The world’s biggest women’s fashion brand is in trouble
The world is in crisis as brands struggle to survive as consumers increasingly demand quality, value and affordability.
But there are signs that the rise of online shopping may be helping the fashion industry in the long run.
This week, luxury brand Gucci announced a plan to build a network of more than 30 stores across North America to expand its online presence.
The network will be able to sell more clothing than ever before, as well as merchandise in-store.
Gucci has already announced plans to open stores in New York, Chicago, Los Angeles, San Francisco, Seattle and Vancouver.
The chain has previously said it is targeting $1bn in annual revenue by 2020.
In a report published last year, the retail consultancy PwC said online shopping could account for 30% of its revenue by 2021.
However, PwCs research found that online shopping accounts for only 5% of the retail spending in the US, and is unlikely to grow as fast as it has in recent years.
The report also noted that most consumers have never heard of Gucci.
The brand was founded in 1954 and is owned by Italian billionaire Giuseppe Gucci, who also owns luxury brands such as Hermes, Louis Vuitton and Puma.
In the late 1990s, the brand was bought by a group of Chinese entrepreneurs.
However the company was forced to merge with luxury retailer Hennes & Mauritz.
Guccis sales in the past three years have halved compared to the same period last year.
The group is currently planning to close its remaining stores in 2018.
The move was criticised by the retail industry, who have argued that online sales are a major source of growth for brands.
In 2017, P&M said it would focus on improving the online experience for its customers.
It said it wanted to improve the user experience by providing more personalized shopping experiences.
It also promised to develop “more effective” online services, including more detailed customer information and enhanced customer experience.
In an interview with the Guardian, PWC chief economist Paul Ashworth said online sales would help to “replace the brick-and-mortar model” of retail.
He said there was an opportunity to become a more efficient retailing platform.
But he warned that this would only happen if the online shopping market became “a big player” and established a “significant base of customers”.
“This is a big risk, because it would be a massive transformation for a small number of retailers.
We think it would take a very long time for the retail model to evolve in this direction, but it is not out of the question,” he said.
“We are not saying that all brands are going to follow the example of Guccises.
We have been warning about this for a long time, but this is the first time we have really started to see the big players actually start to do it.”