LVMH vs Kering
Can Kering revitalise Gucci? There was a world where Kering's market cap came close to that of LVMH's; however, over the past decade, LVMH's growth has been monumental. Under the visionary leadership of Bernard Arnault, LVMH has consistently outperformed its competitors, expanding its portfolio of iconic brands and solidifying its dominance in the luxury sector. The group's strategic acquisitions, innovative marketing, and highly coveted collaborations have propelled it to unprecedented heights.
A significant factor in LVMH's success is its flagship brand, Louis Vuitton, often referred to as the jewel in its crown. The appointment of creative directors such as Kim Jones and later Virgil Abloh brought fresh perspectives and innovative designs to the brand. Jones' tenure rejuvenated Louis Vuitton's menswear line, while Abloh's groundbreaking work further bridged the gap between luxury and streetwear, attracting a new generation of consumers and boosting the company's profile and revenues.
Meanwhile, Kering has also experienced significant growth, particularly since 2015 when Alessandro Michele took over as the creative director of Gucci, Kering's Jewel in its crown. Michele's bold and eclectic designs revitalized Gucci, transforming it into a fashion powerhouse and driving substantial revenue growth. This creative resurgence, coupled with strategic management decisions by François-Henri Pinault, Kering's CEO, led to a remarkable increase in Kering's market cap. However, since Michele's departure, Gucci has faced challenges, struggling to maintain the same level of innovation and consumer engagement which has had a profound effect on Kering's market cap.
Can Kering revitalise its most important asset in Gucci and how can they do this?
Leave a comment
This site is protected by reCAPTCHA and the Google Privacy Policy and Terms of Service apply.