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Thursday, October 14, 2021

A Case Study on Gucci

Gucci was founded in Florence, Italy in 1921 as a leather goods manufacturer before it became like a luxury brand and the fashion designer and business name Guccio Gucci was the creator of Gucci, he just used his name and it became a family business. In 1953,( the year he died), there was a huge loss in the company but it also was a huge win because they opened up their first shop overseas in Ney York City, and there his son took over the company. Gucci has the most retail stores than any luxury brand with 520 stores worldwide and in October 1995, Gucci officially went public for 22 dollars a share. As of today it has a headquarter in Milan, Paris, London, Hongkong, and Ney York City.

SWOT Analysis

  • Strengths

Gucci has been successful in creating a very robust value chain for its supplier and retailers. In the fashion industry sector, Gucci has also been successful in creating a strong and sustainable brand image and equity. Gucci is now operating more than 400 direct operated stores and it has expanded its family with more than 10,000 employees working worldwide. Under the CSR initiative, it has also partnered with UNICEF. It is at top of everyone’s mind when it comes to luxury clothing because of its successful or robust marketing and advertising strategy. It has a very diverse product range varying from apparel, watches, wallets, clothing, etc.

  • Weaknesses

The company is bound to invest in huge amount to retain and maintain its brand image. Due to cheap copycat or fake products, the company has to incur losses. They have also been criticized on their market strategy for using sexuality in their most of the advertisement. 

  • Opportunities

They can continue to grow and open more stores because they’re so reputable and they make so much money, they can continue to grow. The company should also think about tapping emerging economics like India, China, etc, that have good growth in luxury markets. It should also invest to capture the youth segment with its innovative and creative designs and products.

  • Threats

It’s not like Gucci is only the option in the luxury brand sector, there are others too which means a competitive market that leads to a limited market share and growth for Gucci. As the company has a global presence, it is likely to get affected by fluctuation, pandemic, recession, etc.

Marketing Objectives

Gucci has dominated its market share in the luxury sector, as a result of the high quality of products provided by Gucci. Continuously introducing new products and designs will have a better chance of success. New products/designs are often introduced by luxury brands to increase short-term sales.

Customer Segmentation

We can divide Gucci customer segmentation into three segments-

  • Demographic Segmentation

This segmentation means targeting customers on basis of age, gender, income, occupation, and family status. So both male and female products are being created by Gucci no matter they are children or adults and the brand focus on customers with higher social status.

  • Psychological Segmentation

Psychological segmentation is categorizing customers in terms of attitude and lifestyles. So, this segment is very important for Gucci as it mainly focuses on customer lifestyle. The target market of Gucci is mainly people with a classy lifestyle which will mainly include celebrities whose buying decisions are based on the class they belong to or the status they carry. The reputation and status that the product provides are mainly the reason for acquiring the product by the consumers.

  • Behavioral Segmentation

This is a segmentation that divides its consumer depending on their behavioral pattern like loyalty, brand image, and high-quality product, the brand has been able to create a very high position in the marketplace, and loyalty and trust alongside a great shopping experience are what drives the customer.


Gucci has established itself as a luxury fashion brand that produces clothes, footwear, and accessories. An image is already created in the customer’s mind as a high-end fashion brand but then also the company focuses on bringing new styles and trends to its product. The brand claims its ‘culture of creativity and innovation’, that will be one of their fundamental characteristics.

Gucci’s Competitors

Louis Vuitton – Also known as LV, established in the year 1854, by Louis Vuitton. It is considered one of the top competitors of Gucci with a brand value of $47.2B.

Armani – Armani was founded by Giorgio Armani in the year 1975. It has a great quality of products and brand image to compete with Gucci.

Prada – Prada was founded by Mario Prada in the year 1913. It produces various products under clothing, cosmetics, fashion, etc. its also one of the top competitors of Gucci.

Versace – Versace was founded by Gianni Versace in the year 1978. Leather and ready-wear products come under their main collection.

Dolce & Gabbana – Also known as DG, established in 1985 by Domenico Dolce and Stefano Gabbana. It also shares the same variety of products as Gucci and is also considered one of the top Gucci competitors.

Balenciaga – It was founded in 1919 by Cristobal Balenciaga. It is known for creating custom-made clothes. It is also famous for handbags and is also considered a great competitor for Gucci.


To meet the industry’s ever-increasing demands, the fashion industry is rolling at a breakneck pace only to accomplish its goals and objectives. These sector products are always in demand by all the age groups of people. Gucci incorporates innovative features and styles to keep up with the fashion industry’s demands.

Gucci focuses on targeting people or customers who are wealthy or middle class, as the price range of their products can be extremely alarming for some. Gucci’s marketing strategy might be changed by including promotion sales, which will help in gaining more customers for their product. One thing they can do is that it can start giving sales of at least 10% – 20%. As it will not take up many parts of the profit and will also help in gaining customers of middle and even some part of the lower class.

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Kiara Dawson
Kiara Dawson comes from an Engineering background, with a specialization in Information Technology. She has a keen interest and expertise in Web Development, Data Analytics, and Research. She trusts in the process of growth through knowledge and hard work.

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