Tech needs touch.

Gucci, Balenciaga, Bottega Veneta, Brioni, Saint Laurent ... no, this list does not describe our closet, but the brand portfolio of the luxury group Kering. However, the brands and therefore the entire portfolio have lost a lot of value in recent years, and Kering's share price has also seen better times. Changing this is the job of Luca de Meo, the Kering CEO and former car manager who was hired by the Pinault family a year ago. To do this, he has to answer a key question: How does the holding company create value - and enough value to compensate for the "conglomerate discount"? And de Meo's answer is: tech. Based on the experience gained in the automotive industry, Kering will now install a series of central "technology hubs" that sit above the brands and bundle expertise in production, logistics, AI and cloud, sustainability and service. This in turn should give the individual brands more freedom for creativity, quality and innovation. If this succeeds, de Meo will have done his job - but only halfway. At the same time, he has to optimize the brand portfolio in a value-oriented way. Because tech alone does not create demand. It also needs "touch", especially of course for Kering's flagship Gucci. And without touch, all investments in tech are just costs. Or what do you think?

Here is the link:

https://www.nssmag.com/en/fashion/44996/reconkering-luca-de-meo-gucci-turnaround-kering-strategy