great /ɡreɪt/
adjective of an extent, amount, or intensity considerably above average.
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In 2017, Gucci's sales grew by 44.6% over the previous year. And in the first quarter of 2018, the luxury brand posted nearly $2.2 billion in sales revenue, up 48.7% compared to the same period last year.
There are two things that have traditionally marked a brand as being "luxury." The first is high-quality craftsmanship -- you can’t have luxury without superior quality. The second is exclusivity -- luxury is often thought about as showing off to everyone else.
Issues like sustainability, transparency and ethical manufacturing have received increasing attention in the media, but the luxury industry has been slow to respond, as the 2018 Fashion Transparency Index reports. Profits are strong now, which is why some brands might not see the need to change. However, millennial consumers demand change, and their volume is increasing. A 2015 Nielsen study confirms that consumers who are willing to pay more for a product do so with sustainability in mind, prioritizing the demographic's commitment to social values.
According to various sources, the fashion industry is one of the most wasteful in terms of pollution. For example, Burberry’s decision to burn $40 million worth of stock rather than selling it at a discount was meant to maintain the brand’s exclusive status but instead drew considerable criticism.
Perhaps another reason why Gucci is doing so well has something to do with its new purpose-driven, environmentally progressive program, Gucci Equilibrium. The brand has established this program through a new microsite that reports the company's CSR policies, environmental impact, employee satisfaction and structural innovations. This effort grants Gucci the authenticity, transparency and, most importantly, accountability that consumers seek.
Capturing The Millennial Market
The luxury market has grown at a staggering pace in recent years, yet luxury brands face serious challenges in the years ahead if they fail to engage millennial consumers on their own terms. Purpose is key. Brands must demonstrate that they stand for more than just making money. Promoting sustainability and ethical business practices is one way to stand out. Embracing millennial-focused business models such as luxury fashion recommerce also offers a way forward.
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Due to Gucci being one of the oldest Italian fashion brands in operation today, founded in 1921 by Guccio Gucci. A lot of it's success is represented through it's history.
'Like many historic fashion houses, the brand started out as a luggage manufacturer, producing luxury travel goods for Italy’s wealthy upper-classes, as well as equestrian equipment.' (Highsnobiety)
Being such an iconic, historical luxury brand, with success in all department, I will basing the price points of my own products on that of Gucci's, due to their success and historical background.
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