Gucci powers French Luxury Group Kering’ growth
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French international luxury group Kering has seen positive trading results brought on by stronger-than-expected sales of its Gucci brand.
The group is among several luxury houses that have so far managed to ride out interruptions to business caused by 21 weeks of protests in Hong Kong.
Kering is following a strategy of redistributing stock originally intended for sale in Hong Kong to other markets.
Gucci has a large store network in Mainland China and South Korea, where spending has picked up among luxury-goods consumers who may otherwise have shopped in Hong Kong. Sales in the territory during China’s Golden Week holiday were underwhelming.
“The trends are still negative so far in Hong Kong,
Questions & Answers
Q.What strategy is Kering using to mitigate the impact of the Hong Kong protests?
What strategy is Kering using to mitigate the impact of the Hong Kong protests?
Kering is redistributing stock initially intended for Hong Kong to other markets. This allows them to continue selling products despite the business interruptions in the territory.
Q.Which markets are benefiting from Kering's redirected stock?
Which markets are benefiting from Kering's redirected stock?
Mainland China and South Korea are receiving stock originally planned for Hong Kong. Consumers in these regions are increasing their luxury goods spending, compensating for reduced activity elsewhere.
Q.How did sales in Hong Kong perform during China's Golden Week holiday?
How did sales in Hong Kong perform during China's Golden Week holiday?
Sales in Hong Kong were underwhelming during China's Golden Week holiday. The ongoing protests continue to result in negative trends for business in the territory.
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