gucci-revenue

Gucci Revenue

Business / By / June 27, 2023

Gucci generated €10.49 billion in revenue in 2022, compared to €9.73 billion in 2021 and €7.44 billion in 2020.

Gucci is the most important brand within Kering.

kering-revenue-breakdown
In 2022, Kering generated €20.35 billion in revenue, of which €10.49 billion from Gucci (50.6%), €3.3 billion from Yves Saint Laurent (15.9%), €1.74 billion from Bottega Veneta (8.39%), and €3.87 billion from the other houses.

Indeed, Gucci contributed to over 50% of the Kering Group revenue in 2022.

There is also another interesting aspect of it.

In the late 1990s, the luxury sector started consolidating in the hands of a few prominent players, including LVMH, headed by Bernard Arnault.

Arnault had tried to take over Gucci, but a war ensued as the executive team at Gucci tried all it could to prevent LVMH from taking over.

They knew that once Bernard Arnault had taken a stake in the company, he would have taken control shortly (that was the aggressive playbook used by Arnault).

Indeed, while LVMH had successfully acquired a stake in Gucci, it never managed to gain a majority stake.

Eventually, Gucci went into the hands of another french billionaire, Pinault, which created the only luxury group able to compete against LVMH.

lvmh-revenue-by-segment
LVMH is a luxury group owned by the Arnault family, which generated over €79 billion in revenue ($83 billion) in revenue in 2022, with a luxury empire that spans many segments. Yet the fashion and leather goods segment (which comprises brands like Fendi and Louis Vuitton) is the major one, and it generated over €39 billion in revenue, in 2022.

Today, Kering and LVMH combined to form two luxury giants, now a good chunk of the most iconic luxury brands.

A few brands, like Prada, managed to stay independent.

prada-business-model
The family-owned Italian luxury brand – Prada – generated over four billion euros in revenues for 2022. Among Prada brands, Prada made more than 87% of the company’s revenues, followed by Miu Miu and Church. Prada also owns Marchesi 1824 (a luxury bakery) and Car Shoe (a shoe company) made about half a percent of the total revenues.

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Bernard Arnault’s wealth is around $203 billion. Indeed Arnault is the CEO and chairman of the luxury goods conglomerate LVMH Moët Hennessy Louis Vuitton, a massive luxury group that generated over €79 billion in revenue ($83 billion) in 2022, spanning across wines, fashion, cosmetics, and retail. The Arnault family group owns 48.18% of the capital for LVMH with 63.9% voting power, making Bernard Arnault the principal owner and decision-maker. His stake is worth over $203 billion.

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The Ultra Fashion business model is an evolution of fast fashion with a strong online twist. Indeed, where the fast-fashion retailer invests massively in logistics and warehousing, its costs are still skewed toward operating physical retail stores. While the ultra-fast fashion retailer mainly moves its operations online, thus focusing its cost centers on logistics, warehousing, and a mobile-based digital presence.

ASOS Business Model

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ASOS is a British online fashion retailer founded in 2000 by Nick Robertson, Andrew Regan, Quentin Griffiths, and Deborah Thorpe. As an online fashion retailer, ASOS makes money by purchasing clothes from wholesalers and then selling them for a profit. This includes the sale of private label or own-brand products. ASOS further expanded on the fast fashion business model to create an ultra-fast fashion model driven by short sales cycles and online mobile e-commerce as the main drivers.

Real-Time Retail

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Real-time retail involves the instantaneous collection, analysis, and distribution of data to give consumers an integrated and personalized shopping experience. This represents a strong new trend, as a further evolution of fast fashion first (who turned the design into manufacturing in a few weeks), ultra-fast fashion later (which further shortened the cycle of design-manufacturing). Real-time retail turns fashion trends into clothes collections in a few days or a maximum of one week.

SHEIN Business Model

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SHEIN is an international B2C fast fashion eCommerce platform founded in 2008 by Chris Xu. The company improved the ultra-fast fashion model by leveraging real-time retail, quickly turning fashion trends in clothes collections through its strong digital presence and successful branding campaigns.

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About The Author

Gennaro is the creator of FourWeekMBA, which reached about four million business people, comprising C-level executives, investors, analysts, product managers, and aspiring digital entrepreneurs in 2022 alone | He is also Director of Sales for a high-tech scaleup in the AI Industry | In 2012, Gennaro earned an International MBA with emphasis on Corporate Finance and Business Strategy.
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