Kering, the esteemed French luxury group led by François-Henri Pinault, is at the forefront of a digital revolution within the industry. With the appointment of Grégory Boutté as the chief client and digital officer in late 2017, Kering has embarked on a journey to revolutionize its digital capabilities. The group has introduced a series of groundbreaking initiatives aimed at fortifying its omni-channel resources and advancing the digital operations of its prestigious labels, marking a significant shift in the luxury sector.
One of the key areas of focus for Kering is e-commerce, which has emerged as the fastest-growing distribution channel for the group. In the first half of 2018, e-commerce accounted for 6% of Kering’s total sales from directly controlled channels. To capitalize on this growth, Kering has made the strategic decision to bring its labels’ e-commerce operations in-house, terminating its partnership with Yoox Net-A-Porter group. By transitioning its e-commerce operations to in-house by the first half of 2020, Kering aims to enhance its control over the digital retail landscape.
Despite this shift, Kering remains committed to fostering collaborative relationships with industry partners. Some of Kering’s prestigious labels, such as Saint Laurent, Alexander McQueen, and Balenciaga, have teamed up with Toplife, JD.com’s luxury web marketplace, to expand their e-commerce presence in the lucrative Chinese market.
In a bid to revolutionize customer service and shopping experiences, Kering has joined forces with tech giant Apple to introduce cutting-edge apps for its labels’ retail staff. These apps empower staff members with real-time inventory checks, personalized styling recommendations, and the ability to deliver enhanced in-store customer experiences using state-of-the-art technology. Additionally, Kering has established dedicated digital teams in Europe and the USA for select brands, while centralizing customer service operations for others.
Furthermore, Kering is leveraging advanced CRM tools, mini WeChat programs tailored for Chinese customers, and the establishment of a specialized Client & Digital team in China to facilitate market-specific innovations. By implementing a dedicated data science team and a Group Innovation team, Kering is reinforcing its innovative and customer-centric approach.
In conclusion, Kering’s unwavering commitment to enhancing its digital capabilities underscores its proactive stance towards adapting to the evolving demands of the luxury market and enhancing customer satisfaction across its esteemed portfolio of brands.
Sources:
1. Vogue Business – Kering is shifting its e-commerce efforts in-house
2. Business of Fashion – What do YNAP’s digital wins mean for its partners
