FLORENCE, Italy — Luxury-goods makers are adapting as demand for
premium products aligns with the broader economy for the first time in a
decade, the chief executive officer of Gucci
Group said.
“The luxury
industry, for the first time in the past 10 years, had to face challenges that
were not there before,” Patrizio di Marco said today in an interview with Bloomberg
Television. Amid a tougher economic climate, consumers are looking for
greater “insurance” when making purchases, he said.
Gucci’s
owner, Paris-based Kering
SA, last month reported first-quarter revenue that trailed estimates as the
luxury-goods company posted its weakest quarterly growth in more than three
years amid a more volatile business climate in Europe. Competitors LVMH Moet
Hennessy Louis Vuitton SA and Hermes International SCA have also reported
slowing sales growth.
“There was a
time when luxury was very much about logo, a label, a name and that was more
than enough,” di Marco said. “Now you have to be a company with integrity,
values, values and integrity that have to be conveyed to the customer and to be
felt so that you can actually engage with them and build a long-lasting
relationship. This is basically the today and tomorrow challenge of the
industry.”
Kering fell
1 percent to 168.40 euros at 1:53 p.m. in Paris trading today, mirroring the
broader market’s decline. Shareholders of the company, previously known as PPR
SA, vote to approve the name change June 18.
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