Guccibecame founded in 1921 by Guccio Gucci. It is a subsidiary of theKering Company. The company sells its products through the Guccibrand. The products that the company deals with include watches,clothing, shoes, jewelry, and leather goods (Rugman,2005).The building of the company started as a shop in Florence that soldleather commodities having classic styling. With the help of histhree sons, Gucci expanded the company to different places such asRome, Milan and Florence. As the company established its presence indifferent places, the Gucci brand name became familiar too. In the21stcentury, the company has recreated itself through including achildren’s line in its products line.
Afterthe death of the founder, Gucci Guccio, Maurizio took over therunning of the Gucci Company. In the early 90s, the company underwenta difficult time in history, when Maurizio irritated Investcorpshareholders, distributors, and executives of Gucci America throughsignificantly controlling the sales of the Gucci AccessoriesCollection that generate a lot of revenues annually (Tungate,2012).The new accessories of the company had failed to realize returns andfor three years that followed, the company incurred heavy lossesannually. This had wobbled the company on the rim of bankruptcy.During this time, the company was not seen to have the ability ofsurviving. However, De Sole, who acted as the company’s CEO had tocome up with a strategy that could change the brand image of thecompany in order to make the company survive. The company acquiredSeverin-Montress, a watch licensee. This gave the company theopportunity to deal with iconic watches. The iconic watches wereamong the products leading to the company’s survival.
TheGucci Company chose to re-brand itself through changing itsmanagement. The company changed the management team with a view ofchanging its earlier tactics and adopting new ones, which could helpin realizing success. Besides, the company formed a strategicalliance with the Pinault-Pritemps-Redoute in order to dilute theshares of Arnault, who wanted to take over the company. This movehelped the company in realizing its goal of continuing to provideluxurious products to its customers. In addition, the companyrebranded itself by acquiring other firms such as Severin-Montress(Tungate,2012).
Thecompany is keeping the momentum of their business today throughvarious considerations. One of the undertakings of Gucci in ensuringthat it keeps the momentum of the business is ensuring innovation.Through the application of innovation, the company has been in aposition to add new features to their products in order to suitcustomers. Another undertaking that the company has concentrated withentails combining tradition and modernity. Through combining thesetwo features, the company has been in a position to keep up with thefashion that customers identify with. Besides, through the company’suse of iconic models has also helped to keep the momentum of thebusiness. In addition, the company’s consideration of craftsmanshipand elegance has made the business keep its momentum.
Thepresent designer for the company is Frida Giannini, who is attentiveto detail and tenacious. She became hired at Gucci in 2002 as thehandbags’ director, but she became promoted as the overall designerof accessories in 2004. Since then, she has been the company’sdesigner. On the other hand, the brand image for the company is thatit deals with products that are iconic and represent fashion(Tungate,2012).
FreestandingStores of Gucci
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Rugman,M.A. (2005). TheRegional Multinationals: MNEs and `Global` Strategic Management.Cambridge: Cambridge University Press.
Tungate,M. (2012). Fashionbrands: Branding style from Armani to Zara.London: Kogan Page Ltd.