English a.a. 2006/2007. Romagnoli Gloria Savelli Laura. history. 1921- company founded by Guccio Gucci in Florence, Italy His sons: Aldo, Ugo, Vasco and Rodolfo took the Gucci name to Rome and Milan and, by 1953 New York beginning of internationalization
1921- company founded by Guccio Gucci in Florence, Italy
His sons: Aldo, Ugo, Vasco and Rodolfo took the Gucci name to Rome and Milan and, by 1953 New York beginning of internationalization
1960s- additional stores opened in London (first European store outside Italy), Palm Beach, Paris, Beverly Hills and Tokyo (first franchise store in Japan)
1970s- Rodolfo’s son, Maurizio, returned to his belief that in order to remain great you must stay small. He cut the Gucci line back from 20000 items to 5000, fortunately retaining its collection of fine watches. Maurizio’s vision recaptured the prestigious brand’s focus on high quality
2001- settlement agreement among Gucci Group, LVMH and PPR (in 1999 LVMH acquire Gucci Group shares and there was the strategic alliance with PPR)
2004- Gucci Group becomes a fully owned company and is delisted from Amsterdam and New York stock exchange.
Gucci Group appoints Robert Polet as President, Chief Executive Officer as well as Chairman of the Management Board and announces the New Designer Leadership
The Gucci Group in now a multi-brand conglomerate, with a collection of high fashion brands, like:
Bédat & Co
Yves Saint Laurent
Today, it is one of the world’s leading luxury brands, in fact the name Gucci conjures a vibe of exclusivity and prestige, an Italian brand of quality.
Gucci understood the importance of building a reputation for its brand. Today something consumers are willing to pay a premium for. For example in Asia many consumers prefer to buy European made goods although they are more expensive because they think they are better. In fact many luxury brands like Gucci or Prada export style and not only a label.
Segment: high fashion
A good leader is able to make staff feel involved and part of company success or failure and he must represent people’s feelings.
Gucci has created and defined concepts of fashion using charisma and intuition.
The Company attributed its financial growth to record performance across all distribution channels and product categories and in all geographic regions, exceeded their expectations.
To become a group leader in the luxury market at world-wide level through: putting into effect and maintaining.
The company’s objective was to enhance its rapid development and growth plans, as well as to bring about great flexibility to its production and business processes.
In Italy: - Armani
- Dolce & Gabbana
Gucci, Armani and Versace are the most desired designer labels, but are they also the most desired designer clothing? For the great many fashion consumers, that brands are the most common designer labels, but they select different designers labels too, how many would then really choose Gucci, Armani and Versace? If nothing else, this survey probably reveals some disturbing facts about consumer manipulation.
One of the greatest benefits a strong brand offers is the ability to differentiate a company from competitors in the mind of customers but today Italian textile industry is suffering from low cost Chinese imports. The impact of Chinese competition is leading to the loss of jobs.
Some companies have moved their production to countries where costs are lower and have concentrated on design and marketing skills.
Family firms often do no have the strength to survive in a difficult market.
In 1990s, Gucci decided to extend beyond its “mature” style in creating a trendy brand. The vision of the company is that Gucci has become a beautiful symbol of maturity with aristocratic lines, and no longer a boring icon.
In few years, the company spent a lot to built new stores and so it came through the global economic bump of 1998. The international expansion permitted brand development.
Branding has become increasingly strategic, due to the competition and product differentiation; it means consumers do not distinguish product but brand.
Bad for the company:
-ruins the image,
-creates illegal income for the black market.
“Silk Alley” in Beijing was probably the most infamous market for fake consumer goods.
Many products (a.s. Gucci handbags) are meticulously duplicated by Chinese manufactures that no one could tell the difference.
The value of pirated products seized by U.S. customs officials is increasing and most fakes are from China, that today exports worldwide.
The Company directly operates stores in major markets throughout the world and wholesales products through franchise stores, duty free boutiques and leading department and speciality stores.
Robert Polet -President, Chief Executive Officer
CEO Domenico de Sole- President and Chief Executive Officer of the Gucci Group and Chairman of the Group’s Management Board
Tom Ford- Creative Director
Frida Giannini – Creative Director of Gucci
WHAT ARE THE EMPLOYMENT OPPORTUNITIES AT THE GUCCI GROUP?
Gucci Group believe that every employee is an ambassador for the Group and its brands.
The Group is committed to equal employment opportunity and does not discriminate in the terms of conditions of employment because of age, race, colour, creed, sex, national origin, physical disability, citizenship status.
Gucci Group has adopted the Code of Business conduct and Ethics (values and principles) for directors, officers employees of the Company
The strategy of Robert Polet, the new chief executive of the Gucci Group is: - to focus on meeting with employees - to build one business plan- to understand the taste of the people - to consider what their looking for, their ambition and the target.
Mr. Polet thinks that there’s no reason why high-fashion houses shouldn’t borrow some of the standard business practices used in other industries.
For him the company should learn from Zara. The luxury-goods business is in a difficult spot; low-priced fashion companies with fast production are biting into the business of famous companies. Many women will now proudly match $1,000 Gucci pants with an $89 Zara jacket.
Statutory headquarters: The Netherlands
Administrative Centre and Human Resources Department: Florence, Italy
Europe, Asia Pacific, Australia, Hong Kong, Japan, Singapore, Switzerland and U.S.
Income and status: in this kind of marketcustomers are selected socio economically, in fact expensive good are for people who have fairly income.
Why Gucci family slogan is
“quality is remembered long after the price is forgotten” ?
We think that quality is crucial in giving the customers an idea of the best product available.
How are people to choose?
Fashion consumers from around the world established that fashion brands, as Gucci, are the most desired designer labels. One in three consumers would buy a luxury brand’s product if money was not an issue.
Is this a surprise? Perhaps not, as Gucci, Armani and Versace are well established in the “consciousness” of fashion consumers.
Advertising informs consumers about the existence and benefits of products and services and attempts to persuade them to buy them and so to build up a reputation. We can say that is an attempt to get the right message to the right people at the right times.
The strategy concerning the message to be communicated to the target costumers.
The company advertises through media, magazines, television, posters, etc.
Fashionable celebrities such as Grace Kelly and Audrey Hepburn were counted among avid collectors. The Gucci’s took note of this popularity and expanded aggressively, opening stores in glamorous locations such as London, Paris and Palm Beach.
Gucci’s products are distributed though stores in Italy and abroad, but also through a network of high-end specialty.
Many consumers cannot spend a lot of money to buy Gucci’s products, that are very expensive, and so they search opportunities online. For example, E-bay is an on-line marketplace where people can buy or sell almost anything as they please on an auction or buying immediately.
THE SENSATIONAL MURDER OF MAURIZIO
There was a big scandal in the 1990’s. Maurizio, the only son of Rodolfo joined forces with a London investment firm called Investcorp to buy the other family members out and share fifty-fifty control with the investment firm. He forged his father’s signature to avoid inheritance tax. Maurizio returned to take control of the company after solving his legal problems, but Investcorp decided to buy him out. Gucci Group lost control while Investcorp made billions.
Even more lurid was the 1995 execution-style murder of Maurizio Gucci (the grandson of the Gucci company founder) followed by the conviction in 1998 of his ex-wife Patrizia Reggiani for ordering the hit.
Thirteen years ago, Gerald McKnight made the story of Gucci seem like a soap opera on Gucci: “A House Divided”.
THESE STORIES REPRESENT THE DRAMATIC HISTORIES OF ONE OF THE WORLD’S MOST GLAMOROUS FASHION HOUSES AND HAD NEGATIVELY IMPACT ON THE BRAND’S REPUTATION.
HOWEVER, SMART LEADERSHIP IN RECENT YEARS HAS DRIVEN THE GUCCI BRAND TO MORE VISIBILITY AND SUCCESS THAN EVEN BEFORE. THE TWO MEN RESPONSIBLE FOR THIS RESURRECTION ARE CREATIVE DIRECTOR TOM FORD AND PRESIDENT-CEO DOMENICO DE SOLE.
HISTORY AND BRAND