The Strategist

Gucci returns to beauty shops

05/08/2019 - 11:57

Gucci creative director Alessandro Michele, who took this post in 2015, finally got his hands on decorative cosmetics: the Italian brand presented an updated lipstick line. The cosmetic collection developed by Michele also features products for skin, eyes, and so on.

Gucci cosmetics appeared in 2014. The original concept’s authors were the then creative director of the brand Frida Giannini and makeup artist Pat McGrath, while Procter & Gamble was responsible for production and distribution. In January 2015, Giannini took the place of Michele, and at the end of 2016, Procter & Gamble sold Gucci Beauty among other 41 Coty brands. Since then, stores were selling out remnants of the goods; new cosmetic products were not developed and were not released.

The first products created by Coty and Michele were fragrances - the new Bloom in 2017 and Alchemist Garden in 2019, as well as the updated Guilty and Flora. In May 2019, a collection of lip products was presented: classic Rouge à Lèvres Voile lipstick, Rouge à Lèvres Satin gloss lipstick and colored lip balms. All the items were worth $ 38, which is the lower limit for similar products of large fashion brands. 

Gucci is the fastest growing luxury fashion brand of the last three years. Sales growth in 2017 amounted to 44.6%, in 2018 - 36.9%, and according to the results of the first quarter of 2019 - 20%. In 2018, the brand's turnover reached €8.2 billion. Marco Bizzarri, CEO of the brand, sets the bar at € 10 billion for the future two or three years. This will allow Gucci to overtake Louis Vuitton and get closer to Chanel, The Business of Fashion reported (BoF).

According to Statista, the share of additional products, which include cosmetics, accounted for 11% and 9% of total sales of Gucci in 2015 and 2016. By 2018, this figure fell to 7%. Coty and Gucci did not disclose investments and expected sales, but in the first year the income from the sale of lipstick alone (excluding possible other products) could reach $ 100 million, which will quickly help to promote Gucci's overall perfume and cosmetics business to $ 1 billion, writes the Women's Wear Daily (WWD). In 2017, sales of Gucci perfumes rose from 17th to 9th place in the world, the WWD specifies.

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