French luxury group Kering is making strategic moves to boost its three major fashion brands – Saint Laurent, Balenciaga, and Bottega Veneta. The group is focusing on three key areas – leather goods, VICs (Very Important Customers), and menswear, to drive growth and strengthen its position in the highly competitive luxury market.
Leather goods have always been a major source of revenue for luxury brands, and Kering is no exception. The group is investing heavily in this category, particularly for its flagship brand Saint Laurent. The brand’s iconic handbags, such as the Sac de Jour and the Loulou, have been a huge success and continue to be in high demand. Kering plans to expand its leather goods production to meet the growing demand and also introduce new designs to keep up with the ever-changing fashion trends.
In addition to leather goods, Kering is also focusing on VICs, who are the top spenders in the luxury market. These customers are highly influential and have a significant impact on the brand’s image and sales. Kering is implementing a personalized approach to cater to the needs and preferences of these high-end customers. The group has launched exclusive services such as private shopping experiences, made-to-measure services, and VIP events to enhance the shopping experience for these customers. This strategy has proven to be successful, with VICs accounting for a significant portion of the group’s sales.
Another area of focus for Kering is menswear, which has been a growing segment in the luxury market. The group has been investing in this category for all three of its brands, with a particular emphasis on Balenciaga and Bottega Veneta. Balenciaga’s menswear collection, under the creative direction of Demna Gvasalia, has been a major hit among fashion enthusiasts. The brand’s oversized silhouettes and streetwear-inspired designs have resonated well with the younger generation, leading to a surge in sales. Similarly, Bottega Veneta’s menswear collection, under the creative direction of Daniel Lee, has received critical acclaim for its modern and sophisticated designs. Kering plans to further expand its menswear offerings for both brands to capitalize on the growing demand for luxury menswear.
Kering’s focus on these three key areas is a part of its overall strategy to drive growth and increase its market share in the luxury industry. The group’s CEO, François-Henri Pinault, has emphasized the importance of innovation and creativity in the luxury market, and the group’s investments in leather goods, VICs, and menswear reflect this vision. Pinault believes that these categories have immense potential for growth and will play a crucial role in the group’s future success.
Kering’s efforts have already started to pay off, with the group reporting strong financial results in the first half of 2021. Saint Laurent’s sales increased by 53% compared to the same period last year, while Balenciaga and Bottega Veneta saw a 50% and 25% increase, respectively. These impressive numbers are a testament to the group’s strategic focus on leather goods, VICs, and menswear.
In conclusion, Kering’s push for leather goods, VICs, and menswear at Saint Laurent, Balenciaga, and Bottega Veneta is a smart move that is expected to yield positive results for the group. With its strong portfolio of luxury brands and a clear vision for the future, Kering is well-positioned to continue its success in the highly competitive luxury market.
