After a lackluster 2016, luxury sales figures for 2017 are poised to put the industry on the path to continuous growth. One reason for this is increased millennial spending. Many brands have tried to connect with the millennial generation by way of inspired collaborations, diversified influencer network, and creative storytelling in various interactive channels, but some lag behind in the movement. [1]

gucci fall 1.jpgGucci AW 2017 campaign | Photo: courtesy of Gucci

Kering Group’s largest profit contributor Gucci, in particular, has been successful in tapping into the “millennial state of mind” [2] as evidenced by its revenue. Under Alessandro Michele’s creative leadership, Gucci achieved 48, 39, and 49 per cent revenue growth in the first, second, and third quarter of 2017, respectively, versus last year. [3] [4] It is said that millennials make up more than half of Gucci’s clients [5], accounting for this staggering development. Millennials are reacting positively to Gucci’s digital content, e-commerce initiative, and unique design.

Meanwhile, Yves Saint Laurent is also helping drive Kering’s overall performance for 2017. In the second and third quarter of 2017, the brand posted 24 and 22 per cent growth in sales. [3] [4]

gucci fall 2.jpgGucci AW 2017 campaign | Photo: courtesy of Gucci

Kering also owns Balenciaga, Bottega Veneta, Stella McCartney, Alexander McQueen, and Boucheron in the luxury side, as well as Puma on the sporting range. On the whole, the company’s third quarter revenue increased by 28 per cent [5], leading to a USD 1.7 billion increase in net worth for Francois Pinault. [6]

[1] Rein, Gabrielle. “Think Tank: Why Millennials Are the Future of Luxury.” WWD, 25 Apr. 2016, wwd.com/fashion-news/designer-luxury/millennials-luxury-spending-10417737/.

[2] Solomon, Michael. “How Millennials Will Reshape the Luxury Market.” Forbes, Forbes Magazine, 20 June 2017, www.forbes.com/sites/msolomon/2017/06/20/how-millennials-will-reshape-the-luxury-goods-market-bain-luxury-report-2017/#35c58b0c2f86.

[3] Reuters. “Gucci Isn't the Only Brand Fuelling Growth at Kering.” The Business of Fashion, 27 July 2017, www.businessoffashion.com/articles/news-analysis/gucci-isnt-the-only-brand-fuelling-growth-at-kering.

[4] Mau, Dhani. “Gucci's Exponential Growth Spurt Continues.” Fashionista, 24 Oct. 2017, fashionista.com/2017/10/gucci-revenue-sales-growth-q3-2017.

[5] Reuters. “Sales Boom at Kering, Gucci up 49 Percent.” The Business of Fashion, 24 Oct. 2017, www.businessoffashion.com/articles/news-analysis/sales-boom-at-kering-gucci-up-49-percent.

[6] Levingston, Ivan. “Luxury's Allure.” Bloomberg.com, Bloomberg, 26 Oct. 2017, www.bloomberg.com/news/articles/2017-10-26/luxury-s-allure.

Tags: Fashion, Gucci, Saint Laurent, Business, Kering Group