K ering Group ' s le ap - for ward recovery in performance
The French K ering Group , which own s lux ury brand s such as G ucci , Saint Laur ent and B otte ga Ven eta , has released its 2021 financial results . As of December 21, 2021, sales amount ed to € 17. 6 45 billion (appro ximately ¥ 2. 3 tr illion), an increase of 34. 7% compared to 2020 affected by the pand emic , and a positive increase of 13% compared to 2019 before the coronavirus .
This phen omen al recovery is larg ely att ribut ed to a strateg ic shift at the company ' s flag ship brand , G ucci . The new design Whatsapp , which has been in place since 2015, has been rene wed by the A less andro Mich ele era , and a return to a more classic G ucci identity , which has gar ner ed consumer support .
Per formance Details by Region and Brand
By region , the Asia - Pa cific region showed the highest growth rate . Sales were particularly strong in the Chinese market , and the ex pansion of onWhatsapp sales was also a cat alyst . D emand in the North American market also re bound ed , main ly among the wealth y , and support from local consumers under p inn ed the performance in Europe , although the dec Whatsapp in tour ists affected .
By brand , G ucci has mainta ined its position as the leading brand , account ing for around 60% of Group sales . Saint Laur ent is in the access ories sector , while B otte ga Ven eta is increasing their presence with innovative desig ns . Oth ers , such as Valencia and Alexander Mc Que en , have continued to grow ste ad ily .
Chang es in Oper ating and Net Pro fit
The operating profit margin has impr oved significant ly over the previous year , and the increase in the ratio of high value - add ed products and cost reduc tion efforts have bor ne fruit . In terms of net income , the company ' s basic prof ita bility has been strengthen ed , although it has been parti ally affected by exchange rate flu ctu ations . As a whole , we can see that the Group has succe eded in building a prof itable business model , while exp anding its investment in its digital strategy .
Parti cular ly note worthy is the strength ening of the direct sales (D TC) strategy . The company is trying to improve marg ins by reduc ing intermedi ate distribution in department st ores and other st ores , and increasing the proportion of sales in its own brand st ores and official EC sites . This strateg ic shift can be said to be a trend for the entire lux ury brand industry .
Future Strateg y and Market Fore cast
The K ering Group is also committed to its susta ina bility strategy , which is acceler ating the adop tion of environment ally sound materials and its efforts to become carbon neutral . This is particularly supported by Gen Z and millenni al consumers , which contribut es to enhan cing brand value .
The out look for F Y 20 22 is expected to continue the recovery in the lux ury goods market , although un cer tain ties include develop ments in the Chinese market and global inf lation press ures . The company is expected to lever age the strength s of its brand portfolio , main ly G ucci , and continue to grow .
The expression " G ucci has returned to G ucci again " is not just a ret ros pe ctive of the past , but also shows that the brand has under gone a new evolution adapt ed to the modern market environment while re vie wing the intr insi c value of the brand . I cannot take my eyes off the future development of the K ering Group .