Courtney Baer Jade Boggs Narangoo Tsolmonbaatar Ginger Liu

Agenda History - Courtney Industry Analysis - Ginger Global Analysis - Jade SWOT - Courtney Competitors - Narangoo Recommendations - Jade Conclusion - Narangoo

History Gucci was established in bamboo handle handbag 1960s Gucci expands to middle east 1970s family disputes threaten the company YouTube.com

1972 Joined American motors association

Late 1960s accessory line brought Gucci down. 1980s Gucci lost its appeal 1980s Gucci knockoffs entering market 1980s One of the family members was charged with tax evasion 1995 went public 1997 partnered with Severin-Montres

Industry Analysis Fashion Industry

What is fashion? –fashion is the life some people are advocating in a short period –Fashion has been characterized by change, which decides the vibrancy of fashion industry

Short History –In1845, the first fashion designer Charles Frederick Worth, was born in Paris. –Around 1900, fashion stepped into the all- round development stage. –After 1900,Fashion had become an industry. –From 1970 to 1980, fashion went into a period of globalization. –After 1990, fashion industry continuously rapidly developed.

Global Issue –Outsourcing issue Producing the products in low-cost countries VS. locally manufacturing their products –Intellectual property and piracy issue European countries: offer more protection America: fashion designs are not protected Developing countries: incomplete legal system

Future Trend –Fast fashion –Expand the brand to a higher profit margin –Combination of fashion and life style –Develop corporate responsibility

Global Analysis Guccis Handbag and Leather goods accounted for $1.2 billion in sales in Percentage of Sales Growth from Japan11% Europe14% North America24.9% Asia (excluding Japan)28.5%

Dubia, India shopping is main attraction to draw tourists Dubia has over 20 million sq. ft. of retail space August 2008, the Dubai Malls grand opening

Trademark Counterfeiting $230 million counterfeit goods seized Canal Street Over $176 billion counterfeit goods traded internationally

SWOT Strengths –Strong Brand Name –Strong Presence in International Market –Multiple lines of business Weaknesses –Family Feuds –Weak profitability from secondary lines

Opportunities –International Markets –Consolidation of brands Threats –Lower Level Brands –Takeover by PPR SWOT

Competitors Competitors: Chanel, Louis Vuitton, Hermes, Fendi, Christian Dior, Marc Jacobs, Prada, Coach, Celine, Cartier, Bally, Anya Hindmarch, and Versace. Stronger competitors: Hermes, Coach Inc, and Louis Vuitton

Hermes French high fashion house Established in 1837 Headquartered in Paris, France In June 1993, Hermes went public on the Stock Exchange In 2006, revenue was $1.96 billion. By 2006, Hermes operates 240 retail stores in 51 countries By 2007, Hermes employed over 6,000 people

Hermess employees percentage in each country in 2007

Coach Inc American luxury leather goods company Established in Manhattan, New York, in 1941 Headquartered in New York City, NY Coach went public on the NYSE in By 2007, revenue was $2,612.5 million By 2007,Employed 10,100 people, Coach has 272 retail stores in 24 countries

Coachs Revenue Breakdown

Coachs Contribution to Revenue

U.S. handbag Market and Coachs Share

Louis Vuitton French leather goods and a luxury fashion company Established in France, in 1854 Headquartered in Paris, France By 1984, LV went public through stock exchanges in Paris and New York LVs revenue was $24,805 million in 2007 By 2007, they employed 33,000 people Louis Vuitton operates an exclusive retail network of 388 stores in 56 countries

LVs Revenue Distribution

LVs Three Year Financial Performance

LVMH Revenue by Geography

Recommendations Short term –Website –Promotion –Purchasing information Long term –Expansion in Asian Market –Item Distinction –Designers

Conclusion Gucci has made many large steps in the fashion industry over time and will continue to do so as they set higher standards for their employees and others in the industry to meet.

Thank You Any Questions