Outline
• History
• Products
• Pricing and Brand Positioning
• Gucci's Pricing Strategy: Key Factors
• The size of international market and
places
• Promotion strategy
• Conclusion
History of Gucci
Gucci was founded in Italy in 1921.
Guccio Gucci was the main man behind the company. He established
it in Florence when he was 40 years old.
The famous double G logo stands for Guccio Gucci. The GG logo
was not created by Gucci himself. It was designed in 1960 to honor
Guccio Gucci after his death.
Although Gucci began in Italy, a country known for its fashion, the
style was inspired by those living in London and around England. he
was working as an elevator operator in London’s swanky Savoy
Hotel. He met global elites such as Winston Churchill, and their
accessories inspired him to start his own brand.
Until he died in 1953, Guccio Gucci personally managed the brand.
After his death, his sons took over the business and promoted the
products among Hollywood celebrities.
Many high-profile designers work alongside Gucci, including Alexander McQueen and Stella
McCartney.
Sixty years after Gucci founded the business, the company had its first runway show. It was held in
Florence where it all began.
In 2015, fashion designer Alessandro Michele took over as the Creative Direction. Since then, sales
have grown by 12% and Gucci is even more prominent at world-class events such as Milan Fashion
Week.
It was the first brand to host a fashion show at Westminster Abbey, London, which took place in
2017.
When it first began, the company manufactured quality leather luggage items. Handbags and
briefcases are still some of the most popular Gucci items.
At present Gucci is operating 450 stores worldwide.
Variety of Products
Perfume
accessory
Outfit
Jewelry
Bag
Cosmetic
Pricing and Brand Positioning
• Gucci differentiates itself through unique and timeless designs, making their products
highly sought after.
• Customers are willing to pay higher prices for Gucci due to the perceived value and
longevity of the products.
• Gucci's target customers are primarily affluent individuals who perceive owning Gucci
products as a status symbol.
• The high prices associated with Gucci reinforce this exclusivity and desirability.
• Guinness World Record:
• The "Genius Jeans" by Gucci achieved a notable milestone, being recognized as the
most expensive pair of jeans globally in 1998.
• Valued at $3,134, this exemplifies Gucci's ability to command premium prices and
create buzz around their products
Reference: [Link] Gucci marketing strategy
Gucci's Pricing Strategy: Key Factors
• Gucci's pricing strategy takes into account various factors to determine the prices of its fashion
products.
• Factors include production costs, target market preferences, and competitive positioning.
• Main Elements of Gucci's Pricing Strategy
• Quality and Craftsmanship:
• Gucci prices its products based on the exceptional quality of materials and meticulous
craftsmanship.
• Premium pricing reflects the brand's commitment to delivering luxury and superior standards.
• Prestige and Exclusivity:
• Gucci positions itself as a prestigious brand, using premium pricing to enhance its exclusivity.
• Higher prices contribute to the perception of Gucci products as status symbols.
Reference: [Link]
Gucci's Pricing Strategy: Key Factors
• Strategic Discounting:
• Gucci employs strategic discounting strategies to drive sales and
maintain customer loyalty.
• These discounts are carefully planned to balance revenue generation
and brand image.
• Profitability and Growth:
• Gucci's pricing strategy aims to ensure profitability while supporting
future business growth.
• Prices are set to remain competitive within the luxury market segment,
aligning with brand positioning.
Reference: [Link]
Size of the International Market and Country-Wise
Adoption
Gucci's Global Reach
Global Market Overview
•The global luxury goods market is expected to
reach $1.4 trillion by 2025, with a compound
annual growth rate of 4.0% from 2020 to 2025.
•Asia-Pacific is the largest market for luxury goods,
accounting for 38% of global sales in 2019, followed
by Europe and North America.
•Online sales of luxury goods are growing rapidly,
with a projected CAGR of 14.3% from 2020 to 2027,
driven by the increasing use of e-commerce
platforms and social media.
Gucci's Presence in Europe
•Gucci has a strong presence in Europe, with over 200 stores across the continent.
•Key markets for Gucci in Europe include Italy, France, the UK, and Germany.
•Gucci's European strategy includes a focus on luxury retail experiences and collaborations
with local artists and designers.
Gucci store interior, Milan, Italy Gucci store exterior, Paris, France Gucci store interior, London, UK
Key Markets Strategies
• Japan • Collaborations with local designers and
• China artists
• South Korea • Localized marketing campaigns
• Adaptation of products to local tastes and
preferences
Gucci's Presence in North America
• Gucci has a strong presence in major North American cities such as New York, Los Angeles,
and Toronto.
• The brand has been expanding its reach into smaller markets, including Miami, Houston, and
Vancouver.
• Gucci's North American strategy includes collaborations with local artists and designers to
create exclusive collections and pop-up shops.
Other Markets of Interest
• Asia-Pacific region, especially China
and Japan
• Middle East, especially Dubai
• South America, especially Brazil and
Mexico
• Emerging markets in Africa, such as
Nigeria and South Africa
