Gucci (pronounced Guch-ie) 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 companys products. 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 horsebit.

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His wife Aida Calvelli had a large family, though only the sons¡ªVasco, Aldo, Ugo, and Rodolfo¡ªwould play a role in leading the company. After Guccios death in 1953, Aldo helped lead the company to a position of International prominence, opening the company¡¯s first boutique in New York. Rodolfo initially tried to start an acting career as a matinee idol but soon returned to help direct the company. 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 and Tokyo. At that time, the company also developed its famous GG logo (Guccio Guccis 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 Rodolfo contributed less to the company than Aldo 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.

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. Meanwhile, when Paolo Gucci, Aldos son, proposed a cheaper version of the brand called Gucci Plus in 1983 he fell out with the family. There was a boardroom fight which ended in fisticuffs, and Paolo was reportedly knocked senseless by a telephone answering machine in the hand of one of his brothers. In return he reported his own father for tax evasion to the United States revenue, and Aldo was convicted and imprisoned on the testimony of his own son. By now, the outrageous headlines of gossip magazines generated as much publicity for Gucci as its designs.

Lindsay Lohan wearing a Gucci cap, in 2002Rodolfo¡¯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 this purpose. 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.