How Gucci Fell From High Fashion to Discount Rack
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- Опубліковано 20 тра 2024
- Gucci, once synonymous with larger-than-life luxury, has fallen far from its rarefied perch. Bloomberg Originals takes a close look at why the iconic brand became a sales bin staple, and how it might pull itself back out.
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5:41 These are the customers of LVMH LOL
The moment people started wearing Gucci Flip Flops, I knew the brand wasn’t luxury anymore 😂
Very high end brand has flip flops
Yeaaahhhh It is no longer "luxury" when people working fast food are rocking the brands flip flops at the apartment complex pool.
@@davidcantor293 Exactly 😂
Right. Flip flops and sweat suits 🙄😌"how luxurious" 😂😂
@@davidcantor293 Those monkeys have fake ones
Sorry but LV is just as tacky with all the logomania
Agreed. “Loud” luxury is not luxury. It’s just expensive products.
@@Bhethar Thank you! As someone who actively avoids visible branding, Gucci and LV are my worst nightmare brands. So tasteless, so loud.
The tackiest.
I always say they look like an old lady purse.
Yeah, some unchecked narratives here. All these fashion houses have their issues.
In Sweden, Gucci is just associated with ganger teenagers who cosplay being rich. Not my opinion, just the market image
They themselves did this to themselves
Sweden is ruined and it makes me sad.
Gucci has gone the same way as Burberry did in the U.K in the 2000s
The reason Sweden is charging the carbon taxes. The race to the bottom
The Gucci cap just screams "I'm north-african"
Gucci destroyed itself when it started making streetwear. It cheapened the brand entirely.
well, everything isn't corporate & with people working from home it makes sense to make streetwear or loungewear.
Every high end brand was making them
And Gucci falling off does not mean every one stop buying it
Yes sales will decrease however they will bounce back
that might be true but LV did a similar move
Louis Vuitton did streetwear and it was a hit, I think gucci didn’t know exactly how to execute it well
Monica BelGUCCI👀💬
Gucci designs lately just looks tacky
They have always been tacky
agreed! lol
They’re catering to the middle class
high fashion and tacky go hand in hand, in many cases 😂
It was always tacky.
Me watching this in my thrifted shirt, Walmart shorts and crocs: very interesting
I love thrifting. I get a kick out of finding clothes made 20+ yrs ago. Well, when they are in decent condition
😂
This happens every few years 😂😂. I remember in 2010 nobody cared for Gucci. Fast forward to 2017 and everyone was talking about Gucci. Just a cycle
lol yup they probably short their own stocks too. They can make money going up and down. It’s all a cycle. Rinse and repeat
I agree
This
@@thepandaahbear9025not this at all lol
@@entezami777how 😂
How people buy $20 items for $2000 is a mystery.
marketing, status
If they can afford it, why is it our business?
becaus they can pull u million $ 🐱
howd you know bum 😂
@@GeeBee212
👍🏾Agree, 1,000%. Their money, Their choices.
Gucci, until about 1994, was a genuine craft house; made in Italian Gucci factories (yes, they were small factories)….My Gucci loafers from 40 years ago are both properly and correctly made. Today the modern iterations are just poorly made rubbish…..🇬🇧
Exactly. Quality has diminished
@@malikr2271 because they shipped the factories to China and other Asian countries to take advantage of cheap labor. They want to pay 1 dollar and hour to Chinese in sweatshops and the sell for 3000 a bag
Monica BelGUCCI 👀
you sound absolutely ridiculous. there is much better quality out now than any amount of years ago, stop buying the logo items aimed at influencers
Haha 40 years wearing the same shoes, no wonder they go broke. BTW nonsense the quality today is much better but believe what you want as i still love Gucci as a brand.
You can add Dolce & Gabbana to the list. The D&G mark now is like supermarket fashion
Sadly true
Always has been
Im a misbehaving Black gang member whose baby momma lives in public housing. I go where I am not wanted or welcome and still misbehave and then complain about it later. I wear Gucci and D&G
@@PacmanBrunnerDrop a freestyle
Really? I haven’t been paying attention to fashion trends lately but d&g was the only “high fashion” brand i liked seeing in magazines and watching shows and stuff back then. Kinda sad
This video is a bit of an exaggeration. Most luxury brand are heading to the discount rack as the middle class evaporates. Most buyers were middle class consumers and not so much wealthy consumers. No middle class less retail, especially high-end. The middle class went into debt for high-end brands. Everyone is shopping on Temu because middle class is almost non-existent.
That’s what happens when you break the family unit and turn people into consumer drones and numbers, eventually they become broke and even stop reproducing
LMVH hit record stock market prices in the last 2 years. It’s not just Americans and Europeans who buy luxury brands, think about all the wealthy Chinese that are into European luxury brands
@@Rilows those wealthy chinese are in HUUUUUGGGEEEE amounts of debt. (trust me, i know people from yunnan and shanghai.)
@@RilowsChinese buyers definitely made up a HUGE percentage of luxury buyers - those people have no problem covering their bodies in logos. It’s weird.
Temu is really untransperant about their business and finances (the parent company Pinduoduo is similar) I personally don't know anyone using Temu.
Where's this 'discount rack'?
If you live near NYC they have a Guccci outlet in Woodbury common premium outlets in central valley, NY. Boston area has a Gucci outlet in Wrentham.
At Walmart
@@TB-iz8omoutlets are not discount racks.
I’ve seen Gucci at Marshalls and places such as Nordstrom rack, Bloomingdale’s outlet etc.
@@TB-iz8omThat has existed even before the Tom Ford era. 🤦🏻♂️
Overmarketing and Overproduction. What makes an artpiece exceptional, is the rarity.
It's the artist and rarity combined.
Yves Saint Laurent was actually Kering's biggest earner, but pop culture hyped Gucci, and with Tom Ford's effort to rejuvenate the brand, Gucci became popular amongst the general public.
I don't think they really care to reestablish Gucci's luxurious exclusivity because, remember, the middle and lower class purchase more than the upper class. As such, they earn more profit that way. Sure, it may tarnish brand perception, but earning a gross amount of 7.1 billion on average within a year is no easy feat.
I don't think Gucci can be considered true luxury anymore, and I don't think that's Kering's objective to begin with.
I'd argue LVMH followed a similar path with Louis Vuitton that Kering did with Gucci, except LVMH has way more brands to rely on, if one fails; Kering isn't able to do the same.
Great comment, thanks!
Upper class aren't buying Gucci. They're buying Chanel, Hermes, Loro Piana, etc.
@@HiddenWen That's the entire point of my comment
This just isnt true. Gucci has always been significantly larger than YSL
This is VERY INSIGHTFUL and by far a comment that most reflective of what I see in real life. Thank you.
Louis Vuitton has gone super tacky to grab super cash before Virgil Abloh who sadly passed way too soon. There seems to be some promise with the improvements in quality - if not design - under Pharrell Williams
Thrift owners laughing in silence 😅
SHEIN and Temu be like : Cheap Fashion 😎
While they are laughing in their smelly little dens, Pinaults make billions ☝️😁
heh i sure am. I mainly wear no name t shirts, shorts and fake crocs from walmart.
since they embrace the “cool kids”, the brand died
what can they do? embrace the ,,dumb kids´´brand?
the break is in the term "kids"...
I'm the hundredth like 😊
Yeah only turkish kids wear it on the bus today
By the cool kids.... Gen-Z dressing up with clothes that look straight up from Goodwill.
May be people becoming more sensible and realising that expensive brand products is a waste of money
Chanel is going down the gutter too
@@chinchillin6280Seen the latest Viard's runways ? and the horrible price hike vs quality decline? No wonder they are and right about time, imho.
These brands were never intended for people who could not afford to waste money. Unfortunately most people who buy these brands today can't afford to pay their rent.
Not only Gucci , Lagerfeld is done, Versace in TK Maxx, long ago Armani falled down and is associated with cheapness, Tommi Hilfiger, CK , valentino as well etc
RIP Karl. He was an anomaly. Fendi, Chanel, Karl, Chloe. Not many designers can produce for 3fashion houses w/o suffering in burnout or drugs, etc.
Only Armani diffusion brands are associated with cheapness - Emporio Armani, Armani Exchange, Armani Jeans. Arabs ruined it.
I mean at this point these are all Macy's brands 🤷🏾♀️
When I saw cK and Tommy jeans in Costco, I knew it was over
CK and Tommy H are not luxury brands
Gucci Mane been told y'all he stopped buying Gucci in 2009 😂
and you should by this Cucci...
Speak properly.
@@skillbopster Hush.
@@skillbopster nah, yamp.
It all depends on what you buy. I feel all luxury brands have tacky over the top items. I have some great items from Gucci that I love. There’s also tons of stuff there I would never buy. 😊
Ur so cute
Same
3:59 Making a point that Gucci has fallen down to #11 on "The LYST Index", yet LV is further down at #16 🤔
Exactly. And Versace is at #7. What type of list is this?
It’s about the fall. Gucci was higher in the ranking before and then fall…that’s a bad thing. LV is down the list for ages now
It’s about the fall of Gucci. Gucci was higher in the ranking one or two years ago. LV has been on the bottom for ages now. So yeah, Guccis performed worse than LV as LV decline isn’t as big.
But LV is "up" from an even lower ranking, IIRC.
All the fashion brands owned by big conglomerates have their issues. It would be more interesting to compare them to independent designers or brands that are on the rise.
Well, 3 years ago all these channels were saying how brilliant Gucci was, and beating all brands, and now suddenly it's the total opposite
3 years is not suddenly. A lot has changed since then.
Sounds like investor shorting or something.
Gucci did license/produce it's name on too many items, imo...
Gucci made a lot of sales while they were trying to promote with young people with casual styles. People just saw their short term sucess back then, but in reality it cheapened the brand and that has long term implications.
lol.
3 years is a long time. That's 6 different collections to ruin a house.
Kudos to the creative team for that thumbnail
Yeah it is catchy
Show me the discount racks then if they’re doing so poorly. Would love to buy whatever is on sale. A dip in sales is expected after Michele’s departure.
Facts when he left I was upset
It's an odd comparison. LVMH has way more brands.
They make stuff that will never go out of style timeless 😏
Yeah, about 10 times as many brands, in many more categories like Alcohol, Cosmetics, watches, jewellery. Kering just have about a dozen fashion brands in comparison.
This is cope. The "discount rack" is always just the tees and giant logo handbags and other miscellaneous stuff, or even the basic low top shoe with the bee logo. The regular high end pieces you wouldn't even be able to identify as Gucci unless you were super familiar with the brand that go for thousands are still in line with every one of these other high end fashion houses.
This.
And that’s enough to drag the brand down.
Indeed. But it was accessories and the vision that “everybody should be able to buy something from a luxury brand”, like LV and Gucci, that has watered down the brands. Both brands sell a very limited amount of clothing.
giant logo t shirts and "slides" and baseball caps ruined it. people with money don't want to wear what's mostly seen on people flying spirit and ryanair to miami/ibiza
Dirty secret: the moment rappers sing about it, it's going down. Remember Lacoste?
Balenciaga still poppin
@@Kidkosmos ? No one buys Balenciaga at full price...... If you do, you are a fool.
FALSE. Rappers rap about LV even more than Gucci. Nobody but you ever cared about Lacoste and no, many rappers did not rap about it.
@@fistandpen2505 meh bunch of losers anyways…
I love Lacoste
My image of Gucci is usually low level street crime and people in dire financial situation cosplaying as self-made influencers
Facts, BMW is getting that way too unfortunately.
Exactly
Im a Black gangsta type and I wear Gucci. I cant get a driver license cuz I owe a bunch of tolls I will never be afford to pay.
@@PacmanBrunner👴🏻👴🏻👴🏻👴🏻
@@kencarson666 U never seen a brotha wear Gucci not my fault u only rock wit brokes n lames
Unpopular opinion: you made it accessible to the poor and the new money
I bought Gucci bags twice. They couldn't stand Thailand's hot weather.
Monica BelGUCCI getting Older 👀
I live in Thailand and own a few GUCCI bags, I have used one of them every day for 5 years. honestly, the hot weather does not affect its leather quality :)
Gucci is now lame
Take a closer look... You bought GuGGi. Made in Guang ho.
inevitable. a brand needs to survive for next generations. taste of rich kids or wannabe rich-kids are different compared to 30 years ago.
They should’ve added the song gucci gang, that was a HUGE HIT back in 2017 days, like everyone wanted a gucci bag, shirt, polo, wallet Anything with the Gg
I love that song!😬😅😅😂 my lean cost more than ya rent!😂😂😅
that led to their downfall
The last true Gucci is the one created under Tom Ford supervision, back then I liked the brand, now it became like a "look like homeless" brand
To be fair, head designer Alessandro Michele looked and dressed like a homeless bum so the brand was on point.
The Internet like destroy the famous Label, all oy cheep 1 Euro, terrible
You are incorrect
@@michaelenglish1992 Why ?
Nonsense. Michelle was a visionary and breathed new life into the brand
I live in the Middle East and travel a lot to Asia, it’s outstanding the hype for luxury brands in here.
I’ll never understand this market
Asian here. In where i live what so called Show-off culture is a big thing. It elevates status symbol amongst the commoners. It happens not just in Asia but also in Africa, south America and even the Balkans. Instead of buying a suit those people will buy a T shirt with biggest designers name. It happens the same with cars and houses too. Instead of buying a house with big garden, landscape for maximum privacy people tend to buy ridiculous tacky neo classical houses in high population area just for show off.
I rarely see really wealthy people wearing these brands. I see different levels of middle class people who complain the rising prices at McDonald's wearing and wanting this stuff
Nahhhhhh. I saw Gucci everywhere in London. In Paris no one wears LV but the stores are full of tourists customers buying to take home as prices are lower and no taxes, mostly Chinese and Japanese
@@Hippy2021 It's called the "3 second bag" in Korea because you see someone in the street carrying one every 3 seconds
You rarely see wealthy people. Who are you talking to that cares about McDonald's that's also wealthy?
@@acex222 the point I'm making is the people I see really lusting over these brand names are the people who can ill afford it and would actually do better making wiser financial decisions. Sorry that went over your head
@@bp900 luxury for poor ppl
Counterfeit designer clothes is the reason for their downfall also opening up to the middle class and accommodating streetwear for larger sales made gucci lose their exclusivity thus they arent attractive no more
gucci doing collabs is what destroyed its brand image... gucci x adidas for example.
Louis Vuitton does the same thing
Yeah it was terrible
What's wrong with Adidas. Y'all quick to say ish
Love adidas. I wish they made suits too.
Others are doing the same and there is nothing “low” about adidas. You should see them in Tokyo.
back when story of Domenico De Sole success used to be a case study in many business schools. Nothing lasts forever indeed.
Wealth is quiet.
Tom Ford's Gucci was slick and sophisticated. He brought it back from a tacky era. ( those cheap gold watches at Macy's) This new low point can be called the greed era, they just pumped out overpriced junk with the logo plastered all over the place. What will happen, certain Tom Ford pieces will be sought after as they become scarce, exclusive and hip again,
Gucci is already revisiting them. Suddenly the horsebit bags are popular again.
I have one of their classic fragrances from the early 2000’s and it’s still fabulous! It smells similar to Tom Fords Soliel Brulant
because lil pump made a song featuring the word "gucci" like 2000 times?
Calling Louis Vuitton timeless when they've done multiple streetwear collabs and their men's creative director is freaking Pharell is just clueless...
I think you are missing the meaning of the word “brand”. It is all in the image and reputation. Those aren’t earned through actual products. They are all strategic purposely market positioning paid highly through advertising.
They are no longer high end. I work for Louis Vuitton and hate that we sell socks. We are going to start selling lipstick in 2025 - it is ridiculous. If you want to be high end then it should only be accessible to those who can afford high-end and not by someone who makes 50 affirm payments for a pair of shoes.
You can buy Gucci on AFFIRM?👀 This saturates the market and makes them no longer an exclusive brand. At the end of the day business is about making money.
You know all about those Affirm payments, huh? 😏
You’re trying to be classist and are
failing miserably 😂. Investors only care about profit, money is money. Don’t forget chap you just work there, you literally are a disposable worker any probably can barely afford it yourself living paycheck to paycheck
@@Yougotthis1212really goes to show how some people have been captured by the image 😂
Elitist much? You better be glad Gucci can be purchased using affirm payments. You may not have a job otherwise. There in lies the problem! A certain group of people hate that the masses now have access to this stuff. They want to gate keep and keep it for themselves so that they can feel big.
TY for explaining the business strategies and performance differences between Gucci and the other luxury brands.👍
The fact that Gucci felt Jack Grealish was a style icon shows how out of touch their staff is today
you are out of their gucci style
"The issue is related to brand perception and image. For about a decade, Gucci was the epitome of maximalism but then had to transition to minimalism in a subtle and gradual way. The abrupt shift they made resulted in a loss of their current customers and skeptical looks from other luxury brands enthusiast .
Pretty sure the same Gucci bag and shoes I bought during Covid have all gone up 10-20% in 3 years. Not sure where is the discount. Gucci was never in same league as Chanel and LV.
Mind you one there is inflation. Two its a pretty standard with fashion bag. Bought a bag prada bag 1000€ and its about triple in value 3 year. Gucci its still luxurious just not as highly regarded as before thats all
What hasn't gone up 10-20% since covid?
Gucci actually WAS
Exactly I don't agree with this video. Gucci continues to be super expensive.
LVMH and Kering just give off the vibe that they want to own everything, a lot of their brands have started to gain a tacky reputation because of the overuse of logos (the former LV and the latter Gucci). Richemont seems like the only other conglomerate that doesn’t have these issues, all of the brands they own still retain their prestige.
I really love your taste and style always so chic. My faves would be the nkuwan leather backpack and the Swarovski pave diamond ring so gorg. Thank you for your recommendations.
Same quality as made in china but 100 times the price.Why would anyone waste their money?
Say you don’t own any without saying it.
nah its been the true , u dont have to own it ppl being say it online for years and doing review on quality of modern vs vintage, gucci are massive produce and the quality doesnt match up with the vintage one . gucci isnt the only one
That’s not even true by a stretch. You clearly don’t know much about the construction of clothing, do you?
@@sebastiann4402 just look at review of modern and vintage, plus tanner leatherstein . He breaks these leather high end design leather bags and sees how much they cost to make and how much they are selling it for and majority of the time it's been u just mostly paying for the brand and logo
People now love to buy custom made stuff and pay the craftsman directly for the work . Thats why Etsy is booming where you can get all unique genuine handmade products by creative peoples
There's a lot of mass produced stuff on Etsy.
There is nothing as luxurious as to pick your own fabric and have something made to fit you. That to me is luxury.
@@Smithpolly yes but local production is more and serves individual interests
@@brendakok7377 thats true and it will be future . Be distinguish and unique served by someone individual for your projects give great pleasure and satisfaction.
@@Channelofchannelz I don't kknow what that means.
So basically he marries hot actress and proceeds to lose focus while LVMH grows 10x
Gucci went from high fashion to a ghetto street wear company.
two words: *adidas collab* | who tf thought that wouldn't decrease gucci's brand value
Addidas is better than Gucci
It was not an allegation of promoting SA against children. It was a fact. Your friends over at baalenciaga went so far as to put a court-ruling that determined that CP was okay in a certain case within their sick advertisements. FOH with "allegations", it's a fact that you relish such things and many people in the public are on to you!
with more income inequality and the middle class being squeezed fashion brands have to focus more on luxury to get more money from the 1%, it's a sad state of affairs.
The 1% doesn't buy Gucci or other mainstream-brands. They have more subtle ways to flex.
Tell me you no nothing about the 1% without telling me you know nothing about the 1%
Awesome video. Thank you
waiting for Sabato De Sarno to be ousted 😂Alessandro Michele actually brought in a lot of sales for Gucci.
Back in the day, Gucci was a high class brand, Now it's down to thrift shops.
Excellent report. Thank you. I do see a business marketing lesson here in the simple supply and demand principle. You have to carefully throttle supply down enough, sacrificing short term profits, in order to increase demand and maintain pricing and image which will increase long-term profit.
In my mind Gucci’s brand positioning is the same as Guess’
I think the problem is its association with hip hop streetwear rather than designer fashion. Nothing wrong with that necessarily, just not the same kind of luxury it used to be.
I feel like every single brand that was featured in this video gets name checked in hip hop though. So if it’s happening to all of them, it doesn’t make sense that Gucci is the only one to have its sales fall off a cliff. There has to be another variable.
I mean, if you actually want quality you don’t buy from these brands anyways.
Artificial luxury. Overpriced items for what they are.
You buy these brands to LOOK like you wear luxury items. It’s just wasted money.
You should be buying heritage goods if you’re blowing your money. Stuff built to last yours and your children’s lifetime and have care in their construction and material selection.
That’s not what Gucci is, but they are definitely priced like it.
Gucci is on the discount racks of Center Point’s stores in the Middle East
Dries has no problems selling his clothes. With no advertising or promo ! Fair priced.
Their prices are still higher than a lifeguard's chair.
it all comes down to one name: Alessandro Michele. Just like Tom Ford era, Alessandro made Gucci flourish. Now it's a bad creative director.
strong agree.
I had never been into luxury fashion, let along Gucci but Alessandro Michelle did something really phenomenon with Gucci that made me love the brand so much. I was devastated when he left. So sad.
i understand why people like it. i used to be in name brand as a teen. ever since then I focus more on original looks than tryin to fit in lol.
Gucci used to line their handbags with the softest leather, now they are lined with canvas. for $1500 and up, the quality just isn't there anymore.
After LVMH acquire Kering, the whole world work for LVMH
Alessandro Michele happened to Gucci. It hasn't been the same since Tom Ford left. Classic style replaced with Grandma hobo chic
LVMH loves when yall make these videos
I saw Gucci aquarium gravel for sale at Walgreens this week.
These luxury brands just doesn't hold a candle to Uniglo.
ikyfl...
That probably explains why after 2023, Gucci's bags started to be more Hermés-like.
Didn't expect to hear this
I married into a royal-connected family....none of them wear Gucci or other such brands. They're not considered tasteful. It's the poor that asign the value to these brands - the irony!
Gucci is G for ghetto
People are getting smarter, that's all.
If you don't know, in recent years luxury brands have exploded, more than ever!
I knew when I started seeing Gucci on love and hip hop. Same with LV. Ive seen S workers with the Neverfull in Philly
This is an amazing thumbnail.
By the way the cover picture was quite appropriate 😂😂
Look up Nick Knight “blade of light”
In Asia, it's called 'Old-Ci'..
I met some Gucci business students when i was in Florence 3 weeks ago and they said gucci has been taking a loss recently
The 'new' logo introduced in 2019 makes it look like Walmart house brand.
I found some Gucci products at my local Marshalls.
😳
They have Gucci at TJ Maxx in NYC too.
I love my handcrafted, one of a kind, culturally nuanced, organically created masterpieces that are timeless, heritage products
The Thumbnail Goes Hard
There is a Gucci store at the mall. Every time I go there is security guard and a rope at entrance. Meanwhile there is nobody in the store 😂 so apparently it’s so “exclusive” that even the most VIP clients are excluded.
Discount? Someone please tell me where I can find these at a discount every webpage they are all full price over $1000 🤔
LVMH shareholder here. I’d also like to add I’d never sell my shares. 😂
When you see these designer names in the outlet store mall, then you know that it's the middle and low classes people purchasing these items that show expensive prices at a discount, but may not necessarily be the real thing. The question is, "who are these people trying to impress by buying and showing off?" The uber rich most likely will purchase directly from the designer.
I just love the new stuff don’t know why people don’t
Lol that hairy slippers.. bazookahands also had them.. 😂
Alessandro Michelle made Gucci relevant again after Tom Ford but they fired him in 2022 so… now nobody buys Gucci, it looks like Zara.
When Tom ford was there, the brand was incredible
never listened all these term spoken out seriously. specially chic bruh i shivered to my core.