Luca de Meo, chief executive of luxury conglomerate Kering, is applying operational strategies drawn from his automotive background to drive a transformation within the group’s portfolio of high-end brands. Since his appointment a year ago, de Meo has sought to integrate Kering’s independently managed maisons—including Gucci, Saint Laurent, and Bottega Veneta—by centralizing production and decision-making processes with the aim of boosting efficiency.
De Meo’s approach marks a departure from traditional luxury industry practices that prioritize artisanal craftsmanship and decentralized brand autonomy. Drawing on decades of experience in the European car industry, particularly at Renault, he has introduced initiatives to standardize production operations while preserving creative leadership. As part of this effort, about 70 percent of manufacturing is intended to be centralized, leaving the remainder under direct brand control. This restructuring has introduced tensions within Kering, where some employees express concerns over the loss of autonomy and pressure to accelerate results.
The CEO’s push to overhaul operations stems in part from challenges facing Kering’s flagship brand Gucci. The house experienced a revenue decline exceeding 20 percent in 2023, primarily due to subdued demand in China and difficulties navigating creative transitions. Kering’s market value has fluctuated dramatically over the past decade, peaking near €100 billion in 2021 before retreating to approximately €20 billion last year. De Meo has argued that the holding company structure, characterized by loosely coordinated independent brands, contributed to inefficiencies that hindered performance.
Among de Meo’s key operational changes is a efforts to reduce lead times and inventory costs. Observing that ready-to-wear collections had been arriving in stores more than six months after runway shows, he has pushed for accelerated delivery schedules. Additionally, he intends to streamline the supplier base—which currently includes some 4,000 vendors for fashion and leather goods—and increase production within Kering’s 37 manufacturing facilities in Italy.
The CEO’s industrial mindset extends to product categories such as jewelry, where he sees opportunities to combine luxury craftsmanship with more efficient production methods. During a visit to Pomellato’s workshops, de Meo engaged with artisans yet encouraged faster output, signaling his commitment to balancing tradition with operational discipline.
De Meo has also recruited talent from outside the luxury sector, notably hiring executives from Renault into leadership positions in digital, human resources, and investor relations. This influx of fresh perspectives has accompanied the creation of centralized marketing and client expertise hubs, replacing longstanding brand-by-brand campaign autonomy.
While some insiders view the changes as disruptive, others believe de Meo is fostering a beneficial cultural shift within Kering, a company controlled by the Pinault family since the 1960s. Saint Laurent CEO Cédric Charbit described de Meo as direct and decisive, qualities he believes the luxury industry needs.
A significant focus of the turnaround is Gucci, which represents roughly 41 percent of Kering’s €14.7 billion annual revenue and nearly 60 percent of operating profit. De Meo divides his time between Kering’s Paris headquarters and a Milan office dedicated to the brand. Francesca Bellettini, Kering’s deputy chief, has been tasked with steering Gucci’s revival through strategies such as reducing discounting in China, refreshing product offerings, and shuttering stores in less profitable locations.
Market analysts acknowledge potential for improvement through professionalized management but caution that long-term success will depend on external factors, including economic conditions in China and shifting consumer preferences.
De Meo has acknowledged skepticism from luxury insiders who question the applicability of automotive-style operational rigor within a creative industry. He maintains that while creativity is paramount, the luxury sector also requires disciplined industrial processes to thrive amid evolving market challenges.