Kering is an international group with a presence in over 120 countries and a portfolio of 20 or so brands, including Gucci, Saint Laurent and Volcom. The Group’s transformation from PPR to Kering was achieved by refocusing the organisation around two core divisions: Luxury and Sport & Lifestyle. The Group’s stated goal is to focus on the luxury segment in the medium term.
Acquisitions and organic growth
Recent years have featured a slew of acquisitions, including Brioni, Ulysse Nardin and Christopher Kane, aimed at diversifying the brand portfolio. The Kering Group wants to maintain a coherent portfolio of complementary brands with strong values, with each House occupying a different market segment.
Kering also relies on the brands to boost its organic growth rate. To do this, it puts the emphasis on creative collections with new products and ranges, efforts to boost commercial performances within existing entities, as well as contributions from new brand-owned stores and new distribution channels via third-party vendors and e-commerce.
Since 2012, Kering has engaged in long-term initiatives aimed at making it one of the luxury sector’s most sustainable companies. It has held onto its place in the Dow Jones Sustainability Index (DJSI) and the Global 100 (ranked number-one in 2018 for the textile, apparel and luxury goods sector).
The Group has three key sustainability pillars – environment, social and innovation – and has drawn up a plan that takes it through to 2025. To monitor its progress in this area, Kering has created an Environmental Profit & Loss tool with a special methodology and is resolved to be open about its results.
The Group has also made a firm commitment to standing up for gender equality and ending violence against women through its Foundation. Its White Ribbon for Women campaign reached almost one billion people worldwide in 2016.
Model wellbeing charter and “We care for models”
In 2017, Kering and LVMH teamed up to launch a charter on the working relations and wellbeing of fashion models. By undertaking to apply the charter to all of its brands, Kering wants to pave the way for higher standards throughout the fashion industry. The charter is public and accessible to anyone. In February 2018 Kering and LVMH launched We Care For Models, a new online platform that provides models and people from the industry with expert advice, best practices and useful information. In April 2018 – two months and three Fashion Weeks later – Kering conducted an initial assessment, looking at how the charter was being put into practice and how it was changing models’ working conditions and people’s mentalities.