TEAM 1 , 5TH

TH SEM {M}

SVETLANA GURUNG 19BBAR0310

VIJAYLAKSHMI G HUNDEKAR 19BBAR0312
NIHAL V GOWDA 19BBAR0501
SHIVANI JAISWAL 19BBAR0218

CONTROVERSIES HANDLING &

CRISIS MANAGEMENT IN THE COMPANY

M E N TO R – S H I L P I M A M

PUBLIC
RELATIONS
 . INTRODUCTION

. EXPLANATION

. CONCLUSION

. LEARNINGS
. REFERENCES
. GREETINGS

ONTENTS
 INTRODUCTION
• WHAT IS CRISIS MANAGEMENT ? • WHY IT IS IMPORTANT TO HANDLE
CONTROVERSIS?

• WHY WE CHOSE THIS TOPIC WITH GUCCI?

CHALLENGES FACED BY LUXURY BRANDS
 

1. FROM GLOBAL TRAVELER TO LOCAL SHOPPER:

 The luxury sector appeals to a global consumer: 20 to 30 percent of industry revenues are generated by
consumers making luxury purchases outside their home countries.
 Asian shoppers buy luxury goods outside their home countries not only to benefit from lower prices in Europe,
but also because shopping has become an integral part of the travel experience
 
2. SHOWS WITH LIVE AUDIENCE :
 Fashion weeks and trade shows have been essential ways that brands have maintained vibrant relationships with
consumers and trade partners.
 Due to the pandemic , there were no shows held which resulted in no sale of luxury products.
 
3. The backbone of the garment supply chain quickly began to crumble as millions of migrant labourers left their
jobs and scattered to go to their hometowns.
4. Lockdowns around the world kept stores closed and shoppers at home.
SOLUTIONS FOR LUXURY

1. An increase in e-commerce activity has also favoured luxury brands that were quick

to gather insight from prevailing trends and rejuvenate their online presence after the

pandemic.

2. Gucci, for instance, experienced triple digit growth in its e-commerce channels

during and after the lockdowns, thanks to its investment in group digital platforms

3. The luxury brands in the market anticipate growth of 1% - 4% for luxury retail in

2021.

4. E-commerce is giving retailers the chance to broaden their reach and tap into search

engines to drive traffic.

GUCCI STRUGGLE IN PANDEMIC

* Drop in Gucci's sales when the pandemic hit

* Focused mainly on one regions Clientele
* Tourist as their main shoppers
* Focused only on well-heeled shoppers
* Revenue steeps down to US$ 2.5 Billion
* Gucci is planning to target the older shoppers
SOME SUGGESTIONS TO GUCCI

*Should focus on more clients

*Could give some perks

* Market on Bing
NEW STRATEGY CAN APPLY FOR LUXURY ITEMS (GUCCI)

• EVOLUTION IN
PRODUCTS

• CHANGE THE NICHE

• VIRTUAL TRIAL

• DIGITAL
TRANSFORMATION

• INTERACTIVE
INNOVATIONS: AR, VR,
LIVE STREAMING

• SUSTAINABILITY AS A
STATUS SYMBOL
 CONTROVERSIS HANDLING IN GUCCI
1.)Why are people boycotting
Gucci? The Blackface sweater
controversy and boycott explained

2.)Designers like Gucci are failing

to learn from their mistakes and
keep selling clothes that spark
accusations of cultural
insensitivity
WHAT IS THE
FUTURE OF LUXARY
BRANDS AFTER
PANDEMIC

1 Put digital at the center of your

operating model

2 Build competencies related to

resilience

3 Boldly reshape the ecosystem,

including through M and A

4 Anticipate shifts in consumer

sentiment and behavior

5 Digitize the end-to-end supply chain 

 CONCLUSION

THEY ARE AT STAR LEVEL IN BCG MATRIX WHERE THEY HAVE HIGH MARKET
GROWTH
RATE AND HIGH RELATIVE MARKET SHARE . IT ALSO SHOWS THEY STILL HAVE
TO CHANGE THE MARKET TO GROW AND BECOME CASH COW.
 LEARNINGS
• LUXERIOUS IS NOT JUST A SHOPPING BUT IT’S A
WONDERFUL BUSINESS

• MYTHS V/S REALITY

• TEAMWORK AND CORDINATION

• CREATIVITY

• HOW TO HANDLE CRISIS AND CONFLICTS

https://inews.co.uk/news/gucci-blacface-boycott-why-people-boyco
tting-50-cent-explained-258822

https://www.insider.com/designers-like-gucci-keep-facing-cultural-
appropriation-accusations-2019-5

https://www.wsj.com/articles/gucci-struggles-as-pandemic-keeps-t
ourists-home-11603391068

REFERENCES