Gucci Brief

GUCCI concourse N. V. (A) pic BUSINESS BRIEF Gucci is one of the most glisten names in the luxury world. The trademark of red-and-green stripy webbing & GG logo became known worldwide. Gucci have $3 billion in hand to expand their business. By keeping in view this case nurture I suggest that Gucci should move towards multi-branding. Because Desole was confident that Guccis creative team would be able to exalt its magic at YSL. And the future of Gucci really lies with multi-brand stems. Gucci face the challenges from LVMH. LVMH considered adding Gucci to his stable of brands but balked at the asking bell of $350 million.So, Gucci is not untouchable if Gucci not acquire the multi-brands than, both other company may acquire it. Gucci well-kept deep roots in Italy, and it was a outstandingly international company, even before becoming a multi-brand group. Guccis core customer was a wealthy, fair conservative & older woman. These customers are fashion & drift oriented custome rs. Style oriented customers are more(prenominal) brand loyal than fashion-concious customers. When Gucci start multi-branding these customers are defecate to buy these products with the brand of GUCCI.Gucci acquired Sanofi Beaute, it split into two companies YSL off-the-shelf and accessories, & YSL Beaute which managed the fragrance & cosmetics brands. The Sanofi Beaute transactions transformed Gucci into a multi-brand group with $3 billion in cash. It shows that multi-branding is profitable for Gucci. Because when Gucci append the shoes and cosmetics with their own brand after acquiring the already existing powerful brands of these products. Guccis customers are more willing to buy these products. The future of Gucci is secure with the multi-brand group. It increases the profitability and market share of Gucci.