Recently, Kering owned Gucci has been struggling with sales. In fact, there has been a significant management reshuffle, including the exit of veteran Gucci CEO Marco Bizzarri, aimed at reviving the brand's sales. At this point, luxury power house Kering makes a bold move to acquire 30% stake in luxury fashion house Valentino for 1.7 billion euros. Valentino is one of the Italy's most famous labels which has 211 directly operated stores and booked revenue of 1.4 billion euros in 2022. Last month, Kering paid $3.8 billion for acquiring high-end French fragrance label Creed to create in-house cosmetics business. Will Kering be able to surpass its competitors by these strategic moves? #luxury #strategy #kering #acquisition
An excellent case study idea Dr. Sheetal Jain
Executive Director - Academy of Indian Marketing,
1ySometimes you have enough idle cash but no major revenue growth as you have plateaued in your business line. At this point it’s wise decision to acquire competing business or similar one as extension of business for growth. These acquisitions will help Gucci to grow and its not about single brand but with multiple brands.