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A Study of GUCCI, the Changes in its Strategies During the Pandemic and the
Consumers` Perception Towards the Brand`s Products

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ISSN 2321 3361 © 2021 IJESC
Research Article
A Study of GUCCI, the Changes in its Strategies During the Pandemic
and the Consumers` Perception Towards the Brand`s Products
Ahmad Farid Jamali1, Kamolova Odinakhon Saydakram Qizi2, Muxtorova Nasiba Shuxratovna3
University of Westminster, Tashkent Uzbekistan
I. INTRODUCTION
The early 2020 has marked a significant change in our daily life,
work and preferences. This was largely due to the result of
social implications that emerged from the global spread of
COVID-19 pandemic. In order to reduce the spread of pandemic
and save lives, governments started restricting the operation of
business, shutting down shopping centers and stores. As a result,
the fashion industry with $2.5 trillion in global revenues found
itself extremely vulnerable to the negative impacts of the
coronavirus pandemic. The pandemic has significantly
decreased the demand for clothing and other luxury goods as a
result in the collapse of the event industry (Ozdil, 2020). As
many other fashion brands, the Italian fashion house, Gucci was
also impacted by the pandemic. The company reported a 12%
sales drop in the third-quarter because its main customers from
Asia who could not buy its products physically from its stores
during the pandemic (Dalton, 2020). In such a circumstance,
fashion brands like Gucci needed alternative options for selling
their products in order to survive and keep selling. One of best
alternatives during the pandemic for Gucci was online selling
indeed. Coronavirus accelerated the shift to digitalization and in
2020 sales of e-commerce are expected to grow by
24%(Euromonitor International, 2020). In short, during the
pandemic businesses that are flexible and adapt quickly have
greater success and presence. One of the most important factors
which help businesses to grow is indeed innovation (Internet
Retailing, 2020).
General Information
History
Being born into a family of an Italian leather craftsman Guccio
Gucci did not want to take after his father and travelled to other
European countries where he worked as a waiter. In London, he
was a porter at the Savoy hotel and discovered the style and
spirit of the hotel’s guests. After Guccio came back to his
hometown in 1902, he started to work in an elite luggage
company, Franzi. Afterwards, in 1921 he opened his own
company in Florence mainly focusing on travel items made of
leather and slightly moved to craft equestrian equipment.
Expansion of Gucci stores was highly noted in the 50s, as by
IJESC, October 2021 28961
Volume 11 Issue No.10
that time the company already had branches in Rome and
Florence and opened one more in Milan. In 1953, Gucci
expanded to the USA by opening their store at The Savoy Plaza
Hotel in New York, where the founder of the Gucci house once
worked as a porter. Lots of celebrities had a considerable impact
on development and familiarity of the company. Bamboo-handle
Gucci bags carried by Elizabeth Taylor or Jacline Kennedi at
well-known events, increased company success. In the following
years, Gucci opened stores in England, Japan and China. In
1970, the first Gucci perfume called Gucci No 1. was created
and launched. In 1980, the first ready-to-wear collection of
Gucci clothing was demonstrated at Florentina fashion shows
and was concentrated on Flora patterns. Company gained many
praises from the fashion critics and the show was welcomed
with excessive triumph. In the 1990s, young designer Tom Ford
came into company with his ideas on clothing, but later on, in
1994 he became a Creative Director of Gucci by changing the
style of clothes and taking the company to the new level. In
1995, Gucci under the Creative director of Ford, showed the Fall
1995 collection which was a revolutionary successful collection,
by persuading Madonna, Jennifer Lopez and Gwyneth Paltrow
to wear pieces from this collection on the red carpet. In the late
90s, Kering company purchased parts of Gucci shares and
became the major stockholder of it. In 2004, Ford and CEO
Dominico left the company and it was taken by new designers.
Fiardi Giannini has become responsible for handbags, John Ray
has become in charge of menswear while Alessandra Facchinetti
for womens’ wear. In 2014, Giannini resigned from the position
of Creative Director, by leaving Alessandro Michel in this post.
At this time, the new CEO of Gucci Marco Bizarri also took the
office. At present time, Bizarri and Michele are working
together on new strategies, visions and products of Gucci.
Brands used by GUCCI
Being an Italian fashion brand Gucci, itself is a part of the
French luxury group Kering. Besides Gucci, the company owns
other famous leather goods houses like Saint Laurent, Bottega
Veneta, Balenciaga, Alexander McQueen and Brioni, all of them
are renowned for their exceptional craftsmanship and distinctive
creativity and character across the world. Saint Laurent is one of
the most outstanding fashion houses of the 20th century which
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was founded in 1961. Bottega Veneta House also has been
famous for its luxury leather goods since its establishment in the
year 1966. As an iconic brand, Balenciaga house occupies an
unbeatable position since its creation in 1917. The next brand
house owned by Kering is the Alexander McQueen House which
was established in 1992 guided by an unparalleled vision and a
respect for craftsmanship. The last iconic brand house which is
owned by Kering is Brioni which was founded in 1945, it is
known as one the iconic Italian brands that best epitomizes high-
end masculine delicacy today (Kering.com, 2020).
GUCCI vision statement
Gucci is reinventing a wholly modern approach to fashion. The
company has redefined luxury for the 21th century under the
new vision of its creative director, Alessandro Michele. Gucci
has been reinforcing its position as one of the world`s most
desirable fashion houses. Being eclectic, contemporary and
romantic—Gucci products represent the pinnacle of Italian
craftsmanship and are unsurpassed for their quality and attention
in detail (Bhasin, 2018).
GUCCI mission statement
In short, Gucci`s mission is to become the leader in the luxury
market at a worldwide level. The company has optimistic and
big plans for the future. As mentioned in Gucci`s mission
statement, it is not enough for Gucci to be among the best and
the most influential names in the fashion, but the company wants
to be the leader and the most influential brand among others in
the fashion industry (Bhasin, 2018).
Company Values and principles
One of the main values of Gucci is Corporate Social
Responsibility and it is considered as the core of the brand’s
identity. The brand has introduced a mechanism to incorporate
global, financial, legal, human rights and customer problems
into business operations which lead management practices and
organizational actions adhere to the concept of "Sustainable
Value" (Gucci.com, 2020). Gucci system is aimed at increasing
and building the responsiveness in culture and consciousness in
term of employees, shareholders, consumers, vendors,
subcontractors, financial and economic partners, host
governments, organizations, labor organizations, trade unions-by
implementing a strategy of social and environmental
responsibility that values the following aspects:
● Ethics of industry
● The Respect of Human Rights
● Respect for the interests of workers and equal opportunities
●Respect for and preservation of the health and safety of
employees
●Respect for and enhancement of professional competence
●Valuation of diversity (culture, gender, disability)
● Cooperation and fostering ofunity
IJESC, October 2021 28962
● Respect and conservation of the environment and biodiversity
● Stakeholder Respect
● Engagement of supplier (Gucci.com, 2020)
Sustainability Principles include the supplier and all of its sub-
suppliers, even on behalf of Gucci, suppliers of products and
supplies used in the manufacture or execution of operations. The
Company must follow the laws, contractual agreements and
additional agreements regarding human rights, workers' rights,
environmental security, respect for animal welfare and the
Principles of Sustainability, as well as in keeping with the
International Conventions and Declarations (Sustainability
Principles, 2019).
Competitive Advantages
The main competitive advantages of Gucci are top quality and
exclusive products, global brand recognition and customer
loyalty. Gucci has an advantage of distinction, where the ability
of consumers to pay is greater, resulting in higher prices
compared to other brands. This benefit of having uniqueness
occurs in its powerful luxury brand which keeps its position on
the top markets for a long time. Gucci's products bear higher
prices due to a higher perceived uniqueness of the commodity to
produce a greater willingness to pay. Gucci is effective in
implementing its differentiation advantage because it knows its
core customer, recognizes what these consumers appreciate
most, enhances the core features of the product and adds or
eliminates features over time according to evolving tastes and
interests.
The services add value to the client and therefore neutralize risks
by building a brand connection in the long run. The management
and production of Gucci are distinctive, offering high quality
and novel items. In the promotion and growth of the company,
its manufacturing and distribution processes are central. Finally,
Gucci already has a push strategy for the customer by involving
the target customer that helps to achieve and sustain this
strategic advantage.
In addition, Gucci produces a range of luxury clothing and
accessories through its partner brands (Bottega Veneta, Saint
Laurent, Alexander McQueen, Balenciaga, Brioni, Christopher
Kane, McQ, Stella McCartney, Tomas Maier, Boucheron, Dodo,
Girard-Perregaux, Pomellato, Qeelin Ulysse Nardin and Sport &
Lifestyle brands Puma, Volcom and Cobra) which are spread in
more than 120 countries that proves strong position in terms of
competitive advantages (Bhasin, 2018).
Location
According to the Kering website, Gucci directly owns 487 stores
located worldwide (Table 1.). In addition, Gucci as a brand
indirectly operates a number of department stores and shops
from East Asia to West America using the franchise system.
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Table 1.(Source: Kering.com)
Gucci is a luxury brand of fashion house with the headquarter
located in Florence, Italy. Gucci is the most well-known luxury
fashion brand in the United States with a total of 48 stores and a
half of U.S. customers showed a willingness to own Gucci
goods (Statista.com, 2020). This European brand’s stores are
Partners
The chance to show your product or service to a brand-new
audience is one of the greatest benefits of co-branding
campaigns. Partnership with other companies can be tied with
two main objectives: increasing sales or providing charity. Gucci
also has several partners in the spheres of design, retail, charity
and supply. One of the important charity partners of Gucci is –
UNICEF children organization, which works in more than 190
countries worldwide and contributes for protection of rights,
lives as well as provision of financial assistance from early years
until adulthood (UNICEF, 2020). Since 2005, Gucci has
donated more than US $20 million to the work of UNICEF,
focusing on the 'Schools for Africa' initiative that enables access
to quality education for the most vulnerable children, including
girls, orphans and those living in extreme poverty. So far, more
than 7.5 million children living in sub-Saharan Africa and China
have been positively influenced by this collaboration
(Gucci.com, 2020). In 2019, Gucci announced its strategic
cooperation with Chinese Tencent, which is a technological
company, specialized in IT services (Tencent - Pandata, 2019).
The main aim of this partnership is to elaborate projects that will
combine fashion and new technologies in the fields of artificial
IJESC, October 2021 28963
currently operating not only in developed countries but in a large
number of emerging countries mostly in Asia, especially India
and China show tremendous growth in consumption
(Statista.com, 2020).
intelligence, big database, entertainment, smart business and
many others (Gregorian, 2019). This partnership has created
several opportunities for Gucci to go into Chinese market by
enlarging its frame of influence as well as differentiating
business offers for customers (Celeste, 2019). However, in
October 2020 audience was the most surprised by hearing news
on partnership of Gucci with The RealReal – a resale site from
SanFrancisco (The RealReal Partners with Gucci for its Biggest-
Name Resale Venture to Date | The Fashion Law, 2020). One of
the sustainability goals of Gucci included expanding its sales’
horizon by promoting its products through an online resale
website and The RealReal is the first one. CEO of Gucci, Marco
Bizarre states that inclusion and increasing of the resale market
into company development strategy is a very interesting
approach as it helps for the circulation of products in every area
of business (Zargani, 2020).
Competitors
Being one of the best leaders of having a strong competition in
the world of fashion and following companies may be
contemplated as the main competitors of the house: Christian
Dior, Prada and Armani.
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 Table.2. Gucci's top competitors (Source: Student’s analysis)

GUCCI Company’s product range and services
Over the nine decades, Gucci Company produced a huge range
of products and nowadays in official websites of Gucci, there are
over 3000 goods. It is claimed that the company produces goods
to allow connections between consumers and their daily
lifestyle. Company’s majority of products are iconic items and it
means long-time power and appreciation for Gucci goods. An
iconic item is not established, rather unique and excellent goods
are created and over time, as consumer values and appreciation
for the good grows, that product rises to iconic levels and thus
an iconic good is born. An iconic defined as a timeless product
that lives forever, no matter what the vogue trends. Gucci
Company has over the decades produced a lot of beautiful and
unique products that have gone on to obtain iconic levels and
become logos of the company (Table 3.)

Table 3. Product categories offered by Gucci (Source: Gucci.com)

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Gucci’s every icon product has a rich and storied history.
Company revives its icon items to remind consumers of that
storied history and at the same time give them a chance to be a
part of brand heritage. Moreover, Gucci Company created the
Icon Club, which is a project that welcomes every buyer owning
an Icon, for example the Men’s Horse Bit Loafer, the Jackie and
the new Bamboo. The aim of the project was to reinforce the
brand's heritage and give to consumers the pride bounded with
owning a Gucci Icon. The project suggests to customers a set of
unique offerings with extensive knowledge on the storied past
and craftsmanship that goes into every icon of the brand, so that
the celebration of the company's icon products can last even
after the customer has left the magazine. In addition, in the
beginning of 2011 Gucci brand and FIAT brand in the clothing
industry represented a joint edition product, the FIAT 500
Gucci. This automobile was accessible in two colors, white and
black (Figure 1.).

Figure 1. (Source: Autocar.co.uk)

On the other hand, the fashion industry has been affected by the
COVID-19 outbreak on each stage from retailer to supply chain
to vendor. We have seen the majority of stores close, in order to
minimize the risk of coronavirus infection, governments closed
down manufacturing industries, magazines and department
stores. Good has ceased and demand has decreased. But Gucci
found the way to survive this situation. Company began to
produce medical masks, according to statistics (22 March.
2020), the brand produced approximately 1.1 million face masks
and 55,000 couple of medical overalls (Figure 2.). Moreover,
Gucci Company donated 2 million Euros in the fight against the
COVID 19. Company gave half of the money for Italian Civil
Protection Department and the other half for COVID19
Solidarity Response Fund in aid of the WHO.

Figure 2. (Source: The business of fashion)

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II. MARKETING STRATEGIES
Segmentation
Geographical segmentation
The largest share of Gucci customers is from developed
countries. As a result, they possess high standards and
purchasing power. However, the brand's geographic
segmentation is not accordingly structured as it used to ignore
second world countries and developing markets (Casey, 2020).
Demographic segmentation
Demographically, the brand is segmented using gender and age
asbreakdown points. The Company produces goods for both
genders, children and teenagers respectively. Gucci products are
for the category of male and female who love to make an
impression on other people.
Psychological Segmentation
Gucci company strongly pays attention to standards of lifestyle.
From the beginning the company has focused mainly on famous
individuals who can influence the high-end market. Gucci
Company has been announced as a “hottest luxury brand”
(McKinsey&Company, 2020).
Behavioral segmentation
Behavioral segmentation means brand and customer loyalty
(Kotler P. et al, 2008). Gucci as a brand has recognized over
Figure 3. Positioning of Gucci
Marketing Mix
Product: Women’s wear, bags, men’s wear, accessories and
kids' clothes can be found in Gucci stores. The changes of
products can be observed every year, so it produces mostly up-
to-date fashion products.
IJESC, October 2021 28966
several years to be high quality and very reliable, as a result, the
company has been known for high customer loyalty. Company
is able to increase its rating and respect among customers while
selling goods and services at a high price.
Targeting
Gucci Company targets people aged between 25 to 50. Among
this demographic group it also specifically targets celebrities,
businessmen and sportsmen. From 2021 Gucci plans to increase
manufacturing products for 40% for the child sector, as rich
people prefer high quality products for their children.
Brand positioning
Brand positioning shows a different and unique side of the
company that, different from its competitors and its position in
the market. Gucci Company presents a unique market with
different brands, the market is exclusive luxury. Unique
techniques of making Gucci products are the usage of high-
quality materials based on its tradition. USP (Unique selling
point) of the Company is using its logo “double G” in all
products. Second USP of the brand is using a big amount of
flower prints and light colors. Moreover, ESP (emotional selling
points) is describing the product with feelings and emotions to
the customers as an alternative of logic (MTD, 2001). Below
there is Gucci brand positioning map, indicating the company’s
current positioning in the fashion industry. (Figure 3.)
Price: As Gucci uses the best quality materials, the price is
always high. People want to pay much for good quality and
fashionable brands, so Gucci never has discounts or sales to
keep an image of a premium luxury brand.
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Promotion: Gucci pays less attention to advertising, because the
image of the company and the concept of its products are unique
with limited edition collection lines. However, the company
focuses on individual approach strategy. Knowing more about
customers perception and preferences the company can apply
better commercial strategy.
Place
Brand has nearly 487 shops all over the world. The main
revenue generator region for Gucci if Asia-Pacific (38%),
Western Europe (28%) and North America (20%). In 2020, 53%
of sales originated from online customers due to the effect of the
pandemic.

SWOT analysis

Source: Students’ analysis

Concepts and theories which explain changes in Gucci one of its worst times since the beginning of the coronavirus
strategies during the pandemic: Fashion world has been facing pandemic. With worldwide lockdowns and limitations for

IJESC, October 2021 28967 http:// ijesc.org/

travels, fashion brands started experiencing huge losses due to
immense decrease in their in-store sales. Their strategies that
were used before the pandemic have not been working anymore
and did not generate in the new reality. Therefore, well-known
fashion brands like Gucci had to change their strategies in order
to survive and keep selling their products in considerable
quantities during such a difficult era. It was at this point that
fashion brands realized the significance and importance of
online stores for selling their products during coronavirus
pandemic. Sophisticated brands like Gucci understand what
people wish to wear in the future really well. Though, the
fashion industry has been comparatively very slow in its
transition from traditional physical stores to online stores. For
many years, Gucci and other famous brands such as Louis
Vuitton and Prada have been depending on their physical shops
to render service to their wealthy and well-known customers.
But once such big brands as Gucci understood that most of their
clienteles are seeking online inspirations while purchasing a
product and after shopping, they knew they had to get up and go
for it (Business Models Inc., nd). With the spread of the
pandemic across the globe and shoppers locked in their homes
and banned from traveling, Gucci established a virtual
personalized experience to keep its relationship with its
customers. The fashion house inaugurated its artificial luxury
store at its Gucci 9 center in Florence, Italy. It enabled Gucci
staff to emit from a replica showroom and show the items and
products to customers through camera as per their requests.
Gucci also has launched “Gucci Live” by which its staff can
communicate with its customers across the globe by laptop and
smartphone (Gucci Goes Virtual, 2020) For luxury shopping the
key part is personal service. Therefore, it is logical that Gucci
would change its practices to continue meeting its customers`
needs and demands even at a time where its stores are closed.
Personalized video consultation stimulates Gucci sales among its
customers specifically in the countries where Gucci does not
have physical shops. “Gucci Live” was tested in Europe before
being used to the rest of the continent and beyond that in the
Middle East and Africa. Many argue that e-commerce in spite of
providing facilities to buyers lacks human-interaction that clients
could experience while shopping physically from stores.
However, by using technology to keep in touch with its
customers during the Covid19 pandemic, Gucci introduced a
new strategy for loyalty building with its customers which will
last long even after the coronavirus pandemic disappears (Gucci
Goes Virtual, 2020). Secondly, the global scale and uncertainty
surrounding the coronavirus lead Gucci to switch from luxury
clothes and footwear to medical masks and hospitals gowns,
from makeup kits to pharmacies and antiseptic gels. The
intention to sew protective equipment instead of the spring
collection is also expressed by European brands and Italian
designers. This strategy has been beneficial for the company as
Gucci face mask has been heavily sought after by beauty
aficionados, since Billie Eillish unveiled her custom black face
IJESC, October 2021
mask from Gucci at the 2020 Grammys. Though not designed to
COVID-19's features, the black Gucci mask was a key element
in the award ceremony and visitors wondered if they could
obtain the same design. People have been searching the internet
after that event to buy their own Gucci face mask(Editorialist,
2020).
Financial aspects of Gucci
From the beginning of Covid-19 and lockdowns, many brands
were concerned that customers would not be able to visit their
stores. As the other brands Gucci also suffered from the
coronavirus crisis which severely impacted its sales, particularly
by the drop in demand from Chinese customers. Like-for-like
revenues were down 23.2 percent in the period of pandemic
through Gucci label, which drives much of its earnings
compared with a less pronounced 13.8 percent drop-off at
Kering's Saint Laurent brand (ET Retail, 2020). Apparently, the
distortion in the Chinese market, where Covid-19 first hit,
obviously hurt Gucci’s financial status because the brand
generates 37% of its profits from Asia, and a large number of
customers are in China. Gucci had reported strong market in all
brand industries before the outbreak started, as a result of
pandemic the brand faced a tough contrast with the previous
year when comparable sales had risen by a remarkable 20
percent. Moreover, the division was also damaged by the
shutdown of its Italian manufacturing facilities where the first
outbreak in Europe was impacted by pandemic. According to the
latest data, positive reports are coming from Chinese shoppers
who have been back in their local Gucci stores since they
officially reopened after the lockdown which helped Gucci to
return strong revenue growth in China. However due to
pandemic, higher demand may not last long, especially if luxury
items buyers' purchases become affected by the slowing down
economy. Another factor which has influenced the financial
aspect of Gucci is the ongoing closure of stores in the U.S. and
Europe, and the absence of Chinese visitors until reopened,
would mean that sales remain low elsewhere. Despite the
drawbacks, nowadays Gucci is still one of the leader brands of
Kering’s powerhouse, accounting in 2019 for 61% of company
income and 83% of operating profit (Bloomberg, 2020).
Gucci stores Operational Management
Gucci is the leading company in the operating system and
delivering services. It is not a secret that, today, Gucci Brand
and FARFETCH company are partners, and recently they
created a new way of delivery operation, which is called “Gucci
in 90 Minutes” . New delivery service delivers orders to
customers’ doors in record time one and a half hours. Nowadays
this service is available in 10 cities across the world. As soon as
the pandemic started, all organizations and industries reviewed
their operation system, as well as Gucci. Company set the rules
to stores’ operational system to minimize the risk of infection,
they are;
28968 http:// ijesc.org/
Distance, respect and protect – at Gucci, the health and well-
being of customers, employees and communities are its high
priorities. All Gucci stores that are reopened will be performing
and following a new operational system, by these strict safety
protocols the brand wants to help fight the spread of the
COVID19.
Personal protective equipment – buyers are required to wear
face masks to enter a shop and follow any local governmental
mandates. Company does not require customers to wear gloves
while they are shopping, but they encourage clients to use the
provided hand sanitizer and antiseptics upon entering Gucci
stores. It should be mentioned that Gucci employees will be
wearing face masks and gloves while operating.
Store sanitation – stores are often cleaned during the day with
special focus on high-touch surfaces. Fitting rooms are cleaned
after every use. Gucci employees keep social distance with
customers at least six feet (two arm’s length).
Current issues and future challenges
Global major brands, including Gucci, are facing uncertain times
with the unpredictable economic prospects across the globe. One
of the challenges that Gucci is facing now decreasing growth of
the luxury market. Boston Consulting Group forecasts that
revenues will drop by 25-35% this year due to global lockdown.
Moreover, the market size decrease will be stronger compared to
the 2009 global financial crisis, and the sales are projected to
decrease by 450-650 bln USD relative to 2019. The income
decreases, consumer sentiments deterioration and store closures
will exert negative effects throughout this year. North America
which is the major fashion market for brands such as Gucci is
expected to decline by up to 85%. While domestic market sales
increased significantly in North America and China during
COVID19 pandemic in the first half of 2020, overall the sales
dropped by 4%. One of the explanations is the collapse of the
tourism industry which is one of the key drivers of sales for the
Gucci brand. For example, 20-30% of the sales are generated by
tourists shopping outside of their home countries. Apart from the
disruptions of the fashion industry by global pandemic, fashion
luxury brands such as Gucci are facing a problem of consumers
switching their preferences from premium brands with ultra-high
price tags to less costly products offered by other brands with
IJESC, October 2021 28969
similar quality. The luxury market since 2010 was driven by a
bullish market and brisk economic growth rates in China, India
and developed countries. However, the slowdown in 2020 may
redefine the preferences of consumers for luxury products
Boston Consulting Group reports that prospects of prolonged
economic slowdown in Europe, the US and Japan may
significantly reduce the consumers spending on luxury goods
and alter their preferences to cheaper alternatives. Another
challenge for Gucci brand is inability to quickly integrate into
the digital world. Cosmetics and footwear have smoothly
become part of e-retail; however, fashion brands still
significantly depend on physical sales. For instance, only 10% of
watches and 5% of fashion glasses are sold via digital platforms
and internet stores. Therefore, it is crucial for Gucci to
incorporate digital platforms and technologies into its tools to
boost sales and improve distribution. In addition, digital
marketing should play an important role in promoting sales and
brand visibility. These tools have not been utilized effectively.
While more than 80% of luxury brands use Facebook and
Instagram as marketing channels, only one third believe that
these channels are very effective. Finally, Gucci and other
brands have to consider sustainability is one of the essential
challenges to tackle in the upcoming years. Consumers have
started to exhibit pro-environmental values and they demand
their brands to offer eco-friendly products. As a result,
consumers are becoming increasingly sceptical about the brands
they purchase products from. In this sense, considering that
Gucci in the past sold products made from animal fur and skin
such as crocodile leather bags, now has to adapt to the changing
environment. Indeed, corporate social responsibility and
transparency are now among core corporate values and needed
to be treated seriously.
Survey of consumers perception of Gucci products in
Uzbekistan
The survey was designed to conduct market research of Gucci
customers in Uzbekistan and can be found in the following link.
The survey covered 88 respondents of which 72% female
respondents and 28% male respondents. The average age of the
surveyed individuals is 31 year and ranges from 16 to 56.
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The income brackets of the respondents have the following purchase of premium products such as Gucci, LV or DG, the
distribution: 44% below 1000$, 22% between 1000-2000$, 20% survey shows that 31% has never bought premium products,
between 2000-5000$, and 14% above 5000$. Regarding the while 47% has bought and 23% received as a gift.

The survey also shows that 3.4% are not familiar with Gucci brand, 18% have shown interest in this brand and 26.1% plan to
brand, 26.1% equally have bought and have heard about Gucci purchase Gucci products.

Regarding places where respondents see Gucci products, the respondents report mixed answers such as poster ads,
responses suggest that they see Gucci products for sale on the magazines, TV, Internet, abroad or on other people.
Internet – 31% and 10.2% in stores, the remaining 58.8%

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 The survey has also inquired whether respondents have any Gucci products. While 19% do not own any Gucci products, 24% have
perfume, 18% - handbags, 13% - apparel and others.

On the other hand, it seems that respondents have low social interest in the Gucci brand as 84.1% of them are not followers of any
Gucci pages on Facebook, Instagram or Twitter.

IJESC, October 2021 28972 http:// ijesc.org/

 Regarding the justified prices that Gucci assigns to its products 42% believes that prices are somewhat or very unreasonable. And
25% of the respondents believe that the prices are more and very reasonable.

Overall, 20.45% are very likely to purchase Gucci products in future and 37.5% are more likely to cash out for Gucci products,
however, nearly 24% are not likely to purchase Gucci.

Turning to respondents in the highest income bracket (above 5000$) – 75% are likely to purchase Gucci. At the same time, among
those who earn below 1000$ only 48.7% are likely to buy Gucci products. Therefore, it seems that income is positively correlated
with plans to purchase luxury products in future.

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 The respondents were also asked to rank on 1 (completely disagree) to 5 (completely agree) various dimensions of Gucci brand such
as modern, unusual, rich, elite and strong. The highest score was recorded for rich (3.1) and lowest for strong (2.84).
The survey also inquired regarding the important aspect that
respondents consider when buying luxury goods, including
Gucci. The data shows that three most important dimensions are
quality – 31%, sale – 20% and price – 12%.
Recommendations
Global instability, volatility of markets and existing challenges
can also mean opportunities for the luxury brands such as Gucci.
For example, the ongoing trade war between the West and
China, on the other hand, means that the luxury market in China
may be under threat of being affected as a result of these
tensions. Indeed, Guccy being a premium brand heavily depends
on both Chinese market and Chinese tourists coming to the USA
and EU. At the same time, the advantage of goods produced in
China is slowly decreasing as wages and economic standards
rise in this country. Therefore, Gucci can use the “made in Italy”
label to show that there are premium and significant quality
standards behind these products. This would again drive new
customers that were early discouraged by the ‘made in China’
label. Therefore, Gucci could use such segmentation. Market
analysts largely believe that again the world is moving from
economies of scale to economies of scope which could also
apply to premium brands such as Gucci. While, in the past
decade too many luxury brands have emerged that have
significantly devalued the meaning of ‘luxury’ term. However,
again the trends suggest that consumers would like to return
back to the roots. Moreover, many consumers have lost
themselves in defining what a luxury product is. Therefore, the
goal of Gucci as one of the pioneers of this market segment is to
communicate to its consumers with the clear message what is
‘luxury’ - status, design, genuineness and quality. While
numerous companies are shifting their advertising campaigns to
the digital world, luxury brands should again re-assess the
IJESC, October 2021 28974
importance of print ads. Research carried out by USPS in 2017
shows that print-ads are more likely to be received by higher
income households which is the target market group for Gucci.
Another study by Voorveld (2011) shows that e-ads are less
effective than print-ads, as those who view them online are
engaged in multitasking and, therefore, do not shift their
attention to advertisement. Absolutely, individuals in top income
brackets are more likely to read print journals and magazines.
However, Gucci can use internet platforms to increase brand
awareness and show their corporate social responsibility such as
demonstrating their loyalty to environmentalism. Gucci should
continue to view EU and US markets as their priority as the
number of millionaires there significantly outnumber those in
China. A vast majority of emerging millionaires are younger age
and, thus, may have specific preferences and values with respect
to premium brands. Experts suggest that premium brands could
increase collaboration with other premium brands from different
markets to drive new customers. In addition, emerging
millionaires value sustainability. Therefore, Gucci needs to
come up with improved business models that make
sustainability values a core principle of these models. In this
vein, there is a need to revisit the causality between profits and
quality. Many premium brands in quest for increase in profits
have lowered their standards and quality. Yet, customers are
again demanding a return to classics where quality and
individual approach was the driving force behind profits.
III. CONCLUSION
From this Gucci brand report had presented brand concepts and
theories, changes in financial and operational aspects during the
pandemic. Company is staying strong during the pandemic time
and showed its strength by creating well managed projects, as an
http:// ijesc.org/
example company spent a two-million-euro donation in help of
2crowdfunding campaigns to fight the Coronavirus pandemic, it
was called #guccicommunity to help. Moreover, the company
first began to produce face protectors and special dresses for
medical staff. All above given information is collected through
primary research by conducting the online questionnaire and
secondary research from reliable internet sources and user-
generated contents. Gucci Company is one of the original and
unique stylish brands that truly committed to their social ethical
and responsibility. As an Aldo Gucci said “Quality is
remembered long after, price is forgotten”. Company’s
differentiation of goods line is wide range and Company plans to
expand its fashion beauty line and sportswear category in Asian
countries.
Gucci report
Gucci report can be found in the following link
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