PPR prepares dual strategy
26/11/2009
The parent group of luxury leathergoods brand Gucci, PPR, appears to have ruled out a move to focus all of its efforts on the luxury market.
A recent article in the Financial Times said that François-Henri Pinault, who runs the group, favours a dual strategy instead, looking for continued growth in the luxury market, but also in the lifestyle market, headed by its main brand in that arena, Puma, in which PPR took a 69% stake two years ago.
The FT article quoted a company source as saying: “Luxury goods companies are of necessity relatively small companies. It makes no sense for us. You need to have the volumes and size of the mass market.”
The article went on to say Mr Pinault wants the new PPR to become a lifestyle company but with two “centres of gravity”, one at the luxury end around the Gucci Group and the other a high-volume business built around Puma.
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