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merchandising case study

gucci

executive summary

Gucci has introduced "Tailored For You," a new way to offer customized clothing in-store using an AI system. The system uses a 3D style configurator to create different combinations of cuts and colors based on customer information. Kering's Annual Report shows a significant drop in Gucci's sales this year. In the second quarter of 2024, Gucci's sales fell by 11%, causing a 20% drop in reported sales and an 18% drop when adjusted for currency (BoF, 2024). The Ready-to-Wear products contribute 17% to total sales revenue, making them ideal for using this technology of customization to increase sales. According to the BoF Brand Magic Index consumers align to 12 archetypes, such as "creator" and "magician". This indicates a desire to create and turn dreams into reality. Gucci was ranked 45th for alignment, making it one of the least aligned brands (BOF, 2024). To address this, Gucci needs a new strategy to boost sales, attract customers, and build brand loyalty. Research indicates that 71% of consumers expect personalized interactions with companies (BoF, 2022). Offering customized experiences in Gucci stores can help increase sales, improve customer

loyalty, and attract new customers. By expanding its product range and offering customized experiences, Gucci can strengthen its position in the market.

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