PPR To Become Kering

François-Henri Pinault, PPR chairman and CEO, poses with the company's new name and logo, which is expected to become official on June 18.

French holding group, PPR, said Friday that it will change its name and brand messaging to reflect its new identity as an international luxury, sports and lifestyle organization.

On June 18, subject to board approval, the new name for the company will be Kering (pronounced Caring). The Paris-based company said the new name reflects its culture of “taking care of our brands, people, stakeholders and the environment.” The suffix “ing” expresses the idea of movement, reflecting the diverse history of the 50-year-old company, which began as a trader of timber and construction materials. The stem “ker,” meaning home in Breton, refers to its origins in the Brittany region of France.

Since 2005, PPR has been undergoing a transformation from a conglomerate focused on primarily European distribution activities, to an international group focused on the apparel and accessories business across two fast growing segments that it defines as “Luxury” and “Sport & Lifestyle.” In a few months, the new group expects to leave the distribution sector completely, after disposing of Fnac and the remainder of online fashion retailer Redcats.

The company’s collection of brands include Gucci, Bottega Veneta, Saint Laurent, Alexander McQueen, Balenciaga, Brioni, Christopher Kane, Stella McCartney, Boucheron, Girard-Perregaux, Qeelin, Puma, Volcom, Cobra, Electric and Tretorn.

Laurent Claquin, head of PPR Americas, said the change in the company’s identity is a natural step in the group’s transformation.

“We are marking a transition from a conglomerate to an integrated group,” he said. “We are in the business of fashion. We are also part of the same group (as) a way to signify how we do our business with our brands and customers.”

Claquin refused to comment on published reports that the company is in the final stages of acquiring luxury Italian jewelry brand, Pomellato. “It is not the subject of the day,” he said.

Accompanying the new name are new symbols for the company and an international branding strategy over multiple platforms that it emphasis the creativity of its brands. A new video, website and advertising campaign and supporting items are among the ways the company intends to promote its new image. Digital media will be a centerpiece of the campaign. Follow this link to view the company's new video.

As part of the strategy, the company adopted a new symbol, the “untamed” owl, and even a company signature that reads: “empowering imagination.”

The owl is drawn from a single line, like a quick sketch, a doodle even, with outstretched wings and its face framed in a heart. This simple drawing expresses far reaching values, according to the company, from foresight, wisdom and intelligence to caring and respect.

Claquin emphasized that the new campaign is geared toward the B-2-B community and not the general public. “We don’t communicate through a general public,” he said. “We don’t want to be stronger than our brands but we do communicate to our target populations.”

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PPR Shopping for Luxury Jewelry and Watch Brands

François-Henri Pinault. Photo credit: InDigital Media Group

NEW YORK — French holdings company, PPR, is on the lookout for luxury jewelry and watch brands to strengthen its portfolio and meet demands in the booming Asian region.

François-Henri Pinault, chairman and CEO of the company that owns brands in the luxury, sports and lifestyle markets, said PPR identified a weakness in its portfolio in the growing men’s luxury segment. To rectify this it took control of the Sowind Group, which owns the Swiss luxury watch brands, Girard-Perregaux and JeanRichard. Then it acquired the Italian men’s fashion brand, Brioni.

The company already owns the French luxury jewelry brand, Boucheron, which it purchased in 2000. However, Sowind and Boucheron are the only companies it owns in the “hard luxuries” segment of the market. PPR primarily operates internationally in the apparel and accessories sectors in the luxury market and what it identifies as the “Sports & Lifestyle” market. Its luxury brands include Gucci, Bottega Veneta, Alexander McQueen and Balenciaga.

He said PPR will pursue hard luxury brands. “We are looking to any opportunities in jewelry and watches, particularly in Asia,” he said. “It is very important in Asia.”

Pinault made these comments Wednesday following a breakfast presentation at the Consulate General of France. During the event, he gave his views on a range of topics, including the growth of Asian market, the strategy of his diverse holdings company, and e-commerce and digital media.

Pinault said that for 50 years the growth in population and wealth in the world (800 million consumers) was centered in the U.S. and Japan. However, in 2006 the company identified that economic growth has shifted to emerging markets—particularly China, India, Brazil, and more recently, Indonesia—bringing 3 billion consumers to the worldwide market, and that this trend will continue.

“It means that in the next 50 years the growth is amazing,” Pinault said. “We don’t have any idea what it will be. We are always referring to the past but it’s no use. We cannot compare 3 billion people with more and more purchasing power to 800 million in the past… The question is what should we do to take advantage of those opportunities of growth?”

The company already made a decision to enter the luxury market in 1999. However, in 2006, it began to drastically change its portfolio to enter the sports and lifestyle segments. In 2007, it purchased Puma as the centerpiece of this new strategy.

Then, he said, the company needed to identify two areas of growth in this segment that would not compete with the footwear and sportswear company. It chose action sports, which led to the 2011 acquisition in Volcom, and the outdoors market segment.

PPR then took a giant step toward shoring up its e-commerce and digital media strategy by forming a joint-venture with online retail specialist Yoox to administer the e-commerce operations of most of its luxury brands.

Pinault says PPR’s digital media strategy has two parts. First, it needed what acquire the skill set, which resulted in the partnership with Yoox. Now it will try to create an experience that is similar to what customers get from going to one of its branded stores.

“You cannot offer an experience to your customer in the stores that’s completely different from the experience that you’re offering online,” he said. “You go to a Gucci store for the experience rather than mainstream stores. You have to reproduce that online.”

He continued, “The next step is to transform the e-commerce experience, our luxury experience, like it is in the stores. It will show that we can reproduce this conversation online.”

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Diamond Tiara from Maureen Swanson Could Fetch $235,000

Diamond tiara from the late Countess of Dudley, also known as the actress and dancer Maureen Swanson.

With the ongoing celebration of Queen Elizabeth’s Diamond Jubilee, it seems fitting that Christie’s London sale of Important Jewels on June 13 would focus on royal and aristocratic jewels.

A total of 368 lots include jewels from the collections of Princess Soraya Esfandiary Bakhtiary, Beatrice Countess of Granard OBE, and the late Countess of Dudley. Spanning four centuries, the sale has rare historic rings, diamonds and pearls. The roll call of signed jewels by the leading houses and designers includes: Boucheron, Cartier, Chaumet, Chopard, Graff and Van Cleef & Arpels.

One of the top pieces of the sale is an Art Deco diamond tiara by Cartier (pictured above) from the collection of the late Countess of Dudley, also known as the actress and dancer Maureen Swanson, with an estimate of £100,000 – £150,000 ($156,850 – $235,270). It is one of 17 jewels offered from the collection up for sale. The tiara is “composed of five graduated shield shaped clip brooches, each resembling the Pylon, the tapering monumental towers of ancient Egypt whose bold form inspired so much 1930s design,” Christie’s said. “Together, mounted atop the simple diamond line frame, these clips are transformed into a modern soaring geometric skyline, their design recalling both the architectural innovations of the era together with its inimitable style.”

The sale also will be led by the Cowdray Pearls, a rare natural pearl necklace, composed of a single row of thirty-eight graduated natural grey pearls, with an estimated price of £280,000 – £350,000 ($440,000 – $549,000). It is from the collection of the late Viscountess Cowdray, Lady Pearson (1860-1932).

Leading the small group of jewels formerly from the collection of Princess Soraya Esfandiary Bakhtiary is a 12.15 carat diamond circular single-stone ring (estimate: £70,000 – £100,000; $110,000 – $156,850). Another ring with notable provenance is an Edwardian sapphire and diamond ring, circa 1905, which was formerly in the collection of Beatrice Countess of Granard OBE (estimate: £30,000 – £40,000; $47,000 – $63,000).

A selection of 40 lots from Cartier, including jewels, cufflinks, watches and clocks, is a highlight of the auction. This portion of the sale is led by an Art Deco diamond and gem bracelet of Oriental inspiration, circa 1925 (estimate: £100,000 – £150,000; $156,850 – $235,270), and a pair of platinum and diamond ear pendants, composed of a graduated line of three brilliant-cut diamonds, suspending a pear-shaped diamond drop (estimate: £100,000 – £150,000; $156,850 – $235,270).

For information on all the lots offered in the sale, view the online catalog.

PPR Has an ‘Excellent’ 2011

French luxury and retail company, PPR, said Thursday that its 2011 revenue rose 11.1 percent, year-over-year, to 12.2 billion euros ($15.86 billion).

The Paris-based company—whose brands include Gucci, Bottega Veneta, Yves Saint Laurent, Alexander McQueen, Balenciaga, Brioni, Stella McCartney, Boucheron and Girard-Perregaux—reported that its recurring operating income rose 16.9 percent to 1.6 billion euros ($2.08 billion) and its recurring net income, group share, surged 26.4 percent to 1.05 billion euros ($1.36 billion). Net income, group share, rose 2.3 percent to 986 million euros ($1.3 billion).

“PPR’s results for 2011 are excellent,” said François-Henri Pinault, PPR chairman and CEO. “Our Luxury and Sport & Lifestyle brands command leading positions in the fastest-growing segments of the apparel and accessories market and are well placed to respond to and anticipate new consumer trends in both mature markets and emerging countries. The transformation of PPR into a more cohesive, integrated group will make us stronger and enable us to fully exploit the huge growth potential of each of our brands. In the uncertain economic climate of early 2012, the core strengths underpinning PPR’s robust 2011 results will continue to propel our performance this year. PPR is confident that 2012 will be another year of sustained revenue growth and improvements in our operating and financial performances.”

The company divides its operation into three division: Luxury (Gucci, Bottega Veneta, Yves Saint Laurent, Alexander McQueen, Balenciaga, Brioni (acquired in January), Stella McCartney, Boucheron, Girard-Perregaux, JeanRichard, Sergio Rossi); Sports & Lifestyle (Puma, Volcom, Cobra, and Electric); Fnac, the French books and music retailer; and Redcats, a fashion and home group of companies that PPR is selling.

Luxury division revenue rose 22.6 percent to 4.9 billion euros ($6.36 billion). Gucci revenue rose 17.9 percent to 3.14 billion euros ($4.08 billion), Bottega Veneta revenue surged 33.7 percent to 682.6 million euros ($887.1 million), and Yves Saint Laurent revenue increased 31.4 percent to 353.7 million euros ($459.6 million).

Puma revenue rose 11.2 percent to 3.01 billion euros ($3.91 billion) for the year. Fnac sales were down 3.2 percent to 4.16 billion euros ($5.4 billion).

Bédos to Lead Birks & Mayors

Jean-Christophe Bédos

Jean-Christophe Bédos, the former head of the international jewelry house, Boucheron, has been named Birks & Mayors president & CEO. He will replace Thomas A. Andruskevich who announced in September 2011 that he would be leaving the company in the spring.

Bédos, who is already on the job, will spend his first three months with the company as its chief operating officer, reporting jointly to Andruskevich and Lorenzo Rossi di Montelera, chairman of the Board, to allow for a smooth transition. Bédos will assume the role of the company’s president and CEO on April 1. Birks & Mayors is a luxury jewelry retailer with 61 stores in Canada and the United States. Its headquarters is in Montreal.

“His experience as president of one of the world’s most prestigious luxury brands and his extensive knowledge of the luxury jewelry and timepiece industry will be key assets for Birks & Mayors as it continues the development of the Birks product brand and pursues international expansion,” Montelera, said.

Bédos was president and CEO of the Parisian luxury jewelry house, Boucheron Intl., from May 2004 till June 2011. In addition, to maintaining and enhancing the strong presence of the brand, he was an early adapter to marketing the brand and selling its well-crafted luxury products online, as he explained in 2010 during a panel discussion during the FT Business of Luxury Summit.

Previously, he was the managing director of Cartier France from 2002 to 2004, and international executive manager alongside the president of Richemont Intl. from 2000 to 2002. Bédos started his career in the jewelry industry at Cartier in 1988. He holds a Master of Science in Management from the London Business School, a LLB in International Law from Université Paris I Sorbonne, a BA (Honors) in European Business from Trent University, Nottingham and a Bachelor of Arts, European Business, from Toulouse Business School. Bédos will be based at the company’s head office in Montreal, Canada.