Gucci Values Young People'S Consumption Potential And Begins To March Into High-End Jewellery.

Recently, Gucci's first boutique jewelry shop opened in the world jewellery hall and the elegant luxury Place Vend me, which opened a new market door for the fashion house. The company hopes that creative director Alessandro Michele can also use his skills of turning gold into gold into this field of gold (of course, platinum, diamonds, rubies, emeralds, sapphires). With these rare treasures, the price of a high-end jewellery can be as high as millions of dollars.

Since Michele joined Gucci in 2015, the Italy luxury brand, known for its fashion and leather goods, has been growing in clothing and jewellery fields, and began to enter the high-end custom jewellery market a year and a half ago. However, Gucci opened a boutique in Fang Deng square in July 2nd this year, marking the first time that the brand has entered the high-risk high-end jewelry industry for the first time, and the high demand of the market for working capital can also bring huge returns to the brand.

Gucci chief executive Marco Bizzarri said: "Alessandro has changed its vision of clothing and jewelry line to reality. Jewelry has become one of our most dynamic product lines in the past 4 years. The introduction of high-end jewelry series is a matter of course.

The Gucci jewelry store located on the ground floor is small. It is located between Piaget and Chanel boutique. It is the only selling shop of its latest series of "Hortus Deliciarum", which contains more than 200 works. The new store will also sell more popular jewelry products. Dark colored wood wall panels and sea blue glass display windows were used in the store, which was more solemn than the popular Gucci stores after Michele took office. The designer incorporated strong colors into pink tourmaline and yellow sapphire, Blue Green Opal and red spinel, orange garnet, green turquoise and purple sapphire. As the company said in a statement, this kind of interior decoration is for "showing the colorful vitality of jewelry itself".

Bizzarri said: "Gucci and Alessandro want to reflect the praise and appreciation of self expression, which runs through every high-end jewelry works. It gives the modern interpretation of jewelry, refreshing. " Gucci's new high-end jewellery series is limited in number, and each piece is hand-made from workshops in Milan and Valenza (Italy high jewellery complex). The price of jewelry is 50 thousand euros (about 387 thousand yuan), up to 800 thousand euros (about 6 million 194 thousand yuan).

Michele loves the antique jewelry. We can see in the Hortus Deliciarum series that he respects different classical styles. His animal themed works can be traced back to the Cartier and David Webb brand jewelry inspired by India's design, and the glittering gemstone garlands interpret the Baroque, George Dynasty and Rococo Era's delicacy and magnificence.

Since 2017, the profits of Gucci, France's Kering, have doubled. In 2018, it reached 3 billion 710 million euros (about 28 billion 730 million yuan), up 36.9% from the same period last year. And of course, Gucci is indispensable. But it is not easy to maintain this growth rate. Besides, continuous expansion needs new markets, so Gucci launched a new perfume series earlier this year, and in May it launched a new beauty series with Coty. However, Gucci's customer base is relatively young (62% in the millennial or Z era). Does the high-end jewellery more favored by older consumers, like handbags and shoe products, get huge profits under the guidance of Michele?

Bizzarri said: "through the vision of Alessandro, we have different views on customers. Traditional industry rules do not fully define our customer base. In other words, never underestimate people's enthusiasm for Gucci, and don't belittle young consumers, especially Chinese young people's spending power. Bizzarri added: "like the customers who buy high-end jewellery, the millennials have started looking for high-end limited products. We have many millennial consumers, especially in Asia, who are fond of collecting high-end jewellery.

Like customers buying high-end jewellery, the millennials have started looking for high-end limited products.

Fran ois-Henri Pinault, chief executive of Kai Yun group, interviewed the Le Figaro in November last year and announced that Gucci will introduce the high-end jewelry series. "The famous millennials have achieved Gucci, and also achieved Saint Laurent and Balenciaga, because even if different brands have different styles, their tastes are consistent with the artistic directors of these brands." But the millennials will also grow old and bring about the same transformation for the jewelry industry: the creativity of designers will become an advantage, which will be more recognized and sought after.

According to a survey by Bain&Company, the luxury market grew by 5% in 2018, with the jewelry industry growing by 7%, the highest in the market. The report also pointed out: "Z generation consumers are more individualistic (tend to buy products that show individuality). They prefer to shop in the store. Brand labels are also more valued.

So how can a new generation of consumers strike the most expensive commodity in the fashion market by setting up a dazzling boutique jewelry store in fenden square?

Compared with the high fashion fashion, the high-end jewellery industry may be more niche. Jewelry processing technology is ancient and mysterious. Its raw materials are from underground mining, with a small quantity and high cost. The final jewelry can be handed down from generation to generation. High grade jewellery usually requires skilled craftsmen to spend hundreds of hours in carving. The jewellery series often has to be polished for a year or even two years before being displayed at a jewelry store in high-end private activities or in Fontaine square. Luxury brands usually issue high definition series in January and July and launch jewelry series at the same time.

Fang Deng square, with its elegant temperament, was ordered by Louis Xiv, king of France, in 1702. It was made of light colored sandstone, with an octagonal structure and a neoclassical style. In 1875, the Op Gamier RA Garnier, built by Baron de Georges-Eug ne Haussmann, opened the grand hall nearby, making the square a recognized fashion gathering place. Soon, Fang Deng square became the pronoun of France's leading luxury jewelry and exquisite workmanship.

In 1893, Boucheron became the first jewellery shop in Fang Deng square. The brand was bought by Kai Yun group in 2000. After 18 months of careful refurbishment, the historic headquarters reopened last year. With the participation of Gucci and the upgrading of Boucheron, Qeelin, another jewelry brand of the group, also plans to set up a store in the square.

Cartier, under the investment of its parent company Richemont, has made a massive renovation to its old shop, which was built in 1898. The boutique was reopened in March this year. The boutique of Chaumet, which is under the LVMH of Chaumet, is now undergoing renovation for 1 years. This square brings together 28 world-famous high-end jewellery shops and watch shops. Although the rise of the Internet business has led to a decline in sales in other sectors, the high-end jewelry industry still maintains the tradition of selling only in physical stores.

Real estate prices in fanten square are also rising. According to Cushman&Wakefield, a consultancy, including the Rue de la Paix, the rental of shops along the street has doubled in 2012 to 12 thousand and 500 euros per square meter in 2018, the highest in Europe.

In 1898, Ritz Hotel (Hotel Ritz) opened for the first time in fanten square, turning "Liz" and the square into a synonym for luxury. Cocoa Chanel (Coco Chanel) has lived here for 34 years (her suite now starts at 18 thousand euros per night). Chanel was the first fashion designer to enter the high-end jewellery industry (she launched the first jewelry series in 1932). After her death many years ago, her pioneering spirit still had a profound influence on the world. In 1993, when Chanel founded the jewelry department, it opened its first jewelry boutique in Wanda Square in 1997. In 2012, an upscale jewelry workshop was built on the shop floor.

If consumers are interested in new market participants, they may recognize those brands that bring the idea of innovative products to the industry.

Christian Dior launched the first high-end jewelry series in 1999 after signing the jewelry creative director Victoire de Castellane, and opened its flagship store in Fang Deng square in 2001. (in June this year, Dior held a ballet performance and a grand ball in Venice on the occasion of the launch of the jewellery line, and exhibited 99 jewellery works designed by De Castellane, the most expensive Pink Sapphire Diamond Necklace priced at 1 million 900 thousand euros).

According to "Forbes" statistics, the world's most valuable luxury brand Louis Vuitton revenue in 2018 amounted to 39 billion 300 million U.S. dollars. The brand first launched the jewelry series in 2001, and opened a jewelry boutique in Fang Deng square in 2012. In 2017, the LVMH fashion house, famous for its trunk, opened a new jewellery store on the square. In the 5 storey building space, jewelry is sold (now Francesca Amfitheatrof), fashion and handbags, and the top floor has a jewelry workshop specially built.

Other luxury brands have also announced their entry into the high-end jewellery market. Prada launched its first boutique jewelry line in April this year, and Giorgio Armani unveiled its high-end jewelry series for the first time a month later. Luca Solca, a luxury goods analyst, believes that the jewelry market has not yet been dominated by some brands, so it is ripe for the famous fashion brands to invest in jewelry.

Solca also said: "if consumers are interested in new market participants, they may recognize those brands that bring innovative products to the industry." A large number of Michele supporters appreciate his subversive creativity to Gucci, and they should be happy to accept his ability to perform in a new field of luxury and luxury.

With Gucci and other fashion giants entering this brilliant industry, the jewelry industry is bound to be increasingly driven by brands, and it may also pay more and more attention to brand names like Louis Vuitton products. Gucci will never be the last famous fashion brand to look at the high-end jewelry industry and set up boutiques in the legendary Fontaine square.