Kering's Bold Leadership Moves: A Strategic Gambit for Luxury Dominance in 2025 and Beyond

In a bid to solidify its position as a leader in the global luxury market, Kering has unveiled two pivotal CEO appointments for its heritage brands: Alessandro Michele at Ginori 1735 and Fabrizio Freda at Brioni. These moves, set to take effect in early 2025, reflect Kering’s ambition to blend its storied craftsmanship with modern innovation. For investors, these appointments are more than personnel changes—they are strategic bets on the next phase of luxury evolution.

Ginori 1735: Alessandro Michele’s Creative Renaissance

Ginori 1735, the iconic Italian porcelain house founded in the 18th century, has been entrusted to Alessandro Michele, the visionary behind Gucci’s 2010s renaissance. Michele’s departure from Gucci in 2022 left a void in the luxury world, but his appointment at Ginori signals a new chapter.

Michele’s strength lies in his ability to fuse heritage with contemporary aesthetics—a skill that could revitalize Ginori’s appeal to younger luxury consumers. The brand’s 2023 revenue stood at €35 million, a 12% increase from 2020, but it lags behind peers like Bernardaud and Wedgwood in global penetration. Michele’s track record at Gucci, where he grew revenue to over €9 billion annually, suggests he could unlock similar potential here.

Kering’s stock has underperformed its peers in recent years, down 18% since 2021 compared to LVMH’s 35% rise. A successful Ginori turnaround under Michele could help close that gap.

Brioni & Voltare: Fabrizio Freda’s Digital Craftsmanship Play

Fabrizio Freda, former CEO of L’Oréal’s Luxury division, is tasked with revitalizing Brioni, the Savile Row-inspired sartorial powerhouse. Freda’s tenure at L’Oréal saw him grow luxury cosmetics revenue by 25% through digital-first strategies—a playbook he aims to apply to Brioni.

Brioni’s 2023 sales of €180 million pale against rivals like Ermenegildo Zegna (€1.5 billion), but Freda’s dual role as CEO of Kering’s new Voltare platform—a digital-native luxury venture—hints at a bold integration of online and offline experiences.

The digital luxury market is projected to grow at a 14% CAGR, reaching $120 billion by 2030. Freda’s expertise positions Kering to capture this shift, particularly in Gen Z and millennial markets.

Strategic Rationale: Modernizing Heritage, Capturing Growth

Kering’s moves underscore a clear strategy: leverage industry veterans to amplify brand equity while adapting to digital-first consumption trends. Michele’s creativity and Freda’s digital acumen align with Kering’s 2025 goals to boost margins to 25% (from 19% in 2023) and expand its portfolio’s global footprint.

The broader luxury sector is ripe for such investments. The Bain & Company report estimates the global luxury market will hit €440 billion by 2030, driven by Asian and U.S. consumers. Kering’s heritage brands—Ginori, Brioni, and Voltare—could collectively capture a meaningful slice of this growth if executed strategically.

Conclusion: A High-Reward, High-Conviction Play

Kering’s leadership appointments are not just about managing brands—they are bets on two pillars of future success: creative reinvention and digital integration. With Michele’s proven track record of transforming underperforming luxury assets and Freda’s mastery of omnichannel growth, Kering is positioning itself to reclaim momentum in a competitive landscape.

Investors should note the following data points:
- Kering’s 2023 operating margin (19%) trails LVMH (32%) and Richemont (28%), indicating room for improvement.
- Ginori and Brioni’s combined revenue (€215 million) represents just 2% of Kering’s total luxury portfolio. Scaling these brands could unlock significant upside.
- Voltare’s potential: Digital-native luxury brands like Farfetch and MyTheresa have seen valuations surge, suggesting Kering’s new venture could become a profit engine.

The risks? Overreliance on Michele’s name (a double-edged sword if expectations aren’t met) and execution challenges in merging Brioni’s artisanal ethos with digital strategies. However, with Freda’s L’Oréal experience and Kering’s financial firepower, these risks appear manageable.

For investors, the appointments signal a clear path to growth. Kering’s stock, trading at a 25% discount to LVMH’s valuation multiples, offers a compelling entry point—if these leaders can deliver the magic they’ve promised.