Kering CEO: more than 50% of customers for “some brands” are millennials and Gen Z
Luxury giant Kering is making strong headway with the Millennial Generation and Gen Z – those, respectively, between 22 and 37 years old, and the generation that comes after them. In an interview with Barron’s (which recently named him one of the world’s best CEOs), Kering CEO Francoise-Henri Pinault described how Kering is faring with these demographics, and why the luxury sector is proving appealing to them.
Kering’s share price has appreciated by 29% year to date
Source: Yahoo Finance
In the interview, Pinault expressed confidence in Kering’s brands, noting that the move to become a “pure play” luxury company has left it looking for acquisitions that fulfil its clear criteria for purchases: “the asset has to fit into our luxury portfolio and complement our existing brands, and it has to have worldwide growth potential.”
He also noted that Kering has been in Greater China for 40 years, and professed confidence in Kering’s ability to continue to see strong growth in the country. He added that “the luxury goods market is still considerable” within its borders.
But perhaps most interesting was Pinault’s views on the Millennial Generation and Gen Z, which are likely to be the luxury sector’s core consumer demographic in the coming years. Discussing how Kering approaches these consumers, he said:
“Millennials and Gen Z are a new generation of customers massively entering the luxury market: They already represent half or more of the customers for some of our brands. These customers are digital natives: They are highly informed and connected; they are “experience first”; they want to be emotionally engaged; they value incomparable experiences that engage them. Exhibitions, stores, and e-commerce are all places of experience. They are also pushing us to be truly excellent, innovative, and creative in how we interact with them.”
Despite this, he added, growth remained “well balanced in terms of age categories.”
Dominion holds Kering in its Global Trends Luxury Fund.
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