Gucci Is Suffering in the Age of Quiet Luxury

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00:00Gucci's probably the one that suffered the most it was really you know it went through this real

00:06like loud luxury phase lots of logos granny chic I call it under the former designer Alessandra

00:13Michele after the pandemic it just kind of felt wrong that exuberance just felt wrong and we went

00:19into straighter times they got a new designer and it didn't work out and fashion changed it became

00:24more quiet luxury so Gucci's had a really hard time got a new another new designer who's just

00:30showed his collections at the other end of the spectrum you have someone like Hermes which sells to

00:36very wealthy people it also for its iconic leather goods supply can't keep up with demand and so it

00:44always does better in tougher times then we've had this other factor come through which has been

00:49very interesting now normally when things are tough it's handbags that outperform but because

00:54of those price increases jewelry looks like a better deal so Richemont which owns Cartier

01:01owns Van Keefe and Arpels they've been having an amazing time because we're all buying jewelry

01:07instead of handbags you answered this to some extent but are there any brands that you would say

01:13you feel like are actually really well positioned right now any luxury brands anybody who's

01:18bucking the trend other than I suppose Hermes Tapestry and Ralph Lauren they've been a long time

01:24in the making in doing their turnarounds so their turnarounds have sort of come just at the time when

01:32all the European brands have put up their prices they've always been at that more accessible price

01:37point although Ralph Lauren has you know very very expensive item purple label etc um they they've been in

01:44a real sweet spot so they've been doing really well too who is the creative director right now that

01:49you get the most excited about who do you think's the most interesting one well I think the most

01:54interesting one is Demna at Gucci I wasn't in favor of his his being appointed I felt like

02:01at Balenciaga he did incredibly well but the market was different he he did a lot of big logos a lot of

02:07streetwear infused um fashion which really has gone out now streetwear's kind of over um so I felt like

02:16he was like yesterday's man but we had his debut at Gucci it it was definitely a step in the right direction

02:24they didn't do a um I didn't do a catwalk show they did a film the film was absolutely bonkers but it was

02:33clever because he wasn't going up against like Jonathan Anderson at Dior um Matthew Blasey at Chanel

02:40it was in Milan's it was earlier and this film was very clever it you know it gave gave way to lots of

02:46viral moments and um I think I'm going to be watching that and Gucci is so crucial to carrying

02:54success and that is the for me that's the one to watch it feels like we're going through a lot of

02:59turnover with creative directors right now what why is that happening this has its roots back in

03:04the boom and bust so when everyone was buying bags and shoes and clothing the luxury brands thought

03:10wow this is great we're so good everyone loves our products and they didn't have to try too hard so

03:16the combination of the price increases plus this sort of creative complacency then there was the

03:23downturn and so they thought how do we make our brands exciting again and one way is to get a new

03:32creative area to create excitement to you know a new sort of creative vision to really excite consumers

03:40and and that's and that's what we're seeing now we've had a lot of debuts at this fashion week

03:47uh fashion month um and the brands are really hoping that that creates excitement and encourages people to buy

04:03you