5 Ways the Century – Old Gucci Is Winning Over Young Consumers
It is no longer a secret that Gucci has an efficient strategy to continue winning the hearts of young consumers. Sixty-two percent of the century-old luxury brand’s revenue came from this segment in 2018. This shocked the industry as that luxury brands have been struggling for ages to capture the market.
However, a striking reality is that the same segment is still Gucci’s fastest-growing market segment in 2020, which is a clear indicator that this brand has a bright prospect. The leading fashion industry experts across the world expect the people under-35 set to account for at least 45% of the total sales by 2025. Without a doubt, the company has excellent business tactics.
Read on for the top strategies…
Shifting to Purpose
Gucci understands that the fashion industry has been focusing more on maximising profits than dealing with other critical aspects for centuries. The media has been centring on matters such as ethical manufacturing, transparency, and sustainability, but the industry has never acted appropriately, according to the Fashion Transparency Index of 2018.
Consumers hate to see this trend. A 2015 Nielson Report provides information that these individuals are willing to spend more on ethical products.
Gucci is now a role model and customers are rewarding the brand for that. Gucci Equilibrium, which is the company’s environment-friendly purpose-driven program, shows it is focusing on the interest of consumers. Young people love to work with labels that implement sustainable practices.
Listening to Customers
In many markets across the world, young consumers spend a lot of their time online. The various digital platforms allow them to influence the management of organizations. The problem, however, is that the lack of proper control of the platforms means customer opinion can change at any time.
Gucci listens to its customers and develops the most relevant solutions. In particular, Gucci does not need to guess whether it is delivering on its promises.
Through this strategy, it has been able to eradicate the confusion that is often associated with trial-and-error branding methods. Thus, Gucci has been able to create a brand that resonates with young people.
Gucci has also been able to use the best approach to create a reliable brand story like no other. Gucci understands that the storytelling of the brand is critical for its ability to drive the perfect creation of value.
Many of the top luxury brands are also working hard to embrace this concept.
Unlike the labels that are struggling to build strong brands, Gucci is using this strategy to create a cohesive brand image. This ensures that brand-obsessed customers can relate to the company with credible ease.
The majority of these young people have already bought some of the amazing shoes and handbags from Gucci and trust the brand, and that too can help with return custom in the future.
Timely Adaption of Technology
Technology changes every so often, and this threatens the sustainability of the luxury industry. The biggest challenge is that these changes happen at a rapid pace. Since young consumers have excellent access to information, Gucci has accelerated its speed to market to respond accordingly.
The company invests in systems that empower it to embrace permanent adaptation as well as reinvention. This way, it has built preconditions that enable it to deliver against the expectations of its customers.
Strategic Leadership Team
The contribution of Bizzarri’s team is an aspect that we cannot overlook. The dream team has been able to change the face of the company significantly over the years. Bizzarri joined Gucci in December 2014 to replace Marco, who was of excellent service to the company from 2009.
Bizzarri started recruiting a new team and immediately embarked on the process of getting rid of all the outdated ideas. The black-and-white images of the past celebrities in the corporate office were among the first to be removed. This was a sign of the beginning of the reinvention of the company. Today, Gucci features pictures of contemporary style icons, such as Brad Pitt, Rhianna, and Selma Hayek. All of them resonate with the young generation.
The new team has also been investing in classic business development projects, which depicts their planning for increased demand. In 2017, the company began the process of adding more facilities in Italy. For example, the building of the 35,000 sq. ft. Gucci Art Lab started at this time. This facility produces leather items and shoes that the younger generation cherishes. As such, the new team’s responsiveness to the growing customer base is sending positive signals to the fast-growing market segment.
Gucci appreciates the challenges in the market and takes advantage of them to remain competitive. To achieve this objective, it has combined leadership, customer-centricity, brand equity-focus, creativity, and the use of advanced technology. Since the same market segment can only get more useful for Gucci with time, the company is already adequately positioned to achieve its long-term goals.
However, the dream team must continue to work hard. Gucci’s competitors are hot on their heels and doing everything within their means to stay relevant.