Ch. 5 - Developing a Global Vision

Gucci, Louis Vuitton, Hermes, Chanel and Prada are in close competition. Therefore, Gucci emphasis in the Chinese market is crucial because China is ranked number 2 in buying power. “The future of the world will be profoundly shaped by China’s rush toward consumerism,” says Karl Gerth, an expert on Chinese consumption at the University of California, San Diego.

Interestedly enough, Gucci is faced with consumer issues in major urban city like Shanghai and Beijing, because those customer can afford the luxury brand, whereas, the secondary cities still sees Gucci has a novelty.

Rather than building new stores, Gucci’s new approach is offering entry level leather goods and accessories, in its new locations, than gradually introducing ready-to-wear and other accessories as consumer tastes grows. This way, Chinese consumers at different stages of luxury spending are able to acquire well-suited products from the same brand.