Kering is a French luxury goods group that owns several high-end fashion brands, including Gucci. But what does Kering do for Gucci exactly? Let’s take a closer look.
The History of Kering and Gucci
Kering was originally founded in 1963 as Pinault S.A., a timber trading company. It wasn’t until the 1990s that the company began to shift its focus toward luxury goods. In 1999, Pinault S. acquired a controlling stake in Gucci Group, which included not only the Gucci brand but also other luxury fashion labels such as Yves Saint Laurent, Bottega Veneta, and Balenciaga.
Over time, Pinault S. rebranded itself as Kering and continued to expand its portfolio of luxury brands. Today, Kering is one of the largest players in the global luxury goods market.
What Kering Does for Gucci
So what exactly does Kering do for Gucci? The short answer is: quite a lot.
First and foremost, Kering provides financial backing for Gucci. As part of the larger Kering group, Gucci has access to significant financial resources that it can use to invest in new products, marketing campaigns, and other initiatives that help build brand awareness and drive sales.
But Kering’s support for Gucci goes beyond just financial backing. One of the key benefits of being part of a larger luxury goods conglomerate like Kering is access to shared resources and expertise. For example:
Marketing: Kering has an extensive global marketing network that it can leverage to promote its various brands. This includes everything from traditional advertising campaigns to social media outreach to influencer partnerships.
R&D: Developing new products can be costly and time-consuming. As part of the wider Kering group, Gucci has access to shared research and development resources that can help speed up the product development process and ensure that new products are of the highest quality.
Distribution: Kering has a vast distribution network that spans the globe. This gives Gucci access to a wide range of retail channels in different markets, which can help drive sales and build brand recognition.
The Importance of Kering to Gucci’s Success
It’s hard to overstate the importance of Kering to Gucci’s success. Prior to being acquired by Kering, Gucci was struggling financially and creatively. But under Kering’s ownership, Gucci has experienced a remarkable turnaround.
Today, Gucci is one of the most valuable luxury fashion brands in the world, with an estimated brand value of over $20 billion. Kering has played a significant role in helping Gucci achieve this success by providing financial backing, access to shared resources, and other forms of support.
In conclusion, while Gucci is undoubtedly a strong brand in its own right, its membership in the wider Kering group has been instrumental in its recent success. By leveraging shared resources and expertise across the luxury goods sector, Kering has helped position Gucci as one of the most iconic fashion brands of our time.