The fashion industry has evolved tremendously over the years, and fashion companies have changed the trajectory of what fashion should be about and should look like.
A few of these design magnates have stood the test of time and are still highly revered today. Brands like Gucci and Louis Vuitton have been at the forefront of design. They have been setting templates for what fashion should be amidst their numerous and steep competition, but notwithstanding, they have earned a place in the hearts of every fashion lover. This is irrespective of their price that positions these brands as high-end and luxury designers.
These brands have become an inspiration for upcoming bags, dresses, or shoe designers amidst other designers in the creative industry. They have given various business owners a business prototype to start their organizations off due to their resilience in the fashion industry.
We would be pitching Gucci vs Louis Vuitton against each other in the hopes to demystify their growth and business strategy that has kept them at the top for decades.
- History – Creation and inception of Gucci and Louis Vuitton
- Individual selling points
- Similarities and differences
- Target market, Luxury, and Comfort
- What brand is more expensive: Gucci Vs Louis Vuitton.
- Gucci vs Louis Vuitton – Who is the better Creative Manufacturer in the industry
- Gucci vs Louis Vuitton – Growth Rate
- Net Worth Of Gucci and Louis Vuitton
- Brand Rank – Gucci vs Louis Vuitton
History – Creation and inception of Gucci and Louis Vuitton
Gucci is situated in Florence, Italy, and is an Italian luxury fashion house that produces handbags, footwear, ready-to-wear, makeup, accessories, and home decor.
The brand was founded in 1921 by Guccio Gucci in Florence, Tuscany. It became an internationally known brand under the administration of Aldo Gucci (Son of Gucci). An iconic name of the Italian Dolce Vita. In the 1980s, a family crisis rocked Gucci, and it lasted up until 1993, which caused the removal of capital power from the grasp of the family.
In 1999, Gucci was acquired by French Conglomerate Pinault Printemps Redoute. Gucci is currently a subsidiary of the French Luxury Group Kering.
Vuitton founded the French brand in the year 1854 in Paris, France. It’s a fashion and luxury brand that produces high-end trunks, ready-to-wear, shoes, watches, jewellery, accessories, leather, and books. It’s one of the world’s leading international fashion houses.
Vuitton started selling trunks at $10,567 as the sales price. He introduced flat-topped trunks with Trianon canvas which made the trunks lightweight and airtight. After he created them, other luggage creators imitated Vuittons design.
In 1867 the company participated in the 1867 Universal Exhibition in Paris. To protect and preserve Louis Vuitton’s trademark look, Vuitton changed the Trianon design to a beige and stripe in 1876. By 1885 the first store was opened in London on Oxford Street.
Vuitton died in 1982, and the reins of management passed down to his son Georges Vuitton. Georges expanded by campaigning and exhibiting at the Chicago World’s Fair in 1893. And by 1896, they launched their signature monogram canvas and made patents of it all over the world.
Patenting was a success and kept off copycats. In 1913, Louis Vuitton opened the most prominent travel store on Champ- Elysees.
Louis Vuitton partnered with the nazis during World War 2, during the German Occupation of France, and it increased their wealth with the business dealings with the Germans.
“[Louis Vuitton] is a testament to how you have to be a really strong brand with absolute clarity and conviction in who you are and what you stand for, internally and externally,” Rebecca Robins, global chief learning and culture officer at the consultant group Interbrand, told Business Insider.
Individual selling points
The Gucci Brand
- Gucci prides itself on selling its authentic and original Italian heritage in various forms.
- Gucci sells luxury, durability, and class.
- Paying great attention to detailing.
- Using high-quality raw materials and high production.
- Collaborating with top designers globally
- Durability and class
- Easily recognizable due to its logo and monogram canvas on all its products.
- Collaboration on an international level with top designers.
- Effective implementation of celebrity endorsement strategy.
- Selling luxurious French Heritage and never discounts their prices to soothe the general public.
Gucci vs Louis Vuitton: Similarities and Differences
- Gucci and Louis Vuitton both sell luxury products
- They are both globally known brands.
- Strong patent
- They both create ready to wear, bags, jewellery, shoes, wristwatches, and accessories.
- They both collaborate with top designers and have strong ties in the fashion industry.
- The two brands are great fashion influencers.
- They have similar price points and have the same target market.
- They both have a significant social media presence through fashion magazines, celebrities, collectors, runway shows, and brand endorsements.
- They are both selling their luxurious cultural heritage.
- The two brands have been at the forefront of fashion for decades and have not tampered with their quality.
- They have both been ranked top brands for 20 years in a row, since the year 2000.
- Gucci’s bag designs are more subtle, while Louis Vuitton is more formal and sophisticated. This makes LV bags more flexible.
- Gucci is more innovative with the designs they create, while Louis Vuitton is said to be “A timely touch and a better investment in quality.”
- Gucci creates bold and audacious designs, always experimenting, while Louis Vuitton is more relaxed and graceful with its design.
- Gucci has Italian design roots, while Louis Vuitton is French.
- Gucci has faced more backlash on their designs than Louis Vuitton.
- When it comes to collaboration, Gucci does more collaborations with celebrities, designers than Louis Vuitton.
- Gucci is more competitive with other brand designers, unlike Louis Vuitton.
- Louis Vuitton is over seven decades older than Gucci.
Gucci vs Louis Vuitton: Target Market, Luxury and Comfort
Both luxury brands have the same target market, making use of 4 different target market segmentation, namely; Geographic, behavioural, demographic, and psychographic.
Gucci Targets high and middle-class consumers aged 20-50. Leveraging their vast social media presence and followers, thereby always staying in the focus of the public. They do this marketing and brand awareness with the help of celebrities.
Their targets are also high-income earners, celebrities, fashionistas, and the wealthy.
Louis Vuitton targets both genders. Wealthy middle-aged men and women from ages 35-80 and fashionable young females aged 8-34. People that can afford the brand’s luxury.
Both brands offer maximum comfort and durability.
What brand is more expensive: Gucci Vs Louis Vuitton.
Louis Vuitton is more expensive than Gucci when it comes to bags. This is due to having a more grounded reputation in bag and trunk making that has spanned 167 years. LV gives one a sense of ageless styling and elegance passed down from generation to generation. It Maintained its top-notch premium quality. In contrast, Gucci prices are slightly lower but luxurious all the same.
Gucci vs Louis Vuitton: Who is a better creative designer in the industry
Every design is unique and innovative in its own right, and although Louis Vuitton is where you go when you need classic designs that will never go out of style, even after a century of creating their designs. And Gucci is where you go when you want a fresh look and an experimental brand that changes with the times.
Both brands have come a long way since their inception, surviving decades of ever-evolving fashion and style. Each brand has a distinct style that appeals to its audience, and each has satisfied its client over time, even though Louis Vuitton has been in the industry longer and has garnered more experience.
Gucci vs Louis Vuitton – Growth Rate
According to Interbrand, “Gucci (the 33rd most valuable global brand in all sectors) has a $15.949 billion brand valuation and saw 23% growth, making it the fastest-growing luxury retailer”.
On the other hand, “Louis Vuitton has a $32.223 billion brand valuation, with 14% growth. This makes Louis Vuitton the most valuable luxury brand in the world; it was also the 17th most valuable brand worldwide across all sectors”.
The net worth of Gucci and Louis Vuitton
When you talk about the net worth between Gucci vs Louis Vuitton and their growth rate since inception, their consistency and customer satisfaction has kept them at the top.
Louis Vuitton has steadily grown for over 167 years, imprinting its signature in the hearts of its numerous clientele. The Louis Vuitton brand under Kering( parent company) is currently worth $416.02B as of the 17th of November, 2021.
On the other hand, Gucci is currently estimated to have a net worth of over $15.9 billion as of November 2021, solely amassed through hard work, customer satisfaction, and commitment to creating an ever-changing yet captivating style according to times and seasons.
Brand Rank – Gucci vs Louis Vuitton
Louis Vuitton is currently ranked as the world’s No. 1 luxury brand, with a brand valuation topping $30 billion, While Gucci is ranked at No. 4 luxury brand.
According to a ranking in Media Impact Value (MIV) from the period of April to June 2021, “Louis Vuitton was fourth in both the U.S. and Europe, achieving a MIV of $69.9 million in America and a total of $169.7 million on the other side of the Atlantic. While Gucci with a MIV of $190.5 million, and in the U.S it was Gucci that slipped into second place with a MIV of $85 million.”
Gucci and Louis Vuitton are brands that have slowly and steadily climbed the ladder of success. However, one brand has been around the longest. They have worked hard to make a name for themselves, creating significant and long-lasting alliances along the way. They have inspired up-and-coming designers and retained their authenticity and their quality over time. They have also taken a chance on creative designers, artisans and maintained a great working relationship between workers under their employment.
Similarly, they have provided jobs and given various creatives a platform to launch their startup line and business model tips that they can apply. These luxury brands have not been infallible over the years. Still, the resilience to do better is inspiring, regardless of whatever scandal that may arise now or in the nearest future.