Kering moves into leathergoods rental with investment
French luxury group Kering has invested in UK-based subscription handbag rental service Cocoon.
Although the exact investment amount has not been disclosed, it is expected that Kering will have taken a minority stake in the company.
Cocoon, founded by former Vestiaire Collective chief marketing officer Ceanne Fernandes-Wong (pictured) in 2019, specialises in new, pre-owned and limited-edition, high-end bags. Rental prices start from around $68 (£49) a month.
According to reports, the startups’ memberships numbers have increased by 200% since April 2020, despite limited opportunity to ‘go out’ on account of the covid-19 pandemic.
Cocoon has so far raised over $3.4 million (£2.5 million), including funding from Depop founder Simon Beckerman, former partner at Al Gore’s Generation Investment Management Lilly Wollman and entrepreneur Riccardo Pozzoli (co-founder of Chiara Ferragni Collection, among others).
The funding will be used to build out the enterprise’s inventory, operations, and staff team.
Kering’s chief client and digital officer, Grégory Boutté, commented: “We have an ambitious innovation strategy at Kering, which aims at identifying potentially disruptive trends and shaping the future of fashion.
“This investment in Cocoon will enable us to monitor new consumption habits and digital practices. We see the subscription model as a very interesting trend in fashion and, by extending the product life cycle, it resonates particularly well with Kering’s circularity ambitions.”
Meanwhile, Ms Fernandes-Wong said in a statement: “With Kering’s incredible history, proven track-record of innovation and deep luxury knowledge, it’s fantastic to have investment from such a powerful market leader.
“We are like-minded in our vision for a sustainable fashion future and our respect for the luxury codes. The market is calling out for innovative sustainable solutions and can see that our subscription-based model allows for consistent revenue generation through a challenging time.”
At the moment, Cocoon only offers handbags - as they are “built to last”, Ms Fernandes-Wong told reporters - and receives most of its stock directly from luxury brands (either through direct sale or a wholesale agreement), although it does sometimes consider buying handbags with authentication cards or receipts from customers.
Kering also took a stake of around 5% in Vestiaire Collective in March of this year.
Image: Cocoon.
