Gucci
This is a business school case study for illustration purposes only.
Founded in 1921 by Guccio Gucci in his home town in Florence. Guccio drew inspiration for his range of leather goods from his time working in England at the Savoy Hotel.
By 1950 Gucci had developped it's Red - Green - Red design, which has become the main brand differentiator. They had also opened stores in Milan and New York.
In 1953 Guccio died, leaving the business to his 4 sons, Aldo, Vasco, Udo, and Rudolfo.
By the 1980's Gucci had expanded its product range to such an extent that the value of the Gucci Brand was reduced, margins fell, and eventually volume followed, the business was taken over and the family bought out.
The new owners returned to the core brand values of Gucci, English Style and an exclusive product range, margins returned along with volume via expansion into new markets, London, Beverly Hills, Paris etc and the Gucci brand returned to its proper place in the fashion world.
3 Morals
1/. It's all about Gross Profit
2/. Gross Profit is a function of maintaining Core Brand Values
3/. Brands outlive organisations and hence effect your capital values
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