French luxury group Kering has made an investment in Cocoon, a London-based handbag rental business. Cocoon is known for its membership model and offers a wide range of bags from 35 luxury brands, including Kering’s own top labels and other renowned designers. The company provides monthly memberships starting at £49, with higher tiers granting access to limited edition and vintage bags. While Cocoon also allows customers to sell their bags, the majority of its products are brand new.
This recent investment has significantly contributed to Cocoon’s total funding, which has now raised over £2.5 million. Kering’s participation in the funding round joins prominent investors like entrepreneur Lilly Wollman and Depop founder Simon Beckerman. The funding will primarily be used to expand Cocoon’s bag inventory, hire additional staff, and enhance its operations to strengthen its position in the rental market. Cocoon’s CEO and co-founder, Ceanne Fernandes-Wong, stated that the company, operating for nearly two years and experiencing remarkable growth since April 2020, expects its growth trajectory to accelerate further.
Cocoon’s vision is to become the leading circular solution for bag enthusiasts, considering luxury handbags as a product category with wide appeal. By focusing on this highly popular item, Cocoon aims to avoid operational challenges often associated with other fashion products. Grégory Boutté, Kering’s Chief Client and Digital Officer, emphasized that the investment in Cocoon is part of the group’s broader strategy to identify disruptive businesses and shape the future of luxury. Kering has been actively acquiring minority stakes in next-generation companies through its ventures arm and already holds a 5% stake in Vestiaire Collective.
The partnership between Kering and Cocoon enables the luxury conglomerate to gain valuable insights into new consumption habits and digital practices. Subscription-based rentals align well with Kering’s commitment to circularity and sustainability. Luxury handbag rental has been gaining popularity as a segment within the rental market, with various brands entering the space individually. This investment places Kering at the forefront of this trend, allowing them to leverage changing consumer behaviors and preferences. By investing in Cocoon, Kering demonstrates its dedication to staying innovative and adaptable in an evolving industry landscape.
Useful links:
1. Cocoon Website
2. Kering Website
