PPR Re-branded And Given New Name

The luxury and sportswear group PPR, which owns Puma, Gucci, Saint Laurent and more, have recently announced that the company is changing its name to Kering and embarking on a major re-branding. Kering, a title meant to signify the company’s 'caring' approach in developing it’s brands as well as acknowledging the company’s roots in France’s Brittany region (‘Ker’ means home in Breton). The new name was also accompanied by an owl logo and tagline “Empowering Imagination”.

So why would  a well-known and globally successfully luxury goods group like PPR, after devoting years towards establishing brand equity, etc. would make such a corporate transformation? And PPR reported revenue of 9.7 billion euros, or $12.5 billion, for last year. What are the company’s new expectations/hopes when it comes to sales growth and business revenue growth?

Louise Beveridge, Kering’s senior vice-president of communications, when asked to explain the name change said, “We still have a few assets which we need to sell, which is happening right now, but otherwise the group has completely changed shape, form, vocation and philosophy,” she continued. “The question then became: do we need to change the name?” 

I speculate PPR is looking for a new ‘appearance’ for the group and a brand new identity within. Therefore a new brand name = new brand concept.

(Courtesy of: WWD.com)

It seems the idea is that while the existing corporate brand lacked a sense of ‘personality’ and ‘a clear point of view’, the new Kering is “a name which is closer to the reality of our business today, which reflects our way our doing business, which reflects a point of view, which becomes a point of differentiation and a point with which our employees can actually identify with,” Beveridge also has said.

PPR, a 50 year-old company previously known as Pinault-Printemps-Redoute, was once a holding company with a wide range of assets that was run similar to a private equity firm. Then in 2005, François-Henri Pinault started a complete transformation that would change PPR, from a financial company with no specific focus, into an ‘industrial group’ made up of accessories and apparel brands with two main focuses - luxury and sport.

“Luxury and sport is the same business. Fundamentally, it’s the same value chain. You create, you produce, you distribute; clothing and accessories. Different price points, different clients, but fundamentally the same business,” Louise Beveridge has stated.

(Courtesy of: under30ceo.com)

I believe this change of name (as with the reasoning behind it) will most likely improve business sales for the company. Established in the business of fashion,branding, business development, product development, marketing, sales, in various fields ranging from textile sales to skincare sales, we have seen the changes companies go through to improve their identities (especially luxury brands in fashion business).

The name Kering makes a far more manageable word than (a phrase like) Pinault-Printemps-Redoute. And while the name ‘PPR’ was concise, it didn't appear to have much character. PPR is far too reminiscent of abbreviations like the “USSR” which might be best suited for a bank or law firm’s initials, but it honestly doesn't inspire much joy.

A marketing campaign, said to be carried out mostly though print advertisements and social media, has been planned to help spread the word before the name change officially takes effect in June.

In addition, let’s not forget other recent fashion business development changes made in relation to PPR– soon to be Kering’s – luxury brand Gucci’s buying-out of luxurytableware brand Richard Ginori. 

(Courtesy of: ilgazzettino.it)

It seems that many fashion business developments are in the works this year.  Gucci found inspiration to re-equip the historical company. After all, when it comes to product development, product sales and business sales with the right amount of creative direction, the possibilities can be endless!