Courtney Baer

Jade Boggs
Narangoo Tsolmonbaatar
Ginger Liu
 Agenda
• History - Courtney
• Industry Analysis - Ginger
• Global Analysis - Jade
• SWOT - Courtney
• Competitors - Narangoo
• Recommendations - Jade
• Conclusion - Narangoo
 History
• Gucci was established in 1921
• 1947 bamboo handle handbag
• 1960s Gucci expands to middle east
• 1970s family disputes threaten the company
• YouTube.com
• 1972 Joined American motors association
• Late 1960s accessory line brought Gucci down.
• 1980s Gucci lost its appeal
• 1980s Gucci knockoffs entering market
• 1980s One of the family members was charged
with tax evasion
• 1995 went public
• 1997 partnered with Severin-Montres
Industry Analysis
Fashion Industry
• What is fashion?

– fashion is the life some people are advocating

in a short period

– Fashion has been characterized by change,

which decides the vibrancy of fashion industry
• Short History

– In1845, the first fashion designer Charles

Frederick Worth, was born in Paris.
– Around 1900, fashion stepped into the all-
round development stage.
– After 1900,Fashion had become an industry.
– From 1970 to 1980, fashion went into a period
of globalization.
– After 1990, fashion industry continuously
rapidly developed.
• Global Issue

– Outsourcing issue
• Producing the products in low-cost
countries
VS. locally manufacturing their products

– Intellectual property and piracy issue

• European countries: offer more protection
• America: fashion designs are not protected
• Developing countries: incomplete legal
system
• Future Trend

– Fast fashion

– Expand the brand to a higher profit margin

– Combination of fashion and life style

– Develop corporate responsibility

 Global Analysis
• Gucci’s Handbag and Leather goods accounted
for $1.2 billion in sales in 2005.

Percentage of Sales Growth from 2005-2006

Japan 11%

Europe 14%

North America 24.9%

Asia (excluding Japan) 28.5%

• Dubia, India shopping is main attraction to draw
tourists
• Dubia has over 20 million sq. ft. of retail space
• August 2008, the Dubai Mall’s grand opening
 Trademark Counterfeiting
• 2007- $230 million counterfeit goods seized
• Canal Street
• Over $176 billion counterfeit goods traded
internationally
 SWOT
• Strengths
– Strong Brand Name
– Strong Presence in International Market
– Multiple lines of business

• Weaknesses
– Family Feuds
– Weak profitability from secondary lines
 SWOT
• Opportunities
– International Markets
– Consolidation of brands

• Threats
– Lower Level Brands
– Takeover by PPR
 Competitors
• Competitors: Chanel, Louis Vuitton,
Hermes, Fendi, Christian Dior, Marc
Jacobs, Prada, Coach, Celine, Cartier,
Bally, Anya Hindmarch, and Versace.

• Stronger competitors: Hermes, Coach Inc,

and Louis Vuitton
 Hermes
• French high fashion house
• Established in 1837
• Headquartered in Paris, France
• In June 1993, Hermes went public on the Stock
Exchange
• In 2006, revenue was $1.96 billion.
• By 2006, Hermes operates 240 retail stores in
51 countries
• By 2007, Hermes employed over 6,000 people
Hermes’s employees’ percentage in each
country in 2007
 Coach Inc
• American luxury leather goods company
• Established in Manhattan, New York, in 1941
• Headquartered in New York City, NY
• Coach went public on the NYSE in 2001.
• By 2007, revenue was $2,612.5 million
• By 2007,Employed 10,100 people,
• Coach has 272 retail stores in 24 countries
Coach’s Revenue Breakdown
Coach’s Contribution to Revenue
U.S. handbag Market and Coach’s Share
 Louis Vuitton
• French leather goods and a luxury fashion
company
• Established in France, in 1854
• Headquartered in Paris, France
• By 1984, LV went public through stock
exchanges in Paris and New York
• LV’s revenue was $24,805 million in 2007
• By 2007, they employed 33,000 people
• Louis Vuitton operates an exclusive retail
network of 388 stores in 56 countries
LV’s Revenue Distribution
LV’s Three Year Financial Performance
LVMH Revenue by Geography
 Recommendations
• Short term
– Website
– Promotion
– Purchasing information
• Long term
– Expansion in Asian Market
– Item Distinction
– Designers
 Conclusion
Gucci has made many large steps in the
fashion industry over time and will continue
to do so as they set higher standards for their
employees and others in the industry to
meet.
 Thank You
Any Questions