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Gucci's Cheap Watch Strategy: A Marketing & Branding Lesson for Businesses

From Jay-Z to Rihanna, the Kardashians to the British Royal Family, top celebrities and tastemakers have been spotted sporting luxury watch brands for as long as they have been in existence. But it's not just a fashion statement. Luxury brands' marketing strategy can teach up-and-coming musicians a thing or two about building a loyal fanbase and standing out in a crowded record industry. In this article, let's dive into the secrets of Gucci's watch strategy and explore how musicians can apply these lessons to their own careers.

Gucci's Bold Decision

When luxury fashion brand Gucci announced that they would be releasing a $185 watch, many industry experts were shocked. After all, Gucci is known for its high-end, expensive products, not affordable watches. However, the brand's decision to sell an inexpensive watch was actually a smart move, and one that businesses can learn from when it comes to marketing and branding:

  • Gucci's cheap watch strategy has been a best-seller, with many consumers opting for the affordable option over more expensive luxury options.

  • Studies have shown that making a luxury product more accessible can actually increase its perceived value, rather than decrease it.

  • Offering a lower-priced product can also help attract a new, younger customer base that may not have been able to afford the brand's higher-end products before.

Let's Dive In Deeper

Apparel makers, such as Gucci, sell affordable watches as a way to increase brand awareness and accessibility. By offering a wider range of products at different price points, these companies can attract a larger customer base and generate more revenue. Additionally, selling cheaper watches can also serve as a gateway for customers to eventually purchase more expensive luxury items once their financial situation allows.

For example, Gucci has a line of accessible watches, found in Macy's, Bloomingdales and other department stores, that are priced at around $500, while their higher-end watches can be priced in excess of $10,000 - found exclusively in their flagship store locations. This allows Gucci to reach a wider range of customers and increase their revenue streams. According to a report by the consulting firm Bain & Company, Gucci's revenue grew by 12% in 2018 and reached a record high of €8.3 billion. The report also noted that the brand's expansion into affordable luxury products, such as watches, played a significant role in their financial success.

Businesses can learn a lot from this strategy by diversifying their offerings and appealing to a wider range of potential clients. For example, a business can:

  • Release a mix of free and paid content, such as releasing a free e-book on their website or landing pages.

  • Throw "a free event" and offer attendants an opportunity to donate, in order to support the event, instead of charging upfront "ticket prices".

  • Giveaway samples of merchandise or offer a complimentary service.

In Conclusion

These strategies can help increase loyal clients, while also allowing businesses to build more sustainable revenue streams. Overall, the strategy of luxury apparel makers selling "cheap" watches can be a valuable lesson for anyone looking to broaden their appeal.

For more tips on how you can improve your brand awareness and increase your fan base, stay tapped in to ADAM 4 Business for all of your marketing needs!


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