Gucci Essay

Obviously, Gucci’s industry is fashion, which would make sense that their segment would be high fashion. Gucci has created and defined concepts of fashion using charisma and intuition. With Gucci’s mission to become a group leader in the luxury market at a world-wide level through maintenance and improvements, the brand has become a strong competitor in the fashion industry. Gucci’s target customers seem to be middle-aged, high income, high status businessmen and women. To these fashionable, hip and trendy customers, Gucci has become more of a lifestyle than a brand. Customers who are middle aged and up seem to have more brand loyalty, being that younger individuals are still experimenting with varied brands and trends in society. The company’s

Gucci’s competitors in Italy include Armani, Versace, Dolce & Gabbana, Prada and Moschino. Globally, Gucci’s competitors are Chanel, Dior, Burberry and Ralph Lauren. Because of their current competitors and market position, Robert Polet, the new chief executive, has declared a new strategy that includes focusing on meeting with employees, building one straight forward business plan, understanding the tastes and preferences of people and considering what they’re looking for in regards of their ambition and their

A PESTEL analysis of Gucci’s macro environment showed a lot of opposition and obstacles for the brand as a whole. The PESTEL acronym includes political, economic, sociocultural, technological, environmental, and legal/regulatory factors that must be taken into consideration. Political factors include taxation, custom duties and quotas as well as foreign trade regulations, which also tie into the legal/regulatory problems that Gucci faces. Economic factors would include GDP and inflation, the change in disposable income of consumers as well as unemployment and the current business cycle that the economy is in. Sociocultural factors comprise of changes in lifestyle, tastes and preferences, changes in consumerism and the overall distribution of income in society. The technological component incorporates the rise of new patents and policies, new technology and machinery as well as the ever-expanding Internet, which include local and global connections. The increase in E-commerce also effects Gucci externally. Environmentally, with the increase in awareness about sustainability and scarcity, Gucci faces an immense, impediment in regards to how their products are manufactured and distributed. Legally, the brand faces problems with counterfeiting that not only impacts their sales but also the overall brand image, personality and quality. With