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PR Newswire
25-03-2024, 09:54 AM
When you are "dependent on designers" themselves, and have online retail as a strategy, and dependent on seasonal trends, you sound more like a fashion brand instead of luxury brand, isn't it?
Gucci’s China shock reverberates across the luxury landscape
The bar to entice Chinese shoppers has therefore risen. Gucci has seen a significant drop in Chinese online sales in recent months – including from its official website and e-commerce platform on Tmall, said a source familiar with the situation who asked not to be identified discussing confidential matters.
Gucci has long been one of the most volatile of the major luxury brands, its fortunes rising and falling based on buzz around designers such as Michele and a predecessor, Tom Ford. That makes Kering highly vulnerable to shifts in taste, especially as the Italian brand accounts for about half of its sales and more than two-thirds of its profit.
In uncertain times, Chinese consumers tend to prefer luxury items that are more likely to maintain their value over time, said Bruno Lannes, a co-author of the Bain report. That is why brands with those products fared better than those rolling out seasonal goods, he said.
https://www.businesstimes.com.sg/interna...-landscape
Gucci’s China shock reverberates across the luxury landscape
The bar to entice Chinese shoppers has therefore risen. Gucci has seen a significant drop in Chinese online sales in recent months – including from its official website and e-commerce platform on Tmall, said a source familiar with the situation who asked not to be identified discussing confidential matters.
Gucci has long been one of the most volatile of the major luxury brands, its fortunes rising and falling based on buzz around designers such as Michele and a predecessor, Tom Ford. That makes Kering highly vulnerable to shifts in taste, especially as the Italian brand accounts for about half of its sales and more than two-thirds of its profit.
In uncertain times, Chinese consumers tend to prefer luxury items that are more likely to maintain their value over time, said Bruno Lannes, a co-author of the Bain report. That is why brands with those products fared better than those rolling out seasonal goods, he said.
https://www.businesstimes.com.sg/interna...-landscape