Gucci's Bold 'See Now Buy Now' Strategy Fuels Early Success Under New Designer Demna

Gucci's bold "see now, buy now" strategy for its inaugural collection under new designer Demna is demonstrating promising early success, according to recent data. This unconventional approach, designed to capitalize on significant brand buzz, aims to revitalize store traffic following several years of underperforming sales for the luxury house.

Demna's debut at Milan Fashion Week last month was marked by an audacious rollout. He pre-empted the official show by releasing images of his first Gucci collection on social media, styled like a star-studded film premiere. This was followed by another industry deviation: the immediate availability of new products from the Milan show in ten flagship stores, a limited engagement set to conclude on October 12. This diverges sharply from the traditional luxury calendar, which typically dictates a months-long wait between runway presentations and retail availability.

The fast-track approach has already yielded measurable improvements in store foot traffic, particularly in the US. Data compiled by Placer.ai and provided to Reuters by Colliers indicates a steady increase in visits to the Rodeo Drive store in Los Angeles—one of the key boutiques stocking the new collection. In the four days following the September 23 Milan show, weekly store visits surged by 53% compared to the previous week. Similarly, Gucci's Wooster Street store in New York reported a 19% rise in weekly traffic. Across the US, store visits reached a three-week high during the weekend immediately after the Demna launch.

The success of Demna's collection is crucial for the revival of the struggling Gucci brand, which accounts for the majority of sales and profit for its parent company, the French conglomerate Kering. Both Kering CEO Luca de Meo and Gucci boss Francesca Bellettini, who are relatively new to their roles, are under considerable pressure to reverse Gucci's two-year sales decline. The brand's revenue plunged 25% year-on-year in the most recent quarter, with Bellettini noting a further slowdown in store traffic earlier this year.

While Gucci's immediate show-to-store model is rare in the industry, having only been occasionally adopted by smaller labels like Jacquemus and Burberry, experts suggest it is a strategic move for the brand. Laure Anne Chansel, a fashion marketing instructor at EIML business school in Paris, remarked on Gucci's recent lack of a compelling narrative. She emphasized the necessity for Gucci to capitalize on this newfound attention, especially after the period of uncertainty following the departure of the previous designer, Sabato de Sarno, in February.

Initial customer reactions are positive. At one of the three European boutiques selling the collection on Paris's Avenue Montaigne, sales assistants reported an unprecedented level of interest in months. Gayle Deifel, a tourist from California, expressed surprise at discovering Demna's new collection—which includes fur coats, a gold dress, and updated versions of the iconic Bamboo and Jackie handbags—already available. She ultimately purchased a pair of leather boots.

The full collection is slated for a broader rollout in January, hinting at Gucci's commercial strategy to attract a wider demographic. This includes younger and less affluent shoppers who have become hesitant about luxury spending amidst economic uncertainty. The luxury industry, currently experiencing a downturn, faces the challenge of winning back these customers who were alienated when companies aggressively hiked prices to focus solely on the ultra-wealthy.

Luxury consultant LinLi Teh, a former buyer for London department store Liberty, believes Demna's new styles could broaden Gucci's appeal significantly. She noted that the Georgian designer appears to be "hitting the angles of all the Gucci customers over the past decades." This inclusive approach is evident in the Paris store, where a downsized and more affordable version of the classic Jackie bag, priced just under 2,000 euros ($2,347.00), was prominently displayed near the checkout—a stark contrast to the 3,200 euros for other Gucci styles.

Demna's arrival at Gucci is part of a broader industry reshuffle, with new designers also taking the helm at Chanel, Dior, and Loewe, all vying to make their mark. Gucci's deep-pocketed rivals are investing heavily in elaborate events and campaigns, such as LVMH's recent Louis Vuitton boutique shaped like an ocean liner in downtown Shanghai. Meanwhile, heavily-indebted Kering faces the dual challenge of balancing significant marketing investments with a crucial cost-cutting drive.

In China, Demna's Milan fashion week debut was celebrated at a VIP event in Beijing featuring local celebrities. This generated a brief surge in online attention that, according to Alexis Bonhomme of luxury consulting firm Trinity Asia, faded within two days. Bonhomme cautioned that while the campaign successfully "increased the talkability," its conversion into tangible sales in the crucial Chinese market "remains to be demonstrated."