Global Luxury Groups Part 1 – Gucci Group May 2010
3 FY Overview of the main global Luxury Groups Product lines included in the analysis: fashion, jewelry and watches, beauty products
The Group creates and distributes high-quality luxury goods including ready-to-wear, handbags, luggage, small leather goods, shoes, timepieces, jewellery, ties and scarves. Under license from global industry leaders, the group also sells eyewear and fragrances, cosmetics and skincare products. Operating under “freedom within a framework”: substantial autonomy to the CEOs of the various divisions, who are responsible for design, merchandising and all aspects of the operating results of their respective brands. CEO & President: Robert Polet
Positioning: exclusivity, quality, the Made in Italy label, Italian craftsmanship, and fashion influencer, pairing modernity and heritage, innovation and craftsmanship, trendsetting and sophistication. Positioning: highest craftsmanship, the choice of finest materials, and innovative design. The brand led the way in introducing soft , deconstructed handbags – as opposed to the usual rigid structure that originated with the French school – and quickly became well recognized and warmly appreciated in the market. Positioning: hugely influential in the fashion industry through groundbreaking designs that have become iconic cultural and artistic references. Positioning: provocative design and vision, mastery of techniques and cut, and constant innovation in fabrics Positioning: most audacious of the traditional French jewellers, trend-setter in the elite world of high jewellery Positioning: accentuated, seductive silhouettes for the sensual and powerful woman who embodies the quintessence of chic; glamour and style, acclaimed for its unique creativity and perfect fit. Positioning: audacious and creative designs Positioning: modern, lifestyle, designer brand for the everyday modern woman; “aspirational” yet at the same time wearable
2009 key figures: € 3,390 million of revenue € 692 million in recurring operating income 609 directly-operated stores at the end of 2009 11,371 employees
Represents the Luxury Goods Division of the French group PPR. The other two divisions of PPR are: Retail Division Conforama (home furnishings ) Fnac (electronics and books) Redcats (online retailer for fashion and home furnishings ) Sportslifestyle Division Puma (69% stock ownership) Products are primarily sold through directly operated stores, which are designed according to a specific concept for each brand, ensuring consistency in terms of product display and service globally. In 2009, the 609 directly-operated stores accounted for approximately 67% of Gucci Group revenue. E-commerce is also gaining good momentum as a retail channel, with all brands currently available online in the US. Gucci Group’s products are also distributed through a limited number of exclusive franchise stores, as well carefully selected duty-free boutiques, department stores and specialist stores, providing alternative purchasing channels for customers.
End of Part 1 – Gucci Group Next posts: Part 2 – LVMH Moet Hennessy Part 3 – Richemont Compagnie Financière Part 4 – Valentino Group Part 5 – PUIG Group