Kering embarks on a second Gucci reboot

French luxury group Kering has been hampered by a decline in Gucci’s performance in 2024, and has fixed their hopes for a flagship label shift to stabilize this year’s course. According to Kering’s top executives, Gucci has received dramatic efficiency therapy over the past two years, and has integrated its basics by launching several improved versions of signature handbag models, such as Blondie and The Blondie. did. Jackie and bamboo. The arrival of a new creative director is expected to inject Gucci with the atmosphere of direction and what is desirable that is currently lacking.

Gucci accounts for almost half of Kering Group’s revenue and two-thirds of operating profit. However, its sales have plummeted recently, and have been even more sluggish throughout 2024. Italian luxury labels finished the year with a 23% revenue shortfall (and 21% is one on a comparable basis).

Gucci has recently worked on a variety of product lines with article quality and complementary strategies. For example, we are introducing entry-level products to attract a wider range of clients and attract new customers while focusing on more upscale collections. “There is no doubt about abandoning an ambitious customer segment. This is one of the key segments of positioning. Kering CEO François-Henri Pinault said:

On February 6th, Gucci rejected Sabato de Sarno, who had been in charge of style for just three seasons. De Sarno was carried over to the iconic Alessandro Michele, and was presented at the time as an embodiment of a new chapter in Gucci. . “Although Alessandro’s style was indeed the biggest maximalist, Sabato de Sarno’s aesthetic approach was not luxury, nor maximalist, but it was to do exactly what we wanted. I did it.”

At a meeting with analysts held after the publication of Kering’s annual results, Bellettini said that Gucci was able to take part in its foundations, particularly leather accessories (such as iconic handbags and classic moccasin models) during this period. I explained how I solidified its position by creating an accessory. New Version – Fourth Quarter Performance was “very encouraging.” In a way, the reboot of Michelle after Gucci’s Alessandro requires the first phase of slate being wiped clean and reconnecting the label’s style with its historical identity.

In other words, keeping everything on the arrival of a new creative director is not on the card. Bellettini made that clear. “We are not entering a new transition phase, so we don’t slow down the label turnaround. We are moving forward according to the plan.” Berettini denied that hiring Derno is a mistake, and for the past 18 months , Gucci said they could be reunited with its history and tradition, elements that were “not as strong.” “We focused on the brand’s heritage and tried to enhance our products to match Gucci’s heritage while adapting the products to the present era. The rationale we currently operate is 18. It’s definitely far more solid than it was months or two years ago,” Berrettini said.

But this is just one of the label’s twin facets. The other is creativity. This new phase of Gucci’s renewal is “the perfect time to inject creativity, direction and desirability. Gucci is a unique dichotomy that characterizes a brand whose tradition and fashion must always be in hand. It’s a necessary element to replicate the “. “We’ve been focusing a little more on tradition over the past 18 months by improving product quality. This is an ideal showcasing creativity and fashion while continuing to maintain what has been done in the last few months. It’s a foundation.”

The foundation’s reconstruction phase also involved detailed administrative reorganization at the group level, Pineau noted. “In this first phase, my priorities for the group are developing labels using a self-contained approach, establishing the right managing director and the right creative director for each, and providing the right distribution network. Build. We’ve now begun expanding our brand’s customer base. This requires a much more nuanced approach, focusing on retail expertise and more.”

Therefore, Stefano Cantino was promoted to the role of CEO Gucci in the early 2025, assuming his post. The name of Gucci’s new creative director remains unknown, but should be revealed soon. As Bernstein analyst Luca Solka suggested to Cheekley, it could be Heady Slimane. “It’s famous for his fired designs, like Tom Ford worked at Gucci and was very successful at the turn of the century.” In fact, Sliman’s name is most often along with Gucci’s work. It is mentioned. But with your back against the Kering walls, the entire Gucci renewal must be just right in terms of the appeal of the flagship label.