callmejaeden
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At this point i'm ready for the launch of the first Gucci car.
Discussion: The State of Kering
- Thread starter LadyJunon
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Frederic01
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They already had one under Frida and it was in collaboration with Fiat! I believe they also did boats lmao!
DAZED & CONFUSED
Frederic01
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This is so relevant to what is going on now at Kering by the way!
BOF
BOF
style_expert
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It was pretty interesting, indeed.
I think that when it comes to pricing, this is where Kering once again makes a lot of mistakes. Even when they have a hit brand or product, they usually have no strategy in place to sustain or build on that momentum.
In the magic triangle between price, product, and perceived ‘inherent’ brand image/value, they usually get only one, or at best two, factors right.
I was just looking at the Gucci site, and they have a lot of handbags in the €1,500–€2,500 range (and even below €1,500). But the offering looks cheap, far too broad, and too generic to appeal even to what we now call the mid-range customer, who is more educated than before and very aware of what else is on the market.
At Kering, they need to learn to be humble and accept that Gucci is not Vuitton or Dior, and Bottega Veneta is not Hermès or Chanel. They don’t need to pretend and certainly shouldn’t price as if they are.
There are far more opportunities in this market if they embrace realistic pricing below the true top-end brands/ market leaders. I think at Gucci at least they're already going into this direction when it comes to pricing. At Bottega I also noticed some lower priced items in the new collections...(lower priced in relative terms of course)
And alongside realistic pricing (which shouldn’t be difficult to implement), they still need to deliver great, desirable products…which remains a main challenge
I think that when it comes to pricing, this is where Kering once again makes a lot of mistakes. Even when they have a hit brand or product, they usually have no strategy in place to sustain or build on that momentum.
In the magic triangle between price, product, and perceived ‘inherent’ brand image/value, they usually get only one, or at best two, factors right.
I was just looking at the Gucci site, and they have a lot of handbags in the €1,500–€2,500 range (and even below €1,500). But the offering looks cheap, far too broad, and too generic to appeal even to what we now call the mid-range customer, who is more educated than before and very aware of what else is on the market.
At Kering, they need to learn to be humble and accept that Gucci is not Vuitton or Dior, and Bottega Veneta is not Hermès or Chanel. They don’t need to pretend and certainly shouldn’t price as if they are.
There are far more opportunities in this market if they embrace realistic pricing below the true top-end brands/ market leaders. I think at Gucci at least they're already going into this direction when it comes to pricing. At Bottega I also noticed some lower priced items in the new collections...(lower priced in relative terms of course)
And alongside realistic pricing (which shouldn’t be difficult to implement), they still need to deliver great, desirable products…which remains a main challenge
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