Source: Business of Fashion
Summary
Kering is focusing on leather goods, VICs (Very Important Clients) and menswear to drive growth at its luxury brands Saint Laurent, Balenciaga and Bottega Veneta. The French group aims to capitalize on the segments’ potential for high margins and customer loyalty. According to the company, these areas have been identified as key levers for growth. The strategy is part of Kering’s efforts to maintain momentum in the luxury market.
Our Reading
The trend returns with a new name.
Saint Laurent and Balenciaga are no strangers to bold menswear, while Bottega Veneta has been quietly building its leather goods business. VICs have long been a focus for luxury brands, but Kering’s emphasis on this segment suggests a renewed push for exclusivity. The group’s strategy is reminiscent of past efforts to boost growth through targeted product categories. It’s a familiar playbook for luxury brands: focus on high-margin segments and loyal customer bases.
Leather Goods: A Key Lever for Growth
Leather goods have long been a staple of luxury brands, offering high margins and a loyal customer base. Kering’s focus on this segment is likely driven by the potential for strong revenue growth. With brands like Bottega Veneta and Saint Laurent, the group has a solid foundation in leather goods.
VICs: The Power of Exclusivity
VICs have long been a focus for luxury brands, but Kering’s renewed emphasis on this segment suggests a push for greater exclusivity. By targeting high-spending customers, the group aims to drive revenue growth and increase customer loyalty.
Menswear: A Growing Segment
Menswear has been a growing segment in recent years, with brands like Balenciaga and Saint Laurent leading the charge. Kering’s focus on menswear is likely driven by the potential for strong revenue growth in this segment.
A Familiar Playbook
Kering’s strategy is reminiscent of past efforts to boost growth through targeted product categories. By focusing on high-margin segments and loyal customer bases, the group aims to maintain momentum in the luxury market.
Growth Through Focus
By focusing on leather goods, VICs and menswear, Kering is taking a targeted approach to growth. This strategy allows the group to capitalize on the strengths of its individual brands while driving revenue growth across the portfolio.
Author: Evan Null
