Kering's Strategic Leadership Shifts: A New Era for Ginori and Brioni?

Kering’s recent appointment of Mehdi Benabadji as CEO of Ginori 1735 and Federico Arrigoni as CEO of Brioni marks a pivotal moment in the luxury conglomerate’s strategy to revitalize its heritage brands amid declining sales at flagship label Gucci. These moves reflect a deliberate reshuffling of leadership to balance tradition with modernization, positioning Kering to diversify revenue streams and strengthen its foothold in niche luxury markets.

The Strategic Logic Behind the Leadership Changes

Kering’s decision to elevate Benabadji and Arrigoni stems from its urgent need to counterbalance a 25% sales drop at Gucci in Q1 2025, which has strained the group’s financial resilience. The appointments signal a renewed focus on smaller, heritage-driven brands like Brioni and Ginori 1735, which offer growth potential through operational efficiency and global expansion.

Mehdi Benabadji: From Brioni’s Revival to Ginori’s Modernization

Benabadji’s tenure as CEO of Brioni (2020–2025) was marked by a successful operational reorganization, including expanding casualwear lines and launching the Nazareno Fonticoli School of Haute Tailoring to preserve artisanal craftsmanship. His move to Ginori 1735—a 300-year-old porcelain house—leverages his expertise in balancing tradition with modernization. Under his leadership, Ginori aims to elevate its status from niche tableware to a global luxury lifestyle brand, with plans to expand into homeware and fragrances.

Federico Arrigoni: A Commercial Strategist for Brioni’s Global Ambitions

Arrigoni’s career trajectory—from HR roles at Gucci to Deputy CEO of Saint Laurent—equips him with deep international market knowledge, particularly in Asia-Pacific, where Saint Laurent’s growth was a key driver of its success. As Brioni’s new CEO, he inherits a brand celebrating its 80th anniversary in 2025, tasked with consolidating its global positioning and attracting younger demographics through casualwear expansions and knitwear lines. His prior role as Saint Laurent’s Chief Commercial Officer also positions him to streamline Brioni’s supply chain and enhance operational efficiency.

Kering’s Broader Strategy: Revitalizing Heritage Brands

The leadership reshuffles align with Kering’s three-pronged strategy:
1. Operational Restructuring: Benabadji’s prior work at Brioni and Arrigoni’s experience at Saint Laurent ensure a focus on cost optimization and supply chain agility.
2. Brand Repositioning:
- Ginori 1735 will expand beyond porcelain to lifestyle products, capitalizing on its heritage as a status symbol.
- Brioni’s 80th-anniversary initiatives, including its tailoring school, reinforce its legacy while modernizing its aesthetic under creative director Norbert Stumpfl.
3. Global Market Expansion: Arrigoni’s Asia-Pacific expertise will drive Brioni’s penetration in high-growth markets, complementing Ginori’s planned retail expansion.

Risks and Opportunities for Investors

While these moves are strategically sound, execution remains critical. Key risks include:
- Market Saturation: Luxury brands like Ginori face competition from established players in lifestyle categories.
- Supply Chain Challenges: Brioni’s reliance on artisanal craftsmanship could limit scalability.

However, the potential rewards are significant. Kering’s pivot to heritage brands aligns with a growing consumer appetite for authenticity and craftsmanship. If successful, Ginori and Brioni could reduce Kering’s dependency on Gucci, which contributed ~60% of group sales in 2024 but faces slowing demand.

Conclusion: A Strategic Gamble with Long-Term Rewards

Kering’s leadership reshuffles represent a calculated bet on heritage brands to offset declining flagship performance. With Benabadji’s track record at Brioni and Arrigoni’s global commercial expertise, both brands are well-positioned to capitalize on niche luxury markets.

Investors should watch for Ginori’s retail expansion metrics and Brioni’s e-commerce growth, as well as Kering’s ability to sustain margins amid operational overhauls. While near-term results may lag, the long-term strategy—diversifying revenue, preserving craftsmanship, and targeting affluent millennials—aligns with the luxury sector’s evolving dynamics. For now, these moves signal a bold step toward a post-Gucci era, one that could redefine Kering’s legacy.

This analysis underscores that Kering’s future hinges not just on its historic names but on its ability to modernize them. The jury is out, but the pieces are now in place for a comeback.