GUCCI SWOT Analysis

1. GUCCI’s Strengths
1.1 Brand Equity of Gucci
1.1.1 Brand image

GUCCI has been able to present their brand through their products as a combination of
exclusivity, modernity and prestige. They make their products a combination of modern
designs while maintaining their classic design that has been their identity for many years
now. It is important to keep some part of their original classic design as customers are
better able to resonate with the brand and feel part of GUCCI 's story. The kind of
image that the consumers have developed in their minds is that when they wear GUCCI
products, they feel exclusive because they associate their personality with the
personality of GUCCI which they have depicted for many years now.

1.1.2 Brand elements

GUCCI has been in the market for a very long time and its logo is now identified around
the world. The logo is a very prominent element for their brand and most of the buyers
are actually paying to get that logo on the products that they wear. Their logo adds so
much value to their brand equity in the consumer's mind and because they have
established their image around the world, they are now able to cash that logo through
their products.

Conclusion: GUCCI have a strong brand identity, they are easily recognizable to the
public with their iconic prints and product. 
 1.2 High quality products

Naturally, with the quality and the trademark that it represents, GUCCI products are of
the highest quality and the most luxurious items in the market. For instance, their
footwear is handcrafted and entirely made in Italy, meaning all their product is rich in
culture.

Loafer with Web and Interlocking G

Leather loafer with Double G and Web
 Men's loafer with Horsebit

1.3 Strong presence in international market

GUCCI has over 550 stores across many countries. Its major presence is in UK, US and
China as well as in other emerging countries. With a large number of store worldwide
(making their product widely available) and being unaffected by economic crisis, GUCCI
have been named ‘One of the World’s most successful brands’ (Forbes).
Mumbai, India
Seoul, South Korea

Milan, Italy

Hanoi, Vietnam
 1.4 Product line and depth

A major advantage of GUCCI is its product portfolio which comprises of premium

handbags, apparels for men, women and children, clothing and whatnot in fashion such
as decorations. It is a complete ultra-premium lifestyle brand.
Clothing for Girls
Clothing for Boys
 1.5 Keeps Diversifying

It is not easy in the fashion business and one of the advantages of GUCCI is that it does
not wait for events to launch something new but it keeps changing things so that the
store layout always looks fresh and hip.

Gucci’s Milan Fashion Boutique in Via Montenapoleone, “THE” Milam luxury avenue

New store concept in Soho, New York

 GUCCI Pin pop-up in Hong Kong with theme “Year of the mouse”

2. GUCCI’s Weakness

● Too many products, hard to produce and maintain profits if some products aren't
selling.
● Continuous updating of products, there is not always guaranteed good sales,
some years something might sell better than the other and vice versa. 
● The financial base is weak and alarming, with a long term debt increase from $17
million in 1998 to $143 million in 1999 and to $1.3 billion in 2003. Some brands in
the GUCCI group’s portfolio are still not profitable, and there is a need to
promote and market them aggressively.
● Invest a lot of money in order to maintain brand image

3. GUCCI’s Opportunities

● They currently collaborate annually with UNICEF and have their own charity –
Chime for Change – however they could have further collaborations with
charities in the future (such as the one that this campaign is proposing) or more
celebrity endorsements.
Chime For Change aims to inspire participation in a collective community.
Across borders, and generations. All united in the fight for gender equality.
Beyoncé Knowles-Carter is one of the Co-founders
 ● Youth is more brand conscious then ever – The youth of today
literally demand premium brands as the earning power is on the rise and more
and more people are having a successful career.

● Fashion never ends –  Fashion keeps changing and someone who is at the start of
the line, will not find attaining sustainability that difficult.

4. GUCCI’s Threat
Competition largely exists on how potent and valuable the brand image has become.
Companies are forced to invest huge money in brand promotions in order to maintain
their image. Expenses such as advertising and marketing expenses, acquisition of
competitors, control of the distribution channel and other strategies take the bulk of
company’s operating budget.

In this industry, the barriers to entry are really high and the barriers to exit are low,
therefore only the select few can maintain their position in the market, while others
could give up altogether or are bought by bigger firms.

Also, luxury goods do not have direct substitutes like other ordinary goods but the
threat could come from imitation. Counterfeits often penetrate the market. This could
take away a portion of the sales that should go to luxury goods companies.
There is also the threat of substitutes to contend with. These are products that are
considered ordinary or the medium brands but can eventually expand their product
lines to premium brands in the future such as Zara and Gap.