What Can Luxury Brands Learn from Gucci About Millennials?

ARTICLE SUMMARY

Diane Primo has tried to mention some key decisions of Gucci. Gucci is a prominent fashion brand in the global fashion industry. It has been revealed that Gucci experienced 44.6% growth in sales as compared to last year, and it is due to strategic branding. Gucci management has transformed the business to integrate with modern fashion trends for new generations.  Interestingly, the firm has successfully integrated with growing millennial demand. According to new financial reports, Gucci encloses 50% of millennial sales in the competitive fashion market (Primo). Remarkably, the Gucci brand has identified what Millennials want. Personal satisfaction and value are two major elements, which have been aligned perfectly. The firm has redefined luxury with the time, and it is a big lesson for all other brands. The luxury fashion industry has become purposeful. Companies do not want to change customer perception in the competitive landscape. For Instance, instead of selling products at discounts, Burberry burnt its stock. It tried to keep the social status of people as people had to buy high priced fashion products.  Coming up with a proper purpose in the fashion industry is the best strategy of this brand. The purpose is a key instead of just making money. Justifying the purpose has emerged as a critical trend, and it seems a learning aspect for other fashion retailers in the global market (Primo).

APPLYING BRAND EQUITY

 Brand equity is a crucial concept studied in the class. Brand equity is a commercial value, which is to be derived from the perception of customers. The article elaborated the effective brand strategy of Gucci, and it can further be evaluated regarding awareness, loyalty, quality, association, and assets.

• Brand Awareness

Gucci customers, especially Millennials, are in the limelight. The Gucci brand has created awareness for this target group regarding its purpose, authenticity, and passion. Millennial customers perceive the brand and make frequent buying decisions due to the brand’s purpose and authenticity. In an intense rivalry, Gucci has come up with a purpose of claiming the craftsmanship leader. Gucci wants to streamline italic arts, craftsmanship and fashion trends.   Customers know the latest fashion trends and intentions of the company, which may change the wearing experience. Due to this value, people make frequent buying decisions (Primo).

• Brand Loyalty

Redefining luxury has worked for this brand. For Instance, the firm created value through superior quality and exclusivity. The availability of the latest fashion products made customers loyal and satisfied. Despite having several brand options in the fashion market, the customer showed preferences. Now, brand loyalty has become one of the biggest strengths.

• Perceived Quality

The perceived quality is triggered by premium pricing. High or moderate-income customers create the perception of superior quality due to high prices. Other companies in the industry often offer discounts and promotions. However, Gucci, is a primary player in the market, maintained the perceived quality. For superior quality and differentiating, customers are willing to pay more (Primo).

• Brand Association

Customers contain emotional and sentimental attachments due to the brand’s intentions. Gucci knows what is cool for customers. On the other hand, customers want to cool down. Remarkable targeting of psychographic customer segment by knowing customer values, needs, and fashion trends has helped to contain the emotional and sentimental attachments with customers.

• Brand Assets

The article illustrated some CSR initiatives, which have been taken by Gucci. Structural innovations, employee satisfaction, and environmental impact are primary considerations, which powered up the brand strategy. The brand purpose and environmentally progressive program are brand assets. These considerations created positive brand perceptions.

BRAND CONNECTIONS

In the competitive landscape, customers need information about the brand. Gucci intends to make or depict the strong brand connections by spreading the news through utilizing different tough points. Every brand has to win customers by providing knowledge. Gucci seems purposeful, and this purpose must be communicated to millennial customers. It is a process of making other brands unfamiliar to customers. Exclusive information for customers provides a lead to a strong brand connection (Handley).

ETHICAL DIMENSION

Ethical dimension was also focused in the class. Ethical business consideration is associated with the brand strategy. For Instance, Gucci has initiated the ethical manufacturing process top streamline its effort on different media channels. The purpose is to create hype and spread a favorable brand image in the market. Ultimately, it also shapes the customer perception. It has been observed that luxury brands are just focusing on quality, differentiation, pricing, and exclusivity. Brands such as Gucci contained steady ethical considerations. Now, Gucci is aware of the possible impact of ethical manufacturing and business processes. Ethical branding is a way to stand out and justify the differentiation (Narayanan).

CONCLUSION

In the end, it is to conclude that Gucci’s evolution changes customer perception. With time, new values are perceived due to further consideration. In this current news article, the author mentioned some key strategic concerns of Gucci and its impact on customers and competitors.  Several steps, which are studied in the class, are integrated with several insights. The article is associated with the effective brand management process, and it looked pertinent to the subject as well. The brand management can ensure success and sustainability through some changes. Redefining luxury is a key example, or lesson for other brands in the fashion industry.

Work Cited

Handley, Lucy. “How luxury fashion brands are increasingly using Instagram to win over millennials.” CNBC. CNBC, 9 January 2018. Web. 30 November 2018.

Narayanan, Chitra. “Thoughtful Luxury.” Business Today. Business Today, 13 September 2015. Web. 30 November 2018.

Primo, Diane. “What Can Luxury Brands Learn From Gucci About Millennials?” Forbes. Forbes, 2 November 2018. Web. 30 November 2018.