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Business Model

To harness the full growth potential of the luxury sector, Kering has built its strategy on two pillars: organic growth and the development of synergies across its Houses.
Organic growth: a conviction and a priority
Structurally, Luxury is a high-growth market. The rise of emerging economies, the cultural openness of new audiences to global brands, and the long-term development of tourism all represent rich reservoirs of value. Over the past decade, Kering’s confidence in the sector’s huge potential has informed its decision to focus on the luxury industry, through an ensemble of iconic Houses with complementary positionings and tremendous organic growth prospects.
Kering helps all of its Houses outperform their market, providing the initiatives and resources they require to maximize their performance, pursue their elevation, and strengthen their positioning.
Guided by the creative vision of their artistic teams, Kering Houses hone their offerings, explore new universes and product categories, and anticipate and fulfill customer aspirations with increasingly sophisticated and desirable creations.

Another key growth driver lies in optimizing the performance of its Houses’ stores, which constitute a distinct, essential setting to engage with their customers. Kering is steadfastly focused on the quality and relevance of its Houses’ distribution networks, be it through opening new locations, elevating the customer experience, developing bespoke initiatives, or using ephemeral spaces to create excitement. In 2022, the Group’s retail network added 100 new locations—primarily to reinforce the Houses’ presence in the United States, Asia, and the Middle East. The Group has also set about a gradual curtailment of its presence in the wholesale distribution channel. This process, which began a few years ago and has now been completed at Gucci, is being implemented according to the maturity of each House.
To enhance the quality of customer experiences, Kering also strives to offer a full-fledged omnichannel approach, with seamless transitions between physical store spaces and various digital channels. In 2019, Kering undertook an extensive project to internalize the e-commerce platforms and customer relations services of its brands. This initiative, finalized in 2021, led to a sharp increase in online sales while significantly enriching customer knowledge and enabling personalized interactions.

Innovation and digital technologies are central to Kering’s organic growth strategy: at Group level, a dedicated team continuously seeks out new ways to improve customer experiences using data management techniques and tools enabled by digital platforms. Artificial intelligence, for example, is leveraged to refine sales projections and set production levels accordingly—Kering Houses are thus better positioned to meet customer demand while limiting their environmental footprint.
For Kering, stores are still the crucial and ideal setting for providing the best possible client experience. In 2022, the Group’s distribution network added 100 new addresses.
“In keeping with our long-term vision, our role is to constantly nurture and leverage our Houses' desirability—through financial investments, of course, but also by giving them access to all the resources they need, both material and immaterial, to prosper and achieve their full potential.”
Jean-François Palus,
Group Managing Director
Bolstering synergies and expanding growth platforms
Kering’s integrated model is the cornerstone of its capacity to create value. Starting in 2013, the Group reinforced its upstream capacities in the luxury goods value chain, notably through targeted acquisitions of suppliers to safeguard its sourcing.

In addition, to enable the Houses to concentrate on what is essential and unique to them—creative vision, excellence in craftsmanship, customer relations and communications—Kering pools a number of key strategic functions: finance, legal, real estate, media buying, IT, digital tool development, and logistics.

On the logistics front, Kering embarked on an ambitious plan to transform its supply chain, which led to the inauguration in 2021 of its new worldwide distribution platform in Trecate, in northern Italy. This platform ensures better product availability and reduces delivery times—improving the customer buying experience— while optimizing inventory management.

In America and Asia, platforms in Wayne, New Jersey, and in Singapore, inaugurated in 2019 and 2022, respectively, round out the Group’s logistics infrastructure.

In 2014, the Group established Kering Eyewear to develop an in-house eyewear expertise available to all its Houses. This initiative has proven a resounding success: reinforced by recent acquisitions of independent brands (Lindberg in 2021 and Maui Jim in 2022), this entity’s annual revenue now materially exceeds the €1 billion mark.
Building on this experience, in early 2023, Kering announced the creation of a new entity, Kering Beauté, to develop in-house, transversal beauty expertise at Bottega Veneta, Balenciaga, Alexander McQueen, Pomellato and Qeelin, so that they achieve their full potential in this strategic category.

Lastly, Kering pays close attention to the professional development of its people. Encouraging mobility across Houses, the Group’s ambitious human resources management policy, coordinated at a global level, fosters growth by drawing on a shared talent pool, expertise, and excellence. This integrated model also nurtures the Group’s culture, which springs from a vision of Luxury that is modern, responsible and committed, and drives Kering’s ambition to be the world’s most influential luxury group in terms of creativity, innovation, sustainability, and economic performance.