Gucci, Mauricio, Aldo discussed on Business Wars
Thank you, thank you, thank you. Over the next few months, odile and rock amay convinced Henri and Claude to turn over control of Louis Vuitton to rock a. Once in charge, rock amaze first order of business is to push the company into Japan. Retail space there is too expensive to establish freestanding stores, so rock a negotiates to sell Louis Vuitton products through the major Japanese department stores. However, he takes a risk and demands full control. Instead of a standard franchise agreement where the stores purchase goods from Louis Vuitton and sell them as they see fit, rock amay lays down an ultimatum. Louis Vuitton will fully manage their own section of the department stores. They will decide which products to offer, how to display them, and set the price point. At first, the store is bulk. But rocka may tells them if they want Louis Vuitton products at all. This is the arrangement. His gamble pays off and the department stores give in. Under rocka May's leadership, Louis Vuitton is expanding its market for the first time in years. But while Louis Vuitton is getting its house in order, the House of Gucci is falling apart. It's July 16th, 1982, Florence Italy. Mauricio Gucci sits at the end of the long board table in Gucci headquarters. 34 years old, he still has the gangly limbs of a teenager, and he ships to get comfortable in his seat. He feels the index cards in the inner pocket of his suit coat. They contain his thoughts on the vision for the future of Gucci. His heart thumps as he prepares to stand up and deliver them to his family, sitting around the conference table. Mauricio's father rodolfo and his uncle Aldo have been running Gucci since the 1950s. Aldo spends most of his time in New York running Gucci in America and overseeing their expanding retail stores around the world. Rodolfo manages the company in Italy, controlling its production arm. It hasn't always gone smoothly, but the arrangement has largely worked. Gucci is doing well. But Mauricio has spotted some troubling signs. He believes that they over license their logo and expanded their product line too much. Gucci is in danger of losing its prestige. A death knell for a luxury brand. Mauricio's mouth is dry. He's never been much of a conversationalist, let alone a public speaker. But this is too important to give in to his anxieties. At the other end of the table, Aldo calls the meeting to order. Let's begin, we'll start by reading the minutes. Or eats you his heart pounds. But just before the secretary of the board can even begin reading, Mauricio's cousin, Paulo, jumps up. I like to make a statement first. Two years ago, Paolo secretly tried to launch his own company using the Gucci name. When his father and uncle found out, they fired him from the company. He's been brought back in, but he's still the black sheep of the family. Paolo ignores the groans and reads from a piece of paper. As the director of this company, I've been denied access to go through the books, which goes against Paolo stops and snaps his head to the secretary of the board. Why aren't you writing this down? I want this on the record. If you want recorded, I will. He pulls out a small tape recorder from his pocket. Aldo rears up and charges around the table. You are not recording anything. Paulo grabs the recorder in Cox's fist, Mauricio jumps to his feet, convinced his cousin is going to slug the 77 year old Aldo. Maritza wraps his arm around Paulo's neck, holding him in a headlock. Paulo struggles against it, but Mauricio keeps him in his grip. Aldo attempts to rest the recorder from Paolo's hand. In the scuffle, Aldo's arm flails his hands smacking hard against Paulo's face. Blood trickles down Paolo's cheek. Shocked by the blood, Mauricio quickly releases Paolo from his home. Paolo brings his hand to cheek. Staring at the blood on his fingers. Call the police. Police. He grabs his briefcase and springs out of the office. My family tried to kill me. They tried to kill me. That's what happens in Gucci board meetings. Maritza slumps into his seat. The index cards in his pocket poke into his chest. He doesn't think he's going to need those today after all. A depression settles over him. How is Gucci ever going to move forward if they can't stop fighting with each other? There have already been press articles about the families infighting. This isn't helping Gucci's slipping image. A year later, Mauricio gains substantially more power to shape Gucci's future. It's summer, 1983. Mauricio Gucci sits in a lawyer's office in Milan, Italy receiving his inheritance. His father passed away from cancer recently, and Mauricio is his only son. He's already received deeds to apartments in Milan in New York, and a chalet in saint Moritz Switzerland. He's also gotten access to bank accounts around the world. It's exciting. And overwhelming. Mauricio's father was a demeaning man, both tough on his son and also coddling. Mauricio's barely been able to make any decisions for himself before now. The lawyer looks up over his reading glasses. I understand we haven't located the certificates for the shares yet, but you are to inherit all of your father's Gucci stock. Mauricio smiles and nods. He's now the largest shareholder in the company. The other half of the shares are divided between his uncle and three cousins. A flutter of nerves surges through him. He hopes he's ready for this. The lawyer reaches behind him into a safe, and pulls out a small black wallet with the Gucci logo on it. Oh, and he also wanted you to have this. Mauricio takes it. Feeling the soft crocodile skin between his fingers. He knows this wallet. He was made in the early days of Gucci. His grandfather had given it to Maurizio's father, and now Mauricio's father is giving it to him. Mauricio looks up at the lawyer. This isn't just a wallet. It's a message from his father. From beyond the grave. He's handing the purse strings to Gucci. Over to Mauricio. It's time for Mauricio to put his fears and anxieties behind him. And be the leader Gucci needs. Mauricio stands, his usually slumped shoulders, held back proudly. As he strides out of the office, he feels confident. He has the vision. He just needs to get the rest of his family on board. But the riffs in the Gucci.