SWOT Analysis of Gucci | Gucci SWOT

by Shamsul
Market Strategy of Gucci
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SWOT Analysis of Gucci | Gucci SWOT


Have you ever heard the phrase ‘’that’s so Gucci’’? This phrase represents the high quality of something but some people don’t know that it comes from a popular fashion brand “Gucci”. The founder of this fashion brand is Guccio Gucci. Leather-based products are first produced in this brand and later it becomes a world-famous fashion brand. The owner of Gucci opened his first shop in 1921. Today, Gucci is a renowned fashion brand in terms of quality and revenue. During the WW2, the shortage of leather resulted in Bamboo bags. The current CEO of Gucci is Marco Bizzarri and the Creative Director is Alessandro Michele. The brand is going strong in terms of products and innovation in variety. Let’s talk about the Gucci SWOT that includes strengths, weaknesses, opportunities, and threats of Gucci without any delay.


Company Name:  Gucci (Fashion Company)

Founded by:  Guccio Gucci

Headquarter: Florence, Italy

CEO: Marco Bizzarri (Jan 1, 2015–)

Year established:  1921

Industry:  Fashion

Type:  Subsidiary (S. p. A)

Number of stores worldwide:  (2019) 487

Total Employees: (2019) 17, 157

 Annual Revenue (2019): € 9.628 billion



SWOT Analysis of Gucci | Gucci SWOT

Strengths of Gucci:

When we talk about the strengths of Gucci, there are several things to consider. Gucci is one of the strongest brands in the world in terms of quality and popularity. It is a famous brand and people love to purchase its products in order to make a fashion statement. With more than 500 stores across the world, Gucci is a world-class brand. Let’s discuss some major strengths of Gucci.

  1. Superb Quality:

Gucci is best known for its high-quality offerings and products. Even though its prices are a little expensive, but they don’t compromise on quality. And due to this reason, customers love this brand because all they want is quality and style.

  1. Diversification:

According to shoppers, Gucci is a trendsetter in the retail market. It is really diversified in terms of offerings and selling. From bags to clothes, shoes, accessories, and so on, you can purchase everything from one roof. It is one of the major strengths of Gucci.

  1. Effective Distribution:

Despite a huge variety of products, Gucci has an effective distribution system. You can shop your favorite product from Gucci’s stores at any time. They ensure that all the products are available for users at any store. This thing gives a competitive advantage to Gucci over its competitors.

  1. Skilled Employees:

The skilled workforce is one of the biggest secrets of the success of Gucci. They invest heavily in the training programs in order to educate their employees. You will experience a high-quality environment and behavior of employees at the outlets of Gucci.

  1. New Technologies:

Gucci has successfully evaluated itself to the latest technologies and it is also using digital platforms in order to communicate with its audience online. They have a strong social media presence on different platforms such as Instagram, Facebook, etc. Moreover, its beautiful website also attracts customers to see products and read reviews. This thing allows the company to earn traffic and revenue. Furthermore, they also partnered with UNICEF in order to fulfill its corporate social responsibility. All these factors have contributed immensely to the success of Gucci. The current market value of Gucci is around $17.63 billion.


SWOT Analysis of Gucci | Gucci SWOT

Weaknesses of Gucci:

  1. Research and Development:

Even though Gucci invests a good sum in research and development, but it is still lagging in this sector from its competitors. It is the biggest weakness of Gucci and competitors can take lead in terms of profits and market value. They should invest in training and development of workforce because it is an important part of the success of any company.

  1. Ineffective Advertisement:

Gucci has experienced a huge backlash or criticism due to its inappropriate and controversial advertisements. It includes the objectification of women and hurting the feelings of the audience. This kind of weak advertisement can also impact the growth of Gucci.

  1. Financial Position:

Due to liquidity issues, Gucci is facing severe problems. This kind of liability and asset problem can create a major difference in the working and revenue of Gucci. They are also facing difficulty in paying heavy rents.


SWOT Analysis of Gucci | Gucci SWOT

Opportunities of Gucci:

  1. Younger Customers:

It is a big opportunity for Gucci to attract the new generation through effective advertisement and offerings. As younger customers are more brand-conscious, so they can help to drive sales. They love to shop and wear branded clothes in order to make a style statement.

  1. E-commerce:

As younger consumers are tech-savvy and love to buy goods through online platforms. They can easily compare different products such as price, quality, and material. It’s a big opportunity for Gucci to enhance its online presence in order to boost sales and also make good communication with the audience.

  1. Emerging Markets:

The demand for luxury items in the emerging market is very huge. Gucci should target China and India in order to expand its offerings and sales. These markets have great potential and they can contribute to the profitability and market share of Gucci.

  1. Investment in R&D and Workforce:

Due to the educational reforms in different countries, the people are more skilled and educated. This thing allows the company to reduce its investment in the training and development sector. They should hire skilled and educated workers.


SWOT Analysis of Gucci | Gucci SWOT

Threats of Gucci:

  1. Counterfeit Products:

Counterfeit products are one of the biggest issues for Gucci. Due to technological advancement, it is really easy for counterfeit companies to sell their products at cheaper costs. This thing harms the fertility and growth of Gucci.

  1. Competitors:

Prada, Christian Dior, Armani, and more are the big competitors in retailer markets. They are offering the same products at different price points and can threaten the profitability of Gucci. They are doing well in other markets and continuously disturbing the working of Gucci. This kind of fierce competition from competitors can create a big difference in the working of Gucci.

  1. Government Policies:

As we know that, Gucci is operating globally and have a strong presence in different countries. But, sometimes the government regulations can affect the company’s working and revenue system. These types of government regulations can make a huge problem for the company.

  1. Environmental Regulations:

Due to the strict environmental regulations, Gucci is facing problems in manufacturing certain products or items. These regulations can worsen the working and market share of Gucci. It is essential for Gucci to invest in eco-friendly products in order to win the trust of customers.


SWOT Analysis of Gucci | Gucci SWOT


It is a fact that Gucci’s story is enough to inspire anyone. There are several strengths and opportunities for Gucci that they can utilize in favor of their business and revenue. There is no doubt that Gucci is a trendsetter in terms of quality and the latest fashion. In short, Gucci is doing well in different sectors and they can expand its business by following certain steps.


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