Luxury brand Kering Group expects revenue to decline by 10% in the first quarter of 2024, and GUCCI will even decline by 20%.

According to the latest news, Kering Group is expected to face the challenge of declining revenue in the first quarter of 2024, of which GUCCI will decline by 20%. The news caused the group's market value to fall by approximately €7.9 billion, while having a knock-on impact on luxury brands such as LVMH and Hermes.

Stuart Cole, chief economist at Equiti Capital, pointed out that the decline in Kering Group's forecast may be due to fierce market competition and changes in consumer demand. He highlighted the need for the group to adapt its strategy to address this challenge and made some recommendations.

In this highly competitive fashion economic environment, Kering Group needs to pay more attention to innovation and market positioning to attract more consumers. They may need to re-evaluate product design and pricing strategies to ensure competitiveness with competitors.

In addition to internal adjustments, Kering Group can also consider strengthening cooperation with other brands to jointly develop new products or launch joint series to expand market share and increase brand awareness. This partnership model may help create more business opportunities and increase revenue.

In general, although the challenges faced by Kering Group are not small, through appropriate strategic adjustments and market positioning, they still have the opportunity to revive their business and achieve long-term stable growth. It is hoped that the group can respond to changes in a timely manner and lay the foundation for future success.