When Did Kering Buy Gucci?

|

thedutchladydesigns

by

In 1999, Kering (then known as Pinault-Printemps-Redoute or PPR) bought a controlling stake in the Italian luxury brand Gucci. At the time, Gucci was facing financial struggles and had been Targeted by several hostile takeover attempts.

The History of Gucci

Gucci was founded in Florence, Italy in 1921 by Guccio Gucci. The brand quickly gained popularity for its high-quality leather goods and became a status symbol for wealthy clientele. However, after Guccio’s death in 1953, the company struggled to maintain its prestige and faced several management issues.

In the 1980s, Maurizio Gucci (Guccio’s grandson) took over as CEO and implemented major changes to revitalize the brand. He expanded into new markets and collaborated with other luxury brands like Yves Saint Laurent. However, Maurizio’s lavish lifestyle and mismanagement led to financial troubles for the company.

The Takeover by Kering

In 1999, after several unsuccessful takeover attempts by LVMH (a rival luxury conglomerate), Kering stepped in and bought a controlling stake in Gucci for $3 billion.

Under Kering’s ownership, Gucci underwent a major transformation led by CEO Domenico De Sole and creative director Tom Ford. They revamped the brand’s image with bold designs and provocative advertising campaigns that resonated with younger consumers.

The strategy proved successful as sales skyrocketed, making Gucci one of the most profitable brands under Kering’s portfolio. In fact, by 2004, Gucci accounted for over 60% of Kering’s revenue.

The Legacy of Kering’s Acquisition

Kering’s acquisition of Gucci marked a turning point for both companies. For Kering, it signaled a shift towards luxury goods as their main focus instead of retail. It also cemented their position as one of the biggest players in the luxury market.

For Gucci, it was the start of a new era of success and innovation. Under Kering’s ownership, the brand continued to thrive and expand into new markets. They also made significant strides towards sustainability and social responsibility.

Today, Kering is still the parent company of Gucci and continues to invest in the brand’s growth and development. The acquisition remains one of the most significant moments in both companies’ histories.

Conclusion

In conclusion, Kering’s acquisition of Gucci in 1999 marked a turning point for both companies. For Gucci, it was the start of a new era of success and innovation under Kering’s leadership.

For Kering, it signaled a shift towards luxury goods as their main focus and cemented their position as a major player in the industry. Today, Gucci remains one of Kering’s most profitable brands and continues to be a leader in the luxury market.

9 Related Question Answers Found

When Did Macaulay Culkin Walk for Gucci?

Macaulay Culkin is a name that needs no introduction. The actor, who gained worldwide fame as a child star in the iconic movie Home Alone, has been in the public eye for decades. In recent years, however, Culkin has been making headlines for a different reason: his unexpected foray into the world of high fashion.

When Did Gucci Make the Jackie Bag?

Gucci is a luxurious brand that has been producing iconic handbags for decades. Among their extensive range of bags, the Jackie bag is undoubtedly one of their most popular and recognizable creations. But when did Gucci first introduce this timeless classic?

When Was Gucci Sold to Kering?

In 1994, the fashion industry was hit by a major development: Gucci was sold to Kering (formerly known as PPR), a French luxury goods holding company. This acquisition marked a significant shift in the fashion world, as it brought together two major players with distinct styles and aesthetics. The Early Days of Gucci Gucci was founded in 1921 by Italian businessman Guccio Gucci.

When Did Harry Start Wearing Gucci?

If you’re a fan of Harry Styles, you might have noticed that he’s been wearing a lot of Gucci lately. But when did Harry start wearing Gucci? Let’s take a closer look.

When Was Gucci Founded?

Gucci is a luxury fashion brand that has captured the imagination of millions around the world. Known for its iconic designs and high-quality materials, Gucci has become a symbol of luxury and sophistication. But when was Gucci founded?

When Did Gucci Open in New York?

Gucci is one of the most renowned luxury fashion brands in the world, and it’s no surprise that many people are curious about its history. If you’re wondering when Gucci opened its doors in New York, you’ve come to the right place! Here’s everything you need to know about this iconic fashion house’s presence in the Big Apple.

When Did Gucci Horsebit Come Out?

The Gucci Horsebit is one of the most iconic symbols in the fashion industry. It has graced countless luxury products, from handbags to shoes, and has become synonymous with the brand’s heritage and quality. But when did the Gucci Horsebit come out?

When Did Gucci Donald Duck Come Out?

Gucci is a renowned fashion brand that has been around for almost 100 years. The brand has always been known for its unique designs and collaborations with various artists. One such collaboration was with Disney, resulting in the introduction of the iconic Gucci Donald Duck.

When Did Gucci Start Using QR Codes?

Gucci is one of the most iconic luxury fashion brands in the world. Known for their high quality and stylish products, Gucci has always been at the forefront of innovation when it comes to fashion. One such innovation that Gucci has adopted recently is the use of QR codes.