-- Gucci will have to rebuild its position in China after the luxury brand treated the country as an avenue for easy growth due to bad locations and an outdated shopping experience, Reuters reported Thursday, citing Kering CEO Luca de Meo.
While Gucci was able to capitalize on China's appetite for luxury items more than its peers, the luxury brand failed to regain momentum during a brief post-pandemic boom and was not able to recover when Chinese consumer spending slowed, the report said.
"Gucci in China has been used as a-can I use a very strong expression - a bit of a trash bin, or a place where they were looking for easy growth," Reuters quoted de Meo as saying during its investor day.
To resurrect Chinese growth, Gucci will have to focus on coherence between brand messaging and in-store experience, the report said.
(Market Chatter news is derived from conversations with market professionals globally. This information is believed to be from reliable sources but may include rumor and speculation. Accuracy is not guaranteed.)