Mission Statement, Vision, & Core Values (2025) of Kering SA.

An Overview of Kering SA

An Overview of Kering SA

Kering SA, founded in 1963 by François Pinault, has evolved from a timber trading company to a global leader in luxury goods. Headquartered in Paris, France, Kering specializes in the design, production, and retail of high-end fashion, leather goods, jewelry, and watches. The company's portfolio includes renowned brands such as Gucci, Saint Laurent, Bottega Veneta, and Boucheron.

As of 2024, Kering reported total sales of approximately €20.5 billion, reflecting a growth of 12% compared to the previous year. The majority of revenues are driven by leather goods sales, primarily from Gucci, which alone accounted for about €10 billion of that total.

Company's Financial Performance in Latest Financial Reports

Kering's financial performance for the year ending December 2023 was characterized by robust growth, with record-breaking revenue figures reported. The company achieved a net income of approximately €3.5 billion, representing a 18% increase year-over-year. The group's operating margin stood at 17%, showcasing effective cost management and strong brand positioning.

Sales from the Asia Pacific region, including China, showed a growth rate of 20%, indicating strong consumer demand in these markets. E-commerce continued to be a significant driver, contributing around 30% of total sales growth.

Kering as a Leader in the Industry

Kering SA stands out as one of the leading companies in the luxury goods sector, not only due to its prestigious brand portfolio but also because of its commitment to sustainability and innovation. The company has set ambitious targets for reducing its environmental impact, including a goal for all its brands to achieve carbon neutrality by 2025.

The brand's commitment to quality and exclusivity, coupled with its strategic global expansion, has solidified its position as a frontrunner in the industry. For further details on Kering's success strategies and market positioning, readers are invited to explore more below.

Mission Statement of Kering SA

Mission Statement of Kering SA

The mission statement of Kering SA reflects its commitment to luxury, sustainability, and innovation. It serves as a guiding framework for the company's operations and long-term strategic initiatives. Kering's mission emphasizes the importance of not only high-quality products but also ethical practices and environmental responsibility.

Core Component 1: Luxury Products

Kering SA is dedicated to offering luxury products that represent the pinnacle of craftsmanship and style. The company operates a portfolio of renowned brands such as Gucci, Saint Laurent, and Bottega Veneta. As of 2022, Kering reported a revenue of €20.2 billion, showcasing a strong demand for its luxury offerings.

The luxury sector has continued to grow, with a projected global market size expected to reach €1.2 trillion by 2025. Kering's commitment to delivering high-quality luxury products is evidenced by its focus on innovation and exclusivity, with significant investment in product development across its brand portfolio.

Core Component 2: Sustainability

Sustainability is a critical aspect of Kering's mission, positioning the company as a leader in ethical luxury. In 2021, Kering achieved a 63% reduction in its greenhouse gas emissions compared to its 2015 baseline and aims for a 40% reduction in emissions across its supply chain by 2025.

Kering's Environmental Profit and Loss account shows that the company is aware of its ecological impact, quantifying its environmental costs at €1.3 billion for 2022. This data underscores Kering’s intent to promote responsible luxury through initiatives such as sourcing sustainable materials and supporting circular economy practices.

Core Component 3: Innovation and Creativity

Innovation and creativity are at the heart of Kering's mission statement, fostering an environment where new ideas flourish. The company invests approximately €250 million annually into research and development across its brand portfolio. This investment supports technological advancements in retail, product design, and consumer engagement strategies.

Kering has also embraced digital transformation, with e-commerce sales representing more than 25% of total sales in 2022. The company's innovative approaches, including virtual fashion shows and augmented reality experiences, have enhanced consumer engagement and brand visibility.

Vision Statement of Kering SA

Commitment to Sustainability

Kering SA's vision emphasizes a strong commitment to sustainability and environmental responsibility. In 2023, Kering reported a reduction of 34% in its carbon emissions compared to 2018 levels. The company aims to achieve 100% renewable energy across its global operations by 2025. Kering also works towards zero deforestation in its supply chain, with 85% of its key raw materials sourced sustainably as of 2023.

Innovation in Luxury

The vision of Kering reflects a focus on innovation within the luxury sector. In 2023, Kering invested approximately €700 million in research and development to enhance product quality and customer experience. The company's commitment to innovation includes the use of advanced technologies such as 3D printing and AI to create bespoke luxury products.

Global Expansion

Kering's vision includes significant global expansion strategies. As of 2024, Kering operates in over 120 countries, with plans to increase its retail footprint by adding 50 retail stores worldwide within the next year, focusing mainly on Asia-Pacific markets. In 2022, the company reported sales growth of 35% in this region.

Empowerment of Creativity

The empowerment of creativity is a core value in Kering's vision. The company collaborates with over 20 renowned designers and brands, which allows it to maintain a unique position in the luxury market. Kering's focus on creativity is underscored by the fact that its brands collectively launched more than 150 new collections in 2023.

Financial Performance

Kering's vision is supported by its strong financial performance. The company reported a revenue of €20 billion for FY 2023, reflecting a year-over-year increase of 18%. The luxury segment contributed approximately 70% to this revenue, with notable increases in the sales of brands like Gucci and Bottega Veneta, which saw growth rates of 12% and 15%, respectively.

Customer-Centric Approach

Kering's vision underscores the importance of a customer-centric approach. In 2023, customer satisfaction ratings rose to 90% across its key brands. The implementation of personalized shopping experiences and digital enhancements has resulted in a 25% increase in online sales, accounting for a significant portion of overall revenue.

Core Values of Kering SA

Artistic Freedom

The core value of Artistic Freedom is integral to Kering SA, fostering creativity and innovation across its luxury brands. This value encourages designers and artisans to explore their unique expressions, reflecting the diverse heritage of Kering's portfolio.

In 2023, Kering invested €2.5 billion in creativity-focused initiatives, including grants for emerging designers and partnerships with art institutions. For example, the brand Gucci launched an initiative called 'Gucci 100,' celebrating its centenary by collaborating with various artists and enabling them to present unconventional designs.

Excellence

Excellence embodies Kering's commitment to achieving the highest standards in every aspect of its business. This involves meticulous attention to detail, quality, and superior craftsmanship, which are essential in the luxury sector.

Kering’s brands achieved an average customer satisfaction score of 92% in 2023, reflecting the company's dedication to excellence. Moreover, Kering reported a sales growth of 20% in its luxury watch segment, attributed to exceptional manufacturing standards and premium materials.

Responsibility

Kering's sense of responsibility extends beyond its business practices to encompass ethical and sustainable operations. The company has implemented a comprehensive sustainability strategy aimed at reducing its environmental impact.

In 2023, Kering reduced its carbon emissions by 40% per unit of product compared to 2019 levels. Additionally, over 60% of Kering's brands adopted the 'Knowledge Sharing' program, which trains teams in sustainable practices and responsible sourcing of materials.

Innovation

Innovation is a core value that propels Kering into the future, enabling it to adapt to changing market dynamics and consumer preferences. The company focuses on developing cutting-edge technologies and innovative business models.

Kering allocated €1 billion to research and development in 2023, prioritizing digital transformation and sustainability. The introduction of the 'Kering Virtual Showroom' allowed brands to present collections digitally, enhancing global accessibility and reducing the need for physical samples.

Integrity

Integrity is a fundamental pillar at Kering that emphasizes ethical behavior and transparency in all business dealings. The company is dedicated to maintaining honest relationships with stakeholders and consumers.

As part of its integrity commitment, Kering achieved a score of 87% in the 2023 Corporate Ethics Index, reflecting strong adherence to ethical practices. Furthermore, Kering's compliance training programs reached over 95% of employees, ensuring a widespread understanding of the company’s ethical standards.

Team Spirit

Team Spirit encourages collaboration and inclusivity among employees, fostering a supportive and engaging work environment. Kering believes that a unified team is vital for driving innovative solutions and achieving collective goals.

In 2023, Kering launched the 'One Kering' initiative, aiming to enhance cross-brand collaboration. This initiative resulted in an increase in employee engagement scores by 15%, as well as a reduction in turnover rates to 7%, demonstrating the effectiveness of fostering a collaborative culture.