Study And Suggestions On Current Challenges To Gucci’s Brand Equity In Chinese Market

China established itself as the most important market for luxury brands all over the world.However,its current situation is significantly different from a few years ago.This research addresses the major changes in the Chinese market and how they are affecting the current Luxury goods sector.Shifts in purchasing patterns due to political reasons,changes in consumers’ behavior and the ever-growing competition amongst luxury brands are all crucial reasons behind these changes.The analysis of these external factors is undertaken through a qualitative research of relevant literature and represents the foundation used in order to better understand Gucci’s current state in the Chinese market and the future challenges that it will have to face.After having assessed the external environment and its effects to the company’s business the author undertakes an analysis of Gucci’s Brand Equity.The frameworks used in this research are the Customer-based Brand Equity and Keller’s Resonance Model.Through the blueprint provided by these useful marketing tools,the study is able to achieve a better understanding of the steps undertaken by the Italian fashion house in their climb to Resonance.This knowledge then allows a clearer identification of the problems and reasons behind weaknesses within Gucci’s Brand equity and its performance.It can be seen how phenomena like the rapid refinement of Chinese consumers’ taste and purchasing pattern,the rise of online shopping and an increased distaste for logo-heavy products constituted relevant problems for a brand that,during the years,overlooked exclusivity and innovation in favor of profit.Lastly,the author will provide suggestions based on its findings in order to provide solutions to the main problems encountered.The suggestions offered by the author are therefore aimed at:foster exclusivity,value personalization and take advantage of new technologies/trends.Gucci is an Italian luxury fashion brand that is well known and appreciated by Chinese customers.The brand has been able to leverage the many possibilities offered by such a huge and promising market but today’s situation is drastically different from the time when it first ventured into China.Will be Gucci able to adapt to these changes? Will it be able to deeply understand the dynamics of the Chinese market and answer accordingly? The success of the Gucci brand in the last few years is unquestionable,but does a success in sales directly equate to a sustainable brand in the future? The success that Gucci is experiencing will be lasting only if the company makes a conscious effort on deeply understanding China,its market and its culture.