Luxury powerhouse Gucci brings craftsmanship in-house
Reuters - Jun 12th, 14:51
Kering’s fashion powerhouse Gucci is bringing more manufacturing in-house as luxury firms step up efforts to meet demand from Chinese shoppers with slicker operations.
Gucci, which says it could one day overtake LVMH’s Louis Vuitton as the world’s top luxury brand by sales, also outlined plans at its strategy update to almost halve its reliance on independent leather goods suppliers.
The step comes as labels including Britain’s Burberry and France’s Vuitton begin to levy greater control over their production or invest in speeding up internal processes to ride a rebound in luxury goods sales.
Gucci, one of the fastest-growing fashion brands in 2017 after a flamboyant design makeover, plans to cut its use of independent suppliers to 40% of leather goods production over the long term, from 75% now.
The Italian brand aims to halve the turnaround time between a product’s conception and delivery in store as a result, CEO Marco Bizzarri said, as well as secure the production capacity it needs to match its punchy sales ambitions.
"We want to reduce the lead time, and it’s not possible if you’re too scattered with small suppliers," Bizzarri told reporters at Gucci’s new "ArtLab" site outside Florence, where it will do prototypes of bag and shoe designs.
"We also need to make sure other brands are not stealing supply. Because of the growth we’re having we need to protect our artisans," Bizzarri added.
Italian brands have traditionally worked with an external network of dozens of local artisans on items such as handbags, while French peers Hermes and Vuitton almost exclusively use their own workshops.
Gucci has bought out 10 local suppliers and said it was closing in on another 10, though the shift to what the brand considers internal production will mostly involve creating joint ventures with external workshops or giving them exclusive contracts.
Even that can help stabilise production when some manufacturers in Italy are vulnerable.
Some are "tiny, almost family-like workshops which have know-how but where there are often questions over whether they are sustainable, or regarding succession," said Olivier Salomon, MD at consultancy Alix Partners in Paris.
Other brands with a big focus on leather goods like Milan-based Prada are grappling with these issues too as they consider taking more production in-house, partly to nurture new generations of skilled workers.
"One of the problems with outsourcing is one of quality. You need artisans ... and the problem with craftsmanship is one of training. You can’t find these kinds of people everywhere," Prada chairman Carlo Mazzi told Reuters, as the label inaugurated a new industrial site in eastern Tuscany last week.
While traditional skills are in demand, fashion brands are also seeking to build up internal expertise at a time of radical innovations in the materials used in fashion.
Gucci’s Bizzarri cited leather grown in laboratories as one potential industry game changer, albeit a far-off one. Part of Gucci’s ArtLab remit is research and development, as the brand seeks to perfect production methods new and old.
At the site, workers buffed python skins dyed orange and blue for use in samples; elsewhere, a robot stress-tested sneakers, rhythmically bending the shoes back and forth.
"If you internalise production you are able to experiment much more in terms of innovation," Bizzarri said.BusinessDay
Pampers & Pick n Pay raise R1m for South African newborns
22/06/2018 - 13:33
Brand of baby nappies, Pampers has partnered with South Africa’s largest Supermarket Chain, Pick n Pay to help raise R1 million to support The United Nations Children's Funds (UNICEF’s) First 1000 Days initiative.
Google buys £414m stake in JD.com
22/06/2018 - 11:19
China’s largest retailer JD.com has launched a $550 million (£414 million) partnership with Google which will see the former sell products through Google Shipping across the world.
Ask Afrika announces 2018/2019 Kasi Star Brands Awards
22/06/2018 - 10:17
Ask Afrika announced the winners of their annual Kasi Star Brands Awards 2018/2019, recognising those brands that are most loyally used by South Africa’s township consumers and highlighting key trends emerging in what is rapidly becoming an ever more prominent market for South African brands.
MySchool MyVillage MyPlanet wins big at the Loyalty Magazine Awards in London
21/06/2018 - 15:14
MySchool MyVillage MyPlanet scooped three major awards at the Loyalty Magazine Awards held in London recently. The fundraising programme was awarded Best CSR Initiative Linked to Loyalty, Best Long-Term Loyalty Programme and also received the prestigious Regional Loyalty Champions of the Year for Middle East & Africa award.
Online shopping grows in SA
21/06/2018 - 10:21
Although traditional retail stores dominate the South African market, consumers are choosing the online option for cheaper technical goods purchases.