“Gucci delivered a very good quarter, with revenue up 24.6% as reported and 20.0% on a comparable basis to €2,325.6 million.” In the first quarter of 2019.
First quarter of 2018 saw a 49% growth.
In 2019 North America only grew 5% while Asia Pacific recorded a notable +35.5%.
“We’ll continue to fuel [growth] with newness and carryovers,” Jean Marc Duplaix, Kering CFO said.
But this is a defensive strategy. Until it lasts.
What Gucci could have done to keep its incredible momentum?
1. Driving growth instead of fueling it.
This means a “pull strategy” focusing on attracting customers instead of pushing the brand in a too much democratic effort.
“Driving” is strategy, “fueling” is tactic.
2. Avoiding overexposure and nurturing desire. Too much product, too much available everywhere from DOS, to retailers to online as well as too much media coverage grow the risk of Brand hangover.
3. Balancing the geographical distribution of sales.
Too much Asia can be a prison for the long term. Not enough USA can be a trouble.
Creating desirability while driving growth is a great challenge, and very rewarding.
Right timing is key.
Fast and furious is not enough.
It has never been.