By: Juan Rivera
Even so, during this time the family was in constant in-fighting. Reports at the time suggested the household fought during board conferences about inheritance, stock holdings, and the way to operate the business.
The business hit a terrible rough patch in the 1970s and leading into the 1980s. At that time the brothers Aldo controlled the organization with equal gives. This occurred yet again, because of complicated family fights. The company launched their accessories and scent division and began to wholesale aggressively in order to expand that division. Aldo acquired that division and his awesome intention was to concentrate on it in order to weaken the power over his brother Rodolfo. The perfume division was priced less expensive than other products and aggressive wholesaling caused it to be available for sale in over 1000 stores. The effect was the brand image was severely tarnished. The public now viewed Gucci as a cheap airport brand and no exclusive luxury brand. Furthermore at the same time, widespread Gucci knock-offs started to appear on the marketplace further weakening the brands image.
In 1983, the organization was struggling financially as well as in brand image. Paolo Gucci (son of Aldo) proposed thinking about launching an affordable version of Gucci called Gucci Plus, the concept had not been well accepted by the family. Throughout a Gucci boardroom meeting concerning this issue Paolo was bumped out by a telephone answering machine to the the face, by certainly one of his brothers. For revenge, he reported his father for the Usa authorities for tax evasion. His father was in prison for tax evasion and provided for prison after his son testified against him in court. These stories produced more curiosity about the Gucci family, then a brand’s advertising may achieve at that time.
Rodolfo died in 1985. This triggered changes in the power structure from the company (family). His son Maurizio Gucci inherited his fifty% share of the Gucci company. Aldo’s son Paolo along with Maurizio teamed together to consider charge of the Board of Directors. Right after, all of those other family left the company. This led Mauricio to seek help and ideas from outside the business to be able to strengthen the logo and the business and operate peacefully.
Gucci Footwear became among the companies powerful points. Gucci found following disasters from the 1970s and 1980s a return to its roots as an elite Italian fashion house was obviously a must. They pointed out that it was impossible being both a mass production logo and a luxury brand. The leather goods like Gucci shoes had given the organization its name inside the 1920s and 1930s plus they felt they should focus their efforts on fashion innovations in those areas. In addition, in 1997 Gucci took over Severin-Montres and renamed it underneath the Gucci name. The watchmaker was one of the most respected in Europe during the time and led to Guccis goals of maintaining their prestige and top notch image amongst fashion mindful and wealthy customers.