HISTORY

Gucci is an Italian fashion brand founded in 1921 by Guccio Gucci,

making it one of the oldest Italian fashion brands in operation today. Like
many historic fashion houses, the brand started out as a luggage
manufacturer, producing luxury travel goods for Italy’s wealthy upper-classes,
as well as equestrian equipment.
Initially the brand produced primarily leather goods, as well as premium
knitwear, silk goods, shoes and handbags. During the second world war,
material constraints owing to the war effort forced the label to use cotton to
create their goods. It was during this time that the label introduced its
distinctive “Double-G” monogram, as well as the now iconic Gucci stripe,
consisting of two green stripes interrupted by a single red bar.
From the 1950s onwards, Gucci experienced incredible success as a label of
choice amongst wealthy travellers, Hollywood stars and other well-heeled
shoppers, renowned for its extravagant, opulent designs. Guccio Gucci
passed away in 1953, but the business continued under the leadership of his
three sons, Aldo, Vasco and Rodolfo, In the mid-‘60s, the brand introduced
luxury accessories such as eyewear, watches and jewelry to their product
line; items which have since become a cornerstone of the label.
In 1983, Rodolfo Gucci passed away, and control was passed to his son,
Maurizio, who struggled to maintain Gucci’s successes. During this period, the
brand experienced numerous troubles owing to family disputes, tax evasion
charges, assassinations and sales to foreign investors. In 1990, American
designer Tom Ford was hired as a ready-to-wear designer, eventually being
promoted to Creative Director four years later. Ford is credited as being
instrumental in helping to restore Gucci’s reputation during that period,
reducing the brand’s product offer, streamlining its identity and restoring the
opulence and extravagance that had defined the label previously.
In 2004, Tom Ford presented his last collection with Gucci, being replaced
by Frida Giannini. In 2006, Giannini took control of both men’s and women’s
ready-to-wear design, and served in this role until late 2014.
At the time of Giannini’s departure, there was a perception developing that
Gucci had become stale or irrelevant, with a lot of talk about who would
replace her. The brand surprised their audience when, in 2015, it was
announced that Alessandro Michele would take over as creative director of
the brand.
Though Michele had worked for Gucci in various roles for 12 years, he was
still relatively unknown as a designer, and it was not clear in what direction he
would take the brand. However, Michele’s unique style, blending Gucci’s
classic penchant for extravagance and opulence with a theatrical, somewhat-
kitschy pageantry, has proven to be a huge success, attracting many young
and aspirational customers, as well as numerous fashion insiders. In early
2017, it was announced that Gucci had achieved record sales under Michele’s
leadership, fuelling an 11% boost in profits for the brand’s parent-company,
Kering, and the brand’s high performance continues to this day.

CORPORATE INFORMATION

Legal and Commercial Name Gucci Group N.V.

Registered Address Rembrandt Tower Amstelplein 1

HA 1096 Amsterdam
The Netherlands
Country of Incorporation The Netherlands
Date of Incorporation March 6, 1978
Legal Form Naamloze Vennootschap (N.V.)
Governing Law Dutch
Contact Numbers 31 20 462 1700 telephone
31 20 465 3569 facsimile
Agent in the U.S.A. Gucci America, Inc.
685 Fifth Avenue
10022 New York, NY

ORGANIZATIONAL STRUCTURE
 The table below includes the principal Group companies organized by
segment (Gucci Fashion and Accessories; Gucci Group Watches; Yves Saint
Laurent; YSL Beauté; Other Operations) and by activity (holding; industrial;
service; distribution affiliate) as of July 1, 2003. See Note 25 to the
Consolidated Financial Statements, "Consolidated Companies", pages 177 to
183 of the 2002 Annual Report and Exhibit 8.1 herein, for a complete list of
Group companies.

RISK FACTORS
 Shareholders should consider carefully the following risk factors relating
to the business of the Company, together with the information and financial
data set forth elsewhere in this Form 20-F.

Brand recognition and image are crucial to the Company's success.

The Company's financial performance in the luxury goods market is

influenced by the success of its brands, which, in turn, depends on factors
such as product design, the distinct character of the products, the materials
used to make the products, the image of the Company's stores,
communication activities, including advertising, public relations and marketing
and general corporate profile.

The Company is dependent on its trademarks, and its products are the
subject of counterfeit reproduction.

The Company's business is highly dependent on its ability to protect and

promote its trademarks and other propriety rights. Accordingly, the Company
devotes substantial resources to the establishment and protection of its
trademarks on a worldwide basis. The Company believes that its trademarks
are adequately supported by applications for registrations, existing
registrations and other legal protections in its principal markets. However, the
Company cannot exclude the possibility that its intellectual property rights
may be substantially challenged by others or that the Company may be
unable to register its trademarks or otherwise adequately protect them in
some jurisdictions.

Furthermore, the luxury goods market is subject to numerous instances

of product counterfeiting and other trademark infringements. A significant
presence of counterfeit products on the market can negatively impact both the
sales and the brand image of a luxury goods manufacturer. If any of the
Company's products are the subject of widespread counterfeit production or
other similar trademark infringements, the Company's business, financial
condition and results of operations could be adversely affected.

The Company's success is dependent on its ability to lease quality store

locations at competitive prices.

Approximately half of the Company's revenues, and the predominant

portion of the Gucci Division's revenues are made through a distribution
network consisting of directly operated stores. The Company leases the vast
majority of such stores. Accordingly, the success of the Company's operations
in part is dependent on the Company's ability to secure affordable, long-term
leases and to secure renewals of such leases. Furthermore, the Company's
stores are located in areas typically associated with the sale of luxury goods.
Such properties are generally highly sought after, and the Company faces
intense competition from other companies for these locations. Although the
Company believes that its current leases can be renewed on acceptable
terms, no assurance can be given that the Company will be able to
successfully negotiate lease renewals on existing stores or to obtain similar
terms for new stores, and the failure to do so could have an adverse effect on
the Company's business, financial condition and results of operations.

The luxury goods market is affected by adverse economic conditions

and declines in international travel.

Downturns in general economic conditions or uncertainties regarding

future economic prospects historically have affected adversely sales by luxury
good companies, including Gucci Group sales. Accordingly, such downturns
or uncertainties in the future could have a material adverse effect on the
Company's business, financial condition or results of operations. Levels of
consumer confidence are largely dependent on changes in disposable income
and perceptions of and reactions to economic events, such as currency
devaluation that

make luxury goods more expensive, changes in levels of unemployment and

taxation and the risks of inflation or deflation. Since the Company distributes
its products internationally, a significant decline in the general economy or in
consumers' attitudes in a region—Europe, particularly Italy, France and the
United Kingdom; the United States; Japan; and certain Asian markets,
particularly Hong Kong, Taiwan and South Korea—also could have a material
adverse impact on the Company. A substantial amount of the Company's
sales are generated by customers travelling abroad, particularly from Japan,
other Asian countries, Europe and the United States. Consequently, adverse
economic conditions, global political developments (such as the war in Iraq in
the Spring of 2003) or other events (such as the travel advisories issued by
the World Health Organization in connection with Severe Acute Respiratory
Syndrome ("SARS")) that result in a shift in travel patterns or a decline in
travel volumes also could adversely affect the Company's financial results.

The Company must anticipate trends and respond to changing

consumer preferences.

The Company's success also depends in part upon its ability to originate
and define product and fashion trends as well as anticipate and respond to
changing consumer preferences and fashion trends in a timely manner.
Although the Company attempts to stay abreast of emerging lifestyle and
consumer preferences affecting its products, any sustained failure by the
Company to identify and respond to such trends could result in significant
excess inventories for some products and missed opportunities with others.
Consequently, the Company is dependent in part upon the continuing
favorable market response to the creative efforts of the design teams of Gucci
and Yves Saint Laurent, headed by Tom Ford, the Creative Director of the
Company, as well as the creative and product development teams of the other
divisions.

The Company relies on third party manufacturers.

 Although the Company is intensively involved in all aspects of the design
and manufacture of most of its merchandise, it does not own all of its
manufacturing facilities. Therefore, the Company is dependent upon
independent third parties for the production of components and the assembly
of certain products, including leather goods, shoes, ready-to-wear and
watches. See Item 4.B.5: "Business Overview—Production". The Company's
products not produced at owned manufacturing facilities are manufactured to
its specifications primarily by Italian and Swiss manufacturers, and Gucci's
quality inspectors regularly visit suppliers' production facilities to ensure
quality. Nevertheless, the inability of a manufacturer to ship orders of the
Company's products in a timely manner or to meet the Company's quality
standards could cause the Company to miss the delivery date requirements of
its customers for those items, which could result in cancellation of orders,
refusal to accept deliveries or a reduction in sales, any of which could have a
material adverse effect on the Company's business, financial condition and
results of operations.

The Company relies upon certain key personnel and upon its ability to
find skilled personnel.

The Company's success depends to a significant degree upon the efforts

and abilities of certain members of senior management, including Domenico
De Sole, the Company's President and CEO, and Tom Ford, the Company's
Creative Director. The loss of the services of Mr. De Sole, Mr. Ford or one or
more other members of the Company's senior management or design team,
and any negative market or industry perception arising from such loss, could
have a material adverse effect on the Company's business, financial condition
and results of operations.

In addition, the Company relies on its ability to hire, train and retain
skilled personnel to participate in the design, marketing, merchandising and
sales of its products. No assurance can be given that the Company will be
able to continue to attract a sufficient number of such skilled personnel. Any
inability to hire, train and retain such personnel could adversely affect the
Company's growth.

The Company's future performance could be affected by its multi-brand

acquisition strategy.

The Company's financial success depends to a significant degree upon

management's ability to generate growth and profitability from each Group
brand and to integrate newly-acquired companies into the Group's structure
such that these businesses achieve satisfactory levels of revenues, earnings
and cash flows.

The Company is sensitive to interest rate fluctuations.

 Changes in interest rates—particularly European, US, Swiss and
Japanese rates—could affect materially the Company's interest income and
expense. The Company has a substantial net cash position. Declines in global
interest rates—particularly European and US rates—could affect adversely
the Company's net interest income through lower interest income. After the
planned return of capital on October 2, 2003, (see "Subsequent Events" on
page 176 of the 2002 Annual Report), the Company may be in a net debt
position such that increases in prevailing interest rates could have an adverse
effect on the Company.

The Company is subject to currency rate fluctuations.

The Company operates in many parts of the world and, as a result, its
business can be affected by fluctuations in exchange rates. While the
Company engages in foreign exchange hedging activities, it does not hedge
long-term foreign exchange risks for cash flows, nor is it permitted by IAS and
U.S. GAAP to hedge its cost of sales. The Company's business and financial
results therefore could be adversely affected by fluctuations in exchange rates
particularly if any such exchange rate movements persist. The Company
changed its reporting currency to the Euro from the US Dollar on February 1,
2002. Consequently, as from this date the most significant exchange rate risk
to which the Company is exposed is potential weakness of currencies in
which a significant portion of its revenues are denominated—such as the US
Dollar, the Japanese Yen, the English Pound, the Swiss Franc and the
Korean Won—compared to the Euro.

The Company is subject to various legal regimes.

As a Company that distributes its products in many countries, the

Company's business is subject to various risks beyond its control, such as
changes in laws and policies affecting trade and investment (including
trademark protection) and the instability of foreign economies and
governments. The Company has taken applicable laws and regulations into
account in seeking to structure its business on a global basis, including to
achieve tax and operational efficiencies. Changes in such laws or regulations,
including with respect to taxation, could adversely affect the Company's
operations and financial results.

The Company faces intense competition.

The Company faces substantial competition in all product lines and

markets in which it competes. The Company competes with well-known, high
quality international luxury goods brands such as Armani, Bulgari, Cartier,
Chanel, Christian Dior, Ferragamo, Hermès, Louis Vuitton, Prada,
international prestige perfume, cosmetic and skincare groups such as Esteé
Lauder, l'Oréal and Shiseido as well as a large number of other international
and regional purveyors of some or all of the types of products distributed by
the Company.
The Company's shareholders may have difficulties in enforcing their
rights abroad.

The Company's corporate affairs are governed by its Articles of

Association and Dutch law. Under the Company's Articles of Association,
adoption of the Company's annual accounts by the shareholders discharges
the members of the Management Board and the Supervisory Board from
liability in respect of the exercise of their duties during the fiscal year
concerned, unless an explicit reservation is made by the shareholders and
subject to certain exceptions provided under Dutch law, including exceptions
relating to the liability of members of Management Boards and Supervisory
Boards upon bankruptcy of a Company and general principles of
reasonableness and fairness. Under Dutch law, this discharge does not
extend to matters not disclosed to shareholders.

The executive offices and a substantial portion of the assets of the

Company are located outside the United States. In addition, certain of the
members of management, the Management Board and the Supervisory Board
of the Company are residents of jurisdictions outside the United States. As a
result, it may be difficult for the Company's shareholders to effect service of
process within the United States upon the Company, members of
management, the Management Board or the Supervisory Board of the
Company, or to enforce outside the United States judgments obtained against
such persons in U.S. courts, or to enforce in U.S. court judgments obtained
against such persons in courts in jurisdictions outside the United States, in
each case, in any action, including actions predicated upon the civil liability
provisions of the U.S. securities laws. In addition, it may be difficult for the
Company's shareholders to enforce, in original actions brought in courts in
jurisdictions located outside the United States, rights predicated upon the U.S.
securities laws.

The Company is subject to potential tax audits.

The Company operates in many countries and is therefore subject to the

risk of tax audits and assessments in each of these countries. The Company
seeks to manage its tax affairs in compliance with all applicable laws.
However, it is possible that authorities may disagree with positions taken by
the Company, and consequently the Company may be exposed to tax
assessments in excess of amounts provided in the financial statements for tax
liabilities.

Cautionary Statement Regarding Forward Looking Statements.

Under the safe harbor provisions to the U.S. Private Securities Litigation
Reform Act of 1995, the Company cautions investors that any forward-looking
statements of projections made by the Company, including those made in this
document, are subject to risks and uncertainties that may cause actual results
to differ materially from those projected.
 Statements that are not historical facts, including statements about the
Company's and management's beliefs and expectations, are forward-looking
statements. Words and phrases such as "expects", "anticipates", "intends",
"plans", "believes", "seeks", "estimates", "are comfortable with", and variations
of these words and similar expressions are intended to identify forward-
looking statements. These statements are based on current plans, estimates
and projections, and therefore investors should not place undue reliance on
them. Forward-looking statements speak only as of the date they are made,
and the Company undertakes no obligation to update publicly any of them in
light of new information or future events.

Forward-looking statements involve inherent risks and uncertainties. The

Company cautions investors that a number of important factors could cause
actual results to differ materially from those anticipated in any forward-looking
statement. For a detailed description of these factors, see Item 3.D: "Risk
Factors" above.

DIRECTORS, SENIOR MANAGEMENT AND EMPLOYEES

A. Directors and Senior Management

Supervisory Board

Under Dutch law and the Articles of Association of the Company, the
management of the Company is entrusted to the Management Board under
the supervision of the Supervisory Board. The Supervisory Board advises the
Management Board and is responsible for supervising the policies pursued by
the Management Board and the general course of affairs of the Company and
its business. In fulfilling their duties, the members of the Supervisory Board
must serve the interests of the Company and its business.

The Supervisory Board consists of such number of members as may be

determined by the shareholders, with a minimum of three members. Pursuant
to the Restated SIA, PPR is entitled to nominate four of the eight members of
the Supervisory Board and the remaining four directors, one of whom acts as
Chairman, must be independent. Ms. Barbizet, Mr. Marteau, Mr. Pinault and
Mr. Weinberg were nominated for election to the Supervisory Board by PPR
and the other four members are independent.

The members of the Supervisory Board are elected by the shareholders

for a term commencing on the day following the Annual General Meeting of
shareholders (which, under Dutch law, must be held within six months after
the close of the fiscal year) up to and including the day of the AGM of
Shareholders in the next fiscal year. Nominations of candidates to fill
vacancies may be made by a holder or holders of 10% or more of the
outstanding Shares and/or by the Supervisory Board. At present, the
Supervisory Board consists of the following eight members:
Members of the Supervisory Board:

Year of
Name Position Age Initial
Election

Adrian D.P. Bellamy (1)(2) Chairman 61 1995

Patricia Barbizet Member 48 1999
(1)
Aureliano Benedetti Member 67 1995
Reto F. Domeniconi Member 67 1997
Patrice Marteau Member 55 1999
François Henri Pinault Member 40 2001
(1)(2)
Karel Vuursteen Member 61 1996
(2)
Serge Weinberg Member 52 1999

Adrian D. P. Bellamy is a member of the Supervisory Board and serves as

its Chairman and as a member of its Remuneration Committee and its Audit
Committee. Mr. Bellamy is Executive Chairman of The Body Shop
International PLC, Chairman of Reckitt Benckiser plc, Director of Gap Inc.,
Director of The Robert Mondavi Corporation, Director of Williams-
Sonoma, Inc. Mr. Bellamy was Chairman and Chief Executive Officer of DFS
Group Limited, a specialty retailer. He is 61 years of age.

Patricia Barbizet is a member of the Supervisory Board. Ms. Barbizet

is Chief Executive Officer of Artemis S.A. In addition, Ms. Barbizet is
Chairman of the Supervisory Board of PPR. Ms. Barbizet is also a member of
the boards of several operating companies affiliated with Artemis S.A. and
Pinault Printemps Redoute ("PPR"), respectively. She is 48 years of age.

Aureliano Benedetti is a member of the Supervisory Board and

serves as a member of its Audit Committee. Mr. Benedetti currently serves as
the Chairman of the board of directors of Cassa di Risparmio di Firenze SpA,
Centro Vita Assicurazioni SpA, Eptaconsors SpA. In addition, Mr. Benedetti is
Vice Chairman of the Board of Directors and the Executive Committee of
A.B.I. (Italian Banking Association).

Reto F. Domeniconi is a member of the Supervisory Board. He has been a

director of Nestle S.A. from 1996, when he stepped down as Executive Vice
President in charge of Finance, Control and Administration (a position he had
held since 1985) until 2001. Dr. Domeniconi is also a member of the boards of
directors of several international industrial and financial companies. He is
67 years of age.

Patrice Marteau is a member of the Supervisory Board. Mr. Marteau

has been Corporate Secretary and Chief Financial Officer of PPR since 1995,
when he stepped down as Corporate Secretary and Chief Financial Officer of
FNAC, a PPR subsidiary. Prior to joining the PPR group, Mr. Marteau, among
other things, served as Executive Vice President, Asia Pacific Region,
responsible for the development and management of operating units, and as
Corporate Controller with Danone. Prior to joining Danone in 1984, he held
several financial accounting positions with Pechiney. He is 55 years of age.

François Henri Pinault is a member of the Supervisory Board.

Mr. Pinault is General Partner and Manager of Financière Pinault (parent of
Artemis S.A.). In addition, Mr. Pinault is Managing Director of Artemis S.A.
and a member of the Supervisory Board of PPR. He is also a member of the
Board of several operating companies affiliated with Artemis S.A. and PPR.
He is 40 years of age.

Karel Vuursteen is a member of the Supervisory Board, Chairman of

its Audit Committee, and a member of its Remuneration Committee.
Mr. Vuursteen is Ex-Chairman of the Executive Board of Heineken N.V. He
also serves as a director of AB Electrolux, Randstad Holding N.V., Ahold N.V.,
Akzo Nobel N.V., and ING Group N.V. In addition, Mr. Vuursteen is Vice
Chairman of the Supervisory Board of Nyenrode University. Prior to joining
Heineken in 1991, Mr. Vuursteen served as Chief Executive Officer of Philips
Lighting Company, North America, a subsidiary of Philips Electronics N.V. He
is 61 years of age.

Serge Weinberg is a member of the Supervisory Board and serves as

a member of its Remuneration Committee. Mr. Weinberg is Chief Executive
Officer and Chairman of the Management Board of PPR since 1995. Between
1990 and 1995, he served as Chief Executive Officer of Compagnie Française
de l'Afrique Occidentale, a major trading company which later merged with the
Pinault group, and, subsequently, Rexel. Prior to joining the PPR group in
1990, Mr. Weinberg served as President and CEO of Havas Tourisme and as
Executive Director and member of the Board of Pallas Finance. Mr. Weinberg
is also a member of the Board of several operating companies affiliated with
PPR and a member of AFEP (Association Française des Entreprises
Privées). He is 52 years of age.

There is no family relationship among any of the above-named

Supervisory Board members of the Company.

Management Board

The management of the Company is entrusted to the Management

Board under the supervision of the Supervisory Board. The Articles of
Association provide that the Supervisory Board may from time to time adopt
written policies (directiereglement) governing the internal organization of the
Management Board, including directions to the Management Board
concerning the general financial, economic, social and personnel policies of
the Company. In addition, the Articles of Association provide that the
Supervisory Board may specify by resolution certain actions by the
Management Board that require its prior approval. The Supervisory Board
adopted such a resolution on October 23, 1995 and amended it on March 19,
1999. As a result, the matters which must be approved by the Supervisory
Board include, among others:
 •
the strategic plan for the Company;

•
the capital expenditure and advertising and communications
budgets;

•
the grant or amendment of any material license of a Gucci
trademark;

•
the establishment of or changes to the Company's primary credit
facility; an

•
the forwarding of the annual audited financial statement of the
Company to the shareholders.

The shareholders also have the power to specify actions of the

Management Board that require shareholder approval; to date, no
shareholder resolution limiting the powers of the Management Board has
been adopted.

The Management Board consists of such number of members as may be

determined by the Supervisory Board. Members of the Management Board
are elected by the shareholders for a term commencing on the day following
the annual general meeting of shareholders (which, under Dutch law, must be
held within six months after the close of the fiscal year) up to and including the
day of the annual general meeting of shareholders in the next fiscal year.
Nominations of candidates to fill vacancies may be made by the Supervisory
Board. The current members of the Management Board are:

Members of the Management Board:

Year of
Name Position Age Initial
Election

Domenico De Chairman 59 1995

Sole
Tom Ford Vice Chair 41 2002
man
Aart Cooiman Member 61 1995
Management Committee and Executive Officers

As a legal matter, the Management Committee and the executive officers

of the Company support the Management Board in its management of the
Company. In practice, the Management Committee and the executive officers
and the Management Board share management responsibilities.

Members of the Management Committee :

Name Position Age

Name Position Age

Domenico President and Chief Executive Officer, 59

DeDomenico
Sole President
Gucci Group and Chief Executive Officer, 59
De Sole Gucci Group
Tom Ford Creative Director, Gucci Group 41
Tom Ford Creative Director, Gucci Group 41
Brian Executive Vice President, Gucci Group; 47
Brian
Blake Executive
President Vice President,
of Gucci Gucci Group;
Group Watches; 47
Blake President of Gucci Group
President and Chief Executive Watches;
Officer
President
of Boucheron and Chief Executive Officer
of Boucheron
Patrizio Di President and Chief Executive Officer, 40
Patrizio Di
Marco President
Bottega and Chief Executive Officer,
Veneta 40
Marco
Mark Lee Bottega Veneta
President and Chief Executive Officer, 40
Mark Lee President
Yves and Chief Executive Officer,
Saint Laurent 40
Yves Saint Laurent
James Executive Vice President and Director 43
James
McArthur of Executive ViceAcquisitions,
Strategy and President andGucci
Director 43
McArthur of Strategy
Group; and Emerging
President, Acquisitions, Gucci
Brands
Renato Group; President,
Worldwide Emerging
Director of Human Brands 58
Renato
Ricci Resources, Gucci Group Human
Worldwide Director of 58
Ricci Resources, Gucci Group
Chantal President and Chief Executive Officer, 59
Chantal
Roos YSLPresident
Beauté and Chief Executive Officer, 59
Roos
Giacomo YSL Beauté
President and Chief Executive Officer, 47
Giacomo
Santucci President
Gucci Divisionand Chief Executive Officer, 47
Santucci Gucci Division
Robert Executive Vice President and Chief 51
Robert
Singer Executive
Financial Vice Gucci
Officer, President and Chief
Group 51
Singer Financial Officer, Gucci Group
 EXECUTIVE OFFICERS
Name Position Age

Jürg Alispach Chief Executive Officer, Gucci Group Watches

49
Solange Azagury Par Creative Director, Boucheron
tridge 42
Fabio Bacci Chief Financial Officer, Stella McCartney
37
David Bamber Vice President of Creative Services, Gucci 52
Rodrigo Bazan Chief Financial Officer, Alexander McQueen 28
Christian Bédat Managing Director and Creative Director, Bédat & Co. 39
Marco Biagioni Director of Tax Planning and Treasury, Gucci Group
43
Francesco Buccola Chief Financial Officer, Gucci 47
Simonetta Ciampi Design Director, Yves Saint Laurent
53
Alberto Da Passano Chief Financial Officer, Yves Saint Laurent 39
Patrick de Vismes Chief Financial Officer, Balenciaga 33
Emilio Foà Controller, Gucci Group 40
Marco Forneris Chief Information Officer, Gucci Group 52
Tomaso Galli Director of Corporate Communications, Gucci Group 40
Marco Gentile Chief Financial Officer, Sergio Rossi 37
Nicolas Ghesquière Creative Director, Balenciaga 32
Francesco Chief Financial Officer, Bottega Veneta
Giannaccari 38
Alexandra Gillespie Worldwide Director of Advertising, Gucci Group 36
Thomas Indermuhle Chief Financial Officer, Boucheron 37
Karen Joyce Director of Corporate Image, Gucci Group 40
Yann Kerlau Deputy General Manager, YSL Beauté 55
William Kim Chief Financial Officer, Gucci Group Watches 30
Isabella Kron Vice President of Accessory Design, Gucci 40
Jean Guillaume Chief Financial Officer, YSL Beauté
Lecomte 43
Stella McCartney Creative Director, Stella McCartney
32
Alexander McQueen Creative Director, Alexander McQueen 34
Cedric Magnelia Director of Investor Relations and Corporate
Development, Gucci Group 37
Tomas Maier Creative Director, Bottega Veneta 46
Patricia Malone President of Gucci America, Inc., Gucci 50
Fabienne Mandaron Director of Stores, Europe and Middle East, Yves Saint
Laurent 40
Tom Mendenhall Worldwide Director of Merchandising, Gucci
42
Dino Modolo Chief Executive Officer, Luxury Timepieces Design 47
Lee Pearce Director of Store Planning and Architectural Services,
Gucci Group 46
Pascal Perrier Director of Licensing, Gucci Group 39
Stefano Pilati Design Director, Yves Saint Laurent 38
Massimo Piombini Worldwide Director Sales and Marketing, Boucheron 42
Philippe Pourille Vice President International Subsidiaries, YSL Beauté 52
Mimi Pun President of Gucci Group, Asia (excluding Japan) 51
Luc Rafflin Director of Human Resources, Yves Saint Laurent 48
John Ray Men's Ready-to-Wear Design Director, Gucci 43
Sergio Rossi President and Creative Director, Sergio Rossi 67
Lisa Schiek Worldwide Director of Communications, Gucci Group 43
Joshua Schulman Worldwide Director of Merchandising, Yves Saint
Laurent 31
James Seuss Chief Executive Officer, Stella McCartney 39
Richard Swanson Director of Internet Activities 46
Toshiaki Tashiro President of Gucci Group, Japan 54
Allan Tuttle General Counsel 64
Sue Whiteley Chief Executive Officer, Alexander McQueen 47
Jonathan Wood Chief Operating Officer, Gucci Group Watches 39
Oliver Yang General Manager of European and Middle East Region,
Gucci 38
 GUCCI Marketing Mix, the 4P
The marketing mix, commonly known as the 4 Ps, is a framework used to
assess and optimize a company’s marketing strategy. It consists of Product,
Price, Place, and Promotion. Here is a description of GUCCI’s marketing mix:

1. Product: GUCCI offers a wide range of luxury products that cater to

its discerning clientele. The brand’s product portfolio includes
apparel, handbags, shoes, accessories, watches, jewelry,
fragrances, and cosmetics. Known for its craftsmanship, quality, and
iconic designs, GUCCI’s products represent a blend of tradition and
innovation, appealing to both classic and contemporary tastes.
2. Price: As a luxury brand, GUCCI’s pricing strategy is based on
premium pricing to reflect the exclusivity, quality, and craftsmanship
of its products. The high price points also help maintain the brand’s
aspirational status and target high-end consumers who value the
prestige associated with owning a GUCCI item. However, the brand
also offers a range of products at different price points, making it
accessible to a broader customer base, including those seeking
entry-level luxury goods.
3. Place: GUCCI’s distribution strategy is centered around a selective
and controlled network of retail outlets, ensuring that its products
are available at prestigious locations worldwide. The brand operates
its own boutiques, department store concessions, and e-commerce
platform, allowing for a seamless and controlled shopping
experience. This strategy enables GUCCI to maintain its exclusive
image while offering customers a luxurious and personalized retail
experience.
4. Promotion: GUCCI’s promotional strategy encompasses a mix of
traditional and innovative marketing tactics. The brand invests in
print and digital advertising, featuring high-profile celebrities,
influencers, and collaborations with renowned artists and designers.
GUCCI also utilizes social media platforms such as Instagram,
Facebook, Twitter, and TikTok to engage with its audience,
showcase products, and highlight campaigns.

In addition, GUCCI organizes and participates in high-profile fashion events

and runway shows, generating buzz and reinforcing its position as a leading
luxury brand.The brand has also focused on storytelling in its campaigns,
creating memorable and immersive experiences for consumers. Sustainability
and social responsibility have become essential aspects of GUCCI’s
promotional efforts, emphasizing its commitment to environmental and social
causes.

In conclusion, GUCCI’s marketing mix showcases its ability to balance

tradition and innovation, appealing to a wide range of consumers while
maintaining its status as a premier luxury fashion brand. The combination of
exclusive products, premium pricing, strategic distribution, and compelling
promotional activities has solidified GUCCI’s position as a leader in the luxury
fashion industry.

MISSION AND VISION OF GUCCI

COMPENSATION

The aggregate amount paid by the Company in fiscal year 2002 to the
members of the Management Board, Management Committee and members
of the Supervisory Board as a group (22 persons, including 2 executives who
resigned in the first quarter of 2003) was approximately € 15.5 million.
Compensation to the individual members of the Management Board and
Supervisory Board is provided on pages 193 to 196 of the Company's Annual
Report 2002. In addition, in 2002 the Company granted options under the
Company's Incentive Stock Option Plan, as amended, for the purchase of
(i) 40,000 shares to members of the Supervisory Board (8 persons) and
(ii) 195,500 shares to the Management Board and Management Committee
(13 persons, including 2 executives who resigned in the first quarter of 2003)
at exercise prices ranging from US$ 87.66 per share to US$ 90.41 per share.
The options granted expire ten years from the date of issuance.

Gucci America, Inc. has entered into deferred compensation contracts

with certain executive officers and members of the Management Board as
well as with certain other key employees. The Company contributed
approximately € 310,700 under contract plans and commitments in 2002. The
Company's liability at year-end under such deferred compensation contracts
is included in Note 13 to the Consolidated Financial Statements, appearing on
pages 149 to 150 of the 2002 Annual Report (incorporated by reference
herein).

Members of the Management Committee are employed pursuant to

employment agreements with terms expiring in October 2005 at the latest or
for an indefinite term. In all cases continued renewal and/or continued
employment is subject to mutual agreement. Domenico De Sole and Tom
Ford have employment agreements with terms expiring in March 2004 and
June 2004, respectively. They and the Company's Supervisory Board are
currently discussing the extension of their employment agreements.

BOARD PRACTICES

All members of the Supervisory Board and Management Board are

elected for one year terms commencing on the date following the AGM of
Shareholders (which under Dutch law, must be held within six months after
the close of the fiscal year) up to and including the day of the AGM of
Shareholders in the next fiscal year and, if necessary, shall continue to serve
thereafter until a successor is duly elected. For details of the period during
which individual members have served on the Supervisory Board and
Management Board, please see "Directors and Senior Management" above.

Neither the Gucci Group nor any of its subsidiaries has service
agreements in place with any members of the Supervisory or Management
Boards providing for benefits upon termination of employment.

Audit Committee: The membership is Mr. Vuursteen (Chairman),

Mr. Bellamy and Mr. Benedetti. Ms. Barbizet and Mr. Marteau resigned from
the Audit Committee to constitute a fully independent Audit Committee.
Mr. Marteau attends meetings as a non-voting observer. Meetings take place
at least three times each year. The Chief Financial Officer, the Director of
Internal Audit and the Group Controller and representatives of the external
auditors normally are invited to attend meetings. At least once each year the
Audit Committee meets with the director of Internal Audit and, separately, the
external auditors without the presence of any executive officer. The Audit
Committee provides assistance to the members of the Supervisory Board and
Management Board in fulfilling their responsibility to the Group's shareholders
in respect of corporate accounting, Group reporting practices and the quality
and integrity of the Group's financial reports.

Remuneration Committee: The membership is Mr. Bellamy,

Mr. Vuursteen and Mr. Weinberg. Meetings take place at least once each year
and as frequently as the members may determine. The Chief Executive
Officer normally is entitled to attend. The purpose of the Remuneration
Committee is to ensure that the Senior Executives of the Group are fairly
rewarded for their individual contributions to the Group's overall performance
and to deal with certain issues relating to the trading of shares by employees
and affiliates of the Company.
 Strategic and Financial Committee: The Strategic and Financial
Committee, consisting of three PPR Directors and two independent directors.
The Strategic and Financial Committee discusses and approves certain
matters prior to their submission to the full Supervisory Board for approval,
including the Company's strategic plan; certain investments, strategic
acquisitions and dispositions; certain capital expenditures and incurrence of
debt outside the ordinary course of business; changes in the Company's
capital structure; any amendment to the Company's Articles of Association or
the rules of the Supervisory Board; any legal mergers, demergers, spinoffs,
dissolutions and applications relating to bankruptcy or reorganizations and the
appointment of the Chairman of the Supervisory Board. Managing Directors
will be nominated by the independent directors and approved by the Strategic
and Financial Committee. If not approved by the Strategic and Financial
Committee, the matters described above must be approved by at least 75% of
the members of the Supervisory Board then in office in order to take effect.

EMPLOYEES

Number of Employees
January 31, 2 January 31, 2
By Segment 003 002 January 31, 2001

Gucci Fashion and Accessories 4,053 3,831 3,508

Gucci Group Watches 429 521 384
Yves Saint Laurent 828 735 751
YSL Beauté 3,545 3,429 3,641
Other Operations 1,716 1,310 855
Corporate 113 108 84
Total 10,684 9,934 9,223

January 31, 2 January 31, 2

By Region 003 002 January 31, 2001

Europe 6,810 6,463 5,781

United States 1,272 1,275 1,732
Japan 1,373 1,304 892
Non-Japan Asia 860 720 717
Rest of World 369 172 101
Total 10,684 9,934 9,223

January 31, 2 January 31, 2

By Activity 003 002 January 31, 2001
Executives and Managers 643 608 586
Office, Sales and Clerical 7,839 7,365 6,774
Production 2,202 1,961 1,863
Total 10,684 9,934 9,223
Memorandum and Articles of Association

The following disclosure is qualified by reference to, and should be read

in conjunction with, Exhibit 1.1. You should read the below information
bearing in mind that:

(a) The information set forth below is based on the most recent
Articles of Association of the Company, dated August 8, 2002 (the
"Articles"), and on Dutch law.

(b) The Company is registered in the Chamber of Commerce

and Industries for Amsterdam, in The Netherlands, under registration
number 33223151.

(c) Under Dutch law, the Management Board is the corporate

body responsible for the Company's management and the Supervisory
Board is the body that supervises the management performed.
Pursuant to internal regulations adopted by the Supervisory Board,
action in respect of specified principal matters cannot be taken by the
Management Board without the approval of the Supervisory Board.

The objects of the Company are set forth in Article 2 of the Articles, and are
as follows:

•
to incorporate, acquire, participate in, finance, manage and to
have any other interest in other companies or enterprises of any
nature;

•
to raise funds by way of securities, banks loans, bond issues,
notes and to borrow in any other way, to lend, to provide
guarantees, including guarantees for debts of other persons, to
assume commitments in the name of any enterprises with which
it may be associated within a group of companies, and to
perform all acts which in the broadest sense of the term, may be
connected with or may be conducive to the foregoing. The
Company will act as a holding Company and will not undertake
any other commercial or industrial activity as referred above.

(ii)
The articles of the Company do not contain any provisions with
respect to the director's power to vote if the director is materially
interested. Consequently the general provisions of the Dutch
Civil Code apply, which means that in case of a conflict of
interest between the Company and a managing director, the
Supervisory Board of the Company will represent the Company,
unless the General Meeting of Shareholders appoints someone
else. Under normal circumstances, the duty of the Supervisory
 Board is the supervision of the policy of the management and
the general course of affairs of the Company and the companies
connected. In performing its duties, a conflict of interest with the
Company could arise in decision making. In such case the
following will apply. As neither the Articles of Association of the
Company nor the Dutch Civil Code contain any specific
provisions in this regard, reference should be made (and this
has been confirmed by Dutch case law) to the provisions of
articles 8 and 140 of book 2 Dutch Civil Code, that obliges a
member of the Supervisory Board to perform his/her duties
bearing in mind the interest of the Company (article 140) and to
act in all reasonableness and fairness (article 8). Consequently,
a member of the Supervisory Board should in case of a conflict
of interest with the Company act with extra care and precision. If
the Supervisory Board director feels that even with the extra
care and precision, he or she can not perform his or her duties
as obliged by law, the member of the Supervisory Board should
abstain from voting.

Pursuant to the Articles, the Supervisory Board determines their own

compensation by unanimous vote.

Pursuant to the Articles, the Supervisory Board has the power to

determine the salary, the bonus, if any, and the other terms and
conditions of employment of the managing directors.

The establishment of or any changes to the Company's principal credit

facilities require the approval of a majority of supervisory directors
voting. The incurrence of indebtedness outside the ordinary course of
investment in excess of US$ 50 million, requires the approval of 75% of
the supervisory directors voting. The chief executive officer may
authorize borrowings up to such limits as may be established from time
to time by the Supervisory Board. The borrowing powers of the chief
executive officer can be varied by the Supervisory Board.

As of April 23, 2002, Dutch law no longer requires mandatory

retirement of supervisory directors at the age of 72. The Company's
Articles do not set forth a maximum age upon which a director is
required to retire.

Directors are not required to own Shares to qualify.

(iii)
The Company has one class of Shares outstanding, being common
shares. All Shares have equal dividend rights, rights to share in the
profit and rights to surplus in a liquidation balance. The issued Shares
 are fully paid up, and not subject to further capital calls. No redemption
provisions are attached. Upon the issue of Shares, a shareholder has a
pre-emptive right, unless (i) this right has been limited or excluded by
the Supervisory Board, (ii) shares are issued to employees, or
(iii) shares are issued against a contribution in kind. Pursuant to the
Articles, dividends in cash that have not been collected within five
years and two days after having come due and payable shall revert to
the Company. Directors are elected for a one year term and the entire
Supervisory Board is elected annually. There are no provisions
discriminating against any existing or prospective holder of share as a
result of such shareholder owning a substantial number of Shares.

(iv)
The rights of a shareholder can be changed by amendment of the
Articles. Such amendment requires a resolution of the shareholders
meeting (no quorum requirement), adopted by a simple majority of the
Shares present and voting, acting on a proposal of the Supervisory
Board.

(v)
Each year, within six months after the end of the fiscal year, an annual
general shareholders meeting must be held. Extraordinary general
meetings of shareholders may be held as often as deemed necessary
by the Supervisory Board and must be held if one or more
shareholders and other persons entitled to attend such meetings jointly
representing at least one-tenth of the issued share capital make a
written request to that effect to the managing board or Supervisory
Board, specifying in detail the business to be considered.

If the Managing Board and the Supervisory Board fail to comply with
such a request in such manner that the general meeting of
shareholders can be held within six weeks after the request, the
persons who have made the request may convene the meeting
themselves.

A notice convening a general meeting of shareholders must be

published by advertisement which must at least be published in a
national daily newspaper in the Netherlands and in the "Officiële
Prijscourant (Official Pricelist) van Euronext Amsterdam N.V.". In
addition, holders of registered shares must be notified by letter that the
meeting is being convened. The notice convening a general meeting of
shareholders must be sent no later than on the fifteenth day prior to the
meeting.
All shareholders and other persons entitled to vote at general meetings
of shareholders are entitled to attend the general meetings of
shareholders, to address the general meeting of shareholders and to
vote. A holder of registered shares is always entitled to exercise the
rights connected to the shares. Holders of Amsterdam Shares who do
 not hold their share(s) through a collective depot as referred to in the
Act on the securities transactions by giro are required to inform the
Managing Board in writing if they want to be represented at the Annual
General Meeting of Shareholders. Such notification should be received
by the Company no later than the day announced by the Company in
the advertisements. Holders of Amsterdam Shares who hold their
shares through a collective depot as referred to in the Act on the
securities transactions by giro who wish to be (re)presented at the
Annual General Meeting of Shareholders are required to deposit a
written statement from their Bank to the effort that the number of
shares mentioned in the statement is part of a collective depot as
referred to in the Act on the securities transactions by giro and that the
person mentioned in the statement is a participant for the number of
shares specified and shall continue to be until the end of such meeting.
The statement must be deposited at the Company or a designated third
party by a date as announced in the advertisement. In the event a
shareholder wishes to exercise its rights by a written power of attorney,
the Company must have received the power of attorney on the same
date as the notification of statement.

Under the Articles, the Company will have registered shares only and
the currently issued and outstanding bearer shares will be converted
into registered shares.

(vi)
Other than statutory limitations on the ability of the Company to
repurchase its own Shares, there are no provisions in the Articles or
legal limitations that limit the rights of non-Dutch resident or foreign
shareholders to hold Shares or exercise their voting right.

(vii)
The Articles do not contain any provision that would have the effect of
delaying, deferring or preventing a change of control of the Company
and that would operate only with respect to a merger, acquisition or
corporate restructuring involving the Company.

(viii)
The Articles do not contain any provisions on the disclosure of share
ownership. However, pursuant to Dutch law ("Wet Melding
Zeggenschap"), a shareholder must disclose his shareholding to the
STE (the Dutch Securities Board). The disclosure is obligatory each
time a shareholder's holding falls into or out of one of the following
ranges of percentages: 0-5%, 5-10%, 10-25%, 25-50%, 50-66 2/3% and
over 662/3%. Shareholders may also be subject to disclosure
requirements under the US Securities Exchange Act of 1934.

(ix)
The Articles do not contain any provisions governing changes in the
capital that are more stringent than required by law, with the exception
of Article 4 pursuant to which a proposal from the Supervisory Board is
required before the shareholders can resolve to cancel shares.
CONCLOMERATE MAPS/ LOCATIONS OF THE OUTLETS

Code of Business Conduct and Ethics

Corporate Social Responsibility and Sustainability

PRIVACY POLICY
 RESPONSIBLE DISCLOSURE POLICY

OVERVIEW

At Gucci we consider the security of our customers a top priority. With this in
mind we have introduced this policy to encourage the responsible reporting of
suspected vulnerabilities or weaknesses in our IT services, systems,
resources and/or processes that may potentially affect our customers and
their data. We look forward to working with the research community to keep
our services safe for all users.

We recommend reading this policy fully before you report a vulnerability and
ask you to always act in compliance with it. Your personal data will be
processed based on your consent and in accordance with our privacy policy.

We value those who take the time and effort to report security vulnerabilities
according to the terms of this policy. However, we do not offer monetary
rewards for vulnerability disclosures.

If you are the first to report a verifiable major security issue, we’ll thank you
with a place in our hall of fame.

HOW TO DISCLOSE A VULNERABILITY

If you want to report a vulnerability, please e-mail your findings

to [email protected].

For each vulnerability, please give adequate information allowing the

vulnerability to be reproduced, so we will be able to resolve it as quickly as
possible. In particular, please make sure to include the following information:

- type of vulnerability;
- service or URL or IPs affected;
- requirements to reproduce the issue;
- information necessary to reproduce the issue;
- impact of the vulnerability, together with an explanation of how an attacker
could find it and exploit it.

GUIDELINES

Below, please find a list of guidelines that we ask you to follow, should you
detect a vulnerability:

- Do not take advantage of the vulnerability or problem you have discovered.

- Do not perform any activity that can damage us or our customers, disrupt the
impacted system or service, or cause any data leakage/loss.
- Do respect the privacy of our users: you are not allowed to use any personal
data for purposes other than to protect our users and their data, in
accordance with this policy.
- Do keep confidential any information about discovered vulnerabilities for up
to 90 calendar days after you have notified Gucci, unless mutually agreed
otherwise.
- Do not demand financial compensation in order to disclose any
vulnerabilities.
- Do not place a backdoor in a system. By placing a backdoor in a system,
that system becomes even more insecure.
- Do not make changes to the system or application.
- Do not use Denial-of-Service attacks or brute force access.
- Do not use aggressive automated scanning.
- Do not physically attack our staff or infrastructure.
- Do not use social engineering techniques with regard to our employees or
contractors.
Understand that reports about TLS ciphers, email spam, volumetric attacks,
missing web security headers and ‘best practices’ in general will NOT be
considered as valid submissions, unless you are able to identify a way to
exploit and leverage the lack of such headers or configurations.

RESPONSE AND RECOGNITION

Once a notice has been received, we are committed to following up as

follows:

- We will respond to a valid submission within 10 business days with our

evaluation of the report.
- If you have followed the instructions above, we will not take any legal action
against you concerning the report.
- We will not pass on your personal details to third parties without your
permission, unless it is necessary to do so to comply with a legal obligation.
Reporting under a pseudonym or anonymously is possible.
- We will keep you informed of the progress towards resolving the problem.
- For major issues, ranked so at our discretion, we can mention (if you desire)
your name or acronym as the discoverer of the reported vulnerability in our
hall of fame.
- As of now, we do NOT offer bounties for valid submissions.

SCOPE

This policy applies to the following services directly developed or maintained

by Gucci:

- gucci.com and all related subdomains

- guccidigital.io and all related subdomains
- regiongold.com and all related subdomains
- gucciosteria.com and all related subdomains
- .gucci TLD and all related subdomains
- In general: any mobile app, service, domain or IP owned and/or related to
Guccio Gucci SpA and Gucci America Inc.
SWOT Analysis of Gucci
Swot analysis of Gucci. Gucci is a worldwide renowned Italian luxury
fashion brand. Guccio Gucci laid the foundation of the brand in 1921 in
Florence, Tuscany. Pinault Printemps Redoute, a French conglomerate
organization, acquired Gucci in 1999. The brand became the world’s leading
iconic “Geek-Chic” brand in 2010. Nowadays, Gucci is the subsidiary brand of
Kering, a French luxury fashion brand.

Home decoration items, handbags, perfumes, fragrances, ready-to-wear

clothes, accessories, shoes, and makeup are some of the main products of
Gucci. The company has got approximately 520 luxury stores across the
world. Approximately more than 13059 people are working for Gucci to run
various operations at its stores by the end of 2020.

According to an estimate conducted by Kering, the annual revenue of

Gucci in the first half of 2022 was 5,173 million Euros with an increment of
15%. The operational income of the company in the first half of 2022 was
1886 million Euros. The fashion brand has made a good comeback after the
pandemic crisis.

Today we’ll study the swot analysis of the Gucci luxury fashion brand. We’ll
discuss its internal strengths/weaknesses and external opportunities/threats. If
you want to learn about external macro-environmental factors of the company,
check out pestle analysis of Gucci. Here’s the swot analysis of Gucci;

STRENGTHS OF GUCCI
GLOBAL BRAND
Gucci has been in the luxury fashion industry for almost a century. The brand
has got approximately more than 500 retail stores across the world. The
company is successfully operating its business in countries like the US, UK,
Japan, and many other developed countries.

HIGH-QUALITY PRODUCTS
One of the best qualities of Gucci is that the company has never
compromised on the quality of products. That’s why the company has a
unique position among the luxury fashion brands. A very few brands have
acquired the same status of quality and as Gucci’s.

HIGH BRAND VALUE

According to an estimate conducted by Statista, the brand value of Gucci in
2022 was 18.1 billion US dollars. The company has a premium brand value in
the fashion industry. According to the ranking of Forbes, Gucci has the 31st
position as the world’s most valuable brand in 2020.
CORPORATE SOCIAL RESPONSIBILITY (CSR)
Gucci is very well at corporate social responsibility. That’s why the company
has been working alongside UNICEF as a partner on its various projects. It
shows the brand’s commitment to society and people worldwide.

STRONG PRESENCE ON SOCIAL MEDIA

Gucci has millions of followers on its Instagram and Facebook accounts. The
brand is active on its social media accounts. Millions of people visit Gucci’s
website every month. If we talk about the marketing point of view, it’s a great
strength of the brand.

ADOPTING TECHNOLOGY
Actively present on social media is of the best examples that the company is
accepting the latest technology. Whether it’s the production assembly lines,
fashion shows, or other events, Gucci always uses the latest tech trends to
reach more audiences across the world.

SKILLED WORKFORCE
Gucci spends millions of dollars on the training and development of its
workforce. It’s because the brand knows that investment in people would
bring unique ideas. That’s why the company has the most skilled
professionals working for the company.

DISTRIBUTION SYSTEM
The chain of command and the company’s network is remarkable. Whether
it’s designing, production, or the distribution system, Gucci has complete
control over all of its processes. It generates another source of revenue for
the company.

PRODUCT PORTFOLIO
The product portfolio of the company is very rich in line and category and has
got a lot of variety in it. If we say that Gucci is a complete lifestyle brand, then
it won’t be wrong. It’s because the brand offers clothes, shoes, handbags,
accessories, and many other items in-depth product categories.

TRENDSETTER
Gucci has a reputation for being a market leader in the fashion industry and
setting the trends. When the brand sets the trends, the whole world follows.
It’s a unique quality of the brand.
 WEAKNESSES OF GUCCI
LIQUIDITY ISSUES
When we compare the company’s assets with its liabilities, then the ratio is
not equal. The liabilities of Gucci are much higher than its asset. That’s why
the brand has liquidity issues and is facing difficulty to pay off its rents and
other expenses.

THE CONTROVERSY OF OBJECTIFYING WOMEN

Many critics have claimed that Gucci exploits women’s sexuality and overly
uses it in its advertisements. It’s also one of the reasons that the company’s
ads attract the attention of people. Critics also say the marketing campaigns
of Gucci prove one thing that sex sells.

TRAINING & DEVELOPMENT COST

It’s a good thing that Gucci cares about its employees and their skill
development. But the company spends millions on the training development
of its employees. It’s much higher than many competitors are spending.

RESEARCH & DEVELOPMENT

Research and development are one of the key success areas of Gucci. The
company has the market leadership position is because of the R & D. The
question is not about the brand’s investment in R & D, instead of how the
company spends it that matters.

OPPORTUNITIES AVAILABLE TO GUCCI

SKILLFUL & EDUCATED PROFESSIONALS
Technology has increased the literacy rate and education level of people.
Nowadays many people are spending a lot of resources on the education of
people. It means that Gucci won’t have to spend a lot of resources on the
training and development of employees.

NEW ASIAN MARKET

When we talk about the Asian market, then the Chinese and Indian market
has great growth potential for fashion. If the company changes its focus in
those marketing, Gucci would get a lot of customers that would increase the
sales and profitability of the company.

E-COMMERCE
The new customers are tech lovers. They love spending their time on their
smartphones. Gucci has already got millions of followers and visitors to its
online platforms. The company needs is strong online retail stores for
conversion into sales.
YOUNG DEMOGRAPHIC
The good news for Gucci is that the young demographic is brand conscious.
They’re willing to spend a lot more money on their favorite brands. Now Gucci
should launch a marketing campaign on brand awareness.

FASHION NEVER ENDS

The good thing about the fashion industry is that it never ends. It’s because
people want to wear unique apparel and they want to look good. It means that
there would always be a scope of growth in fashion.

THREATS GUCCI HAS TO FACE

GOVERNMENT POLICIES
As we know that people across the world are getting aware of the
environment and they want eco-friendly products. They see Gucci as a luxury
brand wasting scarce resources and polluting the environment through mass-
scale industrialization. If the government passes environmental regulations, it
would be very bad for the company.

NEW COMPETITIVE BRAND

Some of the new major brands like Burberry, Lauren, Ralph, Dior, Armani,
Prada, and many others are attracting the attention of many customers. If they
keep on increasing the market share, it would negatively impact the
company’s growth.

TRADEMARK & COUNTERFEIT

As we know that Gucci is a trendsetter and well-reputed iconic brand. New
brands in other countries copy the ideas and style of Gucci and launch it
under their trademark. The brand has been facing counterfeit issues for many
decades.
 FRANCHISE COST OF GUCCI

Franchise startup costs can range from $10,000 to $5 million, with the
majority falling between $100,000 and $300,000. A franchise’s price can be
determined by the type of franchise, location, and industry.

A franchise will typically cost more to open than a traditional business, with
the franchise system and location serving as the variables. For example,
CruiseOne/Dream Vacations can cost as little as a few thousand to get
started, whereas others, such as Hilton, can cost tens of millions or more. A
franchise can come with a slew of expenses. When a franchise agreement is
signed, the franchise fee is typically fully due. A franchise’s other common
opening fee is usually the same as that of a non-franchise business.
A franchise owner will also require at least one month’s liquid cash as a
minimum condition of obtaining one.

McDonald’s pays a franchise fee of about 30 lakhs INR. This fee is also
included in a 4 % monthly royalty fee as service fees for the brand. In general,
the investment amount is different, so a business owner should estimate it to
be between $6 and $14 crore. A franchise fee can be quite high, but a stable
business with a solid brand name is worth it.

The Pros And Cons Of Owning A Franchise

Owning a franchise is a great way to make money. Franchises give you the
opportunity to pursue new businesses while increasing your portfolio. It is
critical to comprehend what owning a franchise entails before making a
decision. A study found that, on average, a franchise owner’s annual income
is less than 50,000 dollars. Furthermore, only 7% of franchise owners earn
more than 250,000 dollars per year. Before investing in a franchise, it is
critical to consider all of these factors.
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