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Can Demna find his footing at Gucci?

The struggling luxury retailer is betting on Georgian designer to turn things around, but it might not be that straightforward.

Demna

Penske Media/Getty Images

3 min read

Earlier this month, Gucci appointed Demna as its new creative director, while Sabato De Sarno left the post after a two-year stint. Many in the industry are still scratching their heads about just what the thinking was behind the surprising decision.

Demna is best known for his role as creative director at Balenciaga and brings with him a certain appeal and a younger consumer base that Gucci seems to need. The Italian luxury retailer has had a rough couple years, with sales taking a serious hit, which seemingly also led to the abrupt departure of De Sarno.

“Gucci has been in a serious decline and the product is not resonating with its core customer base like it used to,” Brian Ehrig, partner in the consumer practice of Kearney, told Retail Brew via email. “This is a clear indication they seek to shift focus from timeless pieces to bold statements.”

Ehrig added that while Demna can likely help attract a “younger, fashion forward audience,” it is still a big bet for both Kering and Gucci that will require patience on the brand’s part to figure out what will work.

“They parted ways with Sabato De Sarno after just two years, which is really very little time to change a brand,” he said. “Gucci is starting from a position of weakness, and they need to get behind [Demna] in a big way and very quickly to signal to both consumers and to investors they have a solid direction for the future.”

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While Demna indeed has his own established fan base, ultimately Gucci is not Balenciaga or Vetements (another key retailer he served as a co-founder of), and one of the key challenges in turning things around for Gucci will be to find an appropriate balance between avant-garde and heritage items.

“The idea is to preserve the core heritage of the brand while also expanding the base to create greater reach (i.e., younger, newer customers),” Ehrig said. “He could face challenges with this in obvious ways with consumers, but he will also need to be prepared to face challenges amongst his own team. His hiring is an indication of a mandate for change, and the early days will be a test of if the rest of the Gucci team are on board.”

Given the current pace at which designers and top executives seem to be shuffled in and out of prestigious positions in luxury right now, only time will tell what’s to happen with the Gucci X Demna collab. Ehrig, however, believes there will be clear indicators of success if it works.

“If we find his pieces showing up in the culture, such as when his Balenciagas were called out in a Cardi B song (‘I Like It’), those will be signals that it’s working,” he said. “If for no other reason, his appointment will draw visits to Gucci because people will be curious where he’s taking the brand.”

Retail news that keeps industry pros in the know

Retail Brew delivers the latest retail industry news and insights surrounding marketing, DTC, and e-commerce to keep leaders and decision-makers up to date.