A Colorful Return to Style

By Barbara Rudolph

In its prime, back in the late 1950s and '60s, Gucci defined chic. It was one of the great names in fashion, a symbol of luxury, elegance and quality. By the 1980s, however, the label had become tattered and worn, a victim of sloppy manufacturing, countless knockoffs and feuds among members of the Gucci clan. Stylish women chose Chanel suits and Fendi handbags. But Gucci? Never.

Now, from Bologna to Beverly Hills, the fashion faithful are once again flocking to buy Gucci -- but it is Gucci with a modern twist. In addition to the subdued browns and blacks that were once Gucci's trademark, the new line of leather goods boasts a rainbow palette of splashy colors. Traditional suede moccasins ($265) come in a dozen offbeat shades, from bubble-gum pink to purple to bright orange. A new line of $500 knapsacks, aimed at a younger and hipper clientele, ranges from scarlet suede to bronze satin. And Gucci's spring line includes tiny bamboo-handle evening bags ($395 and $495) that are perfect for the trendiest of late-night soirees. The satin, kidskin and suede bags will be offered in deep purple and fire-engine red, as well as navy blue and basic black.

Gucci's new look is very much the vision of Dawn Mello, 52, who signed on as creative director last year. Formerly the president of New York City's upscale Bergdorf Goodman department store, the tall and elegant Mello set out to rebuild the image of the 68-year-old company by drawing on its successful past. "Gucci should be classic, but with an edge," she says. "It should not be boring."

Hence, Mello's concept of a Gucci for the '90s takes many cues from bygone decades. A $565 hobo bag, which had not been manufactured since 1975, has been revived and is now one of the two top Gucci offerings in U.S. stores. The other is a roomy, bamboo-handle leather bag, created in 1957. The updated version, which is enlarged and comes with a leather shoulder strap, is offered in calfskin leather ($895) and crocodile ($8,000).

Mello finds inspiration in unlikely places. While she was eating dinner one night in a Florence restaurant, a man Mello had never met before showed her a worn-out pigskin Gucci briefcase that he had held on to for 25 years. Gucci no longer sold the case, he told her. Would they consider bringing it back? Mello admired the case, and Gucci will soon manufacture it. "We'd always been known for our briefcases," says Mello. "We want to have that name again."

Gucci's image make-over comes as part of an overhaul of the entire Gucci organization. The revival is spearheaded by Maurizio Gucci, 42, the founder's grandson, who last year assumed control of Guccio Gucci S.p.A. With the support of Investcorp, a Bahrain-based investment firm that owns half the business, Gucci pared the product line from 22,000 to 7,000 items, and he will probably trim the inventory still further. Among the first products to be eliminated: the cheap, unlined canvas pocketbooks with the double-G logo that were easily copied, and can still be picked up for a mere $35 on city street corners.

To protect the label's image, Gucci cut off the majority of sales to department stores, and now limits distribution of most Gucci products to the company's 143 stores (although watches, perfumes and sunglasses are still sold in department stores and other retail outlets). To restore old-fashioned quality, hand-stitched leather products are being emphasized. And across the board, prices have been raised an average of 20% -- a fact that seems not to daunt a new generation of Gucci loyalists.

With reporting by Leonora Dodsworth/Milan