Gucci to focus on HNWI and private clients to boost sales

Gucci is revving up its strategy to increase sales, targeting high net worth individuals (HNWI) to foster growth.

Kering’s results this week confirmed the Italian luxury house has lost its momentum, but private client sales could boost its bottom line, with prices ranging from 40,000 dollars to 3 million dollars, Kering ceo Francoi-Henri Pinault confirmed.

As Gucci shifts from its maximalist aesthetic under previous creative director Alessandro Michele to a new design era under Sabato De Sarno, securing sales from a demographic less vulnerable to economic downturns in the interim will be imperative for Kering’s most lucrative brand.

Reuters reported Gucci will stock the new private boutiques with some of its highest-end clothing, furniture and jewellery.

Lagging sales in China and the U.S. have impacted Gucci’s revenue but it also pulled back on its marketing during the pandemic. Comparing Gucci’s marketing spend to Louis Vuitton (487 million euros versus 890 million euros, according to Reuters) and Gucci will need to amplify its efforts in the race for luxury’s customers.