New business models

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New business models

Change is an opportunity for growth. To secure its long-term prosperity, Kering is steadfastly working on disruptive innovations in order to transform traditional luxury models with a focus on digitalization, artificial intelligence (AI) and social innovation.
Upgrading the supply chain

To meet the exponential growth of e-commerce and new customer expectations, Kering has prioritized an e-commerce model that is more resilient, more effective and more robust. Since 2019, Kering has started to internalize the management of its Houses’ e-commerce sites, as part of an integrated approach between physical and online stores, which are interactive and complementary. Customers enjoy a more seamless, personalized and authentic experience while reducing the Group’s environmental impact since fewer intermediaries are involved.

Accelerating the digitalization of production processes and supply chains

The digital transformation of the fashion industry has already made great strides. However, now is the time to go global and incorporate such developments throughout the value chain, from product design through to sales. 

To expedite the transition, Kering’s teams are working on new solutions including shared ready-to-wear prototyping and shared sourcing platforms. As such, the Group created the Kering Ethical Gold Platform to purchase and use Fairmined-certified gold. Kering’s Houses have used 100% responsible gold since 2019. 

As part of the increased internalization of product development, Kering has set up several pilots aimed at ensuring full traceability of the materials used by its Houses such as cotton, leather and precious skins. In particular, the Group leverages blockchain technology and forensic science methods. 

The fashion world also faces the challenge of inventory management and waste reduction. In response, Kering is exploring a range of technologies. The latter include: process AI integration, improved algorithms and digitalized logistics and operations. The Group is also developing demand-based business models. This is to ensure more accurate forecasting with a view to reducing inventories.


Extending product lifespan

Kering’s brands’ products are designed to last. During product design special attention is given to sustainability and restoration capabilities. In an effort to sustain high-quality product standards and guarantee a long lifespan, the Group’s Houses offer repair services to their customers. 

Kering has gone one step further through its interest in new business models including rental and resale. In 2021, Kering invested in Vestiaire Collective, the Europeanglobal platform for desirable second-hand fashion. The investment meets the Group’s goal to continue enhancing the value offered to customers as well as supporting innovative business models and embracing new sustainability trends.