Kering plans to reinvigorate sales at its star label Gucci in China - a key growth driver for leading luxury houses that has been hit by its new COVID lockdowns. As per a Fashion Network report, the brand has appointed former Tiffany executive Laurent Cathala to run Chinese operations for Gucci, which provides more than half the group's total's revenue.
Cathala is expected to bolster local teams, giving them control of marketing and advertising activities, analysts said, an unusual move in an industry where strategy is normally dictated by Europe-based executives in Paris or Milan.
China's sputtering economy has a lot riding on its consumers, who are just now emerging from lockdowns in Shanghai and other big cities. Analysts say government stimulus measures may not be enough to drive a recovery in consumer spending.
Gucci suffered more than rivals like LVMJ -owned Louis Vuitton or Hermes in the first quarter of the year due to the restrictions.
Kering shares have fallen 26 per cent since the beginning of the year compared to a 16 per cent decline for spirits-to-jewellery conglomerate LVMH, which is seen as more resilient to economic downturns as its business is more diversified.
