To craft tomorrow's Luxury, at Kering, we are convinced that we must continually exceed our limits, support our Houses and engage with the entire industry
and our stakeholders. Inspired by the guidelines of the International Integrated Reporting Council (IIRC), this publication is aligned with extending this strategic initiative. It presents our investors and stakeholders with an overall picture of the Group and its history, our strategic vision and perspective, as well as our integrated business model designed to create value in every aspect of our activities - creative, financial, environmental, ethical, and social.
By leveraging exceptional quality resources, optimized by Kering, the Group is crafting tomorrow's Luxury and creating value that it shares with its stakeholders.
This highlights Kering's value creation model, presented in this report's concluding section. It also lets you to discover its main components in the digital version of this Integrated Report.
Balancing our capitals
Luxury goods owe their enduring appeal to the insistence on
the highest standards of quality
to their unfailing excellence, to the way they are created, and to the materials that go into them as well as to the systematic consideration given to environ mental, social, and societal issues along the entire value chain. In addition, by protecting traditions
and craftmanship, Kering preserves human and economic resources essential to its activities and strengthens its capacity to create value long into the future.
This exemplary approach, on which Kering's modern Luxury is founded, is central to the Group's ongoing success and contributes to preserving the image of our Houses.
While all these types of capital come into play at some point in the five-basic links of our value chain, three of them - financial capital, human capital, and natural capital - span the entire chain and highlight the global value creation on issues essential to the Group.
Report ID card
Editorial - p. 4
p.6GROUP PROFILE AND MARKET
Embracing creativity for a modern, bold vision of Luxury
Group profile - p. 6
Vision - p. 10
Market trends - p. 12
A sustainable and balanced governance that meets new challenges and ensures the protection of all stakeholders' interests
Interview with Sophie L'Hélias - p. 14
Shareholding structure - p. 16
Governance bodies - p. 18
Remunerations - p. 24
Stakeholder dialogue - p. 26
multi-brandmodel built on a long-term approach and creative autonomy for our houses
Harnessing the full potential of Luxury to grow faster than our markets
Business model - p. 28
Strategy - p. 32
Risks - p. 36
After posting solid results in 2020, the Group is ready to leverage the rebound
Joint interview with Marie-Claire Daveu
Jean-MarcDuplaix - p. 44 Integrated performance - p. 54 Our capitals - p. 62
The Group's exceptional craftsmanship and steadfast commitment to excellence create value that Kering shares with its stakeholders
Exceptional craftsmanship - p.68
A chain of actors crafting tomorrow's luxury - p.70
Stage 1: Creation - p. 72
Stage 2: Development - p. 76
Stage 3: Production - p. 80
Stage 4: Sales and marketing - p. 84
Stage 5: Customer experience - p. 88
Our value creation model - p. 92
Our publications - p. 94
"We emerge from this crisis stronger and confident in the relevance of our multi-brand model. Our brands are more desirable than ever."
closures and a collapse in global tourist numbers.
Are you confident about the future?
First and foremost, the solidity demonstrated by Kering in 2020 is a testament to the men and women who work for the Group. They have stood out for the commitment, agility, boldness and rigor they have shown.
redefinition also served to optimize our inventory allocation between regions and distribution channels.
We emerge from this crisis stronger and confident in the relevance of our multi-brand model. Our brands are more desirable than ever. We are well positioned to leverage the rebound.
we have developed an ambitious biodiversity strategy and raised our climate strategy targets in line with a 1.5°C pathway. Early 2021, we also published our Human Rights Policy.
The examples and testimonies presented throughout this report illustrate the ability of Kering and its Houses to create value while rising to the major challenges of
3 QUESTIONS FOR
What are your main takeaways
- CHAIRMAN AND CHIEF
2020 was a year like no other for
Kering. We have faced an
unprecedented health and
economic crisis. This sparked an
extraordinary reaction, spurred
on by acts of courage, solidarity,
and creativity. Kering contributed
to this collective endeavor by
protecting our employees across
the globe and offering our support
to healthcare professionals and
Against a difficult economic background, Kering demonstrated remarkable resilience and agility. We delivered a solid performance, achieving revenue of €13.1 billion and recurring operating income of €3.1 billion. Our cash flow generation remained high and we further strengthened the Group's financial structure. Four of our Houses increased their annual sales in a worldwide market that was still affected by store
I would like to express my sincere gratitude to them. Our performance also results from many years of strategic work. In 2020, we continued to invest in our growth platforms as we prepare to bounce back.
In 2020, we fully capitalized
on the spectacular acceleration in online sales following the transition started in 2019 to bring our brands' e-commerce platforms back in-house. As such and despite the circumstances, we remained in close contact with our brand customers. Equally, our redefined logistics operations ensured faster responsiveness during the most severe phases of the crisis and lockdown. This
What are the highlights of this fourth Integrated Report which is being published today?
This crisis has not altered our vision of Luxury. At Kering, we believe in Luxury that is modern, creative and responsible. In fact, the pandemic has accelerated trends that were already in motion within our industry. We have already identified and incorporated them in our strategy.
COVID-19 also confirms that our ambitions and commitments towards sustainability are as relevant as ever. The Group's transformation, which has a long history, has been strengthened and accelerated. In this context,
our times, particularly as they relate to the environment.
We are confident in the future, thanks to the alignment between our values, our strategy, and our investments as well as the trends which craft today's luxury market.
François-Henri Pinault chairman and chief executive officer
1 9 94
1 9 9 2
1 9 8 8
1 9 9 9
GROUP GUIDED BY AN ENTREPRENEURIAL SPIRIT
Group profile and market
A global Luxury group, Kering manages the development of a series of renowned Houses
O R I G I N S
GROWTH OF A LEADER IN RETAILDISTRIBUTION
THE MOVE INTO LUXURY
AN INTEGRATED LUXURY GROUP
KERING, A LUXURY PURE PLAYER
in Fashion, Leather Goods, Jewelry and Watches.
1 9 6 3- François Pinault establishes the Pinault group, specializing
in lumber trading
- Listing of Pinault SA on the Paris Stock Exchange
1 9 9 0- Acquisitionof Cfao
1 9 9 1- Acquisition of Conforama
- Takeover of Au Printemps SA (majority shareholder of La Redoute and Finaref)
- Takeover of Fnac;the Group's name is changed to Pinault - Printemps-Redoute
- Acquisition of a 42 % stake in Gucci Group, then incremental increase until 99.4% stake in 2004
2000 - 2004-
Acquisition of Yves Saint Laurent, Boucheron, Bottega Veneta, and Balenciaga; partnership agreements with Stella McCartney and Alexander McQueen
2 0 0 7- Equity interestin PUMA is increased to 62.1 %
2008 - 2014- Acquisitions in the Jewelry and Watchmaking sectors
2003 - 2014- Divestment of retail distribution activities
2013- PPR becomes
2018- Distribution in
kind of PUMA shares to
Acquisition of strategic
(70 % out of a total
2015- Launch of Kering
interest of 86 % owned)
2019- Completion of
the sale of Volcom
Fashion Pact, carbon
neutrality and global
2020- Sale of 5.83 %
of the share capital of
PUMA. Following the
transaction, Kering retains
a 9.87% stake in PUMA
Kering publishes a
with a series of targets
to achieve a net positive
impact by 20251
1. A business that has a "net positive" impact on biodiversity is one whose negative impacts on biodiversity are outweighed by its positive impacts.