Insights

Miu Miu, Gucci, and Bottega Blend Tradition and Trendsetting to Navigate the Luxury Landscape

By
Amaya Blake
June 24, 2024
image credit — miu miu
The luxury sector has faced turbulent times, but some brands have managed to shine. Miu Miu's revenue soared by 89 percent in Q1 2024, while Gucci saw an 18 percent drop in sales. Bottega Veneta, on the other hand, chose a unique path by eschewing social media. These varied strategies provide valuable insights into luxury brand management.

These insights have been put together using BoF's Brand Magic Index, developed with Quilt.AI, offering a comprehensive look at luxury brands through metrics like alignment and engagement. This tool helps decode why some brands succeed while others falter.

Miu Miu

Strategy and Execution

Miu Miu has found the sweet spot between maintaining a timeless brand identity and staying culturally relevant. Prada Group CEO Andrea Guerra emphasises the importance of this balance. Miuccia Prada’s instinctual approach to design, supported by stylist Lotta Volkova, has led to viral, highly wearable collections that resonate with consumers.

  • Alignment and Engagement: Miu Miu scores high on both, reflecting strong brand identity and consumer interaction.
  • Creative Vision: Mrs. Prada’s gut-driven creativity and cultural attunement.
  • Strategic Focus: Long-term brand management without shortcuts.

Gucci

Current Challenges

Gucci, under new creative director Sabato de Sarno, is struggling to regain its footing after a period of rapid but unsustainable growth under Alessandro Michele. The brand's reliance on aspirational customers has been a double-edged sword, particularly in fluctuating markets like China and the US.

Strategic Adjustments

Francesca Bellettini, Kering's deputy CEO of Brand Development, stresses the need for a balanced approach that includes brand elevation and product quality improvement. Gucci's focus now is on evolving rather than revolutionising its offerings, ensuring sustainable long-term growth.

  • Brand Elevation: Enhancing luxury credentials without merely hiking prices.
  • Quality Focus: Improving product quality and maintaining brand heritage.
  • Market Adaptation: Adjusting strategies based on deep market insights.

Bottega Veneta

Social Media Strategy

Search on Instagram and you simply won't find an Instagram account for Bottega. Bottega Veneta’s decision to exit social media aligns with its brand philosophy of discretion and exclusivity. CEO Leo Rongone highlights that this approach fosters a many-to-many relationship, allowing organic conversations about the brand to flourish. Bottega Veneta’s strategy of non-conformity and high-quality craftsmanship reinforces its unique market position. The absence of a social media presence supports its discreet branding and appeals to its core customers.

The Best Bottega Veneta Handbags (and Their Histories) to Shop Right Now,  From the Sardine to the Jodie | Vogue

SUBSCRIBE

The ultimate guide for the modern brand owner, delivered straight to your inbox.
Thank you for subscribing!
Oops! Something went wrong while submitting the form.
Share button
linkedinpinterestmail