Kering in crisis: Can Gucci still shine in the world of luxury?

The world of luxury is not immune to economic turbulence, and Kering is a perfect illustration of this. As 2024 approaches, the group led by François-Henri Pinault is going through a period of crisis that could redefine its future. With an 11% drop in sales since the beginning of the year, Kering has seen its turnover fall to €9 billion, compared to €10 billion in the same period the previous year. A hard blow for a player that has long been seen as an unshakeable pillar of the luxury market. But what is even more striking is how this crisis is directly affecting its flagship brand: Gucci.

Gucci, once the flamboyant emblem of luxury and elegance, seems to have lost its luster. The situation is all the more alarming when comparing Kering’s results to those of its main competitor, LVMH. In 2023, Bernard Arnault’s group posted a colossal turnover of 86.2 billion euros and an impressive profit of 22.8 billion, marking an 8% growth. In this fierce competition, Louis Vuitton, the jewel in the LVMH crown, has literally eclipsed Gucci, thus widening the gap between the two luxury giants.

This comparison highlights a cruel reality: Kering is in trouble today, and its place at the top of the industry is under threat. But it’s not just a question of numbers. Behind these results, there are strategic decisions, market visions, and above all, a story of changing brand images. Louis Vuitton’s strength lies not only in its ability to innovate while respecting its heritage, but also in its way of staying in tune with the aspirations of its customers, whether they are emerging nouveau riche or long-time consumers. Gucci, for its part, seems to have missed this shift, leaving a portion of its clientele to go in search of something more in line with current trends.

Faced with this critical situation, Kering has no choice but to react, and quickly. The group made a major decision in April 2024: the appointment of Stefano Cantino, formerly of Louis Vuitton, as Deputy CEO of Gucci. This arrival marks a decisive turning point for the brand. Cantino, with his experience at LVMH, is entrusted with the mission of turning around Gucci alongside Jean-François Palus, who took the reins of the house in 2023.

This strategic decision is loaded with meaning. Kering is banking on Cantino’s expertise to reinvent Gucci, to help it reposition itself in the evolving luxury market. But will it be enough? The challenge is huge. Gucci must not only win back its customers, but also reassert itself as an innovative and desirable brand in a sector where competition never falters.

We can't help but wonder if this crisis isn't also an opportunity for Kering to rethink its global strategy. Perhaps it's time to further diversify its brand portfolio, invest in growing segments or open up to new markets. But beyond commercial strategies, it's also about reinjecting a dose of dream, of magic, into Gucci's DNA. Because deep down, luxury is not just about products, it's about emotions, desire, aspirations. Gucci has always known how to capture the imagination of its customers, and it is precisely this ability that must be rediscovered and magnified.

Kering’s future will depend largely on its ability to reinvent itself, to dare to take risks, to reconnect with the very essence of luxury. The coming months will be crucial. One thing is certain: the world of luxury is in perpetual motion, and to stay at the top, it is not enough to follow trends. You have to create them. Kering, with Gucci at the forefront, is at a decisive crossroads. The path it chooses will determine not only its future, but that of the luxury market as a whole.

In conclusion, the crisis Kering is going through could well be an opportunity to redefine itself, to find a new youth. But this will require courage, innovation, and a good dose of flair. Luxury, after all, is not just about money, it is above all about vision. And vision is what separates leaders from followers. Kering must now prove that it still has this vision, the one that made Gucci an icon of global luxury.