{"id":2253,"date":"2021-05-19T09:10:53","date_gmt":"2021-05-19T07:10:53","guid":{"rendered":"https:\/\/magazine.lineapelle-fair.it\/?p=2253"},"modified":"2021-05-20T16:18:56","modified_gmt":"2021-05-20T14:18:56","slug":"tracking-to-check-distribution-gucci-and-wholesale","status":"publish","type":"post","link":"https:\/\/magazine.lineapelle-fair.it\/en\/green-corner-en\/tracking-to-check-distribution-gucci-and-wholesale\/","title":{"rendered":"Tracking (to check) distribution: Gucci and wholesale"},"content":{"rendered":"

Gucci reduces wholesale to a minimum. Not only: they launch a new strategy of control, based on RFID traceability, to bring down to zero the risk of parallel markets. Let us tell you about the ways and reasons why of this decision<\/em><\/strong><\/p>\n

The concept of\u00a0traceability<\/strong>\u00a0involves an immediate comparison with that of\u00a0transparency<\/strong>. Clarifying\u00a0origin and manufacturing phases<\/strong>\u00a0of each accessory satisfies the need for giving final consumers (but also all levels of the production chain) the\u00a0awareness<\/strong>\u00a0of what they have in their hands.
\nSo, they can basically understand, as well, why it has such cost (be it high or low). Traceability is also the arrival point for another aspect of this path, which is control<\/strong>. In particular, concerning distribution. The relationship between Gucci and wholesale is a good example.<\/p>\n

Gucci and wholesale<\/strong><\/h4>\n

Rationalisation and exclusivity are the targets (not new, but strongly relaunched). One of the tools to hit them is an abrupt, determined, drastic intervention on wholesale.\u00a0Gucci<\/strong>\u00a0began to make it in the middle of the pandemic, in March 2020, cutting up to\u00a070% of multi brand stores<\/strong>\u00a0in Italy. In other words, cutting down indirect commercial partners from 110 to 38.
\nAn operation which was repeated in the United States in the first part of 2021 and which is going to be expanded on a global scale within the end of this year, even if Gucci has not quantified precisely to what extent they are going to push this kind of purge.<\/p>\n

What we know, extrapolating the data from the brand\u2019s financial report of the first quarter of 2021, is that this commercial channel, on the whole, has lost (already)\u00a026,1% <\/strong>of its volume.
\nElevating the exclusivity of its offer means, thus, managing it more and more directly. That means: controlling it, to prevent some lots, some returns, some accessories from slipping into the parallel market<\/strong>. Here traceability comes into play.<\/p>\n

Tracking (for checking)<\/strong><\/h4>\n

The brand\u2019s decision to provide with a particular<\/strong> RFID tag<\/strong>\u00a0all their articles sent to wholesale dates back to January 2021. Target: tracking suspicious sales outside the official channels. Gucci communicated their decision to all their indirect retailing partner.
\nThey did it sending a note where, according to fashionmagazine.it, they wrote \u201cour company reserves by contract the right<\/strong>\u00a0to enter\u00a0accounts<\/strong>\u00a0and\u00a0registers<\/strong>\u00a0of each point of sale to check compliance<\/strong>\u00a0with the obligations set out in the contract\u201d. According to the brand, the purpose of this strict control is not only legal protection of the brand, but also guaranteeing clear rules \u201cin the interest of all involved players\u201d.<\/p>\n

The first time<\/strong><\/h4>\n

Let us underline one aspect of this decision. The RFID tag is usually used in fashion to fight counterfeiting and shoplifting. As well as to check stockpiles in warehouses and to simplify logistics. This\u00a0could be the first time<\/strong>\u00a0that it is employed in the field of\u00a0control of the distribution chain<\/strong>.<\/p>\n

Image from rfidup.com<\/a>\u00a0<\/em><\/p>\n

Read also:<\/strong><\/p>\n