dilute in front of consumers.

"The reason why Gucci is so successful and so fast is because we dare to bet."

Bizzarri said, "when I first started taking over the company with Alessandro, all the more than 500 pieces of Alessandro design were launched on all the stores.

We bet billions of dollars on this risky strategy. "

Through the complete design of Alessandro, instead of letting Wholesale partners choose for their respective target customers, Gucci can achieve no single target customer group, that is, embrace the whole age group of customers.

Although most of the success of Gucci has been attributed to its precise grasp of young people's preferences, the media such as the guardian and the financial times have reported that the secret of Gucci's success is the understanding of the Millennials. Bizzarri believes that Gucci is not just concerned about the younger generation.

"The important thing is that we never consider people of a certain age group as target customers," Bizzarri said. "We don't aim at millennials or any generation. We want to aim at a psychological state.

So our customers are growing at every age level.

"We are in luxury.

"A new intelligence has sprouted," Palus said. "We have strengthened our uniqueness in terms of commodity prices, e-commerce platforms and retail experience, but we will not exclude any customer from our sales."