French luxury group Kering is at “a turning point,” its chief executive officer (CEO) Luca de Meo said on Thursday. He presented the company’s new strategic plan in Florence, Italy.
In order to get back on track for growth, the CEO is presenting a series of measures. These apply in particular to the main brand Gucci. A “significant qualitative upgrade” is planned. “Our priority is to make Gucci indispensable again,” said de Meo.
The brand with the double G has had repeated poor results over the past three years. “You have to realize in a second that it’s Gucci. That doesn’t mean covering the world with the GG, the brand’s logo. It can also be subtle,” says de Meo. He speaks of a “renewed identity”.
30 percent fewer Gucci points of sale by 2030
Kering also owns brands such as Yves Saint Laurent, Bottega Veneta, Kering Eyewear and Boucheron. For Gucci, the group’s goal is to “generate one billion euros in additional sales with leather goods by 2030,” said the CEO.
“Customers notice the quality, they notice the coherence and they remember it,” he assured. He added that the fashion house will have 30 percent fewer outlets by 2030.
According to figures published on Tuesday, Gucci’s sales fell further by 14 percent to 1.35 billion euros in the first quarter. Adjusted for currency effects, the decline was eight percent.
Kering will also take cross-brand actions for the Chinese market. This region is crucial for the luxury industry. The group plans to significantly increase marketing and sales budgets there and close some sales outlets.
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