Gucci pays for neglect of mid-range goods
24/04/2008
Gucci brand owner PPR says sales figures for the first quarter of the year have been disappointing and has blamed a lack of attention to mid-range products for the dip. Sales dropped 3.3% for the first three months of 2008.
Deputy chief executive Jean-Francis Palus has told analysts that the Gucci-brand advertising is now being "re-balanced" to address this problem. He said: "We think that one of the causes for this temporary loss of traction stems from our decision to refocus our handbag and leather goods business on the top end of the pyramid. Our objective was to reinforce the very high-end, chic image of the brand. We have achieved this.
"We need to be more balanced between entry-price points, mid-range products and high-end, aspirational products. We will not sacrifice one or another segment to the other."
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