The Gucci Group Hopes To Win The ‘Asian Prize’ – 10/3/10

Asian expansion is on the minds of many luxury brands at the moment. The Gucci Group, in particular, is investing a lot of money (more than 60 percent of Gucci Group investment) in Asia, mainly in China.

Robert Polet, CEO of the Gucci Group, part of France’s PPR, told the Financial Times that it was clear to him when he joined the group in 2004 that “Asia Pacific was going to be the big prize to be taken”.

In his time as CEO, Polet has increased the number of Gucci stores in China from four to 30. “We have more selling square footage in mainland China built in five years than we built up in 30 years in Japan. This strategy has proven to be correct and will remain like this,” he said.

Polet also implied that the worst is probably over for the luxury goods industry. But he saw no return to the free-spending, conspicuous consumption that was common before the economic crisis. Customers are now looking for “more discreet, timeless” products, and avoiding anything that could fall out of fashion quickly. “People feel guilty about that,” he said.

For more news on the recent successes of the Gucci Group, see our earlier reports on Bottega Veneta and Balenciaga.