French luxury group Kering SA, known for brands like Gucci, Yves Saint Laurent, and Balenciaga, has made a bold move by appointing Luca de Meo—the turnaround expert from Renault—as its new CEO. This surprising appointment signals a significant shift for the struggling luxury group, which has lagged behind rivals like LVMH and Hermès in recent years.
Despite lacking direct fashion industry experience, De Meo brings with him a proven track record of reviving brands and creating compelling customer narratives. But can an auto executive fix a fashion powerhouse? Let’s take a closer look.
Why Luca de Meo?
Luca de Meo, an Italian executive fluent in five languages, is celebrated in the corporate world for his strategic brand building. While heading Renault, he steered the company out of a severe financial crisis during the COVID-19 pandemic and later managed the fallout from the Russia-Ukraine war, which forced Renault to exit its second-largest market.
Under De Meo’s leadership, Renault saw record profits, new partnerships, and exciting car launches like the Renault 5 electric—equipped with quirky accessories like a baguette basket. His creative brand flair was also visible when he rebranded Renault’s F1 team as Alpine, aiming to build it into a “mini Ferrari.”
This combination of creative thinking, operational discipline, and brand revival makes him a strategic fit for Kering, which has struggled to refresh its flagship brand Gucci.
Kering’s Challenges: A Luxury Giant in Trouble
Founded by François-Henri Pinault, Kering has seen its stock plunge nearly 80% from its 2021 peak. The brand is caught between fading Chinese demand, increasing US tariffs, and stiff competition from global luxury rivals.
Even the brand revamp of Gucci, with fresh designers and new CEOs for other labels like Saint Laurent, hasn’t stopped the slide. Investors remain anxious, particularly due to Kering’s growing debt load and lack of sustained revenue growth.
As luxury analyst Luca Solca puts it, “De Meo has a titanic challenge ahead of him.”
The Upside: Why Investors Are Hopeful
So why bet on De Meo? Because:
✅ Proven Turnaround Skills: De Meo successfully turned Renault profitable when the odds were against him. He’s known for bold decisions that re-energize organizations.
✅ Luxury Passion: Surprisingly, De Meo is a luxury connoisseur, especially known for his passion for Swiss watches and custom tailoring. He’s not just a numbers guy; he understands aspirational branding.
✅ Italian Connection: As Gucci accounts for nearly two-thirds of Kering’s profits, De Meo’s Italian roots may help reconnect the brand with its heritage and rejuvenate its creative direction.
✅ Brand Marketing Focus: His work has been studied by Harvard Business School, highlighting his innovative marketing skills—a key strength Kering urgently needs.
The Road Ahead: Strategy Over Cost-Cutting
While some analysts worry that De Meo’s corporate approach may lead to cost-cutting rather than creative growth, others believe his focus will be on brand storytelling—something luxury brands thrive on.
One major task will be winning trust within Kering itself. After multiple top-level changes in recent years, the internal teams may require motivation and direction to align with De Meo’s vision.
Critically, investors now await De Meo’s strategy announcement. If it’s “more of the same,” the market may react negatively. If he unveils a clear vision for Gucci’s revival, it could transform Kering’s future.
Final Thoughts: Can Luca de Meo Save Gucci?
De Meo has a tough job ahead—but his success at Renault proves he can navigate crises. The luxury industry may be vastly different from automobiles, but both demand emotional connection with customers, innovative marketing, and strong brand identity.
As Kering gears up for this bold new chapter, all eyes are now on De Meo’s Gucci game plan. Will Gucci sparkle again under his leadership?
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