Gucci's annual reviews and their use of images
Gucci’s annual reviews are done by Kering, as the team company, at the close of every fiscal year. Tommy Hilfiger is a manufacturer of PVH who do their financial reporting and analysis. The presentation of annual reports is crucial in capturing the attention of the goal audience. Photos have been widely adopted by the two groups to enhance the looks of their statements. However, Gucci makes use of pictures in an organized manner. They show up on either the left or the right and the textual content on the opposite side throughout the five years. Tommy Hilfiger uses pics randomly within their statements with no particular order but uses none on the pages where figures are given. They give a relaxed look at the beginning and the end but draw a professional look on the information they deem important. The use of images has been in high use in the recent years as visual communication creates realism in the mind of the readers. It is a mode of competition as to which brand appears stronger and dominant through the portrayed photos. They act as a form of nonverbal communication but need to be applied with care to ensure they do not misguide the concentration of the reader (Stocchetti & Kukkonen, 2011).
Gucci's shorter reports compared to Tommy Hilfiger
Gucci further provides shorter reports compared to Tommy. They compress the information they need to communicate in few pages containing segments giving a look of urgency in communication and trying to give a lot of information before the interest of the investors is lost. However, the format of communication could be perceived as overcrowding. Tommy’s reports are longer going to up to 168 pages in 2016 (PHV, 2016). It is as compared to 46 pages by Gucci in the same year (Kering, 2016). Their format entails the use of minimal paragraphs that create precision and a look of clarity in a review of the reports. They, however, risk the ability to maintain people's concentration and thus not being read to the end.
The diagrammatical presentation of figures in Gucci's reports
Gucci is keen to use the diagrammatical presentation of their figures by utilizing different graphs through the years. Investors can, therefore, have a quick outlook of the performance of the entity which has increased its earnings from 9,736 Euros in 2012 to 12,385 Euros in 2016 (Kering, 2016). Tommy Hilfiger, however, presents their statements conventionally by indicating how much revenue was earned in the period. The visual presentation of financial information aids in the interpretation of data and is a useful communication tool. Beattie and Jones (1992) have a superior feel as they are easily remembered in the mind of the read as opposed to using of figures solely.
The use of colors in annual reports
Colors have the ability to influence people's perception of a brand and to persuade people to indulge in statements and should be chosen based on the market targeted (Ciotti, 2016). A key factor to consider in presenting annual reports is that they create a sense of comfort in existing shareholders and communicating that the organization is achieving its goals. Tommy Hilfiger gives a feeling of relaxation based on the use of colors bright colors such as red, bright shades of blue and yellow. Thereby they bring a sense that the brand they are selling is suitable for the younger generation who are the key target market and shareholders like to see that their needs are being met. They further use colored text where they need emphasis of information to draw the attention of the readers. Gucci is conservative on the use of bright colors in their annual reports and gives the feel that they do not want to distract the readers. They adopt the use of shades of the blue which is considered a formal color (Ciotti, 2016). They use dull colors that give a feel that one is reading an official document. They seem to communicate that though their target market needs have been met, the document is meant for a different group of people. Use of color in reporting needs to be adopted with care to avoid overdoing colors. The idea in the use of color should be to liven the reporting which should be done in the firm and bold colors (Stittle, 2003).
The tone and language of Gucci and Tommy Hilfiger's statements
Gucci financial statements evoke a feeling of satisfaction over the years with the use of positive language such as how the company’s results are the beginning of a bright future for the organization and confidence in their financial outlook (Kering, 2014). Tommy Hilfiger uses the financial review to show how they have utilized the market potential to evoke a feeling of confidence in the performance of the organization. They highlight issues of succession to prepare for long-term outcomes of the entity (PVC, 2014).
The language used in Gucci reports seems to attract investors by cementing a solid relationship with them through communication of growth, innovative strategies and how the company has been effective in achieving its goals over the years. Tommy Hilfiger statements use language that communicates challenges and how the problems were resolved and thus giving hope to potential investors. Gucci reports are portrayed to retain the current stakeholders while Tommy seems to be on the road of calling for more investors to their organization. Gucci keeps a positive tone and language in their statement showing that all the brands are doing well and the market is receptive to their products. They indicate high prospects for growth and thus adopting an assertive communication style. They are convinced that their strategies are innovative and thereby differentiating them in the market. Assertiveness in annual reports is fundamental as it highlights confidence in their strategy and thus their thoughts are effectively communicated. It effectively improves the brand image. Tommy Hilfiger maintains a conservative style of communicating their financials with an introduction of challenges in the market and how they are tackling them to remain competitive in the market. They are seen to take the position of avoiding conflict and passively communicating their message (Kohale, 2016).
Communication of strategy in Gucci and Tommy Hilfiger's reports
Tommy Hilfiger is keen to communicate their strategy at the beginning of their financial reports in a bold format. The tone used makes investors aware that this is the core of reporting and should be the reference point for the reporting. They consistently use tone to show that they work as a team over the years to achieve their objectives. On the contrary, Gucci focuses on using the CEO’s message to communicate the goals of the organization which is a non-standard message that highlights the prospects of the organization in an assertive manner.
References
- Beattie, V., & Jones, M. J. (1992). The use and abuse of graphs in annual reports: A theoretical framework and an empirical study. Accounting and Business Research, 22(88), 291-303.
- Ciotti, G. (2016). The psychology of color in marketing and branding. Entrepreneur. Retrieved on June 7, 2017.
- Kering. (2014). 2014 Annual results. Retrieved on June 7, 2017.
- Kering. (2016). 2016 Annual results. Retrieved on June 7, 2017.
- Kohale, N. (2016). The importance of assertive communication at your work place. LinkedIn. Retrieved on June 7, 2017.
- PVH. (2014). SEC Filings. Pvh.com. Retrieved on June 7, 2017.
- Stittle, J. (2003). Annual reports: Delivering your corporate message to stakeholders (1st ed.). Farnham: Gower Publishing Company Limited.
- Stocchetti, M., & Kukkonen, K. (2011). Images in use: Towards the critical analysis of visual communication (1st ed.). Amsterdam: John Benjamins Publishing Company.
