Buccellati Appoints New CEO

The Buccellati 18k “Star Collection,” necklace and earrings made of more than 1,700 white and yellow diamonds and 20 pieces of Imperial jade.

Italian luxury jewelry brand, Buccellati, has named Thierry Andretta as its new CEO, according to reports.

Andretta, was most recently CEO of the French couture house, Lanvin, where he doubled sales to more than 236 million euros during his four-year tenure. Prior to Lanvin, he worked in senior positions at Ungaro, Céline, Moschino and Gucci Group.

Monday's announcement came less than four months after Italian private equity fund, Clessidra, took a majority stake in Buccellati, Reuters reports.

Buccellati is known for its signature lace rings and necklaces (many one of a kind) worn by monarchs and movie stars. Some of its pieces sell for more than $1 million. Members of its founding family still design many of its pieces. The company also is known for not routinely lending its jewelry to actresses on the red carpets at high-profile events such as the Cannes film festival or the Oscar ceremony.

Andretta told  Reuters the brand will develop its watch business as well as its presence worldwide, particularly in new markets such as the Middle East and Russia.

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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 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).

PPR Sales Up 7.5%, Management Shakeup Announced

François-Henri Pinault

PPR, the world’s third largest luxury group, reported a 7.5 percent increase in revenue to 14.6 billion euros ($20 billion) for 2010. On a comparable basis, when currency fluctuations and other factors are removed, revenue increased 4 percent.

Net earnings income for the Paris-based company totaled 965 million euros ($1.31 billion) versus 950 million euros ($1.29 billion) last year. Operating income rose 23.5 percent to 1.53 billion euros ($2.1 billion).

“The operating and financial performance of the Group as a whole and of each of its businesses was outstanding in 2010. Cost-control efforts launched during the height of the economic crisis and the sales offensive implemented successfully in 2010 to drive profitable revenue growth enabled the Group to take full advantage of the upturn,” said François-Henri Pinault, PPR chairman and CEO. “I am confident … PPR will continue to achieve robust revenue growth in 2011 and deliver a better financial performance than in 2010.”

The company—whose luxury brands include Boucheron, Gucci, Bottega Veneta, Yves Saint Laurent and Balenciaga—also announced a shakeup of its management structure. Under the plan, which becomes effective March 1, Pinault will head the company’s luxury division. He will replace Robert Polet, who led the division since 2004. The company also has a Sports & Lifestyle division, which includes the brands Puma, Fnac and Redcats.

Under the new structure, each luxury brands will retain its autonomy under the responsibility of its respective CEO and creative director. The Luxury Business group will report directly to Pinault. Alexis Babeau, who was previously COO of Gucci Group, has been appointed deputy CEO of the Luxury Business group.

Pinault, in a statement, said the new management structure was “conceived jointly” with Polet.

“I would like to give Robert the warmest thank for his commitment and dedication in leading Gucci Group to where it is now,” Pinault said. “His many qualities and achievements have earned him the respect of all in the world of Luxury. Today, our Luxury Business Group has blossomed into an ensemble of superb, creative and independent brands achieving outstanding operational and financial performances.”

LVMH is the Best Global Luxury Brand

Despite the economic downturn, several luxury companies were able to increase the value of their brands in 2010, according to the 11th annual ranking of the "Best Global Brands," by Interbrand, a global brand consulting firm.

Among luxury brands, LVMH ranked the highest on the list at 16th, followed by Gucci (44), Hermes (69), Tiffany & Co (76), Cartier (77), Armani (95). All of these brands saw growth this year because they continued to invest “in their heritage and legendary status,” Interbrand said in a statement. “Outstanding customer service and a focus on unique in-store and online experiences allowed them to stay strong, even while consumers cut back spending.”

Burberry, which ranks 100 on the list, saw no change in its brand value this year.

For the 11th year straight, Coca-Cola retains its top spot as the number one ranked brand on the list. But the bigger story is the growth of technology brands, with IBM (2), Microsoft (3), Google (4), Intel (7), HP (10), Apple (17) and BlackBerry (54).

Apple increased brand value 37 percent “through carefully controlled messaging and an endless wave of buzz surrounding new product launches,” Interbrand said. Google saw a 36 percent increase in value over last year, “bringing the brand closer than ever to rival Microsoft.” Meanwhile, HP, despite a challenging year, “made smart additions to its product portfolio and swiftly expanded the HP brand to protect its ranking on the list. BlackBerry’s brand value grew 32 percent and it remains “the most popular smartphone for business users, despite pressure from Apple as it edges into the corporate world.”

A number of prominent brands faced extraordinary crisis in 2010 resulting in stalled growth, value loss and in the case of BP, failure to make the ranking this year. BP's environmental disaster and inability to make good on its brand promise of "Beyond Petroleum" led to it falling off of the list and helped competitor Shell emerge as an industry leader, now ranked number 81, up from number 92 in 2009. Although the Toyota (11) recall caused the brand to lose -16 percent of its brand value, its long-standing reputation for reliability, efficiency and innovation helped it weather the crisis better than expected. Goldman Sachs (37) was once the envy of Wall Street, but now faces the dichotomy of strong economic results and an angry public that will continue to lash out until the company begins to demonstrate that it is making sincere efforts to better align its ethics with its brand.

During a difficult year for the auto industry, Mercedes Benz (#12) and BMW (#15) were able to sustain and build their value through innovative design and a focus on delivering premium value vehicles with luxury features. Using customer feedback, largely drawn from YouTube, Flickr, Twitter and Facebook to launch the 2009 Fiesta, Ford (50) stands out as one of the best example of how to use social media. Award-winning products like the Q5 and rich heritage help Audi (63) lead industry growth this year with a 9% increase in its brand value.

"2010 was the beginning of a long road back towards economic recovery," said Jez Frampton, group chief executive at Interbrand. "From real-time customer feedback through social media to increased transparency about corporate citizenship, brands were faced with a profound change in the way they relate to customers and demonstrate their relevance and value. Despite this new paradigm of brand management, the advantages of building a solid brand remain the same."

In the financial sector, legacy brands Citi (40) and UBS (86) lost double-digits in brand value, while Santander (68), Barclays (74) and Credit Suisse (80) made their debut on the list for the first time. “Their ability to stay true to brand promises in unsure times, and avoidance of the subprime mortgage crisis, helped them stay the course, Interbrand said.

Interbrand publishes the ranking of the top 100 brands based by analyzing the many ways a brand touches and benefits an organization, from attracting top talent to delivering on customer expectation. Three key aspects contribute to a brand's value; the financial performance of the branded products or services, the role of a brand in the purchase-decision process and the strength of the brand to continue to secure earnings for the company.