Meanwhile, smaller, less glitzy labels are the order of the day, and even Chinese and Asian consumers, who once embraced the in-your-face glamour of Gucci, are now opting for more low-key brands.
Some believe the brand has become a victim of its own success. HSBC analyst Erwan Rambourg, author of The Bling Dynasty: Why the Reign of Chinese Luxury Shoppers has Only Just Begun, says: "It's what I call the French paradox. If you are a niche brand, everyone wants you. If you are a big brand, then by selling more you compromise a sense of exclusivity and the notion of luxury itself."
On the face of it, Gucci still appears to be a big hitter. The label accounts for 60 per cent of operating profits for the Kering group, the French conglomerate that owns it. Sales between July and the end of September amounted to £673 million ($1.36 million), and earlier this year the company launched its first beauty range.
Gucci still attracts celebrity glamour - the actress Blake Lively is the face of its perfume, Kate Moss stars in the brand's latest handbag campaign, and James Franco produced a documentary about Giannini earlier this year called The Director. The company's luggage is still ubiquitous in the lobbies of five-star hotels around the world, while its gowns remain a red-carpet favourite.
But sales have stagnated - they fell by almost 2 per cent in the last quarter. In the precarious world of fashion, and with the profit-minded Francois-Henri Pinault at the helm of Kering, even a small drop in sales spelled disaster for Gucci's bosses.
So what went wrong? And what will happen next? Some critics believe Gucci has struggled ever since the departure of the influential designer Tom Ford in 2002. His appointment in 1994 transformed Gucci into a fashion powerhouse. His collections oozed sex, and his styles were super-sleek.
Ford became a Hollywood darling as celebrities and other wealthy shoppers around the world snapped up everything he created. But the success of the label also made it vulnerable to counterfeiting - knocked-off copies of the Gucci bag became a global business and diluted the allure of the real thing.
When Ford resigned, the fashion world was rocked. He was briefly replaced by Alessandra Facchinetti, before Giannini was moved from the accessories division to take over as sole creative director.
Until recently, Giannini's stewardship was seen as a success. She plundered the Gucci archives and found a print loved by Grace Kelly called Flora, which became a huge hit once more. Her designs were seen as more women-friendly while retaining the glamour of the Ford era. But, in an industry that is all about the next big thing, Giannini was criticised for relying too heavily on retro designs rather than fashion-forward trends. Her recent collection was cuttingly described as a "melange" by the New York Times.
Writing on Style.com, fashion editor Nicole Phelps said: "The problem with Giannini's style was the unpredictability of her collections - 1920s' art deco one season, followed by Arthur Rimbaud-influenced decadence the next, and after that Marella Agnelli's 1960s' chic. As Giannini moved from one influence to another, it got harder to decipher what Gucci stood for on the runway."
Di Marco's attempts to take the brand even further upmarket, by raising prices and moving away from the recognisable logo, was seen as a mistake by business strategists. He also came under fire for expanding too rapidly into China.
What will happen to Gucci? Analyst Luca Solca, head of luxury goods at Exane BNP Paribas, says: "This was a change that was a long time in the making. Di Marco and Giannini have presided over Gucci for a whole era. The key to staying relevant in luxury goods is continuing reinvention."
Di Marco is due to leave next month, and Giannini will depart in February after overseeing her final collection.
The CEO's replacement has already been announced - Marco Bizzarri, the current head of Kering's luxury division. Names being bandied about for the much-coveted creative director's spot include Riccardo Tisci of Givenchy, Phoebe Philo of Celine, and British star Christopher Kane.
Despite Gucci's recent travails, the double-G logo remains one of the most recognisable in the fashion world. As Solca says: "It is in the nature of the business that managers go and brands remain."
- The Sunday Telegraph
