Gucci moves to secure its leathergoods production capacity
13/06/2018
This figure currently stands at 75%, but Gucci intends to bring more manufacturing in-house in order to reduce the turnaround between product design and final delivery in store. It also believes that securing its production capacity will help it achieve its ambitious sales targets.
“We want to reduce the lead time, and it’s not possible if you’re too scattered with small suppliers,” CEO Marco Bizzarri said at Gucci’s new design hub, the ArtLab, located near to Florence, Italy.
“We also need to make sure other brands are not stealing supply. Because of the growth that we’re having we need to protect our artisans,” he added.
Gucci has confirmed it has already bought out 10 local suppliers and is closing in on another 10. The brand’s shift to ‘internal production’ is expected for the most part to involve creating joint ventures with external workshops or signing them up to exclusive contracts.
Mr Bizzarri’s comments came just days after Gucci said it was aiming to overtake LVMH-owned Louis Vuitton as the world’s biggest luxury label. “The question is not if, but when,” he said.
To do this, Gucci is aiming to surpass €10 billion revenue (last year it achieved revenue of €6.2 billion). It has not offered a timeframe for this target but said it expects to grow at twice the luxury market rate over the next few years.
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