Gucci CEO Patrizio Di Marco is understandable of this situation and is looking at ways to attract and retain wealthy clientele.
Di Marco moved over from Bottega Veneta in 2009, where he was familiar with precious materials and craftsmanship.
“In any possible psychological swing, you’ll always have the upper tiers of the pyramid that stay there, that keep on being wealthy, and they stick to you,” Di Marco told Business Week.
With Gucci producing bags in python and adding crocodile and leather trim to printed fabric purses as it seeks to appease its wealthiest and demanding clients as well as others like them. About 5 per cent of the luxury house’s customers account for ‘a good deal’ of sales, the CEO said, declining to elaborate.
“If you look at the price and you look at the products, you say that this is definitely worth more,” he said. “Noone has a crystal ball and we try to do our best with consumers, but they are the kings and they decide.”
With the increased use of exotic skins in the handbags and other accessories it provides another layer of options for the ultra high net worth and HNW clients, providing them with something even more rare and in many ways with a more discrete handwriting… perhaps!
With Gucci knowing that they are onto a good thing, the $US4,100 green python shoulder bags seeing sales increase of 19 per cent to a record $US4.16 billion in 2011.
Di Marco said that Europe isn’t ‘a picture of health and happiness’, which is a concern. With sales down in Italy, Chinese tourists and Russia is helping boost European sales.
With other companies praising their marketshare in China, Di Marco was more reserved in saying that sales were ‘fine’.
For 2012, Gucci are expected to open 45 stores, of which 20 will be in the Asia Pacific region, excluding Japan.
Di Marco said of the Chinese expansion that the focus will be on the second and third tier cities, whilst Gucci will look to renovate or relocate some stores in Beijing and Shanghai.
Image credit: luxuo.com
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