Gucci new CEO of Brand Strategy
Gucci’s new CEO Patrizio di Marco said that he is by reducing output and product variety to reduce costs and to expand the luxury brand’s mid-range to resist recession.
Di Marco said that the launch of refreshing goods will link with the 88-year-old brand identity G-Logo. An increase of crocodile skin and other leather decorated with printed fabric handbag sells for 800-1900 euros. Following Mark Lee took over in January after the PPR Group’s largest luxury brand’s new CEO Di Marco said the group’s senior management agree with him that during the transition from the original brand Bottega Veneta has brought staff.
In Florence near the company headquarters in Di Marco, said: “Designer Frida Giannini knows how to balance the traditional fashion elements with Gucci style. In the current market, consumers want cost-effective products and do not need 75 different styles of handbags , two or three is enough. ”
Last week, workers were accompanied by a relaxed atmosphere in the factory canteen to eat lunch, when Di Marco, said sales so far this year, higher than 12 months ago, when Gucci opened stores did not.
46-year-old Di Marco unwilling to open several stores a year and full year is expected to trend projections comments. Only say: “any time can be a deal.” He also declined to say how many new stores will be created or whether the reduction in opening new stores.
“Di Marco to enhance the significance of brand identity and focus on product quality and processes of decision-making is correct.” London-based MF Global Securities analyst John Guy, said, “Gucci brand in the excessive pricing would danger.” Especially the Giannini and Lee introduced canvas bag costs only about 400 euros.
No layoffs
“I will not let Fride lose her own style,” Giannini, when talking about Di Marco, said: “She has only just begun an excellent product.”
Wearing Ray-Ban sunglasses, the Department of narrow tie, giving her a rock hair, dressed in a pinstriped suit Di Marco, said in an interview that he would not allow owners of 7,000 direct employees and 12,000 contractor employees Gucci layoffs.
Mark Lee has refused to cooperate with the Gucci renewed for 12 years, in the end of last year to make way for Di Marco. Mark, the American-born CEO, will help the Gucci brand sales from 2004 to 2007 increased 46%, did not explain his resignation.
Gucci and Bottega belong to family-owned by French billionaire Pinault’s PPR’s eight brands. Other brands include, Gucci group’s Boucheron and Yves Saint Laurent, rather than the luxury goods industry, including business, including France, Fnac electronics chain stores and Conforama furniture store.
Bottega praise
In Di Marco, and under the leadership of Tomas Maier, chief architect, Bottega’s received critical acclaim. 69% sales growth in 2006, before his departure in 2007 increased 49%, a typical product launch of 6000 U.S. dollars worth of hand-woven leather handbag Cabat.
High prices are Borrega Veneta in the economic recession of the state. Last month, PPR said that the first quarter of Bottega Veneta’s sales fell 2.3%. At the same time, thanks to Giannini designed Hysteria and Babouska handbags, Gucci’s operating income rose 11%. The price of these handbags, leather from different decisions, in 1600 and 2,500 dollars.
“Patrizio will transform and balance the Gucci products in order to increase middle-class customers, which is that he needs to do.” Milan Intercorpora luxury consultant Armando Branchini says. He also said, di Marco, and Giannini should speed up the pace so that consumers Gucci has every desire to buy a seasonal variation.
Logo and brand influence
GUESS impact resistance while protecting the Gucci brand value is the focus of the work as part of Di Marco. Last month, the company accused the United States wanting to crush the brand Gucci’s GG logo and green red and green stripes logo.
“For the Gucci brand is greater than the product life”, who once Prada SPA and the LVMH Group Hennessy, Louis Vuitton SA worked di Marco said, “We have played its role, Logo is the brand’s DNA.”
Giannini recent retro Gucci Series applications include re-interpreted in order to Jacqueline Kennedy, Jacqueline Onassis Kennedy named Jackie handbags, as well as diamond-studded handbag can be traced back to 1940. Following the 2005 after the departure of Tom Ford, she took over the brand women’s designer, to restore Gucci in the last century 90’s design style, and in the following year to start planning for the overall creative direction for the brand.
Di Marco said he was working on how to build a less expensive new stores, as well as to accelerate its shift profits. Since the end of last year, Gucci has been an increase in the three continents, six new stores and has a total of 264, and said it would continue to add new stores this year, especially in Asia.
The company recently opened flagship store in Nanjing West Road Shanghai, China since 1997 and the first 28 stores.