gucci and lvmh

8/7/2019 Gucci AND LVMH

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PRAJAKTA GOLE

ANAND LIHINAR

MAZHAR ALI

SNEHA TENDULKAR

SONALI PETKARAMRIT PAI


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Gucci

Founded in Florence 1921

1950: first global store in New York, US

1979: Accessories Collection with 20,000product lines & with over 1,000 stores;

1992: Loss of more than $40 million

1993: Gucci sold all the shares toInvestcorp (a Bahrain-based private

equity firm)

1993: Appointment of Domenico De Sole& promotion of Tom Ford to CreativeDirector

Corporate Background


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Background Summary

Company Gucci Louis Vuitton Vertu

Established 1921 1854 2000

Sector Fashion and Design Luxury Goods Luxury Communication

Products Men and Womens Wear,

Shoes, Jewellery, Watches,Perfumes, Eyewear, Homegoods, Luggage/Handbags,Baby Wear.

Leather goods, ready-to-

wear, shoes, watches,jewellery, textiles, writinginstruments &accessories.Famous for its handbags.

Signature Collection

Stainless Steel CollectionDuo Stainless SteelBordeaux Stainless Steel

Typical

Locations

Florence, Rome, Paris, NewYork, London, Palm Beach,Tokyo and Hong Kong.

Paris, New York, Tokyo,Dubai, Las Vegas, LosAngeles.

Paris, New York, HongKong, Singapore, London.


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Gucci Strategy

3 Phases of Brand Strategy by Gucci

1) Gucci Brand Stabilisation Phase(1995 1999)

2) Multi brand Acquisition Phase

(1999 2001)

3) Gucci Group Consolidation Phase

(2001 2004)


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Phase 1: Brand stabilisation phase:

early 1995-October 1999

1) Re-established control of Gucci productdesign and manufacture

2) Re-established control over Gucci product

distribution

3) Create a balanced product portfolio for aluxury brand

4) Establish a luxury marketing communicationsplatform

5) Create a luxury brand consumptionexperience

6) Tom Ford the design direction and control


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Phase 2: Multi-brand acquisition phase

November 1999-July 2001

1) At this phase, Gucci had transformed from theirsingle brand status to become a multi-brandluxury goods group;

2) The Gucci group to requisite skills to advantage

each category of acquisition and intra-groupsynergies to provide positive benets for thegroup as a whole

Phase 3: Gucci group consolidation phase

August 2001-April 2004

1) New Gucci group has been formed

2) To manage effectively portfolio of brands whichwill each be unique in its brand image andvalues, while leveraging the skills andinfrastructure of the enlarged Group.


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Share issue scheme

Poison Pill

PPR to buy a 42% stake in Gucci for $ 2.9bn


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Market scenario

Low market price

Stake 34.4%

Friendly relation of Pinault & Gucci

Pinault 42% stake in Gucci


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Conclusion

Follows rules and regulation

Proper strategies adapted

Better knowledge about competitors


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gucci and lvmh

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