Alternative Data on Gucci (EPA:KER) highlights a strategy to defend marginality of the business model. Coherent to its “no price reduction” strategy (even during COVI19 pandemic promotion was kept at an astonishing low level), luxury brand Gucci regains part of the lost volumes by increasing marginality. Price perception is at the core of luxury: in several business cases we analyze at RE-Analytics, price coherence wins in the long term, contributing to brand equity.
Measuring Gucci price rise shows exact SKU price increase by country. We find in data no evidence that this price rise contributed in aligning geographic arbitrage, as reported by Reuters.
Dataset: Raw Price Stream
Provider: RE-Analytics, available on Bloomberg EAP.