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1. GUCCI

The House of Gucci (pronounced Goo(t)chy) was founded in 1921 by Guccio Gucci. In 1938, Gucci expanded and a boutique was opened in Rome. Guccio was responsible for designing many of the company's mostproducts. In 1947, Gucci introduced the bamboo handle handbag, which is still a company mainstay. During the 1950s, Gucci also developed the trademark striped webbing, which was derived from the saddle girth, and the suede moccasin with a metal bit.

His wife Aida Calvelli e had a large family, children in all, though only his sons—Vasco, Aldo, Uugo, and Rodolfo—would play a role in leading the company. After Guccio's death in 1953, Aldo helped lead the company to a position of international prominence, opening the company’s first boutiques in London, Paris, and New York. Even in Gucci’s fledgling years, the family was notorious for its ferocious infighting. Disputes regarding inheritances, stock holdings, and day-to-day operations of the stores often divided the family and led to alliances. Gucci expanded overseas, board meetings about the company’s future often ended with tempers flaring and luggage and purses flying. Gucci targeted the Far East for further expansion in the late 1960s, opening stores in Hong Kong, Tokyo, and Korea. At that time, the company also developed its famous GG logo (Guccio Gucci's initials), the Flora silk scarf (worn prominently by Hollywood actress Grace Kelly), and the Jackie O shoulder bag, made famous by Jackie Kennedy, the wife of U.S. President John F. Kennedy.

Gucci remained one of the premier luxury goods establishments in the world until the late 1970s, when a series of disastrous business decisions and family quarrels brought the company to the verge of bankruptcy. At the time, brothers Aldo and Rodolfo controlled equal 50% shares of the company, though contributed less to the company than he and his sons did. In 1979, Aldo developed the Gucci Accessories Collection, or GAC, intended to bolster the sales for the Gucci Parfumes sector, which his sons controlled. GAC consisted of small accessories, such as cosmetic bags, lighters, and pens, which were priced at considerably lower points than the other items in the company’s accessories catalogue. Aldo relegated control of Parfums to his son Roberto in an effort to weaken Rodolfo’s control of the overall operations of the company.

Aldo Gucci expanded into new markets including an agreement with American Motors Corporation (AMC). The 1972 AMC Hornet compact "Sportabout" station wagon became one of the first American cars to offer a special luxury trim package created by a famous fashion designer. The Gucci cars sported boldly striped green, red, and buff upholstery and on the door panels, as well as the designer's emblems and exterior color selections.

Though the Gucci Accessories Collection was well received, it proved to be the force that brought the Gucci dynasty crashing down. Within a few years, the Perfumes division began outselling the Accessories division. The newly-founded wholesaling business had brought the once-exclusive brand to over a thousand stores in the United States alone with the GAC line, deteriorating the brand’s standing with fashionable customers. "In the 1960s and 1970s," writes Vanity Fair editor Graydon Carter, "Gucci had been at the pinnacle of chic, thanks to icons such as Audrey Hepburn, Grace Kelly, and Jacqueline Onassis. But by the 1980s, Gucci had lost its appeal, becoming a tacky airport brand."

Soon, cheap knockoffs of Gucci wares had appeared on the market, further tarnishing the Gucci name. Meanwhile, infighting was taking its toll on the operations of the company back in Italy: Rodolfo and Aldo squabbled over the Parfums division, of which Rodolfo controlled a meager 20% stake. By the mid-1980s, when Aldo was convicted of tax evasion in the United States by the testimony of his own son, the outrageous headlines of gossip magazines generated as much publicity for Gucci as its designs.

Rodolfo’s death in 1983 caused a major shakeup in the company when he left his 50% stake in Gucci to his son, Maurizio Gucci. Maurizio allied with Aldo’s son Paolo to gain control of the Board of Directors and established the Gucci Licensing division in the Netherlands for purposes. Following the decision, the rest of the family left the company and, for the first time in years, one man was at the helm of Gucci. Maurizio sought to bury the fighting that had torn the company and his family apart and turned to talent outside of the company for Gucci’s future.

2.FENDI

Fendi originated in 1918 when Adele Casagrande opened a leather and fur shop in Via del Plebiscito in central Rome. When Adele married Edoardo Fendi in 1925, they made a decision to change the name to Fendi. The business prospered, and a new shop was opened in Via Piave in 1932. By 1946, Paola, the eldest of the couple's five daughters, went to work for the firm at age 15, followed by her sisters Carla, Anna, Franca, and Alda. In time, each of the daughters inherited 20% of the company.[1]
In 1962, the Fendis signed up German designer Karl Lagerfeld,[1] who immediately created the inverted FF logo that joined the growing list of international status symbols. He then set about, aided and abetted by the sisters, to revolutionize the treatment of fur and other clothing. Marvin Traub, president of Bloomingdale's, discovered Fendi's leather goods and introduced them to the United States. Other outlets soon followed, and today, Fendi is largely represented through high-end department stores.

In 1969, Fendi presented its first ready-to-wear fur collection at Palazzo Pitti in Florence, bringing continuously evolving techniques and imaginative designs to lower-priced furs without sacrificing quality. When the sisters could not find the fabric clothes they wanted to show under the furs their ready-to-wear line was born, again to great success. In 1999 the sisters sold out to LVMH and Prada for an estimated US$850m[1], trumping a bid from Gucci of a rumoured US$700m. LVMH have since bought out Prada and are investing heavily in the brand, expanding the network of boutiques to 117 as of 2005.

On October 19, 2007, the world was blown away with Fendi's fashion show on the Great Wall. Showcasing Karl Lagerfeld and Silvia Venturini's latest fashions and specially designed outfits for the Great Wall event, 88 models from Asia and across the world descended down a catwalk of more than 85 meters and showcased eastern and western looks from Fendi’s Spring / Summer '08 collection to more than 500 guests, media and VIPS – including Thandie Newton, Kate Bosworth and Zhang Ziyi.

Commonly referred to as the "Zucca" print in its original form and "Zucchino" in its smaller style, Fendi's iconic "double F" logo pattern was first designed by Karl Lagerfeld in the 1960s. It has been used on a variety of Fendi products, including handbags, wallets, luggage, shoes, and apparel. Kanye West once appeared at a party with the logo shaved into his head.
In June 2006, Wal-Mart was accused of selling fakes in its membership-only Sam's Club stores. The suit filed by Fendi in June 2006 against Wal-Mart was settled in June 2007 when Walmart agreed to pay Fendi an undisclosed sum in exchange for Fendi's dismissal of the case.
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