Italy – a key player for Kering

A recent report from Kering highlights the growing importance of Italy in the luxury group's strategy led by the Pinault family over the years. Kering has established itself in Italy as a key player in the luxury world, beginning its journey with a stake in the Gucci Group in 1999, followed by the acquisition of Bottega Veneta, another Italian icon. Italian brands now represent nearly half of the group's portfolio, ranging from Gucci to Brioni, Pomellato, and Bottega Veneta, the jewels of the 'Made in Italy' fashion industry are widely present in the parent company's portfolio.

For Kering, the significance lies not only in the prestige of its Italian brands but also in the country's rich artisanal craftsmanship and extensive network of local SMEs (Small and Medium-sized Enterprises). Italians have mastered the secrets of leather goods, leatherwork, and eyewear for centuries, making it an invaluable resource for the luxury industry. In 2021, the French group opened its global logistics platform in Trecate, northern Italy. Saint Laurent operates a production workshop in Tuscany, in Scandicci, and Bottega Veneta has its workshop near Florence, which also includes a training center. Kering Eyewear has its main logistics center in Vescovana, near Padua.

While Kering can rely on the strengths of the Italian artisanal world, Italy benefits from the economic and entrepreneurial advantages brought by the group, creating a mutually beneficial relationship. Kering annually purchases €6 billion worth of materials, products, and services from around 4,000 suppliers, with 88% being small local businesses. The group owns 49 sites in Italy, invests €10 million annually in training young talents, and employs approximately 13,500 people locally (out of a total of 47,220 group employees according to 2022 data).

The Pinault holding company has also facilitated the turnaround of struggling Italian brands, such as Bottega Veneta, acquired in 2001 when it had barely €30 million in revenue at the time. Twenty years later, the brand boasts sales exceeding €1.2 billion and a network of 260 boutiques. This development suggests that Italy could soon surpass France in terms of economic importance for the group.