Our strategy
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Our strategy
Kering’s strategy establishes a long-term framework – under which the Group’s action plans are enshrined – in an effort to nimbly respond to economic circumstances, seize market opportunities and address new consumer trends.
Kering’s strategy establishes a long-term framework – under which the Group’s action plans are enshrined – in an effort to nimbly respond to economic circumstances, seize market opportunities and address new consumer trends.
Kering’s Houses are sources of emotion and inspiration, expressing a strong point of view. By reinterpreting their creative heritage, they provide a new perspective on the present, arouse desire and exert their cultural influence. They are characterized by their bold standpoints and a quest for excellence, encompassing the quality of their raw materials and finished products, the preservation of know-how and the experience they offer to their customers.
This approach is central to Kering’s strategy, with a focus on the long term and a conviction regarding the luxury market’s vast potential.
This strategy is founded on four key pillars:
1. Developing a balanced, complementary Group
Kering has built a portfolio of complementary luxury brands to cover the market’s main segments. The latter include couture and ready-to-wear, leather goods and accessories as well as jewelry and high jewelry.
Kering has formed two adjacent businesses focusing on eyewear (Kering Eyewear) and beauty (Kering Beauté). This not only enables the Group to operate more effectively and with greater control in categories traditionally managed under licenses, but also to acquire brands specializing in these types of products (such as Lindberg, Maui Jim, Creed) in order to achieve synergies and economies of scale. Aside from bringing benefits to Kering’s Houses as regards the consistency of their creative universes, visibility and an ability to attract new clientele, Kering Eyewear and Kering Beauté contribute to creating a more stable and predictable growth profile for the Group.
2. Fully realizing the Houses’ organic growth potential
Depending on their level of maturity and market position, each House shapes its own strategy under the Group’s stewardship. Such supervision is intended to set a trajectory of profitable, sustainable and balanced development, generating revenue growth while maintaining each House’s exclusive status and brand equity.
All business lines are driven by a collective desire for excellence
in execution, with each playing a part in implementing the brands’ organic growth strategies. Through communication initiatives emphasizing their heritage and creativity, the Houses raise their profile and desirability. By constantly adjusting their ranges, brands offer exceptional products aimed at attracting and retaining customers in their various market segments. And by optimizing and controlling their phygital distribution networks, the Houses make the most of new sources of growth as they occupy prestigious locations worldwide and deliver an exceptional retail experience to their clientele.
3. Guiding and supporting the Houses through the Group’s integrated model
Kering’s corporate culture is designed to foster responsive teams and proactive Houses. At the same time, an inseparable part of that culture involves introducing mechanisms that
protect Kering’s core assets – its brands – and having strategic
oversight over the Houses’ business performance, resource allocation and the Group’s financial balance.
In addition to guiding and protecting its Houses, Kering supports their development and supplies the required resources. Through its growth platforms, skills and service centers and industrial assets, the Group has developed an integrated business model. This specific model enhances efficiency through synergies and economies of scale and directly benefits the Houses in areas such as logistics, information systems, Customer Relationship Management (CRM), data science, media buying, real estate and manufacturing equipment.
Kering’s integrated model also applies to talent management. The Group pays close attention to the professional development and fulfillment of its employees. To that end, Kering offers its teams a career path and opportunities for growth within the company in an endeavor to attract and retain best-in-class professionals. This policy of transferring people within the Group encourages the development of a talent pool, which helps Kering to conduct succession planning for highly strategic roles and promotes a shared business culture.
4. Putting sustainability at the heart of the strategy and moving the needle on the cause of women
Sustainability is an ethical necessity that reflects society’s new expectations; it also represents a business opportunity since meeting the highest environmental and social standards serves to drive innovation.
The Group’s commitment to women’s causes is manifested in its human resources policies, its philanthropic activities carried out through the Kering Foundation and in the Women In Motion program.
Also integral to Kering’s corporate culture is a determination to be a socially and environmentally responsible company, coupled with an ambition to unite others on this path and accelerate the paradigm shift.
