Welcome to the the Ivey HBA Retail Marketing Management blog. Retail marketing is an exciting, dynamic, important, and very visible aspect of the overall field of marketing. Throughout the year, students will be posting comments regarding contemporary retailing issues. Although this is intended to be used by Bus 4411 students, industry marketing professionals are also invited to join in if they like.

Thursday, February 12, 2009


* Federico wasn’t able to post, so I’m posting his work for him.
Gucci is an iconic Italian fashion and leather goods label, founded in Florence in 1921. Gucci is considered one of the most famous, prestigious, and easily recognizable fashion brands in the world. It now belongs to the French conglomerate company Pinault-Printemps-Redouts (PPR). Gucci recently opened a new 46,000 square foot store in New York City. This store is located in Manhattan on the 5th Avenue and it will sell all the fashion collections and accessories of the brand.

The shop has a wide area dedicated to jewelry, an exclusive VIP lounge on the third floor with its own dedicated elevator, a bar, and private show and dressing rooms.

This is not a normal shop, it is a work of art. Frida Giannini, the creative director of Gucci, commissioned the project to have elements such as the bronzed glass walls and a free-floating Italian marble staircase set against a rosewood backdrop. To make the store look like a work of art she hired world-renowned architects such as James Carpenter. One special request that she had was to have as much natural light as possible inside the building.

The exclusivity which encompasses Gucci is the key element in the Gucci experience, as experience is the element of RVP on which Gucci focuses. Without this experience of high class and luxury, customers would not be willing to pay such high prices for Gucci products. The experience Gucci desires to create is exemplified in its new Manhattan store. Obviously the purpose of Gucci to locate the store in the most luxurious part of Manhattan is to show to all the world that they are one of the most prestigious fashion brands and their goal is appealing people who are able willing to spend a lot for exclusive items. To play up the exclusivity of the store, Gucci hires employees who are capable of providing only the best customer service. Gucci’s employees who work on the floor are aware that customers are making fairly expensive purchases and hence have a long decision-making process to go through. These employees make customers feel special and as though they deserve the luxury items offered by Gucci. The high prices of Gucci also make the store seem more exclusive, as not everybody can afford them. To possess a Gucci item is to exude wealth and class – two qualities desired by most people. Yet another element which adds to Gucci’s luxury appearance is the scarcity of items in its store. Items are placed often only with one or two other items on shelves. This helps Gucci maintain a look of cleanliness and luxury. It also makes Gucci seem selective in the items it is willing to sell to its customers.

Gucci wants its customers to feel luxurious and valued from the time they look at the store to the time they walk out of its doors. Gucci’s newest store in Manhattan does just that, keeping in line with the experience portion of the RVP. Without such an exclusive experience, customers would not be willing to pay the prices asked by Gucci. However, Gucci puts great efforts into creating value through experience that customers find themselves returning to the doors of Gucci stores around the world every day.
Posted by Federico Bertini

No comments: