Contemporary Strategy Analysis, 10th Edition

Case 2Kering SA: Probing the Performance Gap with LVMH*

From PPR to Kering

In March 2013, the French fashion and retail giant, Pinault‐Printemps‐Redoute (PPR), changed its name to Kering. According to CEO François‐Henri Pinault: “Kering is a name with meaning, a name that expresses both our purpose and our corporate vision. Strengthened by this new identity, we shall continue to serve our brands to liberate their potential for growth.” The change in name followed the transformation in the business of the company.

PPR was primarily a retailing company: it owned the department store chain Au Printemps, the mail‐order retailer La Redoute, and the music and electronics chain Fnac. However, the acquisition of a controlling stake in the Gucci Group in 1999 marked the beginning of a transformation into a fashion and luxury goods company. Table 1 shows the main acquisitions and divestments of PPR/Kering.

TABLE 1 Kering's principal acquisitions, divestments, and new business launches, 1999–2017

Source: Tables 1, 2, 3, A1, and A2 are based upon information in Kering Financial Documents 2016 and 2017.

Year	Business
1999	Acquisition of 42% of Gucci Group (later increased to 100%) Acquisition of Yves St. Laurent
2000	Acquisition of Boucheron (jewelry and perfumes)
2001	Acquisition of Bottega Veneta and Balenciaga Launch of Stella McCartney and Alexander McQueen brands
2004	Ownership of Gucci Group increased to 99.4% Sale of Facet (financial services), Rexel (distributors ...