Italian operations exceed 11 billion euros

Italian operations exceed 11 billion euros

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Jan 8, 2024

With its headquarters, production sites, logistic centers, and units for research and innovation, Italy has become an extremely strategic location for Kering. Ever since the French group acquired a stake in the Gucci Group in 1999 – a pivotal milestone in the company’s evolution to becoming a luxury player, – the importance of Italian market has continued to grow, effectively establishing Kering as a Franco-Italian group. This is clearly evidenced in the recent study jointly published with the consultancy firm The European House – Ambrosetti.

The group’s new headquarters in Milan – Kering

The luxury conglomerate has experienced an exponential increase in its operational influence in Italy, where it has been established for 25 years and employs nearly 13,500 people across 49 locations, including product development, manufacturing plants, logistic centers, laboratories, and offices.

The Italian brands represent nearly half of its portfolio. Gucci, as the prime label, accounts for almost half of its revenue and approximately 60% of its operating profit. This is followed by Bottega Veneta, acquired in 2001, and then Brioni, Pomellato, and DoDo, in addition to Kering Eyewear, the eyewear manufacturer established in the Veneto region in 2014, and the historic Ginori 1735 porcelain manufacture. It’s also worth noting that last summer, the company acquired a 30% stake in Valentino.

Its Italian companies generated revenues of 11.6 billion euros in 2022, marking an 18.3% growth over three years. This establishes Kering and its brands as “the foremost entity in Italian fashion and related sectors, ranking as the country’s fourth-largest manufacturing entity,” as indicated in the report. For reference, the company’s total revenue stands at 20.35 billion euros.

The impact of the group on Italy’s overall exports is significant, amounting to 10.5 billion euros, with a 15% increase between 2019 and 2022. According to Ambrosetti, “Kering’s total contribution to the Italian ecosystem reached 10.9 billion euros in 2022, approximately equivalent to 0.6% of Italy’s GDP.” This estimation is based on the firm’s direct added value, combined with the indirect added value generated by its supply chain and the induced value from expenditure due to remunerations paid by Kering.

“The relationship between Kering and Italy began at the end of the last century, and since then, we have gradually expanded and diversified our presence and investments, from artisanal to logistical and managerial competencies at large,” commented Francesca Bellettini, the appointed deputy CEO of the group since September 2023.

The group’s Italian executive vice president, Francesca Bellettini – Kering

“The scope and quality of economic relations developed by Kering in Italy, as revealed by the study, distinguish us as one of the most significant foreign players in the country,” further emphasized Jean-Marc Duplaix, the group’s other deputy CEO. “The study reaffirms our position as a group with deep and robust Italian roots, and we aim to continue developing investments and attracting and retaining top talents, always with a focus on sustainable business growth.”

In Italy the company employs 13,500 individuals, primarily in Tuscany (44.6%), Lombardy, and the Veneto region, representing 28% of Kering’s total workforce. Additionally, this includes all indirect activities related to the company. In total, the group counts 94,437 full-time equivalent positions (FTEs) in Italy. The study also highlights that the company invested 10 million euros in training in Italy in 2022 and offered 225 internships, resulting in a third of them leading to recruitment.

In early 2023, Kering notably inaugurated its new headquarters in Milan and Florence. Additionally, in 2021, it established a significant new logistics hub in Trecate, Piedmont. Last December, Saint Laurent inaugurated a grand leather goods workshop in Scandicci, just outside Florence, for creating prototypes of leather accessories, samples, and special orders. Also in Tuscany, Balenciaga opened a leather goods site and a training center, while Bottega Veneta set up a workshop dedicated to shoe manufacturing in Vigonza, near Padua, in the Veneto region.

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