The French luxury group Kering has a new boss: Luca de Meo. Francois-Henri Pinault releases the reins after more than 20 years. Why does the Kering founder think the Renault boss is the best candidate to lead the company into a new phase of growth after the disappointing business development of the last quarters?
Long process
“The performance of the group in the past two years did not meet the expectations or the immense potential of our houses,” Pinault confessed during a conference call with analyst: inside on Tuesday. The appointment of a CEO is the conclusion of a long process that started in early 2023. After 2022 – according to the founder the best year in the history of Kerings – he realized that the company had reached a phase that requires a new organizational structure.
Therefore, Pinault 2023 Francesca Bellettini and Jean-Marc Duplaix would have appointed his side as deputy CEOs to make “significant changes” in the group. Duplaix took on the new role in addition to the previous management of operations and finance.
Since then, hectic times have been followed at the top of the fashion houses belonging to Kering. At Gucci, the previous Balenciaga creative chief Demna Gvasalia followed Sabato de Sarno. Pierpaolo Piccioli took over the creative direction at Balenciaga in his place. The Maison’s chief posts were also not spared, and Gucci recently appointed Stefano Cantino to CEO, and the previous Balenciaga boss Cédric Charbit was dressed in Saint Laurent. Just to name some of the latest leadership changes.
Pinault considered these personnel changes and already initiated organizational measures as the absolutely necessary foundations that had to be laid before the start of de Meo. In his new position, this must now deal with the measures that have already been initiated on cost structure and refinancing. However, it is more important that de Meo look at the future and think of the long -term perspective. What could the Kering profile look like in the next ten to 15 years?
This is a question of which Pinault hopes for an answer from his new managing director. De Luca is expected to present a strategy for the group after taking office.
Why a non -industry?
But why is this task a manager who looks back on a more than 30-year career in the auto industry, but has no experience in fashion?
Initially, the candidate profile searched by Pinault did not surprise in many points. It should be an experienced manager with well -founded knowledge of brand management and international experience, and the management of a global listed company was also an additional criterion. In view of the significant changes in the fashion industry, the candidate should already demonstrate its agility and the ability to deal with changes.
The most important thing was Pinault, however, that the future CEO has a fresh perspective on the luxury market: “The ability to bring in a new vision of the sector and our group was a key requirement.” The structural changes that go beyond the previous cyclical developments in the luxury industry required a new perspective of things, said Pinault.
The previous Kering driver seems to hope for a similar success from the appointment of de Meo, which he had with the transformation of the group from 2010 and the repositioning of Gucci. As a newcomer in the fashion industry, he was in a “strong position” to navigate through phases of new structural changes in the industry.
Can Pinault let go?
Pinault was also a lot because he does not hire a ‘fireman’, but someone who will lead the “upcoming growth chapter” of the group. “He will have all the power and powers that I had as CEO when I led the group.
On September 15, the roles of the Supervisory Board and the CEO will be separated with the head of De Meo on September 15th. So far, both roles have been exercised in Pinault’s union. As the chairman of the supervisory board, he now wants to “be fully involved in the strategic orientation of the group”. Nevertheless, he praises not to interfere in the decisions of the new CEO to the business model and key staff.
However, it seems as if the previous Co-Coos Duplaix and Bellettini could stay in their positions for the time being to help the non-industry leader. When asked by an analyst as to whether the previous structure could be maintained with the two, Pinault replied: “He does not know his way around in the luxury industry, so we need strong support and a lot of expertise around him. And we have started with Jean-Marc and Francesca.”
Open points
Luca de Meo’s content is not yet known, but is to be discussed at a Supervisory Board meeting on July 29, before the general meeting votes on September 9th.
It will also be exciting which long -term vision Luca de Meo will present after Pinault has triggered many changes in the past two years – starting with the key positions of many fashion houses, such as those of the former accessible Gucci. “To have the right people in the right place in the right place so that when a new CEO comes, everything works and runs,” said Pinault. Until de Meo takes office, there should also be no slowdown in the brands that have already been initiated.
Was it still-Kering boss Pinault really about getting everything in order before his successor comes or was it a try to quickly put on your own? In view of this basis, the question remains to what extent the new CEO de Meo can still contribute.