Gucci Retail Analysis

This report analyzes Gucci's retail operations and strategies, examining its history, position in the UK fashion retail market, and key influencing factors. It includes a SWOT analysis, Porter's Five Forces analysis, and recommendations for future growth.

RETAIL THEORY AND
PRACTICE

INTRODUCTION
Retail theory and practices consider effective functions and operations that assists to save
time and ensure that customers can easily locate desired merchandise and return home at higher
satisfaction level (Moraes, Carrigan and McGrath, 2017). Present study based on the Gucci
which is luxury brand of fashion and leather goods. They provide several kinds of goods in
different areas of location to concentrate on the development of effective operations and
functions. For gaining insight information of the present report, it covers introduction to retail
business and company. Furthermore, it analysis relevant changes in UK fashion retail to
concentrate on more significant advantages. At last, suggestion has been discussed with tactics
that used by the organisation to accomplish desired level of results.
MAIN BODY
Introduction to retail
In order to develop more significant advantages, retail process consider selling and
distribution of goods and services with using different channels. In this regard, main motive of
the business to to earn more profits. Retailers satisfy demand with using supply chain to
accomplish goals and objectives. In simple term, it implies first hand transactions with customers
so that goods and services can be deliver on appropriate time at affordable price. It creates
impact positively on economy with involve high annual sales and employment. There are
different kinds of retail activities successfully develop from which fashion retailing is one of the
famous way in which design and manufactured different kinds of products with selling purpose
(Syntetos, Babai and Nikolopoulos, 2016). In addition to this, several marketers are also needed
to concentrate on assessment and define fashion to produce and fulfil needs as per customers
requirements.
Introduction to the company
Gucci is Italian fashion brand which was founded on 1921 and operate successfully in the
industry. Brand is also started to produce luxury travel goods for Italy's wealthy upper classes as
well as equestrian equipments. From 1980, the chosen company is known as global contender
and notable fashion label. Therefore, they serve with initial public offering and develop more
profitability in successful manner to build to acquire license and renamed it Gucci Timepieces.
Headquarter of the company exists in Florence. From 2016, the company has focused on internet
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presence which is continuously developed their performances with several persons in 2017 with
more than 115% increase in growth so that earned media value is one of the greatest advantage
to look upon more revenue generation. Growth of the company can be linked with its success so
that digital marketing strategies allowed which develop more digital technology and develop
store experience with integrate results (Marcella and Rowley, 2015).
Furthermore, Gucci also focused on online shopping experience that assists to create
digital technology development that assists to meet with rich targets with social media
promotion. As a result, it can be stated that company has actively participated behind different
scene. With the help of additional information, it can be stated that pattern and styles of each
products design assists to allowed to customer to maintain their relationship with different
consideration of the organisation. Social media has strong presence of digital online activities so
that they are heavily active across the different social media platforms with brand name. There
are different tools used such as Facebook, Twitter, Google+, etc. The company has wide size in
the world because they operate in different countries with their innovative functions and
operations.
Key relevant changes within the UK fashion retail
Gucci is known as the strongest and famous brand in clothing, shoes and accessories. In
UK, there are several key relevant changes has been implemented that create impact on the
company. They are as follows: Political factors: Political factor create major impact on the Gucci. Government has
change their rules and regulations that create impact on the chosen business. The
company faces some negative effects because of strong laws and regulations in the
country. However, positive impact on the company is regulated with introducing
advertisement strategy with government support (Baker and Saren, 2016). Economic factors: Gucci face challenge in the market due to economic factors such as
skimmed prices and customer looking for insurance before purchase. Issues are not
highlighted when the company operate at international market. Gross domestic products
and living standards generally develop with positive effect on economic growth. Social factors: Gucci also trying to provide the best luxury products in the country as per
customer demand and requirements. However, changes in the market trends and
customers needs requires more material and used of products. Social campaigns and
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media coverage and media coverage influence production in the chosen business. The
company has positive impact on lifestyle of people, improvement in living standards as
well. Technological factors: In the country, there are different technical elements create major
impact on the results and outcomes. Advancements in technology create major impact on
each business on the basis of huge consideration. They provide easy means of
communication to cover market areas. In this way, high value can be capture in niche
market that assists to create advance results in the country. For example, Facebook,
Twitter, Snapchat, Pinterest, etc. Legal factors: The chosen business strictly consider their rules and regulations with law
to sell products and services with brand development process. In this way, unique
products and services will be continuously develop to gain more effective information.
Limited liability is one of the important factor which need to be focused by the
organisation to focus on the relevant and effective performances (PESTLE Analysis of
GUCCI, 2018).
 Environmental factors: Environmental factors are also created impact on Gucci to target
right activist and describe manufacturing including natural resources. Therefore,
Protection of people also successfully develop to nourish them as well. Furthermore, the
chosen business also create successful plan to eliminate all hazards by 2020.
Relevant changes within the micro environment
In order to consider micro environment analysis, it can be stated that porter five forces is
leading in global brand in the luxury goods market. It can be successfully applied in the market
to develop more significant advantages. It includes following elements that can create significant
impact on the business: Bargaining power of suppliers (Low): In the UK market, there are several suppliers
exists those have diverse distribution channels so that there is low bargaining power of
suppliers (Clegg, Kornberger and Pitsis, 2015). In this consideration, it can be stated that
it create positive impact on the Gucci to take several advantages in positive consideration.
Furthermore, when critical production is also similar it is easier to develop mix and
match input to reduce bargaining power of suppliers which impact positive on the
company.
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 Bargaining power of buyers (Moderate): Gucci is successful brand in the country which
consider less sensitive to prices and increase inelastic demand. Therefore, it impacts
positive on the results to focus on the desired results at workplace. Furthermore, when
consumers using products they need to pay appropriate attention for one product with
attention for one product which impact positive on Gucci. When customers possess less
choice, they need to focus on their choice availability. Hence, limited buyer choice create
positive impact on the chosen business to attain more effective results (Gardetti and
Torres, 2017). Existing rivalry (High): In the UK market, industries are growing revenue quickly so that
it is less likely to compete with large industries so that it assists to focus on growing
business performances as well. It creates positive effect the chosen business. With this
regard, less growth of the company create negative impact on overall functioning and
outcomes. For instance, Zara, Baggit, etc. brands create competitive rivalry among
existing businesses in the country. When country has low exit barriers, weak businesses
are leaving market that increase more development of the businesses (Syntetos, Babai
and Nikolopoulos, 2016). Threat of substitute (Low): In UK, there are less number of substitute products for Gucci.
As a result, customers are not easily find other products and services availability that can
fulfil needs easily. Hence, limited substitute of the products create positive impact on the
chosen business. As a result, it considers more effective advantages to produce positive
results at workplace.
 Threat of new competitors (Moderate): Furthermore, in the UK market weak network
distribution also create negative impact on customers. As a result, more expensive results
need to be implement in all around work and easily attract customers as well. Therefore,
expenses of building strong distribution network create positive impact on the Gucci.
There is high and more requirements of money to produce more products and services in
the country (Subramanian and Gunasekaran, 2015). As a result, threat of new competitors
continuously increasing which create negative impact on the results and outcomes.
Suggest and discuss strategies with tactics that used in Gucci
In order to consider successful results, it can be stated that Gucci using different
strategies and tactics that can be help to suggest effective work performances at workplace.
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SWOT analysis Strength: Gucci has strong brand image and equity which is important for more business
development. Furthermore, the company has fully controlled on their distribution
channels. As a result, it impacts positive on the company's outcomes. Strong value chain
of the chosen business also assists to maintain positive relationship with customers,
retailers and suppliers. There are more than 250 employees work those are operated in
stores of Gucci to produce more desired results. Excellent advertisement activities also
assists to focus on the make themselves as top and largest brand of the country which is
beneficial to concentrate on profit earning activities (Armstrong, Niinimäki and Lang,
2015). Weakness: One of the greatest weakness of company is they need to invest huge amount
of money to protect and maintain their brand image. Furthermore, the company also
facing issue of large amount of money has been reduced so that brand successfully
develop in all over the world. Opportunities: The chosen business has opportunity to emerging their market in luxury
items in different countries such as China, India, etc. Creating competitive advantages in
different business segments means that company has opportunity to develop brand
performances (Marcella and Rowley, 2015). In order to target youth segment, the
company also establish their functions and operations with stylish design. Furthermore,
the chosen business also provides new technology that assists to create more
opportunities to perform several practices in the country. In new market, it has been seen
that firm can enable to maintain loyal customers with great services in the country. As a
result, other value oriented propositions can be successfully develop in the market. New
environment policies also assists to create opportunities that increase paying level in a
particular field for all players in the industry (Carter and Yeo, 2016). It represents great
opportunities for Gucci that drive the latest technology and gain more market share in the
new product category.
 Threats: However, Gucci have opportunities to attain competitive results with having
limited market share growth in the country. Products substitution easily available in the
market so that it also create impact on the results and performances of the business. Being
a global brand, there are several threats exists such as vulnerable to global price
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fluctuations, recession, etc. (Pedersen, Gwozdz and Hvass, 2018). The selected business
also face issues and lawsuits in different areas of the world so that it create impact on
overall work and effective functioning of the business. Regarding products and services,
regular services must be given to increase innovative results over the years. There are
numerous products available to take right response.
Strategies and tactics that can be used by Gucci Maintain strong fashion brand with strong brand image: In order to develop more
significant advantages, it can be stated that Gucci need to maintain strong fashion brand
with positive brand image (Clegg, Kornberger and Pitsis, 2015). Therefore, it assists to
focus on the effective distribution channels that helps to provide different outlets at a
particular time. Makes positive partnership with leading agencies: Furthermore, Gucci need to
concentrate on partnership activities that assists to lead and takes initiative and most
important part of CSR. As a result, it increases several benefits to focus on the more
creativity and effectiveness that ascertained desired results of outcomes (Caniato, Caridi
and Spina, 2014). On the basis of fashion brand performances, it can be stated that the
chosen business can easily concentrate on strong presence in international areas.
 Strong presence in international market: In addition to this, another strategy
successfully develop to consider string presence in international market. With the help of
global expansion, Gucci can easily develop their value and performances that create
strong presence to maintained diversification strategy. With the help of huge number of
portfolio brand, the chosen enterprise will able to gain more successful results at
workplace. Therefore, it expands more creativity at workplace (Moraes, Carrigan and
McGrath, 2017).
Recommendations
Gucci is a luxury brand that known by millions of people across the world. It is highly
competitive industry so that it is important to maintain attention towards different types of
products and services. With great number of luxury shoppers, the chosen business using social
media that increasing more profits and revenue in the company (Leigh and Blakely, 2016).
Following are certain recommendations can be provide in the chosen business to increase their
brand performances:
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 Implement successful social media platform: Gucci need to focus on the social media
activities that assists to increase positive results to attain more desired level results. In
this context, different tools and activities such as Facebook, Instagram, etc. must be
implement in business to gain more desired level of results at workplace (Shanks and
Tilley, 2016). Furthermore, it also assists to increase brand performances of the company
with these tools. Focus on more advertisement: Furthermore, the chosen business need to focus on more
advertisement activities. This is because, it assists to increase significant advantages to
look overall performances at workplace. With this regard, internet tools must be used by
Gucci to focus on the creativity and effectiveness (Baker and Saren, 2016). As a result, it
assists to attract more customers in the business.
 Implement brand development strategies: Moreover, Gucci need to focus on brand
development strategies such as attaining competitive advantages which is useful to
maintain creativity at workplace. With the help of these tools and activities, chosen
business able to communicate several advantages in the whole country (Ko, Phau and
Aiello, 2016).
CONCLUSION
From the above report, it can be concluded that fashion retail industry continuously
growing to produce desired level of results at workplace. In this consideration, it can be stated
that Gucci operating more significant advantages with competing several fashion related
businesses. As a result, it contains more profitability and effectiveness to attain desired level of
results. Furthermore, it summarised about PESTLE analysis and its positive and negative impact
on the business. Its impact can be successfully analysis so that they can produce more systematic
work performances in the business. Political create positively impact to attain more creativity
and effectiveness to gain more growth and development at workplace. Moreover, it articulated
about Porter five forces model which contain competitive advantages in the business to focus on
the goals and objectives of the business. At last, strategies and tactics has been developed which
shows recommendations to produce appropriate working at workplace.
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