Latest news with #KeringSA
Fashion United
21-05-2025
- Business
- Fashion United
Kering issues new 750 million euro bond
The French luxury group Kering SA has obtained fresh capital by means of a new bond. The bond, with a volume of 750 million euros, has a term of four and a half years and an interest rate of 3.125 percent, the parent company of fashion houses such as Gucci, Saint Laurent, Bottega Veneta and Balenciaga announced on Tuesday. The issue took place as part of the group's 'active liquidity management' and enables the group to 'increase its financial flexibility,' Kering explained. The company expressed satisfaction with the response to the placement: 'The great success of this issue with bond investors underlines the market's confidence in Kering's credit rating,' it said in a statement. This article was translated to English using an AI tool. FashionUnited uses AI language tools to speed up translating (news) articles and proofread the translations to improve the end result. This saves our human journalists time they can spend doing research and writing original articles. Articles translated with the help of AI are checked and edited by a human desk editor prior to going online. If you have questions or comments about this process email us at info@
The Star
09-05-2025
- Business
- The Star
Why are fashion labels ending discounts in China? Can this rebuild brand value?
Some luxury labels are pulling back from steep markdowns in China, seeking to rebuild an image of exclusivity to lure back wealthy shoppers whose spending remains less affected by economic slowdown. None of the products sold by Kering SA's Balenciaga on Tmall, China's dominant e-commerce platform, were discounted in the first quarter of this year – or even during China's biggest annual online shopping festival in November – according to data consultancy Re-Hub. That's a marked contrast to the brand's average discount of about 41% on Alibaba Group Holding Ltd's-owned Tmall during the same periods the year before. Versace, set to become part of Prada SpA after a US$1.4bil (approximately RM6.1bil) acquisition, cut prices for an average of just 3% of its products on Tmall in the first quarter, compared to 12% in 2024 – and the discounts weren't as steep. Italian luxury house Valentino Fashion Group SpA also lowered the number of discounted products available on Tmall for January, and pulled markdowns entirely in February and March. The avoidance of discounts, which appear counter-intuitive given the market's sluggish demand, marks an about-turn in luxury labels' strategy in China. "It's a move from chasing traffic and short-term revenues to cultivating long-term brand affinity,' Re-Hub's chief executive officer Max Peiro said. "This shift is not merely operational-it's foundational. Brands are investing in relevance, desirability, and premium experiences to foster long-term loyalty.' Read more: Stakes are high for luxury fashion, as brands reshuffle their head designers Discounting is proving less effective in driving sales growth and risks undermining brand value, he added. Even the most exclusive premium fashion houses – including Hermes, Chanel and Louis Vuitton, which have typically eschewed online discounts – are stepping up efforts to maintain their exclusive images among wealthier Chinese, including offering more VIP-only events and shopping experiences like in-store museums. The pivot away from discounts comes as global fashion houses reshape their strategies in China, where a decades-long luxury boom driven by the middle class is coming to an end as a persistent property slump and anemic post-Covid economic growth turns once-spendthrift Chinese shoppers into cost-conscious bargain hunters. The country's middle class – a pillar of the world's luxury market – is turning to athleisure and cheaper dupes of the luxury brands it used to covet, or holding off on purchases at all. Their pullback helped lead to an up to 20% drop for China's luxury market sales last year, Bain & Co estimates. That's leading brands to shift their focus back to luring wealthier Chinese who'll still be willing to splash out despite the increasingly shaky consumer sentiment. Success in China is critical for luxury brands, which are also facing challenges in their other largest market – the US, where consumer sentiment has slumped to an almost five-year low amid uncertainty from Donald Trump's tariffs. Balenciaga, Versace, Valentino and Alibaba didn't respond to requests for comment. Tmall's changing role The changing pricing strategy also reflects luxury labels' new understanding of Tmall and the crucial role it plays in shaping consumer perceptions about a brand in the mainland, said Jacques Roizen, managing director of China consulting at Digital Luxury Group. As Tmall becomes more important for sales, brands' pricing on the platform can help telegraph wider shifts in their China strategies. While ultra-premium brands including Hermes and Chanel still make most of their sales from physical stores, online channels are gaining increasing importance for lower-tier luxury labels. The ecommerce market accounted for 46% of China's total luxury sales last year and is expected to surpass offline sales in three to five years, according to consultancy Yaok Group. As products return to full price, pressure will grow for some labels over how to offload excess stock, after some of last year's deep Tmall discounts reflected panic over unsold inventory. Read more: Hermes overtakes LVMH to become the most valuable luxury fashion company And not all high-end brands are pulling back from sales – some, like Richemont's Chloe and Capri Holdings Ltd's Michael Kors, are offering markdowns on Tmall similar to those that were available in 2024. Chloe and Michael Kors didn't respond to requests for comment. Still, by curbing price cuts on the platform, a growing number of luxury brands are bringing their China pricing strategy more in line with their global approach – where they clear stock via discreet, private sales events that take place only limited times a year and there's little visible public discounting. "While smaller discounts may pressure short-term inventory clearance capabilities, the shift ensures a consistent brand message across all consumer touchpoints,' Roizen said. "Brands that adapt early to this strategy are likely to lead the market recovery.' – Bloomberg
Business of Fashion
09-05-2025
- Business
- Business of Fashion
Luxury Labels Ditch Steep China Discounts to Rebuild Value
Some luxury labels are pulling back from steep markdowns in China, seeking to rebuild an image of exclusivity to lure back wealthy shoppers whose spending remains less affected by economic slowdown. None of the products sold by Kering SA's Balenciaga on Tmall, China's dominant e-commerce platform, were discounted in the first quarter of this year — or even during China's biggest annual online shopping festival in November — according to data consultancy Re-Hub. That's a marked contrast to the brand's average discount of about 41 percent on Alibaba Group Holding Ltd's-owned Tmall during the same periods the year before. Versace, set to become part of Prada SpA after a $1.4 billion acquisition, cut prices for an average of just 3 percent of its products on Tmall in the first quarter, compared to 12 percent in 2024 — and the discounts weren't as steep. Italian luxury house Valentino Fashion Group SpA also lowered the number of discounted products available on Tmall for January, and pulled markdowns entirely in February and March. The avoidance of discounts, which appear counter-intuitive given the market's sluggish demand, marks an about-turn in luxury labels' strategy in China. 'It's a move from chasing traffic and short-term revenues to cultivating long-term brand affinity,' Re-Hub's chief executive officer Max Peiro said. 'This shift is not merely operational—it's foundational. Brands are investing in relevance, desirability, and premium experiences to foster long-term loyalty.' Discounting is proving less effective in driving sales growth and risks undermining brand value, he added. Even the most exclusive premium fashion houses — including Hermès, Chanel and Louis Vuitton, which have typically eschewed online discounts — are stepping up efforts to maintain their exclusive images among wealthier Chinese, including offering more VIP-only events and shopping experiences like in-store museums. The pivot away from discounts comes as global fashion houses reshape their strategies in China, where a decades-long luxury boom driven by the middle class is coming to an end as a persistent property slump and anaemic post-Covid economic growth turns once-spend thrift Chinese shoppers into cost-conscious bargain hunters. The country's middle class — a pillar of the world's luxury market — is turning to athleisure and cheaper dupes of the luxury brands it used to covet, or holding off on purchases at all. Their pullback helped lead to an up to 20 percent drop for China's luxury market sales last year, Bain & Co. estimates. That's leading brands to shift their focus back to luring wealthier Chinese who'll still be willing to splash out despite the increasingly shaky consumer sentiment. Success in China is critical for luxury brands, which are also facing challenges in their other largest market — the US — where consumer sentiment has slumped to an almost five-year low amid uncertainty from Donald Trump's tariffs. A gauge of major European luxury groups' stocks has shed 7.4 percent so far this year. Balenciaga, Versace, Valentino and Alibaba didn't respond to requests for comment. Tmall's Changing Role The changing pricing strategy also reflects luxury labels' new understanding of Tmall and the crucial role it plays in shaping consumer perceptions about a brand in the mainland, said Jacques Roizen, managing director of China consulting at Digital Luxury Group. As Tmall becomes more important for sales, brands' pricing on the platform can help telegraph wider shifts in their China strategies. While ultra-premium brands including Hermès and Chanel still make most of their sales from physical stores, online channels are gaining increasing importance for lower-tier luxury labels. The e-commerce market accounted for 46 percent of China's total luxury sales last year and is expected to surpass offline sales in three to five years, according to consultancy Yaok Group. As products return to full price, pressure will grow for some labels over how to offload excess stock, after some of last year's deep Tmall discounts reflected panic over unsold inventory. And not all high-end brands are pulling back from sales — some, like Richemont's Chloé and Capri Holdings Ltd.'s Michael Kors, are offering markdowns on Tmall similar to those that were available in 2024. Chloé and Michael Kors didn't respond to requests for comment. Still, by curbing price cuts on the platform, a growing number of luxury brands are bringing their China pricing strategy more in line with their global approach — where they clear stock via discreet, private sales events that take place only limited times a year and there's little visible public discounting. 'While smaller discounts may pressure short-term inventory clearance capabilities, the shift ensures a consistent brand message across all consumer touchpoints,' Roizen said. 'Brands that adapt early to this strategy are likely to lead the market recovery.' By Shirley Zhao Learn more: China's Luxury Sales Expected to Remain Flat in 2025, Report Says The country's luxury market declined by 18 to 20 percent in 2024 but should move out of negative territory this year, according to consultancy Bain and Company's latest report.
Fashion Network
30-04-2025
- Business
- Fashion Network
Prada aims higher as Miu Miu sales jump and Versace deal expands portfolio
By Bloomberg Prada SpA reported better-than-expected sales at the start of the year, outperforming a sluggish luxury sector with robust growth at its Miu Miu brand. The Hong Kong-listed group said Wednesday that first-quarter net revenue rose 13% at constant exchange rates, slightly ahead of analyst forecasts. Miu Miu, favored by younger consumers, saw retail sales soar 60% year-over-year. Despite a challenging global backdrop, Prada aims for above-market growth in 2025. The company acknowledged that economic uncertainty and trade tensions continue to weigh on demand for luxury goods. Its stock is down about 20% year-to-date. By contrast, LVMH—the owner of Louis Vuitton—reported disappointing sales this month, citing weak demand in China and the U.S. Hermès International SCA also noted a soft start to the year in China, while Gucci struggled to rebound under Kering SA, with no clear turnaround in sight. Prada, however, reported regional growth across the board, led by strong performance in the Middle East and Japan. In a major strategic move, Prada this month announced the acquisition of Versace for approximately €1.25 billion ($1.4 billion). The deal, the largest in Prada's 112-year history, brings a brand with a markedly different aesthetic into its fold, enhancing its brand portfolio and competitive positioning. While analysts responded positively to the purchase, attention now turns to Prada's strategy for revitalizing Versace.
Bloomberg
24-04-2025
- Business
- Bloomberg
Francois Pinault's Wealth Slides as Heir Fails to Revive Gucci
Francois Pinault, the octogenarian founder of Kering SA, has seen his family's fortune drop by more than two-thirds since a pandemic-era boom as his son struggles to turn around the French luxury conglomerate's biggest brand, Gucci. The 88-year-old Pinault's net worth has fallen by 69% to $18.6 billion from August 2021, according to the Bloomberg Billionaires Index. That's the largest decline over that period in dollar terms of anyone on the list, including Bernard Arnault, the founder of rival LVMH, which has also been hit by a drop in demand for high-end goods.
