Circular for luxury
Logistics a key to Gucci’s transformation. The Italian luxury brand Gucci, founded in Florence in 1921, is developing a new approach to its fashion industry products, with the support of from its French parent company Kering. What’s behind the attempted redefinition of the value chain?
In February Gucci announced the launch of the first circular economy approach for a luxury platform in Italy. The aim of what the firms calls its ‘circular hub’ is to accelerate the transformation of production of the entire Italian fashion industry by redefining the value chain.
Starting from raw materials through to design and product optimisation and – last but not least – to logistics, the circular hub will be an open innovation platform to design and manufacture circular products and scout new solutions.
The think tank will be based in Tuscany, in the centre of the country, and will include Kering’s sites too, but will initially start with Gucci’s production facilities and its Italian-based raw material suppliers and finished product manufacturers. This base already encompasses more than 700 direct suppliers as well as 3,500 sub-suppliers.
The hub’s activities will then gradually be extended to Kering’s other products and brands, and will eventually be opened up to the entire industry.
A key role for logistics
The focus will be on the fields of industrial partnerships, for example with the Scuola Superiore Sant’Anna di Pisa, to analyse logistics models, values and jointly drive research and development efforts.
In the field of logistics, the hub supports traceability solutions by involving the supply chain. Another new aspect in the luxury industry is to increase logistics efficiency for material residues, including distribution channels for recycling and reuse.
Circularity for transformation
“Circularity represents a great opportunity and challenge to make ‘Made in Italy’ even stronger and even more competitive,” according to Antonella Centra, Gucci’s executive vice-president and general counsel for corporate affairs as well as for more sustainability.
“By sharing common goals and pooling resources, know-how and synergies, the hub will enable the luxury supply chain and its many SMEs to play a transformative role,” she closed.