How Can Heritage Brands Adapt to New Consumer Demands?
Drawing from my experience in retail and luxury, I was invited to share my insights in Consultor.fr’s recent article on Gucci’s path to revitalized growth.
Following an impressive rebound post-COVID, 2023 proved to be a challenging year for some major players in the luxury industry, including the Florentine luxury giant.
Here are three key factors, in my view:
– Changing Consumer Patterns: Consumer habits have globalized, transcending location and age groups.
– Cautious Chinese Market: Today’s Chinese consumers are more discerning and demanding. As they are projected to constitute about 50% of the luxury market by 2025, their preferences must be a focal point for luxury brands’ strategies.
– Gucci’s Trend-Driven Audience: Kering’s jewel appeals to a uniquely broad and youthful demographic, characterized by their quick shifts in taste and heightened sensitivity to price changes.
Fashion powerhouses must continuously reinvent themselves while maintaining their unique identity. Kering’s CEO François-Henri Pinault, fully aware of this necessity, intends to revitalize Gucci by leveraging its unique blend of craftsmanship, Italian heritage, and modernity, as noted in the brand’s February 2024 press release.
Recent changes will take a few years to fully manifest; the pace of luxury isn’t dictated by seasonal collections, and today’s strategies will pay off in 2 to 3 years.
I invite you to read the article for a deeper insight into the trends shaping luxury.
Publication by:
Laurence-Anne Parent