What are Gucci’s new ‘salons’ for the ultra-wealthy? As LVMH rival Louis Vuitton appoints Pharrell Williams and gains market share, Kering boss François-Henri Pinault hopes to boost his brand’s sales

Feb 18 , 2023

Can Gucci take back market share from its rival Louis Vuitton after the pandemic? Kering boss François-Henri Pinault certainly hopes so. Photo: EPA-EFE

Louis Vuitton’s new menswear creative director Pharrell Williams gets his first show in June, while Gucci and Sabato De Sarno must wait until September

Now Gucci’s parent company Kering has announced the launch of salons selling items costing from US$40,000 to US$3 million to target the wealthiest least affected by the pandemic

Gucci is banking on new ultra-high-end “salons” offering merchandise priced at up to US$3 million to help narrow a widening gap with rival Louis Vuitton as it waits for its new creative director to arrive.

Can Gucci boost its sales by targeting its wealthiest shoppers? Photo: Reuters

Chasing after the ultra-rich whose fortunes are largely immune to economic turbulence, Gucci will stock the new private boutiques with some of its highest-end clothing, furniture and jewellery.

“Nothing will cost less than US$40,000, and it will go up to as much as US$3 million for high jewellery,” Kering boss François-Henri Pinault said this week.

Filling the gap

Models present creations at the Gucci autumn/winter 2023-2024 menswear show in Milan, on January 13. Photo: Reuters

Gucci’s focus on its wealthiest clients is a key element of its growth strategy after the brand’s sales fell 14 per cent in the last three months of 2022, dragged down by Covid-19 curbs in China and reduced appetite for its clothes in the United States – particularly among lower-spending shoppers.

New Gucci creative director Sabato De Sarno is set to take the helm in the second quarter and to present his first fashion show in September in Milan. But because De Sarno’s collections won’t hit the stores before next year, Gucci is under pressure to make sure it doesn’t lose more momentum in sales and margins in coming months.

Sabato De Sarno is the new creative director of Gucci. Photo: Reuters

“We are not just waiting for Sabato to arrive,” Pinault said, adding the label would promote an exhibit of its archives on a world tour with a first stop in Shanghai. It will also ramp up its presence on the catwalk – with a show in Milan this month and a cruise collection in Seoul in May.