Kering SA, the parent company of Gucci, is set to appoint Luca de Meo, the outgoing CEO of Renault SA, as its new chief executive officer. This move is significant as it would mark the first time the family-controlled luxury goods conglomerate has been led by someone outside the family.
De Meo’s task will be to revitalize Kering, which is currently facing challenges across all its brands, mounting debt, and stiff competition from its larger rival, LVMH Moet Hennessy Louis Vuitton SE. The decision to appoint an outsider to lead Kering highlights the company’s current struggles.
The appointment is poised to bring fresh perspective to Kering’s luxury brands, including Gucci. De Meo’s background in the automotive industry, particularly his experience at Renault, may bring a unique approach to the luxury goods sector.
Kering’s current challenges include declining performance across its brands and significant debt. The company must navigate these issues while competing against LVMH, a larger and more dominant player in the luxury goods market.
The change in leadership is expected to bring about significant shifts in Kering’s strategy under De Meo’s guidance. Francois-Henri Pinault, Kering’s current leader, is set to remain as chairman, providing continuity as the company navigates this transition.
