GUCCI’S PARADE OF LOVE?
In almost unprecedented extravagance for a luxury fashion label, Kering’s powerhouse brand, Gucci, hosted its latest event, ‘Love Parade’, in Los Angeles over four days in November 2021. The 35-minute Love Parade runway show took place on Hollywood Boulevard on 2 November, with a block being cordoned off for the occasion. In 2020, Gucci decided that it would no longer show men’s and women’s collections separately. Love Parade was proof of this commitment with a gender blend of models taking to the catwalk, including celebrities Jared Leto, Macaulay Culkin and Jodie Turner-Smith. Gucci facilitated a 30-minute press conference after the show.
NIGHT OF 500 STARS
For Love Parade, either side of Hollywood Boulevard was lined with directors’ chairs each bearing the iconic Gucci logo to accommodate its 500 guests. And the show’s audience was not shy of stars. Kering CEO, Francois-Henri Pinault with his wife, the accomplished actress, Salma Hayek, took front row seats, as did Gucci President and CEO Marco Bizzarri. The brand’s Creative Director since 2015, Alessandro Michele, was the centre of attention. A-listers in attendance included Billie Eilish, Dakota Johnson, Olivia Wilde, Serena Williams, James Corden, Sienna Miller, Gwyneth Paltrow, Florence Welch, Diane Keaton, Awkwafina, Anjelica Huston, and Miley Cyrus, the face of Gucci’s new Flora Gorgeous Gardenia perfume. Cruel Intentions and Legally Blonde star, Selma Blair said of Gucci’s Hollywood invasion:
“What a feast for the eyes. We have been so in need and so thrilled that Gucci has done this for L.A., for us.”
While Blair may have been in awe of the Love Parade, Gucci’s show wasn’t a charity event. It wasn’t a gift to the Californian city or its residents. It was put on for a brand in need.
WHY THE EXTRAVAGANCE?
Although Michele joined Gucci in 2002, since he came on board as its Creative Director, the brand has experienced almost unparalleled growth. Its revenue in 2019 was €9.6 billion compared to €3.9 billion in 2015, an increase of 147%. Operating income also soared from €1.0 billion in 2015 to €3.9 billion in 2019, an incredible increase of 290% assisted by higher retail prices. Then COVID-19 took its toll and in 2020, and Gucci showed sales of €7.4 billion and profits of €2.6 billion, still not bad considering the circumstances and performing better than many other luxury labels. Why then the need for the Love Parade collection and show when the brand seems to be going from strength to strength? It seems that the aftermath of the pandemic is proving challenging for Gucci. In the 3rd quarter of 2021, the brand posted a 3.8 % increase in turnover to €2.18 billion, significantly below the anticipated 9.1% forecast by analysts. With Gucci accounting for more than half of Kering’s income, the conglomerate’s shares slumped by 3% when the results were announced. Gucci blamed the shortfall on the slow deliveries of its new Aria collection and on declining store traffic due to pandemic restrictions in Asia. In the same quarter, sales growth at Kering’s smaller fashion labels, Yves Saint Laurent and Bottega Veneta, were significantly better than those of Gucci, with double-digit growth in North America and Europe.
FROM MILAN TO LA
Traditionally catwalk shows for brands, big or small, are local events. Gucci was no exception, with its seasonal collections shown bi-annually in Milan. Having gone seasonless and constrained the pandemic when the brand held a week-long virtual film festival called Gucci Fest, the brand chose Hollywood for its next live performance. Why? Love Parade may have coincided with the release of Ridley Scott’s House of Gucci but that wasn’t the reason for choosing Tinseltown as a venue. While it was the brand’s first presentation in the United States since 2015, it was anything but local. Love Parade was streamed to the world, a reach infinitely bigger than that of 500 celebs. While the cost of putting on Love Parade was probably similar to the GDP of a developing nation, Gucci hopes it will be worth it. The brand’s Earned Media Value (EMV) increased 5-fold after the extravaganza, demonstrating a massive impact on Gucci’s PR and social media strategies. And some closing words from The New York Times chief fashion critic, Vanessa Friedman:
“That’s why Mr. Michele put his show in the middle of Hollywood Boulevard: to underscore the fact that the sheer act of getting ready to go out and get some milk is a performance of self. Especially now that any moment could end up online and everybody is the director of their own social media series.”
Will Gucci return to the days of its stellar performance? Only time will tell.
