Literature Research Methods and Review

Gucci Group N.V. is one of the world's driving fashioners, makers and wholesalers of top notch individual extravagance accessories. Items incorporate leather products, shoes, ties and scarves, ready to-wear, watches, blessings, gems, eyewear and fragrances (Proquest 1999). Gucci affirmed its growth force in the primary quarter of 2016, driven by the achievement of its new accumulations. Sales climbed 3.1% on an equivalent premise and 2.9% as detailed (Canadean Report 2016). The worldwide individual luxury products market, of which Gucci is a noteworthy player, has developed in esteem generously lately, ascending from 147 billion Euros in 2009 to an expected 260 billion Euros in 2018 (Statista 2018). Gucci likewise has a solid online presence, with almost 18 million visits to their site in 2018, making it the fourth most visited extravagance brand site in that year. The brand additionally has a well known Instagram page, with almost 25 million adherents as of May 2018 ( Statista 2018)

Most of Gucci's income is ascribed to leather products, for example, handbags and wallets, trailed by shoes and ready to-wear apparel. Despite the fact that it is an European brand, there are as of now 222 Gucci stores working in rising nations around the world, contrasted with just 116 in Western Europe (Statista 2018)

Figure 1 . Number of directly operated Gucci stores worldwide from 2013 to 2018, by region (Statista 2018)

Figure 2. Brand value of the leading 10 most valuable brand in 2018 (Statista 2019)

Looking at the chart above, it is clear that Louis Vuiton, Hermes, Chanel and Roles are the Gucci competitor. Gucci's brand value became the vast majority of any extravagance style mark on the list, up 30 percent to $12.9 billion, while Louis Vuitton grew 23 percent to $28.2 billion. The nine luxury brands highlighted had a consolidated brand estimation of $105.8 billion and furthermore included Hermes, Tiffany and Co, Dior and Burberry (CNBC 2018).

On the other hand, based on financial turnover Gucci was in fourth position in handbag market with Burbery as leader of the market followed with Louis Vuitton UK, Prada UK, and Mulberry, but Gucci UK turnover practically twofold in its 2017 financial year expanding by 91.8% to £224 million and its profits climbed an amazing 705.9% to £41.7 million (Mintel 2019)

Figure 3. Key financial of the main players in the handbag market, 2015 – 2017 (Mintel 2019)

Moreover, Gucci likewise has the most retail locations of any extravagance brand, with 520 around the world compared to their competitors (Statista 2019).

Figure 4. Number of luxury store worldwide (Statista 2018)

Looking at the brand positioning of Gucci based on price, market, affordability and exclusivity among the competitor we can conclude that Gucci may generate more sales by targeting major luxury brand market compare to its competitor but it may loose the sense of exclusivity and reputation of the brand in the competition.

Figure 5. Luxury brand positioning (Wordpress 2019)

Fashion and Fads share many of the same characteristic, where fad is more like “catch on” when number of people adopting it begins to increase rapidly where the trend will normally fade quickly once the perception of novelty is gone (Akhil 2015). And Fads can be visualized using variations on the diffusion curve. As can be seen that Gucci has using fad theories on their skirt trends, where in the first pictures that their 1990’s collection showed a long skirt, and they started to cut the quarter of the skirt length in early 2000’s skirt collection, meanwhile for the latest skirt collection in 2017 the skirt become more sort that is just above the knee.

1990’s 2000 2017

According to Vogue (2019), as we can observe that Gucci GG Supreme (as the designed canvas is currently known) rules, well, incomparable over a large group of the most prevalent Gucci packs and makes this is their classic products. Moreover, Trickle down theory defines that structure is tweaked separated from function, and the stun of the new is weakened by impersonations (The New York Times 1996). In 2011 in New York, one Chinatown retailer was captured for selling cardboard imitations of architect satchels and loafers, and accused of copyright encroachment that look like Gucci (The New York Times 2016). Moreover, the nuances of trademark law still can't seem to trickle down to the road level especially in China. In practically all examples, the ambitious makers from some place in terrain China that adjust the spelling. Those "Gucci loafers" at the shop nearby were named "Guuci." Mr. Lan, who as of Monday had not known about the notice letter, had one paper "Gueei" handbag on offer (The New York Times 2016).

Figure 6. Paper replicas at a store near an ancestral hall in and a store selling paper replicas in Hong Kong (New York Times 2016)

Looking at Gucci market intelligence, be that as it may, crosswise over various income groups, Americans discover approaches to bear the cost of the brand, with around 31 percent of buyers who win somewhere in the range of two and three thousand dollars for every month owning a Gucci products. This extent ascends to 50 percent for Americans who acquire somewhere in the range of eight and nine thousand dollars for each month (Statista 2019). Meanwhile, according to market trends for luxury market, based on the news wrote on Forbes (2018) there will be a market turbulence and slow in sales of luxury brand in which the finish of November the Savigny Luxury Index, arranged on the stock estimations of 18 driving luxury brands, announced a drop in normal stock costs to achieve a lower level than toward the start of the year. In addition. Additionally in 2019 luxury brands will be tested to concentrate on the human part of the computerized revolution, as they look to discover footing with the more youthful, digitally-powered purchasers that have accompanied it (Forbes 2018).

Analyzing on macro trend in fashion industry, brands that setting the pace in the present design world are those that have most effectively turned towards a more youthful attitude. You're probably going to spend more on tennis shoes and track-fitting – casualisation being a key trend (Financial Review 2019). Moreover, based on Financial Review (2019) worldwide estimation the that the number of Millennial riches is going to hit $US24 trillion ($34 trillion). Of each dollar spent on extravagance merchandise in 2017, 30¢ was handed out by Millennials and, as indicated by Bain and Company, that will ascend to 40¢ by 2025, overwhelming Baby Boomers and Gen X. Twenty to thirty year olds have control in their wallets (well, some do) and faith in their assessments

Reference :

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Statista. (2019). Number of luxury goods retail stores worldwide in 2016, by brand [online] available from:< https://www.statista.com/statistics/781833/luxury-goods-stores-brand//> [27 March 2019]

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