Kering reshuffles management team to focus on growth of luxury labels

Luxury holding company Kering has announced the creation of two new luxury divisions, to be headed top management members to support and motivate the growth of its fashion and 'hard' luxury labels. Marco Bizzarri, currently the president and Chief Executive Officer of Bottega Veneta, has been appointed CEO

of the new luxury 'couture and leather goods' division, whilst Albert Bensoussan, long-standing member of Kering's executive committee, has been named CEO of the luxury 'watches and jewelry' division, effective from May.

Both

division will be reporting directly to Francois-Henri Pinault, chairman and CEO of Kering. Bizzarri will remain president of Bottega Veneta and await the imminent arrival of a new CEO for the brand.

Gucci, the largest luxury label currently owned by Kering, will remain under Pinault direct supervision and will operate separately from the new divisions as Patrizio di Marco, chairman and CEO of Gucci since 2009 will be responsible for the label.

Pinault commented on the new appointments of Bizzarri and Bensoussan on Thursday, as the group published its first-quarter results : “I am delighted by the appointment of Marco Bizzarri and Albert Bensoussan to their respective new roles. They will give the luxury 'couture and leather goods' division and the luxury 'watches and jewelry' division the benefit of their outstanding experience and expertise.”

Kering to implement new structure to support the growth of luxury brands

“The new structure reflects the specific character of the businesses of the group's different brands, and will provide better responses to their particular needs, adapted to each brand's stage of development,” he added. “The introduction of our brands while respecting the autonomy and individual identity of each of them.”

In a press statement published on Thursday, the group stated that the new divisions will “strengthen the monitoring and focus the business expertise and resources that the group makes available to its brands to accelerate their development”.

The group added that the management shake up will also be “carried out with full respect for the autonomy of each Kering brands”, which will remain under the responsibility of their current CEOs.

In the luxury 'couture and leather goods' division, the CEOs of Bottega Veneta, Saint Laurent, Alexander McQueen, Balenciaga, Broni, Christopher Kane, McQ, Stella McCartney, Tomas Maier and Sergio Rossi will report to Bizzarri. In the luxury 'watches and jewelry' division the CEOs of Bourcheron, Girard-Perregaux, JeanRichard, Pomellato, Dodo and Qeelin are to report to Bensoussan.

Pinault remains chairman of the board of Saint Laurent, commenting: “Saint Laurent is at a pivotal moment in its history and reform as undisputed reference for Parisian elegance. Retaining its chairmanship ensures the preservation of the unique individuality and positioning of this historical French Couture House.”

Citi analyst Thomas Chauvet shared his approval for the management shake up with WWD, saying it would “create further manufacturing, distribution and cost synergies across the various brands, in particular in hard luxury.”

Kering also revealed the impending departure of Alexis Babeau, managing director of the luxury division since March 2011, who wishes to take his career in “a new direction” and will therefore be leaving the group next month.

“I would like to thank Alexis mist warmly and to pay tribute to his decisive role, firstly at Gucci Group, then at Kering, in the development of our luxury brands,” said Pinault. “Alexis played a key role in identifying and implementing operational synergies between our brands, while maintaining the creative independence that makes each of them unique.”

Photos: Francois-Henri Pinault, Albert Bensoussan, Marco Bizzarri.