The article from Forbes entitled, “Gucci is Going Gangbusters Online, Leaving Louis Vuitton in the Dust,” by Pamela Danziger discusses how Gucci was one of the most successful online retailers in 2017. At the beginning of 2017, Gucci’s web traffic more than doubled, and by the end of 2017, Gucci’s web traffic had well surpassed Louis Vuitton’s, who is their closest competitor online. Danziger interviews SimilarWeb’s (a digital marketing intelligence company) Liron Hakim-Bobrov, who explains how Gucci’s online success has been due to marketing, referral websites, and other causes. The article utilizes the classic economic principles of demand to explain Gucci’s online success in 2017. Gucci was very successful online in 2017 due to a change
…show more content…
Demographics are the statistical characteristics of populations like age, race gender, occupation, and income level. Companies, such as Gucci can use this information to cater to the correct audience. Since Gucci knows many influencers post online and the target audience of twenty to forty-year-olds are also online, it is not a surprise that Gucci’s online sales have increased significantly. Also, since “athleisure” is the new trend, especially for the twenty to forty age range, Gucci has launched activewear that has been popular. Hakim-Bobrov shares, “A strong referral strategy allows the brand to utilize influencers to expand awareness in an otherwise highly branded market.” By paying attention to the age demographics, Gucci is successful online. Another demand concept in effect is carrying complementary goods. Complementary goods are two goods that are bought and used together. If someone is on Gucci’s website and wants to buy a handbag, it is easy to buy a wallet to go along with it. The same goes for the athleisure wear: along with the clothes, Gucci also sells sneakers that have become popular. Since online traffic has increased drastically, it is easy to assume that consumers typically have more impulse buys while online, unlike when shopping in a store. By effectively catering to their demographics and consumers purchasing complementary goods, Gucci’s online
Demographics are the statistical characteristics of populations like age, race gender, occupation, and income level. Companies, such as Gucci can use this information to cater to the correct audience. Since Gucci knows many influencers post online and the target audience of twenty to forty-year-olds are also online, it is not a surprise that Gucci’s online sales have increased significantly. Also, since “athleisure” is the new trend, especially for the twenty to forty age range, Gucci has launched activewear that has been popular. Hakim-Bobrov shares, “A strong referral strategy allows the brand to utilize influencers to expand awareness in an otherwise highly branded market.” By paying attention to the age demographics, Gucci is successful online. Another demand concept in effect is carrying complementary goods. Complementary goods are two goods that are bought and used together. If someone is on Gucci’s website and wants to buy a handbag, it is easy to buy a wallet to go along with it. The same goes for the athleisure wear: along with the clothes, Gucci also sells sneakers that have become popular. Since online traffic has increased drastically, it is easy to assume that consumers typically have more impulse buys while online, unlike when shopping in a store. By effectively catering to their demographics and consumers purchasing complementary goods, Gucci’s online