Gucci’s Sales and Merchandising Analysis

NB: We do not resell your papers. Upon ordering, we do an original paper exclusively for you.

NB: All your data is kept safe from the public.

Table of Contents

Sales Analysis
Merchandise Strategy
Merchandising Calendar
Merchandising Analysis Table
Works Cited

Sales Analysis

Although Kering owns several luxury brands like Alexander McQueen, Balenciaga, Bottega Veneta, and Yves Saint Laurent, the most impressive sales results in 2015 were demonstrated by Gucci, whose revenue in the fourth quarter rose 13.4 percent (“Kering: 2015 Results” 4). Considering that Gucci accounts for over 60 percent of Kering’s profit (Brinded par. 3), such an increase is important to the holding company. Also, Gucci is involved in more collaborative projects (“Kering: 2015 Results” 19). For example, at the beginning of 2015, Kering entered into a partnership with Safilo, a prominent Italian company that creates and distributes sunglasses and other types of eyewear as well as sports equipment, for the design, production, and supply of Gucci Eyewear products.

Kering stated that Gucci’s growth after several years of decrease is due to “directly operated stores in mature and emerging markets” (“Kering: 2015 Results” 4). Other reasons for the success listed in the same statement include new creative vision and new business strategy. The changes are associated with the appointment of Alessandro Michele as the new Creative Director of Gucci at the beginning of 2015. In this position, Michele is in charge of all collections and the brand image of Gucci. The Honorary Chairman of Kering François Pinault said, “Gucci’s creative momentum and ambitious strategy, launched last year, are delivering tangible results: sales growth is accelerating in the second quarter on top of tough comps” (Thompson par. 11).

Since the recent success in terms of sales and revenue of Gucci is the result of its new creative strategy, which is still being implemented by Michele, it can be assumed that the brand will continue to grow in the next year. Pinault stated, “I am confident that the work of our creative teams and the commitment of all our associates will enable us to extend our growth trajectory in 2016 and beyond” (Brinded par. 12). Gucci’s growing popularity ensures the fulfillment of this forecast.

Merchandise Strategy

Like all luxury brands, Gucci markets its products with the emphasis on superior quality and maintaining certain status and image. Gucci’s target audience is young people with high income in both developed and developing markets. Another similarity with many other luxury stores is that Gucci distributes products through directly operated stores.

At the company, special attention is paid to training the employees so that the service provided is outstanding and to the location of stores, which should be high-profile districts. All these efforts are made to gain the loyalty of the audience, which, for luxury brands, tends to be rather selective and demanding. It is also important that the image of Gucci is supported by famous customers as well as celebrities who advertise Gucci, including this year’s new “faces” of the brand: Tom Hiddleston and Vanessa Redgrave.

Another component of Gucci’s recent success is the company’s technological achievements. Gucci employs many benefits of e-commerce, including the omni channel shopping that improves the customer experience by offering multi-media coverage and access to merchandise.

Merchandising Calendar

Marketing of luxury fashion products is chronologically bound to fashion weeks. A fashion week is a series of events and activities within approximately one week where fashion products are presented to the public and the media. The most prominent fashion weeks are conducted twice a year in the four “fashion capitals” of the world: New York, London, Milan, and Paris. Menswear and womenswear fashion weeks are traditionally held separately, although it is not always the case. At a fashion week, the clothes and accessories are presented that will be marketed the next season, approximately six months later. However, the suggestions to change this pattern are heard more and more often today. With the growing accessibility of fashion products and the increasing portion of online purchasing in the industry, within the next decade fashion weeks may shift to the “see now, buy now” model.

The Gucci 2016 Fall Winter ready-to-wear collection was presented at the New York fashion week in February 2016 (Mower par. 1). The collection was warmly received by critics, who also noted that, despite having been in the position of the Creative Director for only a year by that time, Michele became one of the most copied fashion designers. Other important dates in the Gucci calendar are menswear and womenswear spring summer 2017 shows held in September 2016. The clothes and accessories presented at these shows will be marketed starting next spring.

Merchandising Analysis Table

Product	Style No.	Fabrics Used	No. of colors	No. of Sizes	Price Range	Quality Level & Origin
Men (“Men’s Fall Winter 2016 Runway”)
Gothic blanket tapestry coat	435245 Z489C 3872	Cotton, polyester, silk, horn	1	4	1,700 GBP	High Italy
Vintage wool loose pant	421806 Z529B 5725	Wool	3	6	440 GBP	High Italy
Washed cotton t-shirt	442670 X3E31 9000	Cotton	7	1	230 GBP	High Italy
Fringe leather loafer with studs	437330 ARP00 1000	Leather, metal	1	8	955 GBP	High Italy
Varnished bird ring with crystal	440996 J1635 8518	Metal, gold, varnish, Swarovski crystal	1	5	260 GBP	High Italy
Heritage floral check print jacket	437039 Z574C 6107	Wool, mohair	1	7	1,630 GBP	High Italy
Floral check print flare pant	437031 Z574C 6107	Wool, mohair	1	7	815 GBP	High, Italy
Rib wool turtleneck	430064 X1305 6509	Wool	1	4	365 GBP	High, Italy
Wide brim hat	439031 KDG00 9800	Felt, grosgrain	3	4	210 GBP	High, Italy
Leather sandal with feline heads	437322 A9L00 1000	Leather, metal	1	6	370 GBP	High, Italy
Floral tapestry duffle with Web	437544 K3O2T 8437	Cotton, linen, ivory, leather, metal	2	1	2,150 GBP	High, Italy
Women (“Women’s Fall Winter 2016 Runway”)
Embroidered tulle gown with feathers	441953 ZHK70 6469	Nylon, mink, crystal, glass, feathers	1	6	11,090 GBP	High, Italy
Embroidered wool knit top	445780 X5F90 1960	Wool, elastane, mink, crystal, glass	1	3	2,210 GBP	High, Italy
GucciGhost skirt	430556 ZHX73 9186	Silk	3	4	1,850 GBP	High, Italy
Zebra leather pump	447598 C9D10 9085	Leather	1	15	585 GBP	High, Italy
Flower ring with glass pearls	445370 J1D86 8062	Metal, gold, resin, glass	1	3	335 GBP	High, Italy
Leather two-button jacket	442175 XG264 5529	Leather, faille, satin	1	4	2,440 GBP	High, Italy
Leather straight leg pant	442177 XN336 5567	Leather, crêpe de chine	1	4	1,470 GBP	High, Italy
Intarsia mink fur coat	422612 XP332 9400	Mink fur, silk	1	4	24,590 GBP	High, Italy
40 denier tights	442779 3G354 3600	Polyamide, elastane	3	4	40 GBP	High, Italy
442779 3G354 3600	443339 BKO00 1000	Leather	2	8	660 GBP	High, Italy
Dionysus leather top handle bag	448075 CWLMT 9090	Leather, bamboo, cotton, linen	2	1	1,840 GBP	High, Italy