Why Gucci needs drastic change

Gucci’s Q3 results for 2024 paint a stark picture: it’s not just a brand grappling with market turbulence, but one losing its grip on what made it legendary in the first place. Instead of reckoning with the strategic missteps that have plagued its recent brand reset, Gucci seems committed to a new direction that abandons the core elements of its identity. Instead, the brand attributes its declining performance to the external market, client challenges, and softness in China. All deflections that, in my view, only deepen the damage. Gucci’s dramatic fall has been accelerating, quarter after quarter, driven by a critical mistake at its core: it gave up on the story of unapologetic self-expression that made it an icon. It’s time for a brutally honest reckoning that the mistakes have been all internal, even if acknowledging this is painful. Gucci is no ordinary luxury brand. For decades, it has epitomized the meaning of cultural currency. From Tom Ford’s unapologetic glamor in the 1990s and early 2000s to Alessandro Michele’s audacious, theatrical creativity, Gucci stood for individuality and empowerment. It was a brand that shaped culture itself, permeating the worlds of rap, hip-hop, high fashion, and beyond. Makings of a cultural powerhouse For two decades, Gucci has been more than a fashion house; it has been a cultural powerhouse. I published many articles praising its core strategy and declaring it the best in class in brand storytelling – until it wasn’t. In my university programs and luxury masterclasses, I spent years presenting on why Gucci was creating far more powerful cultural capital than its peers. Today, however, I must discuss why it seems lost in nowhere land. Gucci’s recent pivot reveals all the signs of a brand losing touch with its story and, worse, ts audience. It’s time to bring it back. Under Ford, Gucci was untouchable. He transformed the brand from logo-laden basics into an empire of sexy, sophisticated allure that redefined ‘90s fashion and placed Gucci at the center of global influence. By delivering products that resonated with a narrative of fearless self-expression, he created a cultural powerhouse. This marked Gucci’s first renaissance, establishing the tone for its DNA for years to come. But after Ford, under Frida Giannini, Gucci took a cautious turn that nearly cost it its edge, abandoning the unapologetic voice that made it a leader. When Michele took the reins, Gucci regained its swagger with a fresh, inclusive approach that celebrated uniqueness and diversity. The brand embraced eclectic, theater-inspired aesthetics, weaving individuality into every collection. Gucci’s runway became a symbol of freedom, creativity, and audacity, and Michele brought the brand back to the cultural forefront with collaborations that captivated fans worldwide. This was beyond fashion. Gucci became a movement, reinvigorating the brand’s energy and relevance globally. However, as the years progressed, Gucci’s overexposure and trend-driven collections began to feel stale, risking consumer fatigue. Instead of refreshing Michele’s vision, the brand opted for a radical new direction – and in doing so, it lost its way. A bland shadow The decision to abandon the brand story of unapologetic expression has been catastrophic. Today’s Gucci is a bland shadow of its former self, where individuality has been replaced by conformity. Its brand story – once loud, proud, and bold – has faded into a collection of uninspired products, stripped of their narrative. In an age when consumers invest in stories before they invest in products, Gucci’s new direction represents a significant strategic miscalculation. Brands live and die by their narratives, and a misaligned story can do more than harm sales; it erodes the very foundation of brand equity. Each quarter, Kering doubles down on blaming the market during analyst calls, refusing to confront the internal decisions that have led the brand to this point. The appointment of Stefano Cantino as the new CEO offers a glimmer of hope. As we approach Q4, failing to radically change the current approach will likely result in even worse outcomes. To turn its fortunes around, Gucci needs more than just a shift in aesthetics or a new creative director. It needs, fundamentally, a return to its core identity. The world doesn’t need another luxury brand trying to be everything to everyone and playing it safe. It needs Gucci to bring back the inspiration, risk-taking, and swagger that made it legendary. The choice is now clear: Gucci can either continue to fade away or reclaim its place by making bold, story-driven moves that resonate with its audience. For the love of Gucci, this needs to change. This is an opinion piece by Daniel Langer, CEO of Équité, recognized as one of the “Global Top Five Luxury Key Opinion Leaders to Watch.” 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 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 masterclasses at the Jing Academy. Follow him: LinkedIn and Instagram. All opinions expressed in the column are his own and do not reflect the official position of Jing Daily.

Why Gucci needs drastic change

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Published October 28, 2024

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Why Gucci needs drastic change