Gucci’s new creative lead, Sabato De Sarno, is poised to unveil his vision on the Milan runway, marking a critical moment for the brand under its parent company, France’s luxury conglomerate Kering (PRTP.PA).
The upcoming Gucci showcase stands out as one of this year’s most-awaited fashion events and is intended to breathe fresh life into the brand. It’s a moment of redefinition for Gucci and a litmus test for Kering’s overarching restructure.
In a bid to revive the brand, which significantly contributes to Kering’s revenue and profits, significant shifts have been observed in the company’s top-tier leadership.
Expanding their revenue streams, the group announced the acquisition of elite fragrance brand Creed in June, and a 30% share in fashion giant Valentino come July.
While Kering’s prized label was a previous success story, it faced challenges leveraging the post-pandemic surge that benefitted its competitors, including LVMH’s Louis Vuitton and Dior.
Kering’s Group Managing Director, Jean-Francois Palus, is stepping in to oversee Gucci temporarily, as a search for a full-time replacement for CEO Marco Bizzarri is underway. Bizzarri and former creative director Alessandro Michele were celebrated for doubling the brand’s sales from 2015 to 2019, reaching nearly €10 billion. However, their momentum waned against rivals who invested aggressively in pandemic-era marketing.
Ahead of De Sarno’s premiere, Gucci’s strategy has pivoted towards enduring styles and premium products, spotlighted in exclusive outlets for the affluent, coupled with intensified marketing and expanded collections.
Analysts from RBC voiced optimism, noting, “Subtle advances in product quality, pricing, and merchandising lay a solid groundwork for Sabato De Sarno’s fresh tenure at Gucci.” They highlighted Gucci’s moves to slash entry-level prices while introducing pricier, upscale items.
To truly rival competitors such as LVMH and Hermes, analysts predict that Kering might need to ramp up investments, which could potentially recalibrate profit margin forecasts. “A potential margin adjustment might be well-received by investors,” commented Carole Madjo from Barclays.
De Sarno’s unique design approach is crucial for rekindling the brand’s allure, which would not only lure customers but also set a standard for store redesigns.
His debut advertising campaign for Gucci, released in August, spotlighted model Daria Werbowy, who had taken a hiatus from fashion after ruling the runways in the early 2000s. She was showcased wearing a sleek swimsuit complemented by bold, golden “Marina Chain” accessories.
Moreover, a recent autumn campaign by Gucci, which reset its Instagram presence by erasing all prior posts, was praised by The Impression magazine for preserving the iconic Gucci feel without veering too strongly in any particular direction.
For Gucci to instill confidence in its investors, “It’s paramount for the reinvigorated Gucci team to start on a winning note,” stated analyst Luca Solca from Bernstein.
As the fashion world awaits with bated breath for Sabato De Sarno’s debut with Gucci, the implications stretch beyond a single show in Milan. This pivotal moment not only sets the stage for Gucci’s future but also acts as a barometer for the broader shifts in the luxury fashion landscape. Kering’s moves, De Sarno’s creative direction, and the brand’s ability to adapt and evolve will determine success in this new era. The industry will be watching closely, anticipating not just a presentation of clothing, but a vision for the future of luxury fashion.
