Guccio Gucci S.p.A., commonly known as Gucci is a renowned Italian luxury fashion house headquartered in Florence, Italy. The company offers a diverse range of products, including handbags, ready-to-wear clothing, footwear, accessories, and home décor items. Under the label Gucci Beauty, it licenses its name and branding to Coty for fragrances and cosmetics.
Founded in 1921 by Guccio Gucci (1881–1953) in Florence, Gucci became an international symbol of luxury under the leadership of his son, Aldo Gucci. The brand epitomized the Italian “dolce vita” era, gaining worldwide recognition. However, internal family disputes during the 1980s led to the Gucci family being completely ousted from the company’s capital by 1993. Following this tumultuous period, the brand was revitalized and, in 1999, became a subsidiary of the French conglomerate PPR, which later rebranded as Kering.
As of 2023, Gucci operates 538 stores worldwide with a workforce of 20,711 employees, generating sales of €9.9 billion. Jean-François Palus has been serving as the CEO since July 2023, while Sabato De Sarno took on the role of creative director in January 2023.
History
1921: Founding in Florence
The Gucci family’s roots trace back to around 1410 in the merchant city of Florence. Guccio Giovanbattista Giacinto Dario Maria Gucci left Florence for Paris and eventually settled in London in 1897. Working as a bellhop at the prestigious Savoy Hotel, he became acquainted with the tastes and preferences of the hotel’s affluent clientele, which influenced his understanding of luxury and quality. He later worked for the Compagnie des Wagons-Lits, a company specializing in upscale rail travel, further immersing himself in the world of luxury.
In 1921, Guccio Gucci opened his own shop, Azienda Individuale Guccio Gucci, on Via della Vigna Nuova in Florence, selling imported leather luggage. He also established a small workshop where local artisans crafted leather goods. As demand grew, he expanded to a larger workshop employing 60 craftsmen. The trade embargo imposed on Italy in 1935 led Gucci to experiment with alternative materials like raffia, wicker, wood, linen, and jute due to leather shortages. During this time, the signature “rombi” motif was created, and in 1937, Gucci launched its line of handbags.
Guccio’s family played integral roles in the business. His son Aldo, who started working there in 1925, convinced him to expand by opening a new store in Rome in 1938 and introduced additional accessories such as gloves, belts, wallets, and keychains. During World War II, Gucci’s artisans produced boots for the Italian infantry. Material shortages during the war led the company to use cotton canvas instead of leather for handbags, featuring the distinctive double-G symbol combined with red and green bands. Post-war, the Gucci crest—depicting a shield and armored knight surrounded by a ribbon inscribed with the family name—became synonymous with Florence.
Post-War ‘Dolce Vita’ Era
After World War II, Guccio Gucci distributed shares of the company among his three sons: Aldo, Vasco, and Rodolfo. In 1947, Gucci introduced the iconic Bamboo bag and launched its first global tagline, “Quality is remembered long after price is forgotten.” The famous Gucci loafers debuted in 1952. Following Guccio Gucci’s death on January 2, 1953, the company expanded internationally, opening its first U.S. store on Fifth Avenue in New York later that year. Additional stores in London and Palm Beach followed in 1961, along with the launch of the Jackie Bag.
In 1963, Gucci opened its first French store near Place Vendôme in Paris. The double-G logo was introduced in 1964 for belt buckles and other accessory decorations. The Flora scarf was designed in 1966 by Rodolfo Gucci and Vittorio Accornero for Grace Kelly, Princess of Monaco, who became a prominent patron. The brand’s expansion into Hollywood, with a store on Rodeo Drive in 1968, attracted numerous celebrities and led to the launch of Gucci’s first ready-to-wear clothing line.
Gucci’s success in the United States facilitated its global expansion into Asia and the Middle East. By 1969, the company operated ten stores in the U.S., selling 84,000 pairs of moccasins that year alone. U.S. President John F. Kennedy referred to Aldo Gucci as the “first Italian ambassador to the United States.”
1970s–1980s: Expansion and Family Feuds
In the 1970s, Gucci continued to diversify, launching a Rolls-Royce luggage set and collaborating with American Motors Corporation (AMC) to create a special edition of the AMC Hornet. The brand introduced Gucci Perfumes and its first watch in 1972, opened its first franchised store in the U.S. in 1973, and unveiled the Gucci Galleria in Beverly Hills in 1977—a private art gallery for premium clients.
However, family tensions began to surface. In 1969, Giorgio Gucci, Aldo’s son, attempted to launch Gucci Boutique independently, leading to internal disputes. During the 1980s, conflicts escalated as Paolo Gucci, another of Aldo’s sons, tried to start his own brand, Gucci Plus. Aldo was criticized for managing international business through Gucci America, which he owned. To mitigate tensions, the Gucci group was consolidated into a publicly traded company, Guccio Gucci S.p.A., in 1982.
After Rodolfo Gucci’s death in 1983, his son Maurizio Gucci inherited his father’s majority stake and initiated legal proceedings against his uncle Aldo for full control of the company. In 1986, Aldo Gucci was sentenced to a year in prison for tax evasion. Maurizio sold nearly 47.8% of Gucci to the Bahrain-based investment fund Investcorp in 1988 but retained the remaining 50%.
Despite internal strife, the company’s sales reached significant heights in the 1980s. However, over-licensing and mass production diluted the brand’s exclusivity. Financial difficulties persisted into the early 1990s, and in 1993, Maurizio sold his remaining shares to Investcorp, ending the family’s involvement. Tragically, in 1995, Maurizio Gucci was assassinated; his ex-wife, Patrizia Reggiani, was later convicted of orchestrating his murder.
1990s: Revival and ‘Porno Chic’ Era
To revive the struggling brand, Dawn Mello was hired in 1989 as executive vice president and chief designer. She streamlined operations, reducing the number of stores and products to restore exclusivity, and relocated the headquarters back to Florence. Mello brought on Tom Ford in 1990 to oversee women’s ready-to-wear; he became creative director in 1994. Ford’s provocative designs, inspired by the 1970s archives, re-energized the brand and introduced a bold new aesthetic known as “Porno Chic.”
Domenico De Sole, the company’s legal adviser since the 1980s, became CEO in 1994. He strengthened relationships with Italian manufacturers and significantly increased the advertising budget. In 1995, Gucci went public on the New York Stock Exchange. From 1995 to 1997, Investcorp sold its interests in Gucci.
A power struggle emerged in 1999 when the French conglomerate LVMH acquired a significant stake in Gucci. To fend off a takeover, Tom Ford and Domenico De Sole partnered with François Pinault‘s group, PPR (later Kering), which bought a controlling interest. This move led to a protracted dispute with LVMH, ultimately resolved in 2001. Ford and De Sole departed the company in 2004.
2000s–2010s: New Leadership and Expansion
Following Ford’s exit, Gucci appointed a team of designers, including Frida Giannini, who became creative director in 2006. She focused on modernizing classic products and exploring new styles, while Patrizio di Marco was named CEO in 2008. In 2011, Gucci celebrated its 90th anniversary by opening the Gucci Museum in Florence.
2015–2022: Brand Renaissance Under Alessandro Michele
In 2015, Marco Bizzarri became CEO and appointed Alessandro Michele as creative director. Michele introduced a new, eclectic aesthetic characterized by a blend of sophistication, intellectualism, and androgyny. His vision revitalized the brand, leading to significant growth and a renewed global presence. Gucci expanded into home décor, revived its makeup line, and launched its first fine jewelry collection. In 2020, the company enhanced its digital footprint by opening stores on China’s Tmall platform. Michele stepped down as creative director in November 2022.
2023–Present: New Direction and Challenges
In January 2023, Sabato De Sarno was appointed as the new creative director to “reestablish Gucci’s edge” and restore its brand equity. His inaugural collection marked the beginning of a new era, focusing on pragmatism and a refreshed aesthetic. Amid this transition, Jean-François Palus replaced Marco Bizzarri as CEO in July 2023 to steer the company forward.
However, 2023 proved challenging. On July 24, Kering released its half-year financial results, revealing an 11% decline in revenue compared to the same period the previous year. The downturn was largely attributed to Gucci, which accounts for half of Kering’s sales and two-thirds of its profits. Gucci’s revenue decreased by 20% to €4.09 billion. Kering’s CEO, François-Henri Pinault, acknowledged the difficulties, describing it as a “trying year” for the brand.
Gucci continues to be a significant player in the luxury fashion industry, navigating leadership changes and market challenges while striving to maintain its legacy of innovation and craftsmanship.