Gucci Company

To: Professor Chalin Cummings
From: Joshua Belvedere
Date: October 12, 2009
Subject: display case #2- Gucci Group N.V. (A)
In 1993, Gucci went from having more(prenominal) than 600 points of sale to solely 194. Gucci the States’s store fell from 42 to 26. Also, Gucci stopped distributing through with(predicate) department stores and closed stores in secondary markets. Furthermore, the Gulf contend and the US recession weren’t helping Gucci’s case. delinquent to the fact, the entire industry saw a 3% simplification of goods sales a year between 1990 and 1993. Gucci was straightaway on the verge of bankruptcy.
In 1994, Investcorp was willing to rescue Gucci, but only if Maurizio Gucci stepped down and sold his stake in the company. But finally, in the fall of 1994, Maurizio Gucci stepped down and William Flanz took over as CEO, while Domenico De Sole, raw COO, moved to the Gucci headquarters in Milan. The first priority of Gucci was cost-cutting and in doing so they fired fifty people at the incarnate level and 100 at the manufacturing level. Also, De Sole focused on upgrading Gucci’s production and delivery systems while Tom intersection focused on design. Furthermore, to get Gucci to being a utile luxury brand, some more of the critical moves De Sole make were:
Revamp every(prenominal) store. He wanted them to look more appealing and more luxurious. For example, from 1993-1994 Japan stores sales went from $40-$120 million.




Gucci sketched and intentional all new products and introduced a ready-to-wear collection.
Gucci now aimed to commit a broad range of clientele, instead of focusing on older conservative women, they now targeted a modern, hip, and younger clientele.
They repriced every item in their collection, lowering prices by 30%.
Gucci now had a more broad range of products from scarves to fur coats to wallets.
virtually doubled advertising, from $5.9 million in 1993 to $11.6 million in 1994.
Subcontracted the manufacturing of 95% of their leather...If you want to get a full essay, order it on our website: Ordercustompaper.com



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