OVERVIEW MACROENVIRONMENT OF GUCCI HANDBANGS.

Gucci began adding luxury accessories to their product line in the mid-1960s, including sunglasses, jewelry, and watches. Aldo Gucci, one of Guccio's sons, designed the iconic logo for his father's company. Throughout time, Guccio Gucci has been represented by the two Gs. It is the objective of Gucci Company to become the global leader in luxury. Craftsmanship is a priority for the brand. It describes itself as cool and responsible. Gucci currently produces apparel, bags, accessories, shoes, fragrances, and cosmetics.   

MACROENVIRONMENT OF
GUCCI HANDBANGS

1.0 INTRODUCTION AND COMPANY OVERVIEW
Every business is affected by macro environmental forces. Gucci is an Italian company
founded in 1921 by Gucci. Its headquarters are in Florence, Tuscany. It is Italy's best-
selling fashion brand and one of the country's oldest. Gucci began as a bag
manufacturer, like many traditional fashion firms do, producing luxury travel goods for
Italy's aristocratic and upper classes. Initially, the firm focused on leather products such
as bags and shoes, as well as silk goods and premium knitwear. Gucci incorporated
luxury accessories such as sunglasses, jewelry, and watches to their product line in the
mid-1960s. Gucci's iconic emblem was created by Aldo Gucci, one of Guccio's sons.
Guccio Gucci is represented by the two G's in a memorable and timeless fashion.
Gucci Company's objective is to become the global leader in the luxury industry. The
brand places a premium on craftsmanship and describes itself as cool and responsible.
Gucci currently manufactures apparel, bags, accessories, shoes, fragrances, and
cosmetics. Gucci bags, such as the Gucci Bamboo, are iconic. In 1947, the first Gucci
Bamboo handbag debuted. Craftsman of Gucci use bamboo to create strong handle for
the handbag when materials were in short supply due to the impact of World War II.
(Roberta Lister,2019)

2.0 MACROENVIRONMENT
There are a few of factors in the macro environment that affect the Gucci Bamboo
handbag decision as in the demographic factor.This factor refers to the study of human
populations, which encompasses factors such as size, density, age, gender, location, and
so on. Gucci Company showed us that they use demographic environment as a basis as
the Gucci handbag seems to aim more on female. This is proved at the official website
of Gucci as there are more choices for women’s bags compared to men’s bags. There
are handle bags, tote bags, shoulder bags, belt bags, pouch and backpack in the
women’s bags category. Each type of bags is crafted and designed with various types
of shape, colours and sizes to meet the customers’ needs in Malaysia. For example,
there are bags come out in round shape, bucket shape and there is medium size, mini
size of bags for different 5 types of female customers. Gucci Bamboo handbag focused
more on female because female like to shop and they are usually better shoppers than
male. Women are willing to invest time and energy to do comparison and research of
products which made them to be shrewd consumers compared to men. In other words,
women are more selective consumers and more likely to buy products that satisfy all
their requirements.(Michael Lewis,2014)
Furthermore, one of the Gucci Company's selections that is influenced by the
demographic context is their distribution. Gucci handbags outlets are more common in
Malaysia's urban areas, such as Kuala Lumpur and Johor.Gucci handbags can be found
in prosperous areas and malls such as The Gardens Mall, Pavilion Mall, Suria KLCC
mall in Kuala Lumpur's downtown, and Johor Premium Outlets at Johor Bahru. People
that live in these areas are typically wealthy and able to afford luxury items such as
Gucci bags. Malaysia's capital, Kuala Lumpur, has a population of 1.8 million people
and is the country's largest metropolis. Malaysia's most populous areas are Kuala
Lumpur and Klang, followed by Kampung Baru Subang and Johor Bahru. The
development of big cities draws not only locals but also foreigners to visit on a yearly
basis since they have improved infrastructure and facilities, top-notch entertainment,
and cultural diversity. MasterCard ranks Kuala Lumpur as the third most visited Asia-
Pacific city in 2018, with 13.8 million overnight visitors. Gucci stores that are
strategically positioned benefit. Most of these places have public transit that can save
customers' time and money, which has resulted in Gucci handbags having a high
number of shoppers owing to the convenience and accessibility to visit their stores and
make a purchase.

Along from that, the economic situation has an unavoidable impact on all firms,
including the Gucci Company. Consumer spending patterns and purchasing habits are
influenced by the economic climate. One of the economic aspects that Gucci handbag
may be sensitive to is Malaysians' cost of living.Cost of living is the amount of money
needed for basic expenses like food, taxes, education and healthcare to maintain a
certain standard of living. Malaysia has a low cost of living which expats like to relocate
compared to other countries. There is a comparison of cost of living between capitals
in their own countries shows that the monthly rent for 1 bedroom flat in the city centre
in London, United Kingdom cost RM 9274 while monthly rent for same type of room
in Kuala Lumpur, Malaysia only cost RM 2390 which is way much cheaper.For
individual who live outside of the area of the city centre, the actual average cost for a
single person living in Kuala Lumpur per year (RM24, 432) is lower than the cost in
other big cities like Penang (RM24, 496) .Malaysians do not have to suffer a great
burden when the cost of living in Malaysia is minimal because the expenses are nice to
their bank account. As a result, their incomes are freed up, and they can now buy luxury
items such as Gucci handbags. This condition does help Gucci handbags to sell more.
In addition, Gucci is also concern with the income level which is included in the
economic factors. Income level in Malaysia has classified into three groups which is
T20, M40 and B40.As Gucci is one of leading luxury fashion brands and their products
are price premium side, people that can afford Gucci bags is the T20 and M40 group
who is usually the middle and upper-class.Department of Statistics Malaysia (2015)
stated that the mean income of T20 per month is RM 16,088 and M40 is RRM6, 502 in
2016. Income level represents an individual’s purchasing power. When people are in
the high level of real income, they have strong purchasing power with the ability to
purchase Gucci handbags. Gucci customers’ characteristics are always high income and
high status which usually are the celebrities, fashionista and wealthy as they can afford
high-end brand. This is the reason that the M40 and T20 group are the target markets
and customers for Gucci.
Technological environment do affected Gucci as the development of scientific and
technology is rapid in this globalization era. The Internet is one of the vital elements in
the technology field. The Internet is a platform which connects humans, stories and
information. It has diverse uses as people can socialize, work with businesses, get

entertainment and knowledge through it.According to the Malaysian Communications
and Multimedia Commission (2018), the percentage of internet users increased by 10.5
percent from 2016 to 2018, with around 28.7 million users in 2018.Apart from
communicate with text, the most common of online activities is social networking.
Social media plays crucial role not only on building communities but also businesses’
marketing. Applications like Instagram, Facebook and YouTube are commonly used
by most of the internet users. This is a good chance for Gucci to advertise and do their
business marketing. It is clearly show as advertisements of Gucci bags can be seen on
Facebook, Pinterest, YouTube, Instagram, and Snapchat. When the convincing
advertisements can grab attention and create awareness in the public, customers get to
know about Gucci bags. They will be interested and attracted by the products when the
products can satisfy their wants which Gucci gets to expand their reach successfully in
Malaysian Market.
A lot of businesses have affected by the natural environment due to the pollution
which are getting serious day by day. Gucci is one the companies which had developed
strategy to support environmental sustainability by using renewable energy and carbon
neutral. According to the World Health Organization, air pollution caused 6,251 deaths
up to 2012. Global warming and climate change which cause by greenhouse gas
emissions is always the environment issues that the public concern the most . Gucci is
taking initiative to increase the use of renewable energy in every Gucci stores from 70%
to 100% in 2020 and offset the remaining greenhouse gas emissions .This shows that
the natural environment has affected Gucci to be eco-friendly
Finally, the social environment influences the decisions of a particular company, so
it's important to take that into account. Since social responsibility is one of their values,
the Gucci Company will be clearly affected by social factors as it will be furless from
2018. Gucci is a fashion brand that constantly produces the best luxury products,
satisfying customers and winning many local customers. At the same time, the social
activists begin to condemn about the animal fur using as raw materials for the
production as it harms the wildlife. This issue impact Gucci begin to fur-free from the
Spring-Summer 2018 Collection. Since 2018, collections of bags that are produced with
animals are not available anymore not only in Malaysia but international. Gucci take

their social responsibility to embrace artificial fur to raise awareness and consciousness
of protecting wildlife.

3.0 CONCLUSION
In conclusion, we can conclude that marketing environment is important in every
company. It consists of aspect which is macro environment. From aspect macro
environment, there is no age limit for their customer and focuses on each and every
individual in a society. Besides that, Gucci handbags created social connections around
the world with other organizations. Furthermore, Gucci handbags make a political
structure that will direct them to attain their objectives or they call them as a guide
service. Besides that. Gucci handbangs Malaysia is using the technology of
modernization to advertise its product. In term of economical, their provide affordable
and lower price for their customer. Lastly, Gucci handbags Malaysia launched its first
eco-friendly company in Malaysia for natural aspects. In my opinion, Gucci handbags
need to respond to the marketing environment changes because now customers become
more demanding and follow trend and technologies'.Gucci need fulfilled customer
demand that changing environment so that the business can respond in an appropriate
way.