An overly aggressive brand promotion strategy has also become one of the reasons for customer loss. When di Marco took office in 2009, an important task was to correct the mistakes made by former CEO Mark Lee to increase the number of entry-level products. Those products once accounted for 85% of GUCCI sales. In 2013, in the face of the downturn in the Asian market, GUCCI and LV, the two largest luxury brands in the world, announced high-end positioning strategies, including the promotion of high-priced products, and the so-called "go to Logo". In the same year, GUCCI's non-logo products accounted for a sharp increase in annual revenue from 40% in 2012 to 2/3. At the same time, GUCCI has increased the price by more than 40% in the past 4 to 5 years.
However, the attractiveness of the brand has not risen in tandem with the sharp increase in prices. Many consumers who originally planned to buy GUCCI entry-level products have also turned to some of the more affordable luxury brands, such as Michael Kors in the US and Longchamp in France. Compared with the long-established mainstream luxury brands, some niche brands that have been established for a short time are more attractive.
"Chinese luxury consumers are increasingly shifting from traditional European luxury brands to some younger brands," Simon Tye, executive director of the French market research firm Ipsos Group, told reporters. Even though it is a traditional luxury brand, GUCCI lags behind competitor LV in the topic of making it easy to attract young people.
In 2012, Replica Cheap Louis Vuitton Bags opened its first LV home in Shanghai's Hang Lung Plaza, and re-created the Paris Fashion Week in the same year on the Bund. The customized train set was also specially transported to Shanghai. In 2013, LV launched star designer Nicolas Ghesquiere as the design director, and for its 2014 spring and summer series of advertisements, please go to Fan Bingbing, Caroline de Maigret and other 6 fashion figures to shoot a blockbuster. In October 2014, LV opened an art museum designed by architect Frank Gehry in Paris and released a limited-edition bag designed by six artists and designers as the 160th anniversary. In the same period, GUCCI was gradually forgotten. What impressed people in China was Li Bingbing's advertisement for the endorsement. Although she was a first-line star, her image was more diligent and serious, and she did not take the young fashion route, nor the luxury and wealth.
Giannini, 42, has been with Gucci for more than 12 years. She has been the creative director of Replica Gucci Handbags since 2006. Her Flora print handbags are very popular in the market – even though this design was opposed by Tom Ford. During her tenure, GUCCI's performance has grown by nearly two-thirds and has become a more popular brand. But she rarely gets praise from the fashion industry and the media. The former New York Times columnist Cathy Horyn even commented, "Obviously we can't expect Frida Giannini to create a trend-setting design."
In a sense, Giannini became a victim of her own commercial success, and her self-repetition also made people lose interest in GUCCI over time. Luca Solca, head of research at the luxury goods industry at BNP Paribas, commented on Reuters, "You can't always live by reviving the classic image of the past, and you have to have breakthrough innovation."
In the past few decades, GUCCI's hot-selling core products have always been around the bamboo handle, and Chanel has launched six new products each year and at least one best-selling model to maintain its brand advantage. YSL, also affiliated with Kaiyun Group, is now the fastest-growing brand in Kaiyun. As of the end of September, YSL's revenue in the first three quarters increased by 27.6% to 177.8 million euros. This is due to the controversial style changes brought by design director Hedi Slimane. The retail performance of Balenciaga, another brand of Kaiyun, also achieved double-digit growth.
The relationship between consumers and luxury brands has changed dramatically. People are no longer just looking for a status symbol, but more concerned about identity. Some new brands are also beginning to seize this opportunity. In November of this year, di Marco and Giannini reiterated to the US media that they did not intend to leave GUCCI, which means that the two men may not be active. A spokesman for Kaiyun said, "The choice of newcomers to replace di Marco is to bring new momentum to GUCCI and accelerate the pace of development."
In addition to the appointment and removal of CEOs and creative directors, Top Quality Fake Gucci Bags also announced in October that it has adjusted its organizational structure in addition to Japan's Asia-Pacific region, so that headquarters can communicate more directly with the local market and ensure the effective implementation of brand strategy. According to Francois-Henri Pinault, CEO of Kaiyun Group, "In the past five to seven years, the scale and performance growth of luxury brands have changed a lot. We are faced with the problem of how to maintain brand while maintaining brand luxury."
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