Gucci introduces 50% discounts in China to clear stocks
Gucci is offering discounts of as much as 50 percent in China as the Italian fashion house seeks to clear out merchandise designed by its former creative director, prompting lines of shoppers to form since sunrise.
The sales, which started Wednesday, are a normal end of season practice and unrelated to China’s decision to cut import taxes, a spokesman for Kering SA’s biggest brand said Tuesday. A store assistant at a Gucci outlet in Shanghai’s Pudong financial district, who asked not to be identified, said the sale lasts until next month, but wasn’t sure of the exact date.
Gucci Chief Executive Officer Marco Bizzarri is accelerating efforts to reposition the maker of logoed handbags and $725 loafers amid falling demand in Asia. Earlier this year, he promoted Alessandro Michele to creative director, replacing Frida Giannini. The designer’s first full collection will hit stores later this year.
“Bizzarri is clearing inventory from the previous collection, as Gucci is looking forward to turning the page on Frida Giannini,” Luca Solca, an analyst at Exane BNP Paribas, said by e-mail. “Gucci needs a new direction and some correction — I consider this inevitable.”
The discounts coincide with China cutting import tariffs for some clothes, shoes and skincare product by an average of more than 50 percent from June 1 in a bid to boost domestic consumption. They also follow moves by luxury companies such as Chanel to reduce prices in China because of a weakening euro.
adapted from Bloomberg