Kering has appointed Jeanette Bellettini to lead the effort in reversing Gucci’s recent decline. She’s tasked with implementing strategic changes, including product innovation, marketing, and operational adjustments, to restore growth. Bellettini’s leadership aims to reestablish Gucci’s market dominance and attract new customer segments while balancing its heritage with fresh creative directions. If you keep exploring, you’ll discover how her plans could reshape Gucci’s future and bring the brand back to prominence.
Gucci is at a critical crossroads as its sales plummet, forcing the brand to confront significant challenges that threaten its luxury dominance. In the first quarter of 2025, sales dropped by 25%, dragging Kering’s overall revenue down by 14%. The trend continued into the second quarter, with Gucci experiencing another 25% decline, totaling €1.46 billion in sales. This downturn has had a profound impact on Kering’s bottom line, since Gucci accounts for nearly half of the group’s revenue and about two-thirds of its profit. As a result, Kering’s operating income fell by 39% year-on-year to €969 million in Q2. Weak demand across major markets like Japan, China, Asia Pacific, and the U.S., combined with inflation and geopolitical tensions, has only worsened the situation. Market sentiment remains cautious, as analysts closely monitor Gucci’s recovery prospects amid ongoing economic headwinds.
Gucci’s sales decline by 25% in Q1 2025, heavily impacting Kering’s revenue and profit amid weakening global demand.
To turn things around, Kering appointed a new leadership team for Gucci. In early 2023, Sabato De Sarno took over as creative director, but his unexpected departure in February 2025 left the brand without a clear creative vision. Kering responded swiftly by bringing in Demna Gvasalia, the former Balenciaga creative director, in July 2025. Gvasalia’s streetwear-inspired aesthetic marks a stark departure from Gucci’s traditional heritage style, aiming to attract younger, more aspirational consumers. However, the initial market reaction was negative, causing Kering’s shares to drop around 12-13%, wiping out nearly $3 billion in market value. This leadership change reflects Kering’s broader strategy to reinvigorate Gucci’s appeal and regain market momentum.
Despite retail strength, especially in Asia-Pacific with 183 stores, Gucci’s core leather goods segment has underperformed. The brand struggles with a lack of standout products that can lure customers back into stores. While Demna’s approach may boost ready-to-wear collections among a younger demographic, it risks alienating traditional Gucci fans. The shift toward streetwear and a more casual aesthetic could dilute Gucci’s established brand identity and customer base. External factors also weigh heavily; geopolitical uncertainty, inflation, and cautious consumer behavior continue to suppress luxury spending. Asian markets, particularly Japan and China, have shown notable softness, further impacting revenues.
Kering recognizes these issues but remains committed to rebuilding Gucci’s strength. Over the past two years, the group has implemented restructuring measures, including store closures and operational adjustments, to stem losses. Moving forward, Kering emphasizes product innovation, marketing, and storytelling under Demna’s leadership, aiming to restore growth over multiple years. By carefully balancing the brand’s heritage with fresh creative directions, Kering hopes to reverse Gucci’s decline and restore its position as a leader in the luxury market.
Frequently Asked Questions
What Specific Strategies Will Bellettini Implement at Gucci?
Bellettini will focus on revitalizing Gucci by boosting product creativity and cultural relevance, ensuring offerings align with current fashion trends. She’ll prioritize digital innovation, enhancing online presence and customer experience through AI and targeted marketing. Additionally, she’ll strengthen brand positioning in growth markets like the US and Asia-Pacific, optimize retail stores, and attract younger consumers by launching campaigns tailored to Gen Z and reimagining collections to maintain Gucci’s luxury edge.
How Does Kering Plan to Measure Gucci’s Turnaround Success?
You measure Gucci’s turnaround success through several key indicators. As sales start to recover, you’ll watch regional performance, especially North America and Asia-Pacific. You keep an eye on new product reception, especially hits like the Giglio bag, and consumer response among Gen Z and high-end clients. Operational improvements, like store closures and cost cuts, also signal progress, along with rising margins and positive investor sentiment, confirming the brand’s path to recovery.
Will There Be Changes to Gucci’s Product Design and Branding?
Yes, Gucci will likely see changes in product design and branding. You’ll notice a blend of heritage with modern innovation, driven by AI and new collections that reinterpret classic motifs. Expect more contemporary silhouettes and subtle updates to iconic bags, aligning with current trends. Marketing will also play a bigger role, emphasizing digital engagement and customer feedback to shape future designs, creating a fresh, dynamic brand image.
How Long Is the Expected Timeline for Gucci’s Recovery?
The timeline for Gucci’s recovery is like turning a massive ship—it won’t happen overnight. You can expect meaningful progress after Demna’s debut collection in late 2025, but full recovery might take until early 2026 when Luca de Meo reveals his strategic plan. Market conditions, consumer demand, and internal adjustments all influence this slow but steady turnaround, with significant improvement unlikely before 2026.
What Challenges Might Bellettini Face in Reversing the Decline?
You’ll face challenges like shifting consumer preferences toward understated luxury, which conflicts with Gucci’s bold image. Managing the brand’s creative direction amid leadership changes and uncertainty about new collections will test your strategy. Additionally, reviving sales in key markets, rebuilding consumer trust, and adapting to digital and sustainability trends require quick, innovative actions. Balancing heritage with modern relevance is essential, but internal restructuring and financial pressures may slow your progress.
Conclusion
You can’t ignore the fact that Gucci’s sales dropped by 10% last year. But with Kering placing Bellettini in charge, there’s hope. Her proven track record suggests she’ll turn things around quickly. If she manages to boost sales even just 5% in the next quarter, it could be a game-changer. Keep an eye on Gucci—you might see a remarkable comeback sooner than you think.
