Part 1: Gucci’s Online Presence and Digital Fashion Marketing Activity
Gucci continues to be the leading luxury online brand thanks to the efforts the company’s digital marketing team has put in to ensure it stays ahead of its competition. Its success has been attributed to its constant drive to innovate and experiment online, leveraging digital storytelling and elevated e-commerce (Malenkaya & Andreyeva, 2016). Gucci is constantly experimenting online, from the Gucci App to AR-powered try-on features on Snapchat and split payments.
The company’s genderless fashion and sustainable supply chain have also helped it stay at par and create a personal connection with the coveted younger nation, the leading luxury shoppers. Furthermore, the company’s online presence has also been boosted by its move into the Chinese market. Gucci currently sells its products on Tmall’s Luxury Pavilion, the largest e-commerce platform in China, enabling it to reach new digitally savvy affluent consumers.
Gucci’s online presence has also been strengthened by the fact that highly successful artists wear its products in their most successful tours and performances and its partnership with online influences (Danao, 2017). For instance, Gucci collaborated with Beyonce on her music video, “Formation”, which featured several female dancers with custom-made Gucci leggings, high-waist booty shorts and crop tops. Beyonce also wore a Gucci gold suit during the launch of her coveted album, “Lemonade” (Danao, 2017).
Gucci’s online presence can also be traced to its strong brand identity. The company’s strong brand identity helps it communicate a notion of high-quality craftsmanship doubled with bold and innovative design, helping maintain its online consumer base. While Gucci represents a high-social class, it has expanded its consumer base to accommodate high-class consumers while maintaining its high social status. The marketing of the brand online has also ensured that its products depict their country of origin, Italy, as part of their identity, thereby evoking feelings among clients that the company’s products represent the pinnacle of Italian craftsmanship (Malenkaya & Andreyeva, 2016).
As a result of its strong brand identity, Gucci has managed to create a personal relationship with clients, and thus when customers view in the mirror, they see a reflection of themselves. This has enabled Gucci to stay ahead as the leading online luxury brand because a stereotypical consumer feels progressive, innovative and influential, more like the brand itself.
Part 2: Product Category
Gucci is a luxury brand that prides itself on different products, most notably, the Gucci watches. Gucci watches are particularly famous among luxury brand watches globally owing to their high quality and iconic designs, making them proffered by most fashion enthusiasts (Miyauchi, 2019). Gucci watches’ success is mainly attributed to their high quality, although other external factors also influence their performance in online markets.
Owing to its success on digital platforms like Instagram and Facebook, Gucci watches often target a core customer category aged 25 to 45, who account for approximately 50 per cent of the company’s sales. The brand also targets wealthy and upper-middle-class individuals who enjoy the lifestyle Gucci represents, as this target market often wants to be perceived as luxurious and fashionable (Diplomat Magazine, 2021).
Unlike other luxury brands, Gucci understands the lifestyle of the younger generation, and thus it makes watches customized to their user experience. Gucci uses memes to sell wristwatches to reach a larger clientele base among the younger generation. Memes are a new generation of funny images or animated gifs accompanied by clever texts that are popular on social media platforms (Danao, 2017). Gucci commercialized this trend when they launched their new Le Marche des Merveilles watch collection, promoted by famous internet sensations.
Gucci has tapped into the Asian market, especially with its entry into the Chinese market. Gucci has over 50 branches in China, contributing to a quarter of the company’s total sales. China’s middle class is rapidly growing, offering a steady market for luxury Gucci watches. Thus, Gucci needs to maintain its image consistency and brand awareness in China as this presents a lucrative business venture (Andjelic, 2021).
Part 3: Digital Marketing Strategy
Gucci is one of the most recognizable names in fashion. Founded in 1921 by Italian designer Guccio Gucci, this luxury brand has transcended generations and is one of the most sought-after labels in the world. It’s no wonder that Gucci has become a household name; the brand has withstood trends and continues to evolve while remaining true to its values and roots (Malenkaya & Andreyeva, 2016). Guccio Gucci was born into humble circumstances and eventually took on odd jobs as an apprentice before starting his own business. He finally opened a luggage shop, which sold handcrafted leather goods made from fine materials sourced from all over Italy. His success grew, and he soon sold accessories like purses, wallets, and briefcases to wealthy customers who recognized his talent for creating high-end items. In 1938, he opened his first flagship store in Rome and began to expand internationally (Jung et al., 2019).
This modernized version of the iconic brand helped catapult it into global fame as more and more people wanted to be seen wearing the latest designs from Ford’s collections. Today, under Creative Director Alessandro Michele, Gucci continues to be one of the world’s most sought-after luxury brands due to its commitment to classic quality craftsmanship blended with modern design sensibilities that appeal to everyone from celebrities on red carpets to everyday fashionistas who want a timeless piece they can wear anywhere (Lippitz & Brauer, 2020). The paper will elaborate more on Gucci’s market analysis, particularly in watch production and sales.
Gucci watches are among the most popular luxury watch brands in the world. Unsurprisingly, its iconic designs and high-quality manufacturing processes have made it a favourite among watch aficionados everywhere (Miyauchi, 2019). While their success can largely be attributed to their high-quality products and innovative designs, several external factors have contributed to their success. The PEST analysis provides an overview of some of these external factors that have impacted watch production (Miyauchi, 2019).
Gucci has adopted a multi-pronged approach to expanding its reach beyond its existing markets in Europe and North America. To begin with, Gucci has partnered with major retailers around the world to make its products more accessible than ever before (Sádaba & Bernal, 2018). Additionally, it has opened several stores in Asia-Pacific countries such as Japan, South Korea, Australia, and India to take advantage of their booming economies and growing consumer demand for luxury goods. Finally, Gucci has also invested heavily in digital marketing campaigns targeting younger consumers unfamiliar with their brand or products (Sádaba & Bernal, 2018).
China presents an exciting opportunity for Gucci watches due to its large population and rapidly growing economy (Donzé, 2017). According to research conducted by McKinsey and Company (2019), China is expected to be home to over 50% of all luxury sales worldwide by 2025, making it one of the most important markets for any luxury brand looking to expand globally. With an ever-growing middle class eager to purchase luxury products such as watches from established international brands like Gucci, there is no doubt that this country presents a lucrative opportunity for them if they enter this market correctly (McKinsey & Company, 2019).
To understand the success of Gucci’s watch sales in China, it is essential to look at it through a PEST analysis. This type of analysis looks at the Political, Economic, Social, and Technological factors that influence the success or failure of a product. All four of these elements can affect the saleability of a product in a particular market, and this is especially true for luxury products like watches and their sales to China (Zipser & Poh (2020).
Political factors are significant in marketing luxury products like watches in international markets. Many countries have different regulations on imports and exports, which can affect the cost of production and distribution for companies selling products abroad (Loya et al., 2018). In addition, political relationships between countries also play an important role; if there is tension between two countries, companies may be reluctant to enter either market due to safety concerns or economic instability. In the case of Gucci watches being sold in China, there have been no major political issues between Italy (where Gucci is based) and China that have hindered sales (Nast, 2018). This has allowed Gucci to maintain a strong presence in the Chinese market without significant obstacles.
The Chinese economy is one of the largest in the world and has seen steady growth over recent years. This makes it an attractive market for companies looking to expand their reach globally. For luxury brands like Gucci, this growth means that more affluent individuals are available as potential customers; disposable incomes rise, and so does spending on luxury goods such as designer watches. In addition to this economic growth, favourable exchange rates have made it easier for foreign brands like Gucci to sell their products in China at competitive prices compared with domestic brands. These factors have contributed significantly to Gucci’s success in selling its watches in China over recent years.
Social factors can also play an important role when marketing luxury products abroad; social media platforms such as Weibo and WeChat are widely used by affluent Chinese consumers looking for information about new luxury products, such as watches from international brands like Gucci (Furui, 2021). By engaging with potential customers via these channels, companies can increase brand awareness and create positive associations with their products among Chinese consumers. Additionally, influencers on these platforms can be used to promote new products by creating content featuring them; this type of “word-of-mouth” advertising has been very effective for Gucci when launching new watch lines in China over recent years.
Technological advances have made it easier for companies like Gucci to reach potential customers worldwide who may not have even been aware of their existence before now. Digital marketing strategies such as targeted ads on social media platforms and search engine optimization techniques allow companies to reach target audiences quickly (Furui, 2021). They do this by maintaining a personal connection with each customer via personalized content or messages sent directly through digital channels, such as email or text message notifications about new product launches or special offers related to existing collections of designer watches from brands like Gucci (Furui, 2021).
The luxury watch industry is a competitive and ever-changing market. Companies such as Gucci, Rolex, Tag Heuer, and Omega are all vying for a share of the lucrative Chinese market. There is a clear distinction between the sales of high-end luxury watches and lower-priced models in China. According to Arienti (2018), Gucci has experienced significant growth in its sales over the past five years, increasing from 4% to 8% market share. This is especially impressive when compared to its competitors, such as Rolex (3%), Tag Heuer (2%), and Omega (1%).
The primary factor driving Gucci’s success has been its willingness to invest heavily in digital marketing campaigns targeted at younger consumers (Gucci, 2022). The company has also used influencer marketing by partnering with famous Chinese celebrities such as Yang Mi and Kris Wu. This strategy has allowed them to reach new customers who may not have been familiar with the brand before, thus increasing their overall reach and market share (Lee & Kim, 2020).
It is no secret that Gucci is a high-end fashion brand that has seen immense success in the Chinese market (Liu & Lan, 2022). As the demand for luxury goods continues to increase, it is crucial to understand the strengths and weaknesses of the brand, as well as any opportunities or threats that may arise.
Gucci watches have seen tremendous success in China due to their stylish design and high-quality materials. The brand has established an iconic status amongst Chinese consumers, and its logo is instantly recognizable among shoppers in major cities such as Beijing and Shanghai (Wu, 2022). Additionally, Gucci has strong relationships with key retailers throughout China, allowing them to offer exclusive deals and discounts on their products. Gucci has been able to capitalize on the growing demand for luxury goods within China by providing affordable yet luxurious watch collections that appeal to many customers (Wu, 2022).
Despite its success, there are some areas where Gucci could improve when it comes to its watch sales in China. For example, more emphasis could be placed on digital marketing initiatives such as social media campaigns or influencer collaborations to reach younger customers who are more likely to make impulse purchases online (Armitage & Roberts, 2019). Additionally, some of the prices for Gucci watches can be pretty expensive compared to other luxury brands, which can be off-putting for many potential buyers.
The demand for luxury goods in China continues to grow yearly, creating enormous opportunities for companies like Gucci, who offer high-quality products at competitive prices (Nan, 2021). Furthermore, more emphasis could be placed on creating special edition watch collections or store-exclusive products, which would help draw in new customers who appreciate exclusivity and unique designs (Nan, 2021). Additionally, partnering with local influencers could help create more awareness about these special editions and give greater visibility to new designs before they hit store shelves worldwide.
As with any business venture, potential threats always need to be considered when assessing market conditions. In terms of Gucci’s watch sales in China, one major threat would be increased competition from other luxury brands looking to tap into this lucrative market segment (Karzaeva, 2014). Another threat would be an unexpected drop in consumer spending caused by economic downturns or geopolitical events such as trade wars or currency fluctuations. This could cause buyers to focus on more affordable options instead of higher-priced items like luxury watches sold by Gucci (Karzaeva, 2014).
Target Market Profile
Gucci’s primary target market for its watch collection is men and women between the ages of 25 to 45 who appreciate quality craftsmanship and timeless design (Diplomat Magazine, 2021). This demographic typically has a higher disposable income than the average consumer and is willing to pay premium prices for products they consider worth the investment. They tend to be fashion-forward trendsetters who appreciate high-end fashion items that offer style and status (Diplomat Magazine, 2021).
Gucci employs various marketing strategies to capture their attention to reach this target market. For example, they often use print ad campaigns featuring celebrity endorsers and online ads on social media platforms such as Facebook and Instagram (Jamali et al., 2022). In addition, Gucci has been known to host exclusive events where members of the target market are invited to view new collections before they are released in stores or online.
Gucci’s success in watch sales can be attributed to several factors. First, it offers various styles, colours, and designs to suit different tastes and preferences. This variety allows customers to find what they’re looking for without compromising quality or style (Apps, 2020). Second, Gucci watches are crafted with meticulous attention to detail and use only the finest materials. This ensures that each eye will last for years with minimal maintenance required. Finally, Gucci watches are backed by an excellent customer service team that can always answer customer questions or concerns about their purchases (Apps, 2020).
Gucci also stands out from other luxury watch brands due to its focus on innovation and modern design techniques. The company releases new models yearly that feature cutting-edge materials or designs, such as carbon fibre cases and ceramic bezels (Andjelic, 2021). This commitment to modernizing its collection ensures that it stays ahead of the competition while remaining true to its classic roots. Additionally, all of Gucci’s timepieces come with a two-year warranty, which gives customers peace of mind when investing in one of their products (Andjelic, 2021).
Gucci’s primary goal in selling watches is to increase brand loyalty. Offering customers an additional product creates more opportunities for them to purchase from them and build long-term relationships with the brand. Additionally, by introducing a new product line, Gucci can tap into a new market segment and further expand its customer base (Shih & Agrafiotis, 2015). Gucci also sells its watches to increase revenue. By introducing alerts into its product lineup, the company can generate more income from sales of these items. This can help the company reach its financial goals faster and ensure that it remains profitable and successful over time (Shih & Agrafiotis, 2015). Additionally, this increased revenue can be used to invest in research and development, allowing the company to stay ahead of its competitors regarding innovation.
Gucci sells watches to create a higher perceived value for the brand overall. Due to its position as a leader in luxury watch design, Gucci can create an aura of exclusivity around its products that will make them more attractive to potential customers and increase its market share (Shih & Agrafiotis, 2015). As a result, they can set themselves apart from other competitors in the industry and further differentiate their brand from others on the market.
Digital Technology Initiatives
Gucci has launched the Timepiece Configurator app, which enables customers to customize their watches before buying them online. The app allows customers to select from various designs and styles of both men’s and women’s watches (Zhang, 2021). Customers can also choose from different colour combinations and materials, such as gold, silver, or steel. This feature gives customers more control over the design of their watches while also providing them with a unique experience they would not get elsewhere (Zhang, 2021).
The benefits of using the Timepiece Configurator are numerous. Firstly, it allows customers to tailor their watch purchases to their tastes and preferences. With so many customization options, customers can create something unique that reflects who they are as individuals (Zhang, 2021). Secondly, by allowing customers to customize their watch before making the purchase, the app helps reduce potential buyer’s remorse because they already know exactly what they are getting before making a financial commitment (Zhang, 2021). This helps build loyalty between Gucci and its consumers, which will be beneficial in the long run as people will be more likely to return and shop again in the future due to their positive experiences with the brand’s products and services
Gucci has incorporated augmented reality into its packaging design for watches. The company provides a QR code on its products, which, when scanned by users, allows them access to exclusive content related to the surveillance they have purchased (Claeys, 2023). For instance, it could be videos featuring behind-the-scenes footage of Gucci’s manufacturing process or images that provide an up-close look at what makes each timepiece special (Claeys, 2023). This initiative enhances the customer experience by giving them access to exclusive content that makes their purchase even more meaningful.
Gucci has leveraged social media platforms such as Instagram and YouTube to connect with potential customers and promote its watch collections. The company uses high-quality images and videos to showcase their products in an attractive way, which helps create an emotional connection between customers and the product (Shephered, 2021). Additionally, the company utilizes customer reviews from other people who have purchased their watches to give potential buyers an unbiased opinion about the product. This helps build trust between customers and the brand, leading to increased sales. Furthermore, through Instagram stories and “swipe up” links embedded into posts, Gucci encourages users to click directly to their website to purchase products immediately (Shepherd, 2021).
Digital Communication Schedule
The first step in Gucci’s digital communications schedule is to create buzz around their new watch designs through various marketing channels. For example, they may use social media to post teaser images or videos of upcoming designs or use influencers to spread the word about their latest pieces (Shepherd, 2021). They may also hold events such as virtual launch parties or product previews to create excitement about the new models.
Gucci uses digital tools and platforms to ensure potential customers know about their products. This includes leveraging Google Ads and other pay-per-click services to provide potential buyers to see their ads when searching for watches online. Additionally, they may use email campaigns or targeted banner ads on popular websites to reach their desired audience (Shepherd, 2021). Once the customer has been made aware of the product, they must be convinced that it is worth purchasing. To do this, Gucci utilizes content marketing strategies such as creating informative blog posts about the features and benefits of their watches or creating video tutorials on how to use them properly (Shepherd, 2021). They also employ customer service agents who can answer customers’ questions about a particular model before making a purchase decision.
Measurement And Contingencies
Gucci uses digital measurement to ensure that all its watches are produced precisely. This includes using specialized computer software to create 3D models of each watch design, which allows them to visualize the product before it is manufactured (Ming, 2022). The company incorporates automated machines into its production process to help reduce errors and increase efficiency (Ming, 2022). This ensures that all the watches produced are high-quality products that meet customer expectations.
Gucci also has an extensive contingency plan for selling its watches globally. This includes setting up distribution centres worldwide to quickly get their products to customers wherever they may be located (Ming, 2022). Additionally, they use digital marketing strategies such as social media campaigns and targeted ads to reach new customers in different countries and regions. Finally, they partner with retailers across multiple countries so local customers can easily access their products.
Gucci can incorporate blockchain technology to help it protect its brand image and eliminate fakes. Owing to the costs associated with luxury brand products like Gucci watches, several fake manufacturers have emerged offering almost similar products that may be difficult to distinguish from the original ones. Blockchains offer a distributed registry technology that would protect luxury brands like Gucci from fake manufacturers. Through curate technology, Gucci can protect its customers from the risk of buying fake products and fraud because it uses remote radio frequency identification (RFID) that can be used in the verification process. This makes verifying the originality and authenticity of luxury products like watches easier by scanning RFUD tags attached to the products. This will ensure Gucci’s customers buy genuine products and protect the company’s reputation from damage caused by fakes.
While Gucci’s sales have increased and the company’s brand image has improved, it still lags in advertising. Gucci should adjust its advertising techniques in regard to the models they use to help promote diversity in marketing. By using more diverse models, the company would create a buzz in the media, helping it achieve even more numbers. Currently, several luxury brands prefer almost only white skinny models because of the assumption that this sells better. Nonetheless, only 16 per cent of the world is white and more countries are becoming richer. Suppose Gucci hopes to be a globally accepted brand; it should diversify its advertisement to appeal not only to affluent white individuals but to the entire globe, creating cultural globalization and eliminating barriers in fashion.
In summary, Gucci is a luxury watch brand that has incorporated digital tools and platforms into its marketing and communications strategy to reach potential customers globally. They have leveraged social media, email campaigns, pay-per-click services, content marketing strategies, and customer service agents to build trust with current and potential buyers. Additionally, they use measurement techniques such as 3D modelling software and automated machines to ensure the high quality of their products. Finally, they utilize a variety of contingency plans to sell their watches globally by setting up distribution centres around the world and partnering with retailers across multiple countries. All of these efforts help Gucci remain competitive in the luxury watch market and maintain its status as one of the leading brands within this industry.
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