Gucci’s free fall: How a luxury icon lost its soul

Gucci, one of luxury’s most iconic names, is not merely at a critical juncture, as many commentators have described it. It is a brand in free fall. A brand that has lost its soul and its connection with its clients. And most of all, Gucci is now a masterclass in brand destruction. Forgive me for being blunt, but I cannot think of any other way to describe the self-inflicted disaster unfolding at Gucci. Sugarcoating its catastrophic loss of relevance would be unethical. The abrupt firing of Sabato De Sarno as creative director came far too late. Announced just weeks before Milan Fashion Week, this latest move is another indicator of the brand’s ongoing struggle to redefine itself under Kering’s stewardship. Gucci’s legacy of reinvention: From Tom Ford to Alessandro Michele Gucci is no stranger to drama. The story of the iconic Italian brand is one of constant transformation and reinvention. After falling into irrelevance, Tom Ford’s provocative reimagining in the 1990s made the brand a cultural phenomenon. While much of the attention was on Ford’s creative expression, the true genius lay in the fact that Gucci suddenly had a brand story beyond products and logos — one of unapologetic self-expression and freedom, famously epitomized by the G-string campaign banned by many publications. Gucci was glamorous, raw, and bold, influencing an entire generation. Then, Gucci tried to reinvent itself under Frida Giannini, which resulted in a dramatic downfall. Similar to today’s Gucci, the Giannini era can be described as conformist, while Ford was all about being sexy and nonconformist. Hence, Gucci steered itself into a space already occupied by many brands, losing its inspiration and reason for being. Alessandro Michele’s vision: Defining a new generation of luxury Alessandro Michele’s gender-fluid romanticism and bold expressions resonated with a new generation. His tenure not only redefined Gucci’s identity as bold and unapologetic but also propelled Kering’s profits to unprecedented heights. I presented Michele’s Gucci in numerous luxury masterclasses as a prime example of exceptional brand storytelling. While some critics argued that his collections were often too avant-garde and that collaborations like those with Adidas or Disney cheapened the brand, there’s no denying that Gucci became the most influential, fastest-growing, and unique luxury brand, with excellent brand storytelling. When Michele left, the brand fell apart. Even worse, the appointment of De Sarno in 2023 marked a stark, and ultimately misguided, pivot. Gucci: One and the same One of the biggest mistakes was abandoning the brand’s bold past and turning it into one of conformity. Practically everything Gucci created and communicated became boring, product-focused, and the opposite of the over-the-top style that had once captivated clients. The Ancora mantra, intended to make people fall in love with the brand again, did the opposite. It alienated clients, myself included, who were intrigued by the freedom of self-expression the brand once embodied. I’ve called it perhaps the worst brand reset in the history of luxury. Financial collapse: Gucci’s catastrophic sales decrease The financial catastrophe of 2023 and the accelerated decline in 2024 are a direct result of what the brand and its leadership team have been doing. This has led to a staggering drop in sales, with third-quarter revenues in 2024 plummeting 26% year-over-year to €1.6 billion. I expect Q4 results to be equally disastrous, given the empty stores I visited during the holiday season, while competitors had queues out front. De Sarno’s brief tenure, characterized by a shift toward minimalist silhouettes and wardrobe staples, represented a fundamental misunderstanding of Gucci’s essence. This approach not only failed to resonate with Gucci’s core audience but also struggled to attract new customers. Analysts have since described De Sarno’s exit as inevitable, given Gucci’s dramatic underperformance relative to competitors like Louis Vuitton and Dior. He was the wrong person to lead a brand that needs boldness. Playing it safe was playing to lose. However, to view this situation as merely a creative misstep would be to grossly underestimate the depth of Gucci’s predicament. The core issue plaguing Gucci since Michele’s departure has been a complete abandonment — even reversal — of its brand story. What was once a bold, fearless brand became shy, introverted, and conventional, losing its luster and power in the process. Gucci shifted from being a source of inspiration to a purveyor of the mundane, moving from a client-centric approach to a product-focused one that failed to ignite passion or loyalty. Gucci shifted from being a source of inspiration to a purveyor of the mundane, moving from a client-centric approach to a product-focused one that failed to ignite passion or loyalty. Gucci’s decline from relevance The magnitude of this situation cannot be overstated. Gucci’s revenue loss over the past two years has been unprecedented in the luxury sector. This decline is not a reflection of changing consumer tastes or market volatility; it’s a direct result of a brand losing touch with its core identity and the values that once made it a cultural phenomenon. In light of this, it would be a grave mistake for Gucci to believe that simply replacing its creative director will be enough to reignite growth. Brands like Burberry have cycled through a revolving door of star designers, all of whom ultimately failed. Gucci has broken its clients’ trust with a reversal of its brand story, and regaining that trust will take time. Because the issues run far deeper than just creative expression, a successful turnaround will require a holistic approach that permeates every aspect of the brand. From marketing and retail experiences to product development and digital strategy, every touchpoint must align with Gucci’s (hopefully) rediscovered voice of unapologetic luxury. The brand story — that powerful narrative of freedom, self-expression, and bold individuality — needs to be reinstated and executed with meticulous precision across every facet of the brand’s operations. A critical question that must be addressed is why De Sarno was hired in the first place. His vision and approach revealed a startling lack of alignment with Gucci’s brand DNA, pointing to a fundamental misunderstanding of what makes the brand unique and compelling. Gucci’s path forward: Returning to bold, unapologetic creativity As the search for a new creative lead begins, it’s crucial that this mistake is not repeated. The next appointment must be made with a deep understanding of Gucci’s essence. Furthermore, the new leader must have a clear strategic playbook for translating that essence into contemporary relevance. I write this with the hope of falling in love with Gucci again. In an era where authenticity and bold vision are more valued than ever, Gucci has the potential to once again set the standard for what it means to be a luxury brand in the 21st century. The road ahead is long, and it would be foolish to expect a quick turnaround. However, with a clear understanding of its identity and a commitment to bold, unapologetic creativity, Gucci can reclaim its position as a brand that doesn’t just follow culture but shapes it. This is an opinion piece by Daniel Langer, CEO of Équité, recognized as one of the “Global Top Five Luxury Key Opinion Leaders,” and advisor to some of the most iconic luxury brands in the world. He serves as an executive professor of luxury strategy and pricing at Pepperdine University in Malibu and as a professor of luxury at NYU, New York. Daniel has authored best-selling books on luxury management in English and Chinese, and is a respected global keynote speaker. Daniel conducts in-person masterclasses on various luxury topics across the world. As a luxury expert featured on Bloomberg TV, Forbes, The Economist, and others; Daniel holds an MBA and a Ph.D. in luxury management, and has received education from Harvard Business School. Sign up for his online luxury masterclasses at the Jing Academy. Follow him: LinkedIn and Instagram. Listen to his Future of Luxury podcast.

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Gucci’s free fall: How a luxury icon lost its soul