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The movement reveals how luxury brands try new sales channels, as happened with Chanel opening its online store in Mexico for the first time.
There are studies like “Luxury trend report 2020” where he warns of the challenges for the luxury market.
Gucci has become one of the leading brands in apparelconsidered by Brand Finance as one of the most valuable in this sector.
kering has been made of a building in France to turn it into gucci storerather, in a Gucci Mega Store, giving an account of what the fashion giants spend on inflation and how they stand out to the consumer.
Like Kering, we saw one aspect of the test that luxury brands carry out in new sales channels that attracts attention with Chanelopening its online store for the first time in Mexico.
While the giants go out shopping for real estate, studies as “Luxury trend report 2020” They have warned that the most important challenges that brands are experiencing is the “corporate social responsibility (CSR) commitment”, for 63 percent of the professionals who work in this industry.
For 43 percent, the challenge is in electronic commerce; 41 percent acknowledged that the challenge lay in expanding the consumer base to a younger one, one that included millennials and to Generation Z; while 19 percent said the challenge was in the Customer Relationship Management.
What to spend on inflation
The decision of kering of spending 200 million dollars on a building to convert it into a store, in the midst of an inflation phenomenon that is being experienced in the international market, seems to be an interesting case of the value that physical points of sale have in this inflationary phenomenon or a strategy preparation, to have physical points of sale ready, in the face of a possible post-inflation phenomenon.
The Kering case stands out, because it involves the purchase of a building with eight thousand square meters for just over 300 million dollarsto turn it into a store gucci. The idea has been coined as a macro project and in addition to telling us that Gucci is the flagship brand of keringthe action stands out because it is located at 235 Saint-Honoré, in front of a store Louis Vuitton.
The real estate macro-project also draws attention, because it has become an interesting phenomenon of how brands are diversifying their investments and finding in properties a key opportunity to strengthen their capital, as Inditex has done, which has given Amancio Ortegawith a dynamic segment of premises and buildings, which it has even taken advantage of to rent to brands.
The purchase-sale operation also happens after a French media reported that he would only rent one floor of the building to get two thousand square meters for twelve million euros per year, however, the conditions have changed and they give us an indicator of what fashion giants buy when they go shopping in inflation.
From the aesthetic details it is known that the studio of architects Franklin Azzi is the one who has been left with the project to refurbish the building for the flagship establishment of gucciwhich will obviously showcase the work of Sabato Sarnothe new creative director of the brand.
This scenario has become a very interesting one in the market of how brands end up getting involved with the consumer and, most importantly, they manage to trigger a sales segment thought of the consumer’s purchasing power.
The purchase of a building to eventually turn it into a Gucci megastore leaves behind the shyness with which luxury products were sold in confined spaces or places where you have to queue to enter.
There is a new episode in the history of luxury that is currently being written, as we saw with Chanel, which recently opened its web store in Mexico and although it only sells the brand’s makeup and perfumes, it is an expansion of the brands of luxury to sales channels not seen before.