introduction: in response to the changing market situation in China, Gucci group, said it would change the way of rapid expansion in recent years, in retail and marketing goods, using the coping strategies “according to single recruit”.
Cater to the Chinese market development, GUCCI change expansion strategy rapidly
President of Gucci group parent company PPR, Francois – Henri Pinault says Mr Gucci group sales in the fourth quarter of 2012 has a big rise, but it is not sure if the development prospect is optimistic in 2013. In China there are significant difference of luxury consumption between first-tier cities like Beijing, Shanghai and peripheral city, thus the group decided to provide new entry-level products to the market, then slowly develop to the garment and high-end accessories, etc.
Recently, LVMH group and Compagnie Financiere Richemont also has made the corresponding policy adjustment for the Chinese market, these adjustments are derived from the luxury products are relatively saturated, new market planning should be made if go into the China’s secondary market. PPR group operations director Jean – Francois Palus said Gucci will slow the speed of new store opening, the expansion of the original shop will focus on disaster prevention and improvement, to adapt to the rapidly changing market conditions in China.
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