Kering, the luxury conglomerate, has been experiencing impressive growth within its operations in Italy. Its Italian companies generated revenues of 11.6 billion euros in 2022, marking an 18.3% growth over the past three years. This growth has solidified Kering’s position as the fourth-largest manufacturing entity in Italy, placing the company and its brands at the forefront of the Italian fashion industry.
Italy has always held significance as a strategic location for Kering, especially since the group acquired a stake in the Gucci Group in 1999. Today, Italy is home to Kering’s headquarters, production sites, logistic centers, and units for research and innovation. With a presence in the country for 25 years, Kering employs nearly 13,500 people across 49 locations, which includes product development, manufacturing plants, logistic centers, laboratories, and offices.
What sets Kering apart is that almost half of its portfolio consists of Italian brands, with Gucci leading the way as the prime label. Gucci alone accounts for almost half of the group’s revenue and around 60% of its operating profit. Other notable Italian brands under Kering’s umbrella include Bottega Veneta, Brioni, Pomellato, DoDo, and Kering Eyewear. In recent years, Kering established its eyewear manufacturer in the Veneto region and acquired a 30% stake in Valentino. Additionally, the historic Ginori 1735 porcelain manufacture is also part of Kering’s Italian operations.
Apart from its significant presence within the fashion industry, Kering’s impact on Italy’s overall exports is substantial. The company contributes around 10.5 billion euros to Italy’s export industry, experiencing a 15% increase between 2019 and 2022. Furthermore, Kering’s total contribution to the Italian economy reached 10.9 billion euros in 2022, which is approximately 0.6% of Italy’s GDP. This calculation takes into account the firm’s direct added value, as well as the indirect added value generated by its supply chain and induced value from expenditure due to remunerations paid by Kering.
Francesca Bellettini, the appointed deputy CEO of the group, stated that the relationship between Kering and Italy has expanded and diversified over the years, moving from artisanal to logistical and managerial competencies. Jean-Marc Duplaix, another deputy CEO of Kering, emphasized that the study reaffirms the company’s deep and robust Italian roots. Kering aims to continue developing investments, attracting and retaining top talents, and focusing on sustainable business growth.
Kering has become a significant employer in Italy, with 13,500 employees representing 28% of its total workforce. The company primarily employs individuals in Tuscany, Lombardy, and the Veneto region. Additionally, Kering’s presence in Italy extends to all indirect activities related to its operations. Overall, Kering has 94,437 full-time equivalent positions (FTEs) in Italy.
Demonstrating its commitment to Italy, Kering has invested heavily in training and internships. In 2022, the company invested 10 million euros in training in Italy and provided 225 internships, with a third of the interns being recruited for permanent positions.
Kering has also made significant infrastructure investments in Italy. In early 2023, the company inaugurated its new headquarters in Milan and Florence. In 2021, Kering established a major logistics hub in Trecate, Piedmont. Additionally, Saint Laurent opened a leather goods workshop in Scandicci, near Florence, for creating prototypes, samples, and special orders. Balenciaga and Bottega Veneta have also opened manufacturing facilities in Tuscany, further solidifying Kering’s presence and investments in the country.
In conclusion, Kering’s operations in Italy have experienced remarkable growth, positioning the group as a major player in the Italian fashion industry and related sectors. With its strategic location, investments, and commitment to sustainability, Kering continues to contribute significantly to the Italian economy and the global luxury industry.
Useful links:
1. Kering – Official Website
2. Gucci – Official Website
