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Gucci's new chief executive today said the luxury label will focus on its mid-priced range to keep its well-heeled customers splashing out in the recession.
Patrizio di Marco, who took the top job in January after Mark Lee stepped down, also admitted that the fashion house would shrink production and make fewer styles to cut costs.
Gucci, owned by French retail giant PPR, will refresh goods made with its double G logo to stress the brand's heritage, Bloomberg reports.
"In this market, buyers want products with substance and good prices. We don't need 75 variations of the same handbag. Two or three are enough," di Marco said.
Analysts welcomed the change in tack. "The Gucci brand was in danger of becoming too commoditised," said MF Global Securities' John Guy. "Upgrading the logo and emphasising quality and craftsmanship is the right thing to do."
Thanks to new store openings and strong demand for its Hysteria and Babouska handbags, Gucci's total sales are up on last year. But di Marco admitted that footfall has been lower in all its .stores.
The crisis in the fashion industry forced Rsoberto Cavalli, the flamboyant Italian designer, to cancel the show for his secondary line, Just Cavalli, at Milan Fashion Week earlier this year. Last week, Paris couturier Christian Lacroix filed for bankruptcy protection after being hit by the economic crisis.
