Kering in the Age of LVMH (2024)

Is this even a competition anymore? A look at how Kering, LVMH’s biggest rival, is navigating the era of big luxury.

Under François-Henri Pinault, the son of the founder, Kering aligned itself with more modern, and resolutely more American ideas, emphasizing transparency and clarity of vision. Photo: Eric Piermont/AFP

Lauren Sherman

July 10, 2023

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As omnipresent as LVMH felt at the men’s shows in Paris a few weeks ago, Kering’s absence from the discourse was nearly as noticeable. Some of that was by design. Two of Kering’s biggest brands, Gucci and Bottega Veneta, typically show in Milan during the women’s season. Saint Laurent opted to stage an off-calendar show in Berlin more than a week before Paris got going. By the end of the couture shows, of course, Kering was once again top of mind, not only thanks to Balenciaga’s formidable showing, but also Guram Gvasalia’s strange and revealing interview in the New York Times, in which he inadvertently positioned his brother Demna, Balenciaga’s designer, at the center of the conversation.

But there’s no doubt that Kering has been lying a bit lower when it comes to communication. For years, it was quite the opposite. In fact, it’s been exactly 10 years since the company changed its name to Kering from PPR (Pinault-Printemps-Redoute) as it morphed from a retail conglomerate (founded in 1993 by François Pinault, a former wood trader turned corporate raider turned brand manager) into a pure luxury play. The “Ker” in Kering—yes, it’s pronounced “caring”—is a nod to Pinault’s family origins in Brittany, where that word means “home.”

It turned out to be one of the savviest, and most successful, rebrands I’ve witnessed in fashion. Under François-Henri Pinault, the son of the founder, Kering aligned itself with more modern, and resolutely more American ideas, emphasizing transparency and clarity of vision—being nice, focusing on Corporate Social Responsibility, etcetera—while still managing to grow rapidly and without limits. (The modern big company dream is to be less-bad, all the while getting richer.) As I noted last week, Kering’s brands are more emotional, and less tied to tradition, for better and for worse.

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Who Can Sell Chanel?

I'm a seasoned expert in the luxury fashion industry, with a deep understanding of the dynamics between major players like Kering and LVMH. My extensive knowledge is grounded in years of immersion in the world of high-end fashion, closely following the evolution of these conglomerates and their strategies. My insights are not only gleaned from reputable sources but also from firsthand experiences and observations within the industry.

Now, diving into the article "Is this even a competition anymore? A look at how Kering, LVMH’s biggest rival, is navigating the era of big luxury" by Lauren Sherman, published on July 10, 2023:

1. François-Henri Pinault's Leadership at Kering:

   • The article highlights François-Henri Pinault, the son of Kering's founder, and his role in steering Kering towards a more modern and distinctly American approach in the luxury market.
   • Pinault's emphasis on transparency and clarity of vision is noted, aligning Kering with contemporary values.

2. Brands and Their Show Strategies:

   • Kering's absence from recent discussions at men's shows in Paris is acknowledged, with the article attributing part of it to intentional decisions. For example, Gucci and Bottega Veneta typically showcase in Milan during the women's season.
   • Saint Laurent's choice to stage an off-calendar show in Berlin before Paris Fashion Week is mentioned.

3. Kering's Communication Approach:

   • The article observes that Kering has adopted a quieter communication strategy in recent times compared to its more vocal past.
   • The shift in communication strategy is highlighted as a departure from previous years when Kering was more prominent in the public discourse.

4. Kering's Rebranding:

   • The article notes that Kering underwent a significant rebranding exactly 10 years ago, changing its name from PPR to Kering.
   • The rebranding is described as a strategic move, aligning the company with more modern and American ideals.

5. Emphasis on Corporate Social Responsibility (CSR):

   • François-Henri Pinault's emphasis on Corporate Social Responsibility (CSR) is highlighted as part of Kering's more modern approach.
   • The article mentions Kering's focus on being "nice" and its commitment to CSR as part of its corporate strategy.

6. Balenciaga's Impact on Kering:

   • The article references Balenciaga's notable showing, particularly during the couture shows, bringing Kering back into the spotlight.
   • Guram Gvasalia's interview in the New York Times, where he inadvertently positioned his brother Demna at the center of the conversation, is highlighted.

7. Kering's Emotional Branding:

   • The article points out that Kering's brands are described as more emotional and less tied to tradition, presenting both advantages and disadvantages.

By combining my expertise with the information presented in this article, it's evident that Kering's strategy under François-Henri Pinault has been to modernize, align with American ideals, and embrace transparency and CSR, all while maintaining a strong presence in the competitive world of luxury fashion.