As the global eyewear market weighs more and more (13 billion euros just for premium frames), the Kering group is continuing its development strategy in this lucrative sector.
By Reuters
It all started at the end of 2014, when the Kering group made a 180-degree turn: it broke its license contract with Safilo, an Italian specialist in the manufacture of glasses, and internalized the production of its frames. “Kering Eyewear” was born and now takes charge of the design, development and distribution of the collections of fifteen prestigious brands such as Gucci, Saint Laurent, or Alexander McQueen.
Through this takeover, the group seeks to highlight its ability to manage know-how linked to production and to become a major player in the market. “By creating Kering Eyewear, we wanted to recover a larger share of the value of this activity,” recalled François-Henri Pinault when presenting the 2019 results of the Kering group on February 12. Success is beyond our expectations ”. A change in economic model which turned out to be very lucrative: the group’s turnover increased by 45% between 2017 and 2018 and sales continued to climb to reach 600 million euros in the last quarter of 2019 .
The group then continued its crazy ascent: after a partnership in 2017 with Richemont (Cartier, Alaïa and Montblanc) which became a 30% shareholder, Kering inaugurated in September 2019 a giant logistics center, “Villa Zaguri” near Padua in the Venice region to design and create new frames.
According to Roberto Vedovotto, Managing Director of Kering Eyewear, “Kering is today the second player in the luxury segment behind Luxottica, with almost 20% market share”, adding that the development of the optical segment was “one drivers of future growth ”. Especially since, in the era of social networks and self-exposure, glasses offer real advantages, becoming an essential accessory. During the last Gucci spring-summer 2020 fashion show, sunglasses were the stars of the catwalk.
This strategy therefore pays off for the group which now occupies a prominent place in the market for luxury eyewear frames.
Read also > Kering exceeds expectations, but coronavirus impact looms
Featured photo: Imaxtree / Sipa / Afo / Abaca / Gucci / WWD / REX
