Detailed Analysis of Consumer Behaviour: Gucci and Chinese Market

This report provides a comprehensive analysis of consumer behavior, specifically focusing on Gucci's performance in the Chinese market. The report begins with an introduction to consumer behavior and its importance in understanding changing tastes and preferences, particularly for luxury brands like Gucci. It then delves into a detailed consumer analysis, examining how consumer preferences in the fashion retail business are influenced by market trends and the consumer experience within Gucci stores, both online and offline. The report highlights the significance of digital services, consumer interaction, and the impact of celebrity endorsements. The study incorporates primary research, including surveys and focus groups with Chinese consumers, to understand their buying preferences, including product customization, brand loyalty, and the influence of factors like price, quality, and exclusivity. The report concludes with recommendations for Gucci, such as expanding outlets, conducting consumer research, and personalizing products to meet the needs of Chinese consumers. The findings emphasize the importance of adapting to changing consumer behaviors to drive growth and success in the luxury fashion market. The report also includes appendices with survey questionnaires, focus group questions, and interview results.

CONSUMER BEHAVIOUR

TABLE OF CONTENTS
INTRODUCTION...........................................................................................................................1
CONSUMER ANALYSIS..............................................................................................................1
CONSUMER BEHAVIOUR...........................................................................................................3
CONCLUSION AND RECOMMENDATIONS............................................................................6
REFERENCES................................................................................................................................8
APPENDIX 1: SURVEY QUESTIONNAIRE AND RESULTS...................................................9
5 Questions for 20 Chinese respondents................................................................................9
APPENDIX 2: FOCUS GROUP QUESTIONS AND RESULTS................................................13
Focused group of Chinese students .....................................................................................13
APPENDIX 3: PRIMARY IN-STORE RESEARCH...................................................................15
Interview from brand............................................................................................................15
Results of interview from brands.........................................................................................15

INTRODUCTION
Consumer behaviour is the key characteristic which helps the organisation in determining
individual’s changing taste and preferences. Regulating a check on consumer behaviour helps the
firm in determining need of change in services in order to meet requirements and wants of buyers
(Çakmak and Yılmaz, 2018). The report will outline consumer analysis of Gucci which is a
leading luxury fashion retailer that has been growing successfully. In accordance with the
success and its potential, it has been discovered that the firm has maximum Chinese middle class
buyers who regularly prefer Gucci as their shopping preference. The study will be outlining
primary research from customers as well as brand which will help in developing critical
understanding over consumer behaviour.
CONSUMER ANALYSIS
Consumer preference in fashion retail business plays a vital role. It keeps on fluctuating
as per the changing market and fashion trends. Consumer experience of Gucci as per store visit is
creditable because the products are arranged in a heritage manner attracts consumers and
represents brand service. The focus of firm is on gaining consumer attention for store visit.
However, as per the analysis, it has been determined that online Gucci shoppers have also shaped
the picture of user landscape by making their consumers attractive (Clicks and Mortar: How
Gucci Combined Digital and In-store to Become One of the Strongest Fashion Houses Standing,
2018). Further, digital services of Gucci are consumer friendly because the focus of firm is on
providing tailor-made purchasing experience to buyers. Further, Gucci provides refereshed an
updated website which helps the organisation in attracting global buyers.
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Analysing consumer behaviour towards brand and its products is the most beneficial
strategy which helps firm in evaluating buyer’s preferences and needs of making changes in
services (Dessart, Veloutso and Morgan-Thomas, 2015). As per the discussion with consumers,
it has been derived, that Gucci has minimal but loyal buyers because it is located at limited
locations. The best consumer attraction of firm is the combination of colours and celebrity
endorsement which motivate buyers to visit stores.
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Illustration 1: Shitter stock of Gucci
(Source: Clicks and Mortar: How Gucci Combined Digital and In-store to Become
One of the Strongest Fashion Houses Standing, 2018)

Gucci is luxurious online and offline sale service provider, where 2 % of luxury
purchases of firm are from online shoppers and 60 % are in store sales. In accordance with
increasing sales of firm, it has been determined that digitally connecting with consumers assists
the firm in maintaining effective consumer interaction which helps fashion retailer in staying in
touch with consumer choices and preferences (Dwivedi and et.al., 2016). As per the digital
success of Gucci, it has been determined that the firm is maintaining effectiveness in digital
connection with consumers on the basis of e-commerce. In addition, it can be said that
consumer’s response to company’s products play an important role in deriving lines between
physical and virtual sales of organisation. Thus, it helps the organisation in analysing consistency
of its sales.
Thus, as per the analysis, it can be stated that there are a million of customers of Gucci
who are digitally connected with store and they are the loyal buyers of fashion retailers. It has
been identified that the firm offers online fashion satisfaction by delivering goods exactly as per
the needs of customers (Farr‐Wharton and et.al., 2014). The one to one engagement of firm with
buyers is the strategy which helps firm in managing changes of consumer behaviours.
CONSUMER BEHAVIOUR
As per the primary survey and interview on appendix 1 and 2, it has been derived that,
according to consumer there is a need for customizing products such as, bags, shoes, etc. The
firm offers luxurious brand services and helps the consumers in making choices by availing
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different colour options. On the other hand, it has been derived that it is necessary for the store to
maintain the effectiveness of its digital services (Grønhøj, 2016). Further, as per the consumer
analysis, it has been discovered that consumer behaviours and awareness of Gucci is due to its
digital shopper satisfaction.
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Yes No
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45
55
Frequency
Percentage
Illustration 2: Exclusive product from Gucci
Yes No
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40
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Illustration 3: Purchase from Gucci

In accordance with the survey, it has been analysed that Gucci has potential Chinese
buyers satisfied with innovation and trending fashion services of Gucci. Further, it has been
evaluated that consumers prefers buying from Gucci because it offers exclusive products because
which helps the buyers in maintaining uniqueness in fashion as per changing market trends. In-
accordance with Chinese students, it has been derived that Gucci offers unique products at
affordable prices and the individuals prefer buying in store services of Gucci. In accordance with
the survey, it has been outlined that store designs of Gucci are heritage that promote vintages
style which attracts consumers towards its stock.
However, as per the survey discussion, it can be concluded that it is necessary for the
fashion retailer to personalize its products for managing consumer satisfaction. Personalization
of products will help the firm in gaining consumer attention and also assist in setting unique
fashion trends in market (Onel and Mukherjee, 2015). As per Chinese survey, personalization is
the need which can be beneficial for establishing control over consumer buying behaviour.
In accordance with focused group interview of Appendix 2, it has been analysed that as
per Chinese students, the most preferable fashion retailers are Burberry, Gucci and Zara. The
shopper stated that as per their buying experience from all three brands, it has been determined
that the retailer offers price with quality which is the major concern of consumers when buying
clothing and accessories. Further, as per the focused group analysis, it has been discovered that
buying preferences of shoppers are based on exclusivity of collection which helps buyers in
maintaining uniqueness of fashion trends (Park and Nicolau, 2015). In accordance with
affordability, it has been argued that Gucci is the fashion retailer which offers price with quality
5
Yes No
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80 75
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fashion products which is the base for increasing global customers of firm. In addition to this, it
has been determined that Gucci holds a strong control over its buyer’s behaviours because it
launches its collection on social media with the support of favourite celebrities of Chinese people
such as Alessandro Michele, Florence Welch and Dakota Johnson. Thus, it can outline that
celebrities help the firm in gaining consumer’s trust because with the help of celebrity
endorsement, organisation is able to seek consumer attention and trust.
Nevertheless, in accordance with Millennials shopping behaviour and preferences, it can
be said that the individuals prefer experience of buying more rather than the products of firm. As
per the requirements and basic needs of young adults, it is necessary for the fashion retailers to
focus on basic needs of shoppers which can be supported with the model of Maslow’s
hierarchical want. The model will assist organisation in deriving basic needs of buyers to make
their experience valuable (Rai and Henry, 2016). However, with the help of this model, the
fashion retailer will be able to evaluate needs of buyers such as self-esteem, respect, sense of
belonging etc. It can be attained by the organisation by serving value of money services.
CONCLUSION AND RECOMMENDATIONS
The report summarized about the consumer behaviour which plays a vital role in driving
growth and development of company. It analysed the consumer behaviour towards products of
fashion retailer. To develop critical understanding, it outlined three primary researches which
were based on survey, focused group and interview from fashion retailer that is Gucci, Zara and
Gieves & Hawkes. Report is specially based on views and buying behaviour of Chinese
consumers in Gucci which is one of leading fashion retailers. Thus, from the analysis of
consumer behaviour it has been concluded that it is important for the firm to evaluate chaging
buyers needs and wants. Further, it is necessary for the retailer to personalize its products in
order to serve shopper satisfaction.
As per the overall discussion and research, it has been derived that there are various
changes which should be made by Gucci specifically for its Chinese potential buyers which are
discussed as below:
 The firm should focus on expansion of outlets in order to make easy availability of its
exclusive fashion trends (Park and Nicolau, 2015).
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 The firm should conduct consumer research before launching collection. This will assist
the retailer in making changes before launch (Farr‐Wharton and et.al., 2014).
 Personalisation of Gucci products as per the need of Chinese customers can be the
biggest change which can drive growth and success of Gucci. Moreover, it can assist the
organisation in managing customer satisfaction.
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REFERENCES
Books and Journals
Çakmak, B. Y. and Yılmaz, C., 2018. The Impact of Architectural Design of Shopping Malls on
Consumer Behaviours: A Case of Konya. Iconarp International Journal of Architecture
and Planning. 6(1). pp.142-157.
Dessart, L., Veloutsou, C. and Morgan-Thomas, A., 2015. Consumer engagement in online
brand communities: a social media perspective. Journal of Product & Brand
Management, 24(1), pp.28-42.
Dwivedi, A. and et.al., 2016. Establishing measures and drivers of consumer brand engagement
behaviours. Journal of Brand Management. 23(5). pp.41-69.
Farr‐Wharton and et.al., 2014. Identifying factors that promote consumer behaviours causing
expired domestic food waste. Journal of Consumer Behaviour. 13(6). pp.393-402.
Grønhøj, A., 2016. Consumer behaviours: Teaching children to save energy. Nature
Energy. 1(8). p.16108.
Onel, N. and Mukherjee, A., 2015. Understanding environmentally sensitive consumer
behaviour: an integrative research perspective. World Journal of Entrepreneurship,
Management and Sustainable Development. 11(1). pp.2-16.
Park, S. and Nicolau, J.L., 2015. Asymmetric effects of online consumer reviews. Annals of
Tourism Research. 50. pp.67-83.
Rai, V. and Henry, A. D., 2016. Agent-based modelling of consumer energy choices. Nature
Climate Change. 6(6). p.556.
Online
Clicks and Mortar: How Gucci Combined Digital and In-store to Become One of the Strongest
Fashion Houses Standing. 2018. [Online]. Available through:
<http://www.brittonmdg.com/the-britton-blog/gucci-digital-case-study>.
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APPENDIX 1: SURVEY QUESTIONNAIRE AND RESULTS
5 Questions for 20 Chinese respondents
1. Do you purchase from Gucci?
Do you purchase from Gucci? Frequency Percentage
Yes 15 75
No 5 25
2. How often you buy from the brand?
How often you buy from the brand? Frequency Percentage
Sometimes 5 25
Every-time 11 55
Rarely 4 20
10
Yes No
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80 75
25
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Percentage