Why Gucci lost its customers
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- Опубліковано 3 жов 2024
- Gucci, owned by Kering, had its sales fall 20% this month, continuing an ongoing downtrend. Why the company having a rough time right now? But other fashion houses aren't struggling. So why this brand? Why now? And who or what is to blame? In this video I explore these questions using data and analysis.
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A fake Gucci and a real Gucci look almost the same: ugly and cheap. It feels too tacky to use such a brand.
Same with LV. They had the audacity of selling $2k plastic bags, but they still grew last year.
Gucci's quality is just as bad. A Gucci bag will last as long as a Primark bag. And when you check who made it, you'll see that the goods are all made by marginalized and impoverished communities in India, Pakistan and Cambogia. And the workers are often children and very young women working 50+ hour a week. The only thing that is made in Italy is the tag. Those who buy Gucci are the same contributing to luxury fast fashion garbage.
@@khadyadjisall5708
Haha spoken like someone who hardly knows anything about the fashion industry. Lots can be said about Gucci, but it’s one of the few brands at either LVMH or Kering that’s produced in house, in Italy - Gucci hardly use subcontractors, and if they do, it’s for cheaper accessories, and some of its denim, that’s produced in Japan. Apart from that, the fabrics of a primark bag doesn’t come close either - is it worth the markup? Probably not. But is there a major difference? Yes there is.
@@Seb2900-uq8wqyou’re late to the news that Dior is using external factories and is currently under investigation for workers exploitation. What you say is right but I think in the last 10 years many of the designers have started running the brands like fast fashion. If you look online people are selling their designer goods and constantly reducing the price because the interest is low, I stopped buying in December
It hasn't been the same since Tom Ford left.
Tbh, Gucci is just way too flashy and kind of gaudy and ugly for me. Even if I had the money, I’d invest it in something a bit more classier. Great video btw! Keep up the great work! 💜
Thanks for sharing your insight, I wonder if others will agree. Thanks for watching too!
Agree! It´s too on your face...
Frankly I do have the money for Gucci, and I still won’t buy it for these exact reasons.
Gucci is trailer park fabulous. Makes the wearer look insecure imho
Clearly these comments aren't seasoned Gucci customers they are clearly only referencing Allesandro's designs and are clueless of Guccis history.
Gucci is struggling because it’s brand messaging is confusing, rtw is un-inspiring, and directionless
and their previous seasons are actually going straight to outlet for huge discounts
Two words "Allesandro Michele"
I love Gucci but the new men’s clothing by Sabato de Sarno are targeted more towards the male homosexual customer. Alessandro may have promoted androgyny and unisex looks but Sabato is fully pushing out the masculine consumer. They’re going to lose a huge portion of their clientele this way. Rappers won’t even promote it.
@@ricci_x_richiesorry but Alessandro’s is not there anymore and sabato's new collection dropped in February soooo…
Fashion has always had periods in which minimalism was in and periods in which maximalism was in. Right now the choice of most is minimalism, which clearly pose a problem for brands like Gucci. But surely Prada especially is doing well. Prada has been at the forefront of outsourcing production and the quality is probably the weakest of the big fashion houses. Kering has stood firm on keeping production in Europe - and Gucci is one of the last big houses with in house production and a very limited use of subcontractors. That should be applauded.
I remember around 2012 here in Canada a Gucci t-shirt was around $200 & sneakers around $400 (both on sale for over 30% sometimes) - now just over 10 years later a t-shirt is over $1000. Inflation isn’t 400%. That’s why nobody’s buying.
Hermes market cap is now 6x of Kering... and it's just a single brand. Shows that 1 brand well-cared of is worth more than a dozen trashy brands.
Exactly!! The level of consistency from Hermes the last 7 years cannot be compared to Gucci and THIS is showring proof that maximizing and capitalizing on your brand isn't always the best route. It's good for short term profits but not longer term. I knew Gucci was heading here, it was just a matter of time.
@UC3_eApzc0OMFcPM271MEnEA
The quality/price ratio at Hermès is even more skewed than at Gucci.
Yes, when you think of a single birkin bag cost multiple times of a Gucci bag. Hermès doesn’t need to pay celebrity for endorsement or brand Ambassador all that. So the company could gather more revenue from all sales. Something that lower brands can’t replicated.
If the *esluxy* makes no difference, why pay more?
I last bought a Gucci Dionysus bag in 2020 and also planned on buying a Diana bag later, but the prices went up by US$ 1000-1200 over 2 years & were not worth it to me anymore. I chose to buy from other brands then. Maybe they fell victim to their own greed? Even Saint Laurent had to drop their prices recently.
Imho Gucci has the same problem now as Burberry had in the early 00's (the Chav culture in the UK), no longer being associated with style and luxury, but more as a "status" symbol for people who werent able to afford it in the past (and seeing the amount of fake stuff, they still can't).
It holds absolutely no prestige, is gaudy and just screams look at me while low income youth has adopted their style by the Buckethat loads.
If you look at the history of Gucci it was already Chav in the 1980s to 2000s+, and it was Tom Ford who fix the brand and all it took to destroy it was Alessandro Michelle.
lol exactly, Gucci is quite popular amongst the "new french" from the suburbs
My suggestion is to buy vintage Gucci pieces. I bought a 60s gucci belt. Saw it on the movie house of Gucci
Yes! Love my vintage Gucci all-leather bag: no logos, no canvas; just a well-made leather bag with “Gucci” embossed on the leather. Simple, elegant, quality.
Alessandro revived Gucci only for Sabado to dismantle it. Minimalism is a trend, not indicative of class. Most ppl that claim otherwise have no ties to any of these brands. Hilarious
A trend for who? It's a lifestyle for old money wealthy. You will never see any of the European royal families wearing clothes or accessories with huge logos or monogrammed fabrics.
And who says that royals have class?Give me a break
@seri895 the way they carry themselves tells you. Real wealth has a level of humility to it.
I am so happy I saw this in my feed! A few weeks ago I had even checked that UA-cam had kept me subscribed because I had been missing your style of videos. Informative and insightful as always!
Thanks so much Matthew! I'm so happy you saw it too, and thank you for sticking around as I took a bit of a hiatus. I'm excited to be posting again!!
Gucci will struggle. Current direction is so based in reality that their is no appetite. True Luxury is about selling a story, a fantasy.
They ought to pick a country other than USA. Go to countries on the upswing, not the downturn.
While i am not a fan of maximalism, Alessandro Michelles Gucci was interesting to look at and creative. Now it’s boring. I already have the clothes in my wardrobe and there is nothing that makes these clothes desirable, so why buy them.
I also don’t like logos on clothes so 3/4 of the collections are not for me…
For a few years i wanted to get a Jacky bag but it’s almost 3000€ now, that’s far beyond reasonable for a bag.
I like the idea of the old Gucci, the 70s Jetset vibe but todays gucci doesn’t represent that for me anymore. But i am definitely interested to see if and how they turn it around, I hope they manage it.
In Denmark LV is starting to betone a working class brand too, there is a constant line of people outside, but none of them are rich.
Might be Hermes is doing well as preferred by many, but financially it’s VERY far from Gucci to Hermes, most Gucci customers won’t be able to afford that swap.
A lot of Luxury brands have a diffusion line for younger shoppers who want good design but don't have deep pockets. Gucci doesn't have one, so when It tries to make items for teens and streetwear, it drags the high end stuff down to that level. plastering your logo all over everything doesn't help either.
I’m hoping gucci lowers its prices like ysl recently did. Then maybe I’d drop the money. But at current prices, their items are not worth it.
Omg I almost thought u left the platform I was literally so sad I’m glad you are back love urs videos
Aw thank you :') I'm so glad you're here!!
Thank you for the new video! Seeing it in my subscription box was a really nice sunday morning surprise ❤ 😊
Thank you for watching!! :)
the new creative director is lacking in design. dosent make people want to buy the product.
I've been waiting to buy shoes from them for years. The last time a pair of their shoes spoke to me was over 10 years ago.
DWD ….oh my god you are back, missed your VDOs and comments making decisions in fashion industry, please keep on sharing more information, your excellent way of analysis helps to make big decisions in investing , loved this gucci analysis..👌👍🏼
Thank you!! 😊 ❤️
Omg you're back!
Yes! I’m back after a hiatus due to life stuff. I’m excited to be making videos again and thankful that you’ve stuck around and left a really insightful comment!!
Love love love that your back 💜💜
Love that you're here! Thank you!
I have the Gucci Marmont small in black with red trimmings, sooo pretty! It can be flashy when you wear their prints all over i guess. Some people can pull it off. Nothing's wrong being a Gucci Lover.
SO happy you’re back! 🥰
It’s been a year!! I missed you lol
Aww wow, this comment means SO much to me. Thank you :')
Great video sis, keep up the great research and pumping out more vids - content is stellar for the non fashion following financers
This is so kind. Thank you!
You are back!!!!
The price increases were too drastic and the designs are not there. You would do better buying vintage. It’s literally the same design.
Good, trashy company producing poorly manufactured clothes for eye watering prices. Unlucky.
And ugly and tacky too
Sabato brought nothing new. All the analysis aside if there’s nothing that people want and hyped then the merchandise won’t move. Bottega was a sleeping giant for decades until recently with hits after hits of new designs
They should just keep michele and hire sabato bc michele can cater toward maximalist people and sabato go for minimalist people.. like nicolas and pharrell, people who manage kering is idiot
It’s so frustrating and puzzling to me why Gucci can’t seem to retain or keep creative talent that really drive demand and sales for them. Tom Ford really revitalized the brand and made them sexy again coming into the new millennium before he left the brand due to Gucci becoming too “controlling”. Michele was the next designer since Ford to really overhaul and rebrand Gucci in a way that really capitalized and made Gucci desirable again in time for the post-2010s leading up to the pandemic. I’m trying to understand why Gucci decided to go with Sabato de Sarno for a new rebrand but honestly it is just so boring and lackluster to me. To even think that they can slap on a new “luxe” aesthetic and compete with the likes of established luxury houses like Hermès as such is delusional as Gucci never that kinda brand. Will see how long Sabato lasts and if this new era at Gucci will do the brand any favors
@@SoCalDreamer91 i think they follow the quiet luxury a bit too late, people already going back to bold fashion. Another thing is if u look at Mcqueen and ysl used to be couture house now all the brands look the same. Most of their creative director used to work for either jonathan anderson or phoebe philo.
great video
TY for this video. I think the problems with Gucci are deeper than just cheapening the brand. Gucci lost its DNA. Each major design house began with a special aspect to its design. This special aspect (e.g unique(leather tanning, blend of the Italian and Mediterranean, etc.) plays out at the core of Gucci products. If this DNA is lost or forgotten or pushed aside then there's nothing Gucci can do to save itself. 😢
Kering is much more then Gucci. I mean they have YSL, that I think is quite a nice brand with high quality products and the future, and also Balenciaga which I don't like on ethical grounds (strange children ads). (Gucci/Kering) is run by son François Pinault of founder.
The reason why LVMH is so successful is that they bought out the "family" run companies and kicked out families, and as very inexperienced investor (but with some nice returns over years) I don't like state run or legacy family business as the finical/political aspect is more important often the finance. I don't like inheritance of business or that current political party say who the CEO should be as it not meritocracy.
Cool video! the business behind fashion is something I’m interested in as I am interested in as a person who works in finance in the apparel industry. In regards to Gucci I’d think the changing of creative director and lack of new direction could be hurting the identity along with what you mentioned, the trend towards quiet luxury Hermes and Prada.
Thanks for watching! That's really cool you work in the industry, I'm sure you hear a lot of interesting things everyday
No chance im putting money in Kering now! They need to change Gucci and Balenciaga designers. That’s the first step. The house should consider using less influencers and celebrities marketing but focusing on designs and quality. Tom Ford was a miracle for them and they really need Tom Ford 2.0 to get them out of this rabbit hole.
It's like why do you need so many brand ambassadors when they don't even bring in anything. I think they forget that fans of this ambassadors can not afford Gucci.
Influencers are trash....hate them. Total rubbish. I will distance myself from brands that influencers like.
I sort of still do like the brand and many of its designs, and even branding. But 2 things turn me off:
1. Unfortunately the brand has become tacky due to how played out people made it. Like any and every crumby, dusty dude can walk around with a Gucci bag and Gucci slides. And any and every teenager can wear a Gucci logo belt .... Overtime this just ruined the brand image for me, as I'd feel a little goofy being associated with all the other dudes wearing the same stuff.
2. A lot of the products have sort of a tacky or gaudy design. But that's only my opinion.
They have dropped out of stores and you have to try to find a store if you can’t find what you are looking for in their on line store.
I wish that they would not but cloth on their bags.
Prices have gone up but their items are not better. This is all luxury items.
I feel this way about Louis Vuitton too.
All the counterfeit items have killed the brand for me atleast. Why would I spend all that money on gucci just to look like I shop at Temu lmao
Their NEW designs look like Banana Republic! 🤷🏼♂️🤷🏼♂️🤷🏼♂️
Ewwww
This was so interesting. Thank you
Thank you for watching!!
Even a brand like Kenzo who are supposed to be streetwear still looks more luxurious than the current Gucci 🤣🤣🤣
I see fake Gucci everywhere!! It’s really sickening
Love this channel!
Thanks so much!!
They should shift to their heritage pieces. Focuse on being preppy Italian clothes
It's a lot simpler than that. Gucci had its turn and as everything once trendy it's now frowned upon. Gucci have always had a large set of "quiet" luxury in their collections so it's not just due to styling in that regard. They just had a great formula and overused it without updating to stay relevant. There is no point in buying Gucci in 2024 not just because others don't care about it but because the designs can't make you care personally either.
i think they played too hard into trends a few years ago so now in my head they’re associated w that, and the people who heavily buy into trends move on quickly. i feel like lowkey need to rebrand into more classic stuff and move away from the style that was in super trendy era. i feel like too much stuff has the red and green stripe over the “honeycomb” pattern w the double G buckle and they like need to think outside the box haha
In berlin every second immigrant kid is rocking that same fake Gucci cap haha
Gucci was a glamorous brand under Tom Ford, and all it took to destroy it was Alessandro Michelle with it's wanna be Americana thrift store look, extreme logo mania, and going for the grandma appeal.
They is also all this brand ambassadors that do not bring in anything to the brand but social media vitality. But it does not translate to sales.
SOULJA BOY!!!! That was my junk back in the day lol
I think vintage/older Gucci is going to keep thriving, plus customs (like using damaged monogram as a patchwork detail. But the brand will lay low for the next 15 years. Seems exagerated but we've seen it happen.
Also if they lose more of the Asian market, it's going to be hard to get back to green numbers.
Gucci got tacky over the years since Alessandro , now they’re paying the price, Gucci under Tom Ford and even Frida Gianini felt more luxurious more mature , with Alessandro new direction it became tacky associated with poor middle class Americans
They should focus more on key minimal pieces
Whoa!
I never really liked Gucci. Looks way too cheap. I love love love Versace so much they were the reason I began collecting luxury pieces from hoodies to t-shirts, sneakers, and a coat I bought last year. I just purchased a jacket and love it. I go to companies like Yoox, Modsense, and other online designer stores to find pieces for dirt cheap. I only paid $600 for the first Versace coat I've ever owned only to see the price go back up to $1,100 then up to $1,600 at some places. The jacket I purchased was only $250 but I can see why. The zipper was the first thing that was ruined and now a few pieces to help zip up the zipper broke off so I have to get it fixed. I will continue to purchase but for now I'm going to slow down after purchasing the Prada Cloubust sneakers I've been trying to get for months! I was so happy when I finally got my hands on them. I got them for $600, luckily after trying to pay the regular $1,300 price Prada was selling them for on their website. I was lucky to find them brand new from a guy on Facebook market.
Maybe it's Sabato's creative leadership just isn't appealing hence the drop in sales.
In the past 20yrs, luxury goods have gone from exclusive to gaudy. Kerring and LVMH are all about the cash grab. I’ve been a LV girl for 25-30 years. My mom was a LV woman but I haven’t bought anything since 2021 because I feel like there’s no long term service anymore. A pull tag came off a bag. It took 7 months to repair it. 🤦🏾♀️ Now I’m using/loving my old bags and bags I inherited.
Is that story from back in the day about how Louis Vuitton execs would buy Gucci bags for the cast of Jersey Shore to devalue the brand true?
.. i think it’s the new creative director .. im not sure sabato is up for the job .. also we can’t overlook the impact of alessandro and the films by glen luchford
Gucci is a basic brand.
I don’t consider it luxury anymore.
Everyone has it, so who cares and who wants it - especially at that price.
I ❤ Gucci ❤. I thnik the price is too high, " fake Gucci items" is too much and it's looks cheap. I would like to see Gucci like a " Feminine " , Elegant 60's, 70's style with full of Joy colors ❤🎉i' m sure they will " survive"!
I don't think this is an issue at all. Fashion is cyclical, Kering just needs to drop the new IT item in their Saint Laurent or Alexander McQueen brand and Gucci will swing back in 5 years when people become nostalgic again, that's basically how every luxury group does it. You can't be on top all the time, it totally fucks with the exclusivity of the brand and creates fatigue. Also the movie definitely killed Gucci.
They have dropped out of stores and you have to try to find a store if you can’t find what you are looking for in their on line store.
I wish that they would not but cloth on their bags.
Prices have gone up but their items are not better. This is all luxury items.
I feel this way about Louis Vuitton too.
Gucci will come back.
Tom Ford Gucci was its prime
Gucci’s opulence and excess is not desired in today’s fashion industry. It’s not going anywhere though, fashion is cyclical…they just came off a good run…they will be back. Personally I think Gucci has and will always be extremely tacky…but so will humans.
Please do more videos!!!
I am! :)
I love my classic loafers and will always buy them, but there are sooo many fake Gucci products out there! It has to be the most counterfeited lixury brand there is. Times Square is full of them
simple to many section 8 and lowincome housinv people started buying it. It became a ghetto fav
Yea tons of other luxury brands that look better and are more on trend these days..they don't make good looking products that's the main reason in my opinion
But Why is this not happening with LV? I think it’s evenly if not more flashy as Gucci
Because investors trust Arnault’s leadership and decision making abilities.
@@cap4life1 thank you for responding
Outlet stores are the death of these brands
I think Gucci handbags are lovely but their clothes are hideous. I mean halloween ugly.
We missed you grl❤
Awww shucks, I missed you too!! 💕
After the excesses of the Covid era, we are now in a new cycle of more understatement and classical designs, but Gucci is caught between clown world (sneakers with fake fur on them) and being the choice of the ghetto rappers, which is not good for those looking for classy items. Eventually Gucci will turn it around, but now they are out of sync.
Some people like flashy. Not all is gaudy. Its not interesting anymore and the price hike is stupid
Competition and consumer sentiments about any brand.
It's because they let 'those people' wear their product and that has driven the value of Gucci down.
Gucci don’t need shit from me
People realize that buying logos isn't a luxury; it's just bad taste.
Cause Alessandro left! #Duh
Gucci has always been the “cheaper” and tackier luxury brand, ever since 2000s from what I’ve experienced as a millenial….it had a random resurgence in 2010s coz of younger millennials/Gen Z…. And Gucci don’t need our help lol. We need to help ourselves during these tough economic times!
Flashy prints are not in style at the moment, so it can be a trend problem.
The riffraff gravitated towards Gucci to associate with the high class and, subsequently, the high class gravitated away from it to not be associated with the riffraff. That said, people with level look for quality, style, and comfort - not to simply flash a brand name.
Gucci could start with their product not being completely and totally fugly.
I always thought the absolute majority of Gucci items are ugly and not worth the price.
I had a shirt seven years back that really was not that great in terms of quality. You look like a wannabe stunner in most Gucci clothes, they are just too loud and ugly.
There are so so many designers brands that offer better quality for a lower price (Acne Studios for example)
When influencers started heavily promoted the belt and purse, I lost interest.
If I can afford expensive goods, I am not going to buy from those companies that also market a more logoed line to the lower classes. Why buy a Hugo boss suit when you can also buy a Hugo Boss t-shirt in the mall? Why buy Gucci when anyone can have even a real Gucci product as long as they are willing to pay for the lower priced line with the label plastered over it. I could wear my real Burberry coat, but you wouldn't know it was Burberry just from me walking down the street.
The only thing Gucci is buy at this point is maybe eyewear but maybe not even that
They pander too much for the hypebeast crowd and now that trend is outdated people don't want anything to do with Gucci anymore.
Gucci now try to bag or already bagged Jin from BTS as ambassador, so they will get a big boost if they really signed him. Cause as recent insight told, if you sign a BTS member you will automatically be promoted to VP position. BTS is most coveted IP as ambassadors because it translates to army buying things. Just ask Calvin Klein. Hyundai had 6 months backlog for cars when bts became their endorsers
Majority of the world doesn’t care for bts or K-pop
Aspirational customers see gucci as cheap and tacky bc they can only afford the entry level items. HNW customers still see the quality Gucci brings especially in RTW.
I think Gucci is trying to woo HNW and UHNW with their private boutiques.
Always thought Gucci logo and colors were UGLY
They need Kanye
It's tacky and lost the appeal of elegance. I see most people who wearing Gucci T-shirts, bags, are mafia and wannabe gangsters.
Rich people that I know doesn't want to buy branded stuff anymore. They choose to buy gold and house.
The actual target market the poor middle class who can't actually afford these goods, are in a situation now where they really can't afford it now.
First of all, the H Q D U P S materials used in this replica are top-notch. The leather feels soft and luxurious, just like the real thing. The stitching is impeccable, no loose or uneven lines. The hardware, including the signature CC twist-lock closure, is sturdy and well-made, adding to the overall elegance of the bag.
Well, just admit it....Gucci is just "everywhere"...any Tom Dick and Harry can own a Gucci...how is that prestigious? Gucci nowadays is just like Coach, but with higher price tag.
Hermes is NOT quiet in any sense of the word.
You forgot one key factor, newer generations rather thrift. Even thrift for Gucci haha.