Leadership acknowledges Gucci has suffered from a lack of stability and a failure to launch new iconic products. The revival plan centers on providing consistent leadership, re-emphasizing core categories like leather goods, and expanding into jewelry and watches to restore brand desirability.
Kering is making pragmatic corporate moves, such as the beauty licensing deal with L'Oréal to reduce debt and leverage a partner's operational strength. The decision to postpone the Valentino acquisition option allows the company to focus resources on fixing its core business.
The luxury sector is facing uncertainty from geopolitical conflicts and shifting consumer sentiment. Kering's leadership factors this volatility into its planning but remains committed to long-term investment in growth regions like the Middle East.
Through a new partnership with ICCF, Kering aims to gain deeper, 'behind the curtain' insights into China's market, supply chain, and innovation landscape. The strategy is to become a more integrated 'local citizen' and give back to a market that has been crucial for growth.
Keep pulling the thread on Luca de Meo.