History of Gucci Group N.
Management's primary objective is to create value for the Company's shareholders. Management believes that stock price performance is a critical measure of shareholder value creation and that systematic increases in the Group's revenues, earnings, cash flow and return on investment are catalysts for stock price appreciation.
Management believes that it can assure growth in the Group's revenue, earnings, cash flow and return on investment by properly managing the Company's current businesses and judiciously acquiring and developing other leading brands in the luxury industry.
History of Gucci Group N. During the late s and throughout the s, Gucci was the first company to establish a label in the Gucci group industry that is regarded by the general public as synonymous with wealth, status, power, and luxury.
However, due to family feuding in the s and mismanagement of the Gucci group image and resources, by the early s, the company was almost bankrupt.
As a Gucci group, shares in the firm were sold to InvestCorp International, which eventually won full control in and took Gucci public.
A new management team and a revamped image, coupled with excess capital, soon enabled Gucci to reach unprecedented financial success, and the company then began a series of strategic acquisitions, which includes the French fashion house Yves Saint Laurent, Boucheron, Sergio Rossi, and Balenciaga.
Gucci now has over franchised and company-owed stores worldwide. Creating a Mythical Exclusive Brand: Early Roots The founder of the famous retail empire was Guccio Gucci.
Born in Florence, Italy, inGucci was forced to leave the country when his father's hat-making company went bankrupt. Driven out of the house by his embittered father, Gucci traveled to London and landed a job as a dishwasher at the Savoy Hotel.
The Savoy Hotel was quickly becoming one of the most notable gathering places for the American and European upper classes. The reason for its popularity was Cezar Ritz, the most famous chef in the world at the time.
Ritz knew how to lure the wealthy elite by appealing to the sensibilities of their taste buds, and Gucci soon learned that the key to attracting moneyed customers was the perception of quality and exclusiveness.
Gucci worked his way up from dishwasher to waiter, all the while observing the lifestyles and habits of the highest levels of international society.
One of his most important lessons involved the way the hotel's affluent guests transported their personal possessions from one grand luxury palace to another. Gucci noticed that all the dwellers in the Savoy Hotel used quality-leather luggage, made by craftsmen from all over Europe.
Gucci also discovered that it was the notion of "quality" that obsessed people like Lilly Langtry and Sir Henry Irving. Items that were most fashionable and of the best quality had to be possessed, and people with good taste cared little about the cost.
For three years, Gucci worked and learned about what was needed to secure the patronage of the gilded class. After saving enough money, Gucci returned home to Florence to begin a new life. Gucci married a young seamstress, Aida Calvelli, and had four sons and one daughter; he also adopted a boy that Aida bore out of wedlock.
He first worked in an antique store and then at a leather firm. With so many mouths to feed, money was always in short supply. When World War I started, Gucci was drafted to fight for the Italian army, and he served as a transport driver.
After the war ended, he returned home to a city with an economy that had been destroyed. But Gucci recognized an opportunity to use the experience he had gained in London, and so he started working at a leather firm that specialized in quality-leather products.
The owner of the firm, a man named Franzi, taught him all the elements of leatherwork, including the selection of hides, the tanning processes, and how to work with different types of leather. An ambitious and able man, Gucci was chosen to open Franzi's new store in Rome.
ByGuccio Gucci had dreams of opening his own shop, and, encouraged by his wife Aida who also helped find an investor by the name of Calzonia Gucci leather business started operations in Florence one year later.
The little store made leather goods for the wealthy tourists who visited Florence in record numbers during the s. Soon he had made enough money to buy out his partner, Calzoni. As the business grew, reputation of Gucci's sturdy, quality luggage began to spread in European social circles.
During this time, he also began a repair operation for luggage. This unexpected source of work helped increase the reputation of Gucci's store for quick, careful, first-class workmanship. The sense of quality he had learned from his time at the Savoy Hotel, and the perception that expensive products were more valued than inexpensive ones, convinced him to raise his prices.
By the end ofthe Gucci store had become widely known for its distinctive craftsmanship, and it was frequented not only by wealthy tourists but by the local elite as well. During the s, Benito Mussolini rose to power as Italy's dictator, and many nations imposed harsh sanctions on the country.
As a result, Guccio Gucci was no longer able to purchase all the leather needed for his shop. This apparent misfortune, however, turned to Gucci's favor. Without the needed leather, Gucci was forced to design and make handbags and luggage of both canvas and leather.
Leather was employed only on the most-used parts of the luggage, such as corners, clasps, and straps.Gucci Group - Networking for Fashion, Luxury and Beauty Professionals.
Gucci Group N.V. ’ s designs and clothing have become one of the most-recognized labels in the retail industry. Along with Karl Lagerfeld, Carrier, Alfred Dunhill, and Ralph Lauren, Gucci offers wealthier clientele from around the world an acknowledged badge: the “ GG ” on its leather products that symbolizes membership in an elite club.
Kering S.A. (French:) is an international luxury group based in Paris, France. It owns luxury goods brands, including Gucci, Yves Saint Laurent, Balenciaga, Alexander McQueen, Bottega Veneta, Boucheron and Brioni, Pomellato.
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(A) Case Solution,Gucci Group N.V. (A) Case Analysis, Gucci Group N.V. (A) Case Study Solution, Gucci Group Solution No.1 When Gucci found it difficult to achieve the sufficient amount of profit, they had made some changes in their strategy to restruc.